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

one of things we found on our observations was a lot of advantages of cmgc were not really -- didn't come to fruition in the first phase. there was not full collaboration between the contractor and the agency. a lot of the cost estimating was not accurate. so, that was a challenge doing change orders and predicting costs that would -- ha you can rely on. and we also found that there was -- i think every agency is dealing with the bitter pool. the hope is that with a contractor managing the bidding process that there would be a larger bidding pool. but that seemed to be a challenge during the project. but the focus that we want to do is on phase two. what happeneded in the past has happened. there's some good lessons learned there that can be utilized moving forward. but phase two, you have an opportunity to rebaseline from scratch and take a good, hard look at delivery methods. when i talk about delivery methods, it's just to go from the two extremes. design bid build is where an agency will do 100% of design. they'll define everything. they ale try to engineer out major risk in the

for the next step port staff will return to the port commission for approval to advertise for cmgc in july, continue to secure environmental permits expected in september and return to the port commission for funding sources in early fall. this concludes my presentation. commissioners, thank you for your time. we're available for questions. >> commissioner: thank you. any public comment? seeing none, public comment is closed. >> it's a project that's been near and dear to the commission's heart in supporting more water transportation and i think it's an important step. i have a couple questions. one, you said there's an appeal being filed. what's the basis of the objection to this ferry landing? >> good afternoon, commissioners. the port cfo. the taxpayers association sued on behalf of the tax payers. their argument is the poll increase that is funding rm3 was a tax and not a fee increase and as a tax it required two-thirds of the voters' approval. and in fact the measure did not receive two-third vort -- voter approval. my understanding is there were two suits that were filed. the fi