and photo rendering of what is phase two facility would look like with the fourth berth. through this time period 2017, red and white fleet has been very active and achieved substantial mile steins including seequa determination, acdc permit phase one. we have had negotiations on a draft term sheet, we hired appraiser, ron plum associates. we have been able to renegotiate the term sheet as of our last commission meeting in anticipation of this meeting today and also reflective of the most recent appraisal at fair market value.

this is a bar graft of red and wide's annual -- red and white's annual ridership. it is quite a performance to bring this many members of the public to the waterfront. it is really one of the most active maritime excursion operations at the wharf. they are improving the offerings, adding special events and charters to diversify the business line. not easy to read. a lot of columns and percentages. those are what they were prior in the 2016. we took the percentage rents to a market to market, if you will. brought those to market terms. we are proposing to consolidate

those to a much more manageable percentage rent schedule which you will see here shortly. here is the most recent five year financial performance resulting in $4.2 million of total rent paid to the port. a lot of -- part through the base rent which is the come lum under base rent and you can see percentage rent. this is updated since the percentage rents took effect in 2016, and we have on our next slide the projected five year performance for the new lease renewal. this would result in approximately $1 million more of rent to the port in five years, and we believe that is going to

be generating through the higher margin business we talked about previously as well as implementation of phase two water side improvements. beyond this the five year base rent be will be adjusted to reflect increased gross sales and base rent will never go below what it was previously. that will provide the port with a stable source of revenue, it add justs to the sales, and the percentage rent is paid above that. so we have a snapshot of the draft lease terms and in april of this year ron plum who is associated with the court

evaluated terms for maritime excursions and retail concessions in the city such as golden gate park. not only did rbr evaluate the financial terms but the lease term relative to the capital invested. red and white fleet advised the port that it is necessary debt financing will require 20 years of lease for amortization. the proposed lease term of 15 years with two five year options would be consistent with the appraiser's report as well as what is required in the capital markets for debt financing. these are terms that the port and red and white fleet have come to agreement on subject to,

of course, your approval. these are the draft lease terms. red and white is required to complete these in a time certain subject to the second phase to remediation project to be performed by pg&e. you heard that in a separate commission hearing, i believe, back in march. the sentiment adjacent to the red and white site is required to be remediated prior to the commencement of the phase two improvements. that is one of the reasons we had the delay from 2017 to today.

so this concludes my presentation. joe would like to step up to say a few words to the commission if that is okay with the commission. >> good afternoon, commissioners. joe berguard with red and white fleet. thank you for the opportunity to address you. jay's summary pretty much captured the project that i just wanted to first start by saying thank you to the port staff. we have been working with them for years, particularly the real estate folks, martin and edwards and the planning and maritime department. as you know, we have been a tenant in good standing for many years. our project is really designed to enhance the utilization of fisherman's wharf and improve our opportunities to increase revenue and provid provide a grt

experience for san francisco visitors. i could go on and on about our company. i think you are familiar with it. if there are questions i would be happy to answer them for you. >> thank you. >> does that conclude your presentation? >> yes. >> is there any public comment on this item? come on up. okay. you are next. >> good afternoon, commissione commissioners. i am randall scott executive director for fisherman's wharf and i am here to talk about red and white fleet. my first impression was mr. esher saying whatever you

need we have got you. it was a warm welcome. since that time i have learned that red and white fleet are great stewards and fantastic partners. they are duers. they don't just talk about something. when they say we are going to participate in your community. they it is in on committees as a board member. boarwhen they say they are going green, they are the first boat out there that is green. they are an amazing partner in the community because they respect their neighbors, respect those in which they engage with, and i just have the utmost respect for them. by the way they handle their business and the people, who they are. i can, you know, joke and go on and on, but overall, i was happy

they invited me to come and speak about their community engagement. they have double it. they are going to continue to do it. i have all of the faith in the world they are going to bring more people to the wharf. thank you very much for your time. >> thank you. >> good afternoon, commissioners. co-chair of maritime commerce advisory committee. i invite you to come to one of our meetings. what we do, we not only talk about and discuss policy and program and planning and provide comments to you all and to the staff. we also have all of the tenants when they come to speak about their issues, projects and we enable the community effort to provide support to the entire group. we have been following red and

white for several years, and are very happy to see the progress made on their long-term lease renewal. long-term leases are something that the m.c.a. c supporting the policies in the waterfront land use plan as a way to encourage and support the sustainability of the maritime. long-term leasings is good. one of the things i have been amazed. red and white fleeted represents some of the best business qualities within the maritime community. these are dedication to boating safety, sound environmental practices such as investing in vessel technology to reduce air emissions, one of the other things that has been fostering

the port. we think you will be happy with the shoreline and waterfront improvements when they can be constructed. the public access will really improve circulation at the site and enhance connection to the bay and the bay experience. we encourage you to keep working on the terms and come to a successful conclusion for approval. >> thank you. any other public comment? >> good afternoon, commissioners. i am robert. the regional director of the boat men's union. we represent the red and white captains and deck department. we have a long and intimate understanding of red and white fleet. most of that is hearmonious and great.

you get the opportunity to see how they behave when they are in the lens of disagreement. that is the time at which you can really gauge your respect for the people at the other side of the table. i can say that my respect for -- that is my old company. my respect for red and white fleet is sincere and solid and well-founded. their management holds my respect as well. i believe that probably primary among your concerns is the stability of the rent and the foundation of the tenants. i don't think you could possibly find anyone on the waterfront or anywhere else that could match their legacy. their history is tied so deeply to the san francisco waterfront you would be hard-pressed to

it's them apart. looking forward matters, especially for a company their side. what they have done with the environmental efforts and investments, they should be proud of themselves and the port should be proud to have them as tenants. i would hope they could get their lease renewed as fast as possible to go forward with planning to see where they are going to be for the next foreseeable future. i also think that has nothing to do with the fact i may be met my wife on one of the boats 28 years ago. thathat is my personal history. i hope you renew the lease and give them the security they deserve. thank you. >> any other public comment on this item? seeing none, public comment is

closed. commissioner gilman. >> commissioner gilman: i want to thank staff for this presentation. i generally like a lot of what i see from the terms and improvements. i had one question that goes more to dovetail to the conversations we have had around other legacy business on the the what were to have two families that have been there for over 100 years. that is really meaningful. has that parcel or this particular pier ever got out for comepetitive bid? this is not just about this. i am curious since we have had that for other businesses. >> thank you for the question. i can't answer what happened before the 40 years. we had a lease in 1975.

perhaps somebody from red and white could enlighten us. it is a good lease and good relationship. i think in terms of that site, it is very small. are we to give additional history? >> since under our jurisdiction it is continuance of a legacy lease that we are renewing. >> it is one lease for 40 years. no renewal. since 2015, they have been on month-to-month, which for a business of this size is difficult to make any improvements. we have 100 employees with their livelihood here, too. >> the maritime use they have a good strong reputation, union

shop. it wasn't so much about that. it was more in general at the last meeting we talked about legacy businesses. i was curious of the history since it has the unique ability to be operated by the same family over a hundred years. >> one additional point. red and white has not operated at this site. they purchased this lease and moved into it in 1975. i don't have the specifics with me. it is not back to 1892. i think the point is the family has operated on the waterfront that long. >> eye sorry i just read it. that is a long lease as well.

>> commissioner woo ho: i took a quick tour when i was out there. i have a sense what red and white is planning to do. i support the report. i am curious in terms of the overall business and what they are doing for the projections going forward. i wasn't sure if they are increasing boats. they have the first elect trick boat on the grey. that is at the terrific. i want to know if the increase on the base rent. it sounds like percentage rent has gone down. the actual percentage itself is lower when you now simplify it to two buckets, i think. is that correct 1234. >> overall slightly.

the main excursion business. i am trying to understand the businesses strategy from the red and white side. passengers dipped. are they charges more? more bolts? i am not sure what is going on behind to support the financial projections which look more positive than what we have seen in the last few years. i would like a better understanding of that. >> there are a couple factors. during the people when they are good demand they are able to capture that demand. >> which means what 1234. >> larger vessels. this is a new investment. iit is a substantial investment. that allows them to pursue a different market to get more out

of the bay excursions which is some of the core businesses but they are able to diversify to charters and diversesible burberry haven't. then comebine with the phase two improvements. that will allow them to basically get the people on and off the vessels faster, more efficiently and with the fourth berth they will have another vessel on site. >> it just means more operational efficiency with the existing fleet, not adding? >> where are they going to get the business. if we look at the passenger count a year or two years from

now we will see it go up? >> if you look at the revenue and passenger count, passenger count is sort of stabilized if you will but through these higher margin business lines they have been holding the line on revenue and think they should be able to enhance that with the fourth berth. >> is there any plan to diversify or is it purely excursion? >> with the special events and charters, that is their core business. i don't know why you don't make the higher margin where possible in the special event and the charters. >> okay. back do my basic water transportation questions. you answered it. thank you.

>> commissioner makras. >> commissioner makras: i conclude that red and white is a tenant in good standing. i also think they are a good stewart and good community member at-large. i don't support the soul source contract here. i think the contract should go out to bid. i believe there are other operators that would want to bid. i believe it is in the port's interest to put out as many bids to contract as we could. the competitive nature is one we believe in and brings the highest results and to do a soul source should be an exception and i don't believe the facts associated with this operation are exceptions enough to go forward.

i do like the business model. obviously i like that we are getting more rent. that does not mean we are not going to get it from the marketplace. it doesn't mean we can get the appraisal and publish it in the r.f.p. and let the marketplace bid against it. the soul source prevents everyone in the world from having a shot at this. we recently had the alcatraz bid and had more than one operator want it. we had people interested in that business. i think it would benefit the port to have a bidding process for this. i think that we are cutting ourselves short by doing a soul source to a good operator but there is not enough information, not enough facts to warrant the direct 40 year contract with

them. this contract has not been bid for over 40 years. that means 40 years ago look at the environment and look at the environment today. why would we preclude ourselves the opportunity to have everyone bid and see if we can do better? if we put it out to bid, we are not asking red and white not to bid. we are not saying they are not a good operator. we can say you are a good operator and we want you to bid. we can say that to everybody else. in the alternative we are telling everyone else no, we don't want to see how good your bid is. this is good enough. if we believe this is good enough, let's open up the appraisal to the public and let them see it. i believe the bid process will

rear a better deal than the deal that is here. i am not going to pry to persuade others to vote differently. i advocate the bid process is in our best interest and i am saying no to this contract to go forward because i believe today's environment you will not only benefit with the competitive nature but also the players will expand. 40 years ago none of us knew what local enterprise was. we didn't look at wbe participation, none of us looked at all of the san francisco components that made us great. if we put this out to bid we can make a deal with somebody you have been dealing with for 40 years. we do not have the opportunity

for two or three people to bid the contract with partners and someone with great experience. a women and minority component with it. that is what you get when you put it out to bid. i encourage us to open the door. i promise you and i believe we will have better bids than the one in front of us. >> thank you. >> that is what i like. everybody has a different point of view. i think it is something to be said about the integrity that i think that red and white has shown, and they have been like an icon on the san francisco waterfront. a landmark. we have so many different components of the waterfront, the giants, red and white,

history of the museum down there. we have so many different theirs. i think it fits into it. it is something to be said to have a 40 year lease, and they have been an employer of good paying union jobs here in san francisco. with san francisco and what the waterfront stands for. it is not always about more money. i guess because i come from the union background and have lived in ports my whole life. i have never lived in the real estate world. i look at it is more the money, sometimes it is the community aspect that it brings, and a need that is needed here in our community. i think red and white reflect that, and i have seen tom at a lot of meetings, just not for maritime. when we had that barn buster

about a month ago with 400 or 500 people, tom was in the audience. he didn't have to be here. he genuinely cares about the port and has invested in the port. for me, money is fine and sometimes it is good, but sometimes always the highest bidder is not the best person to be there. i look at what is good for this port. what has stabilized the people of this community with good paying jobs and taking care of their family. i appreciate all that you drew and i see a younger direction coming up different technological things. i see in thing continuing to progress and move forward. you have my support because as i said, i am not a person that

always thinks the best deal is about money. thank you. >> thank you very much for the presentation. thank you, tom, for being a wonderful tent for the last 40 years and for your patience with us. i didn't realize it was two years since we saw this. i would think how we got from $25,000 per month to $42,000 per month is due to some market reserve that you did to bring it up to market rate with these new terms, is that correct? >> that's correct. >> our retail laces are different from maritime businesses. to keep our maritime businesses at the port of san francisco we do things differently. i am in support of this lease extension.

i think it is great that we will we getting almost double the rent that you have built a great business that is continuing to grow and that the port is continuing to share in that success. i support this and i look forward to you bringing it back in june. thank you. >> thank you. >> item 12 a informational presentation of alternative construction project delivery methods for engineering construction projects. >> good afternoon, commissioners, of the brandon, director forbes, i am the chief harbor engineer for the port. in this informational

presentation, i would like to speak about alternative construction project delivery methods. we have larger construction projects being prepared for execution in is not too distant future, and we want the port commission to know we are looking at different methods for delivering construction projects. they become attractive on larger construction projects and offer additional benefits to the port. for the city administrative code, port staff are allowed to use criteria other than lowest cost when selling electing construction contractors on our projects. it can be related to a number of issues like contractor capabilities, safety practices and records or positive impacts on our neighboring communities. in addition to larger upcoming

construction projecteds like mission bay ferry landing and the earthquake safety program, we are looking at our facilities in a more holeis stick way to likely involve executing discipline specific subprojects in a single larger project to allow the port to consider using alternative construction project delivery methods. the use of alternative methods is consistent with the port stated equity goal to grow the number of local businesses competing for contracts by engaging teams that support the diversity of our city. for large projects delivered through design build and construction manager general contractor methods every choir specific lb -- require specific goal himself. they can provide a positive

impact. i am here to provide back ground on the alternative methods and present advantages and disthanks for the main types of project delivery methods. we have three different alternatives and our baseline design bid or low bid process. our baseline design bid build low bid is a currently used on almost all of our construction projects. it is a familiar process, relatively quick procurement and high degree of control for the port over the design. the port develops final construction plans and specifications and solicitors bids from qualified contractors.

the lowest bid is selected for the project. this works best when the pool of the contractors to do the work is large. with design bid build there is no early contractor involvement. no contractor input for project design. therefore, design bid build is best used on projecteds that do not require unusual or creative construction methods or would not benefit from coordinated design and construction process which is typically the case in smaller construction projects. typically we competitively award construction projects up to $1.5 million using the low bid process. the best value design bid build project delivery method is similar to low bid method but adds extra steps to determine the best value bid which may not

necessarily belong to the low bidder. to determine the winning bid the total bid price is divided by a qualification point score and the contractor with the lowest resulting number will objectively be considered to represent the best value. while best value can be used for projects with construction value as low as $1.5 million, port staff used rule of thumb of $3 million to consider best value as delivery method. the best value project delirreprovides advantages when a project has complex components, times or emphasize certain policies like contractor safety or use of small or disadvantaged businesses. port staff used the thresholds since there can be significant upfront work required to develop

the qualification pointed score rubric and selecting a panel of qualified individuals to score each individual. these costs are somewhat fixed so we have diminishing returns for smaller projects. in the first use of best value process, we estimate approximately three months added to the project schedule and will be reduced when we become more familiar with the process. best value. some of the advantages. we consider priorities that are in addition to low cost. in park building 49 we took into account contracting and community development criteria.

experienced mentoring small disadvantaged businesses and how a bidder encourages participation of small subcontractors. it reduces barriers to to to ee when staffing the project. on in slide representing the share of qualification points for building 49 construction project. this distribution was weighted to reflect our values of respective project elements. 62.5% for contractor qualifications and experience. 25% for safety record and 12.5% of the points awarded for community development. in terms of the ports exposure to higher construction costs

assuming relevant project experience and safety scores the same for contractor a and b, if contractor a had the low bid, but scored poorly on community development, contractor b's costs would have to be within at least 12.5% of the contractor a's bid and they would have to score highly on contracting community development criteria to have a chance at winning this bid. the next alternative is design build. there are a few variations of design build delivery. under any of these the port developing the concept plan and soliciting bids from the designers and contractors to perform both the final design and construction. design build is most appropriate when the port has a clearly

defined scope and criteria document and is willing to trade design input for risk transfer and shorter overall project schedule. you remove one cycle of bidding by doing it this way. design build projects typically reserved for larger projects due to larger upfront efforts compared to low bid contracting. the port's rule of thumb to consider the design build process is approximately $5 million. san francisco airport is using design build process to deliver most of the $7 billion capital program. other projects using design build include richmond and south san francisco ferry terminals and fire station 35 we heard about earlier.

the contract monitoring division establishes an overall l.b.e. goal for design build project as well as specific goals for each trade package. there is more cnb related to l.b.e. goals for design build and construction manager and general contractor project than the typical design build project. per administrative code the port has ability to direct the design build contractor to negotiate subcontracts for trade work up to 7.5% of the total estimated construction subcontractor cost to help port advance goals of increasing diversity and maximizing opportunities for disadvantaged contracting community. other advantages include cost-effective design and better cost certainty.

the port does lose some control in the design process, however. the construction manager, general contractor delivery method is encouraging collab collaboration within the project team. the owner obtains a separate designer with contract responsibility for the project design. the cmtc contractor is retained earlier during the design process to review and pro individual comments. you end up with a more construct ability project. the port has the benefits of design control with design build bid and the input during the design similar to design build

method. cmt is used on larger projects where the port needs maximum control over the design and construction process and has a trusted construction manager to work with. the cmgc is hired early in the pre-construction phase or conception phase. using one of three methods. cost only, best value or cmgc best team value. at approximately 60 to 90% the port would negotiate a guaranteed maximum price for construction. if the port and cmgc are not able to agree to the price the port may competitively bid out the final design as design bid build process. however the guaranteed maximum price is agreed to the cmgc completes construction through

the issuance and award of competitive trade bid. subcontractor trade packages are bid out on a low bid basis. for core trade performing design, pre-construction or design assist services, work may be awarded based on qualifications only. the port has to validate all costs with an independent cost estimator prior to authorizing the subcontracting work. it may also specify in the requests for proposals they perform one or more scopes of work and like design build the port also has a chance to authorize the c mgc to negotiate subtractors for trade work up to 7.5% of the total estimated construction subcontract costs.

one more slide. the contract monitoring division that a goal for cmgc as well as specific goals for each package. there is more over site in l.b.e. goals for cngc and design build than for design bid build coupled with ability to direct the contractor to negotiate subcontracts for trade work up to 7.5% of the total subcontract cost to help the port advance the goals of increasing diversity of contractor participation and maximizing opportunities for disadvantaged contracting community members. in summary there are alternatives to the low bid construction project delivery method for larger projects the

port will execute in the near future. there is no single super-yore method -- superior method. it is for each method. that concludes my presentation. thank you for your time. >> any public comment on this item. seeing none public comment is closed. >> thank you very much. this was interesting. i know one of our business expenditures need to understand how we bid out contracts. we do have a quarterly report? i think that would be useful in that report to understand which method are we awarding those contracts. i do understand it is not one size fits all. it depends on the size, complexity and our own resource expertise to decide which method that we use. we have used all for four.

most of them call into bucket one. i think it would be useful. what we want to know at our level is whether you are on time, on budget, and how you have proceeded. we see more of the exceptions that come here because you need our approval you are beyond the contingency amount or timeline. we don't always get all of the contracts you are monitoring in addition to what the l.b.e. component which commissioner brandon is a fierce component of which is important to continue to monitor. it is useful to understand how you are employing the different methods to keep the mis going to add to the report. that would be very helpful. at the moment, do you think the way we are deploying the different methods, are you

satisfied we are doing a good job to pick the method? >> i think moving forward i am. this is a precursor to mission bay ferry landing. i will help set the stage for seawall projects that are going to be coming up. i think this is i want the commission to know what tools are available to us to execute these projects. there are some opportunities out there for us to help our community. beyond just the low bid. >> right, right. i think sometimes one is fearful in the low bid process you are going to experience a lot of change orders later on so it ends up not being low bid, which i think is the fear of the commission member, that is my fear. this was very useful to help us

understand that you are choosing some other choices in addition to that. >> thank you. >> thank you again for the report. commissioner wooho said what i wanted to say. i would like to push the port staff to consider $1.5 million for the alternative the threshold on contracting. when we go the bottom we get the change orders. we don't get commitment to the community and i think we also quash innovation. besides being nimble it is expensive. the city shies away from that. i want the alternative to get the best product for what we are trying to achieve for the waterfront. i freeze often times with --

agree with often times we need to look at the substantive one bid may be more. $1 million depending on the scope of the project if it is a $100 million construction project. if that is a better output might be something to consider. i commend you on the alternatives and hope we can deepen how much we use them. thank you for your report. >> commissioner mac commission . >> commissioner makras: i won't speak against low bid but i do like the design. i think they bring great results. i do like best value, and i would hope that at the time of completion it is weighed in on

best value. >> that can be a criteria. >> if you put time into it, then we know one benchmark of another gain we are getting beyond the end product. when we approve the street on fisherman's wharf and it is going to be closed for two years. if we had a time completion date that brought that in half, i think all of us would look at that bid more carefully and would probably want it. my guess is everyone would pay something more. we have to arrive at what more we would be comfortable with. that is healthy for the bid process, the crew working over time, half a day, one hour a day over time all factor to a better product at the end. >> thank you. good presentation.

>> thank you so much for the presentation. it is wonderful to know there are other ways to do these bids. just wondering what the best value. why do you say the minimum should be $1.5 million? >> well, what we are recommending is $3 million. >> it is in the administrative code that the puc is going through a public benefits process, and it allows for more utilization of best value and other delivery methods and we plan to adopt that. right now it is low bid is required in the administrative code under certain thresholds. we are working to provide more flexibility with the puc being ththe primethe primary mover on.

>> i believe it is under $5 million right now. >> let us know whatever we can do to help with that. >> yes, we are working on that. we are lookin looking at the legislation. we are going to benefit from the legislation and they are talking to us about how we need the thresholds what we are looking for in the public benefits package. >> we look forward to working with these alternatives. >> item 13 new business. >> i had one item. it is an old time re-surfaced to look at the feasibilities of floating piers and cost structure and approaches to delivery of water transportation anand perth.

>> the ethics presentation in terms of i think maybe they mentioned the broker community and if we have more detail. for us to be refreshed on what other things are in other ethics policies that is even more detailed than the city so we are all refreshed on that. >> what we may need to include. >> that might be a good topic. >> i am a cei. you have a law that is complicated. that should be part of the presentation when i am sitting on the board because i had to be

walked through it because of my position. on boards of nonprofits is brand new. if you could include that in the presentation to go deeper. >> thank you. on. >> any other new business? >> can i have a motion to adjourn. >> motion to adjourn. >> so moved. >> second. >> all in favor. meeting adjourned at 5:50 p.m.

[♪] >> coming to san francisco on june 11th, the earthquake safety his fair from 10:00 a.m. until 4:00 p.m. as the auditorium at 99 grove street. meet with contractors, design professionals professionals, engineers and architects, along with city agencies and hundreds of booths on the main floor. attend one of the workshops at 11:00 a.m. the seismic safety strategies study. what you need to know is the city strengthens buildings 240 feet high and higher, and to get ready to the next -- for the next big one. 12:00 p.m., changes in the updated citywide vacant commercial storefront ordinance. 1:00 p.m., comply with the accessible business entrance program to enable everyone to enter your business. 2:00 p.m., home modelling

process made stress-free, meet the experts and understand the permit review issuance and inspections process. 3:00 p.m., making the best use of the accessory dwelling unit and legalization program to at affordable housing. learn from these three workshops at the june 11th d.b.i. earthquake safety fair, and begin to get ready for the big one by taking immediate steps to protect both family and property we hope to see you there, so register now. [♪] >> a way of life in san francisco. when the next major quake hits, the city hopes a new law requiring seismic upgrades to five story buildings will help keep more residents safe and sound. tell me a little about the soft story program. what is it?

>> it's a program the mayor signed into law about a year and a half ago and the whole idea behind it was to help homeowners strengthen buildings so that they would not collapse. >> did you the soft story program apply to all buildings or building that were built in a certain time frame? >> it only applies to buildings built in the time frame of 1978 and earlier. it's aimed at wood framed buildings that are three or more stories and five or more units. but the openings at the garage level and the street level aren't supported in many buildings. and without the support during a major earthquake, they are expected to pancake and flatten ~. many of the buildings in this program are under rent control so it's to everybody's advantage to do the work and make sure they protect their

investment and their tenant. >> notices have gone out to more than 6,000 owners of potentially at-risk properties but fewer than one-third have responded and thousands might miss an important deadline in september to tell the city what they plan to do. let's talk worst case scenario. what happens in a collapse? >> buildings have the tendency of rolling over. the first soft story walls lean over and the building collapse. in an earthquake the building is a total loss. >> can you describe what kind of strengthening is involved in the retrofit? >> one of the basic concepts, you want to think of this building kind of like rubber band and the upper three floor are very rigid box and the garage is a very flexible element. in an earthquake the garage will have a tendency to rollover. you have to rubber band analogy that the first floor is a very tough but flexible rubber band such that you never drive force he to the upper floors.

where all your damage goes into controlled element like plywood or steel frame. >> so, here we are actually inside of a soft story building. can we talk a little about what kinds of repairs property owners might expect? >> it's a very simple process. we deliberately tried to keep it that way. so, what's involved is plywood, which when you install it and make a wall as we have done here already, then you cover it with this gypsum material. this adds some flexibility so that during the earthquake you'll get movement but not collapse. and that gets strengthened even more when we go over to the steel frame to support the upper floor. >> so, potentially the wood and the steel -- it sounds like a

fairly straightforward process takes your odds of collapse from one in 4 to one in 30? >> that's exactly right. that's why we're hoping that people will move quickly and make this happen. >> great. let's take a look. so, let's talk steel frames. tell me what we have going on here. >> well, we have a steel frame here. there are two of these and they go up to the lower floor and there is a beam that go across, basically a box that is much stiffer and stronger. ~ goes so that during the earthquake the upper floor will not collapse down on this story. it can be done in about two weeks' time. voila, you're done. easy. >> for more information on how to get your building earthquake ready,

>> good afternoon and welcome to the regularly scheduled meeting of the san francisco ethics commission. i will do a roll call. [roll call] >> agenda item number 2, public comment on items appearing or not appearing on the agenda. >> commissioners, i'm with the san francisco urban government. know your rights out of the sunshine ordinance. that is printed on every copy of every agenda for every meeting of this commission, which might only seem ironic, but is, in fact, blatantly hypocritical. this body has no intention of even following the law, let alone enforcing it. i have 36 orders of determination, along with