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tv   Port Commission 42616  SFGTV  May 9, 2016 5:00am-8:01am PDT

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>> roll call commissioner president adams commissioner vice president brandon commissioner kounalakis and commissioner woo ho. >> item 2 approval of the minutes for the april 2016. >> 2013 opposed? inclusive session any public comment seeing none, public comment is closed. >> collective session. >> >> all in favor, say i. >> i. >> motion motion second >> all in favor, say i.
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>> i. >> opposed? we're in executi congratulations. >> i move to call the meeting to order. >> second. >> all in favor, say i. >> i. >> opposed? meeting is in order. >> i move not to disclose anything discussions in session. >> second. >> all in favor, say i. >> i. >> opposed? next order pledge of allegiance 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
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ringing of and use of cell phones, pagers and similar sound-producing electronic devices are prohibited at this meeting. are prohibited at this meeting. the ringing or use of a cell phone, pager, or other similar sound-producing electronic devices. please be advised members of the public has up to 3 maintenance for each agenda item unless the port commission adopts a shorter air item 8 items not listened on the items on the agenda public comment is closed. next item, please. >> item 9 a executive director's report gm good afternoon commissioner president adams and vice chair commissioner vice president brandon and members of the commission and members of the public i'm elaine the interim director 3 short items i'm happy to report on april 14th and 15 he traveled to denver for the cohort i was joined by city
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officials from april fool's day need to repair it their staircases they're hard i didn't staircases the district of columbia that needs a street lighting and as a matter of law e st. paul and, of course, looking to next argue seawall those public infrastructure challenges don't dr. that much in common but the fact their unseen pieces of infrastructure that work when they work and unseen when they go wrong they go ternl wrong a person with 25 years of finance and infrastructure jan was a convening we looked at all kinds of financing and this group brought to us examples from other cities the city of miami and london that has repaired seawalls and or trying to repair their seawall that is interesting
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and i also was joined by the mayors budget director acting melissa and nadia and bryan strong that manages the city capital plan for the port address seawall no better way to think about our seawall project we'll go to 4 other meetings over a four-month period the next is a trip between april 12th and 15 deputy superintendent of planning bryan and special director of projects brad benson went to d.c. to join the sf chamber of commerce on an annual trip with city staff and business labor meetings byron and brad had several important meetings no washington, d.c. and met with the army corp. of engineering for possible strategies for the
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seawall project and meet met with fema to discuss the flood maps how it effects the bayer and met with leader pelosi and with the exasperation they had a productive trip send of the trip they toured forest city in the d.c. and recorded that was a very, very striking productive of what is to come at pier 80 with the production and industrial building and to the trip we're grateful that our staff was able to attend that have a seat at the table and finally i'm esteeming happy to announce our james a. herman cruise ship has a certification we were at silver but our staff worked to get up to that goal
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certification standard and the cherry on top of excellent project to have gotten this goal certification kudos to the terminal team and the commission and that's all i have thank you. >> any p.m. on executive director's report seeing none, public comment is closed ash next item port commission report. >> commissioners. >> nothing to report. >> commissioner vice president brandon. >> nothing i just wanted to share with my commissioners lecture i had the opportunity to be in the panama with the iuoe that is historical we had our caucus but in order to get to the panama wear the hat and thursday night a treat we got to see them bring in the ships in the panama can he will
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to observe the expertise and the tlaentsz it takes to bring in the ships and their wide in the panama ships and this is the way the industry is coma historic moment for the iuoe and the panama can necessarily one of the 8 wonders of the world i wanted to share with with my commissioners and item 10 a 15 management agreement would automatic services for pier 80. >> this is angle informal presentation. >> peter daily this is an informational item with public comment and we'll come back to the port commission on may 10th for action we're excited about that and i manage to get my big
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screen working and we'll have some slides the other one thanks manny appreciate that. >> it is an important die i'm excited about the opportunity for the port and community port staff has negotiated an agreement with the potential to transformer pier 8020th century shown on the gene from an underutilized asset to create revenue for the port and significant economic and employment benefits for the city pier 80 is empty today it is san francisco's primary
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cargo term with a deepwater beshth addresses a half million feet of storage space and in case of a nationality disaster and recovering from an earthquake and other nationality disaster pier 80 has been operated and a steve donor and pier 80 is the base for am i correct? cup and used as an emergency homeless shelter bulk and cargo have dwindled to not operate pier 80 it is
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cumulative in northern california including stockton and sacramento and other not cumulative to operate a successful terminal we had an working analysis by the martin consultants a few years ago we looked at where other market we can try to go to make pier 80 more successful the analysis the ate executors and introverts at pier 80 due to the world log i can see have increased the potential market for san francisco the two years staff is in dialogue with one of the parish group a multi transportation copy hearted in san raphel with
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many employees a number of division a shipping between west coast and hawaii we've been in discussions with patricia port and other ports around the country the port proposes a 15 year management agreement e agreement with patricia automotive a subsidy to allow the export and import of materials with on terminal automobile detailing services once import vehicles will be transported by truck to northern california dealerships in nevada and export autos in the bay area can be shipped outburst of there to the world.
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>> it is anticipated that pier 80 could get up to 96 ships a year as comparison no cargo ships at the beginning of 2016 we anticipate the volumes are reach one hundred and 50 thousand vehicles and they can manage cargo or any other harbor that is available to supplement the facility they'll pay the basic utility costs and both parties will share the workers and dock and storage on a sliding scale as structured the revenues will increase as cargo volumes grow and cargo - they'll see significant returns these slides are a couple of pictures of parking space patricia in san diego city
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council they'll be responsible for that any installation of the trade fixtures for the import or export car including mechanical lifts and computer systems pier 80 has several deferred capital repairs that need to be alternated to accurate operate the terminal those items include leveling the portions of yard and sub structure upgrading and paving of the sheds and making that look better from the streets and the pier has created pond that at high tide those capital costs are estimated to be approximately $4 million patricia has committed to pay for 50 percent of the capital improvements as detailed above the port will pay for 50 percent of costs by grurj the ports
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after the total payment go back at this point i'd like to introduce john patricia the senior vice president of the patricia automotive services runs the auto division a local kid but lives in san diego i'd like to have him talk about the company john. >> danny will be here and fix you up.
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>> thank you, mr. detail i'll john patricia commissioner president adams and commissioners and director for better or worse i'll give you a little bit of background who we are and talk about our vision for pier 80 on the first slide this is my father taken two years ago iconicly we started the dialogue with point folks at the port of san francisco he passed a few months later but delighted to come to his roots we'll talk about that here as we go on we did start our family company over 70 years ago my father had a gas station any father worked there and not long after high school began showing his external entrepreneurial skills to a bigger deal in fort mason
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in the 60s made a deal with the port of san francisco and signed that agreement and began working on admitted vehicles after world war ii a lot of families going to germany they needed a place to off-load and coming back home as families deployed we began to import from japan nobody thought toyed toyota and others vehicles would sell in the united states he proved he could do that and began to grow the business and opened up in long beach and later in san diego as peter said we're a global company a lot of different operations but really
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true to our core business the autos business and this is an opportunity at pier 80 if you can't see that pier 80 the economic plunk and see a lot of opportunities on the west coast bans the fact that rel is more and more squares and cargos import and export are growing month tenders are full to the present including san diego a lot of challenges handling the product coming through our facility we see a shift into the bay area as a logging logical next step as well production in mexico if you look at kind of the overall sales from 60 mill careers over 17 million in north america i agree but at the same time the
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production is going south so in mexico we say had 3 and a half million of production the forecasting to be over 5 millions and every month you read about a new car manufacturer building a plant and ikea and others so what don't that mean we see the rail network bringing 9 cars up from mexico not sufficient to bring them safely up to any point if bay area or canada we offered short solutions in order to bring those vehicles up by water we're starting to see more and more ocean carriers precipitating and unloading in san diego and grace harbor that is a natural fit for the poster of san francisco another pier 80
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it is a small affair that is a sea mexico units on both coasts starting to come alive on vessels versus historically have been purely rail moves our motto for success is really based on the services for the diverse cargos not only audible potential but other real cargos whether heavy machinery or high and wide rolling stock and cargos enforced and exported to pier 80 in san francisco we need to renovate, upgrade the dpfrd items and invest in assembly and manufacture and car wash and repair facilities and quality
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inspections to handle the recall you hear about and serious lighting and urban designs to replicate what they expect a plant like operation at the ports along with that as we hopefully are successful in short order bring a tremors amount of community benefits with increased port revenues and union jobs with great benefits and family sustaining wages we offer technical training a low barrier to be an employee of those operations high school degree and minimal requirements valid driver's license and so forth gets you in the door and provide excellent training and partnered too with the iuoe and first source program to work out
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training programs to leverage what the community has to offer and bring loco loco jobs into pier 80 historically we have a high employee retention rate we're proud of and involved in different communities groups i've listed the chamber of commerce and the club and ymca boys and girls club and christmas in july and special advocate united way we like to be part of fabric not just writing a check but bring big groups of employees and make that part of our overall experience to rebuild a home over the weekend in national city san diego with local folks taking care of project like that we appreciate what we're doing in the local community and glad to be a part of it here we talk about a few success stories san diego is a 200 acre
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facility a little bit over double started in 1990 with thirty thousand cars and we had about thirty employees to with that grow over time to last year, we handled 4 hundred and plus vehicles on the odds three hundred and 5 jobs and l y u and others management staff and different folks that are onsite everyday over 5 hundred people obviously the ancillary impact to truckers and anular labor we're proud how that works in san diego grass harbor we started with 25 thousand cars and ccii cellar was our first customer the 13 and a half employment in that area and it was a - you'll see
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another facilities in florida and baltimore and if you pictures of san diego on the lower half you see the terminal in the navy far north that is the facility at grace harbor an $18 million with the rail 84 from the land facility there. >> here's the port florida a good strategy location from mexico port smith we began to off-load chrysler's and it is important in virginia we have a fun slide we're converting the old
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facility with the railroad facility on a 31 hundred facility and the inner coast it is against the water site is exist we're proud for the first railroad guys in town hopefully that is a little bit of a prospective on our company and family we're a family business without the people that work for us we wouldn't be successful in the marketplace and we differentiate ourselves with the place we share with our employees if you have me questions i'll be happy to answer any questions you may have. >> if not. >> we'll get you later good job. >> thanks john you're learning terms of the industry railroad that is a sophisticated item matt haney roll off roll on and
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we literally drive the cars off the ship the ships council and the members of the iuoe will get like a parking garage and drive them and get on the ship and load them good vice versa speaking the iuoe bill has done a lot of work over the year and a half and local 34 was a part without the cooperation of local 10 and local 34 they've been stall warts in understanding the need of them they have an excellent working relationship and occupied so i thank our 34 and local 10
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a member of the p m a when a ship comes in with 50 long short-term will be working once the cars are unloaded for import patricia processes the services that makes them unique with automatic washer and field truck literature and installation like electronic body styling kits wheel tire replacement and refreshing the computer systems and transit damage repair those jobs there are jobs created to be successful and port staff representatives the patricia and crew have collaborated with the mayor's office with the mayor's office of economic workforce development to insure that auto
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progressing opportunities that be focused on residents near pier 80 i'd like to introduce michael carr it is iconic we're working on a car and michael's last name is carmichael is the director of the would it be fair to say of iuoe and will speak about the workforce development plan between the mayor's office and patricia. >> thanks for the car pun as well i'd like to say hello thank you for having me. commissioner president adams and commissioners and mr. forbes what patricia talked about is important i'm from the office of economic workforce development for for those of you who don't know let me give a brief
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overview in the workforce we run the training for people in san francisco and in the serving community and help them we rent in the health care and hospitality seethe and other evictions like construction the city build is the main lead on the project in helping to find jobs the port this piece of port is in d-10 a robust operation in d-10 and in a few minutes i'll call patula to talk about how to use a local ordinance out of chapter eight 3 called first source hiring we're working with city attorney and patricia about putting in some robust requirements that relatives to employment. >> couple of things we'll make sure that employees that are interviewed for this job 50
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percent come out of the d-10 district with thirty percent of local hiring in san francisco our steam is really working hard to having reports from patricia also we're going to do quarterly meetings and talking to john between the meetings with you commissioner president adams and before this commission meeting some exciting things can happen if we get in project we're working on iuoe getting auto maintenance and repair program and working with the manufacture a s e and patricia will be a great partner and develop a robust program so i'm really kind of from the iuoe helped the mayor to endorse this but i'll bring that up and talk about how to we're going to find candidates in d-10 and how the
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process works wasn't we'll be the recruiting agency so pat - >> thank you, michael tom mulligan office of economic workforce development the city build is an 8 week have castle training off the main branch a program in existence for 10 years we graduated i think just in excess of one thousand individuals and we're graduating one hundred and 50 people a year your office also san francisco's local hiring we have ongoing plummet services for san francisco resident and previously been a training seeking employment an excess of 5 many of which meet
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the federal guidelines for the economic disadvantaged our serve we're focused with the workforce provisions whether it is targeted goal by these did redevelopment currently the office of infrastructure or some of the specific development that might target certain populations that is very common practice we're excited about the perspectives of this project frequently the focus of our efforts are towards infrastructure revolted construction we have relationships with the trade and the leadership programs we've worked closely with sign and displays 510 that represents the trade workers and other senate of theoretical local 16 and this is a great segue and
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potential for real opportunity for san franciscan to earn good wages with strong pathways thanks. >> yeah. this is an exist part of opportunities there will be - it - we're successful and i'm sure there be new jobs you saw pier 80 vacant it breaks any heart if we get to be where we want one hundred and 50 new employees working in buses and cars the program that with iuoe o e w d a terminal we'll have the workforce development as part of that to make it binding part of our all the time so these jobs
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are like john said have a low entry but we want to step up other opportunities to move into the other levels of technical jobs he said absolutely a number of jobs in san diego people are washing cars and end up being a terminal manager those are tremendous opportunity for us going forward. >> in closing over the past decades pier 80 cargos have think outside the box challenging the decline the west bay are limited connections in downturn and resulted in spite of the efforts with an underutilized term and port staff engaged with patricia and other stakeholders to explore the transformation of an active
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and lucrative maritime complex the port is financial risk with the reward of american people actually terminal creating for revenue and economic benefits for the community i would be neglected if i didn't thank a few people i don't want to forget them a number of port staff working hard for months specifically jeff from our real estate team jeff where are you and from the city attorney's office has been wonderful and aaron has been from the maritime has been great on the operation side and eileen thank you for your support to the approval of this in too weeks will be the port and patricia and the community will have to work together to insure that pier 80 with that we're all
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here to answer questions. >> at this time . you get in the queue scott i don't know him jim malone and myself he's here and shawn will be next (clapping.) (laughter.) >> that's a nice introduction. >> that's what you wrote. >> all right. thanks for reading anyway that's correct and game-changer commissioner president adams and commissioners it is good to see you again, i as you may know i'm the former maritime port marketing manager responsible for the ports cargo and development today, i'm here very enthusiasm supporting the agreement with patricia and got some notes he know i'm on a clock i will stick to them
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as you know i've believer working with patricia and the oewd with the port and here to speak to the excellent opportunity that deal brings to the port that could transformer pier 80 into a thyself terminal and provide wage and good paying jobs to the local community patricia has a long history as john patricia and peter highlighted of taking under utility west coast marine terminals and transforming them into profiting operations and i think that is worth repeating in the 1990s they took the national city marine terminal built as a container terminal and not used and transformed it into a handling
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facility usually they start off one one automaker now 18 great relationships with a number of automakers they handle 25 thousand vehicles last year in 2011 patricia took a nearly empty terminal for washington and developed it into a tlooift auto import and export facility is handled over one hundred thousand vehicles and acts as catalyst for other ports it put us on the map literally it is swalthd to transformer and patricia hawaii limited we saw some of the pictures of their vessels so service that patricia has between the west coast and hawaii they recently another a second ship to their service and which gives them the flexibility e flexibility to schedule for on
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the west coast they're in need of a west coast port call because of the fact the port of san diego is at capacity they need that so parish can bring their hawaii ships to pier 80 and relieve the congestion in 70 san diego as peter mentioned and john all the production in mexico is going expanding rapid having more than doubled in the past decade and effective to increase other 50 percent by 2022 that is an tremors opportunity as many shipping services have been to relieve the congestion by rail i heard my beep so i'll go ahead and conclude any remarks but urge you to support this excellent opportunity and congratulate port staff and patricia for bringing this over
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the finish line thank you >> thank you, jim. >> also nathan can you get in the crew after chris. >> good afternoon, commissioners staff i guess the easiest way to say this no-brainer it is a no-brainer the project itself just has so many upsides to it if you look at nothing more than the opportunity for you know really good pga jobs with great benefits that will throw us over the line the project stands on hitting its own patricia want to be here made it clear this is their home they - this is where we want to be i wanted to give credit for leadership commissioners the staff was amazing
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when things got tough there was misunderstanding to get understanding peter and monique and jim you know kept on reaching out to make it heap this is amazing that didn't happen very often you you know leadership if john you know when i was president i used to tell people easement don't tell me what i want to hear tell me the truth john never waved in emphasized truth in how things will work and how things will be when john stood here and said with an r what an opportunity to be here and talked about the things they do in san diego there's no dough in my mind that is the - i can't say enough good and thank you enough to the port the truth is there is no
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opportunity like this on the horizon for our san francisco waterfront right now so let's make the very best of a great situation thank you very much. >> verona you and dave can get in the queue too. >> chris. >> good afternoon christopher with the oewd local 10 i'm here to speak for our president and our union as a whole ear just extremely excited for this opportunity for pier 80, pier 80 was written off with no work no break nothing happening and the welcome to the people's palace will pledge no trip d informing many patricia autos and dings and dents and damage that will give the best and fair
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itself labor possible to have a successful relationship with patricia on a personal note i was born in san francisco four generations after college and pier 80 is were any dad started to work i grew up in the excelsior i'm a san francisco boy like peter said this is sad to see pier 80 vacant and empty nothing coming in with this glimmer of hope that patricia has given to pier 80 to make san francisco a player in the game for the maritime community is just wonderful that's why i urge you to please, please, please approve this this is a great thing for not just patricia, port the union it is a great thing for the city. it is a great thing for the whole 7 and a half mile stretch
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of the port that will be what it was intend for maritime and i just makes me happy again being a san francisco boy that pier 80 will once again possibly be part of the maritime industry so that's all i have >> thank you. >> nathan. >> i don't have any more cards avenue david and monique if anyone else wants to speak get to the cue. >> thank you commissioners and staff my name is nathan president of the guideline marine group i'm here to offer our support for this particular opportunity with the patricia group to provide the services at pier 80 our founder and ceo of our company mr. taylor louis has a great relationship many years as our organization they're very
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well respected the work they've done no san diego a in grace harbor is a true relationship for the bay area we believe they'll be a huge revenue generate and as representative and the governor's representative i can activist to 9 fact those types of jobs the governor is looking for and wanted to see kr5e9d in addition to the stem base jobs going on in the state so again on behalf of the marine group i hope you approve this application. >> thank you. >> veronica. >> mr. president, and commissioners veronica sanchez speaking in support of this agreement on behalf of the mason pilot to our president captain
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john marcus it is a wonderful opportunity when we have a chance to bring us flagships to the port of san francisco and our union does have master on the ships especially in the hawaii trade we're very supportive of this agreement and look forward to that trade expanding and our creating more jobs for the units thank you very much and thank you to the staff for their hard work. >> thank you veronica dave. >> good job mr. president, and commissioners thank you for having me. david the new president of the oewd insurance policy groups at the san francisco born and raised i'm excited at the
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reviolations of this i was working at pier 96 when it closed for maritime use it was kind of a sad thing to see and it is great to be working with the port in total support and great employers who are in support of bringing jobs into the area and it's been a lot of years you know, i was there for 12 years another pier 96 working and fortunately in our industrial i was able to go across the bay and still employed with my union it is time for other people to have opportunities and a great thing i hope you support it thank you. >> if there's anyone else that wants to speak i don't have a card please get in the cue. >> good afternoon commissioner president adams and commissioners
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my name is fred i'm the secretary treasurer of local 6 whatever division in the manufacturing api i've been a member of the ports maritime siding for more years and seeing the erosion of maritime industrial use on the waterfront and south of the city being the last place to have opportunity at this time until sea level rise i look forward to seeing pier 80 active again and what it does it let's the city know there is room for diverse economy in san francisco and a lot of us on the maritime advisory committee have been hoping for for years so . >> thank you. any more public
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comment going ones and seeing none, public comment is closed. commissioner kounalakis. >> okay so i'm the least familiar with the project because i - this is the first time i've seen it prepared and up for approval i had an opportunity to meet with peter earlier and get some of my questions answered i have one more that is peter in the pier 80 fee structure analysis that you provided it has the yellow line which is the port net revenue. >> correct. >> but is that before our 50 percent obligation on the capital costs. >> yes. it is that is the correct this is before the capital rent credits essential we'll get correct. >> in fact, our annual revenue
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net revenue will be half that up until about $2 million in capital costs spent. >> correct at no time will they be more 50 percent of the rent formally if they did that million dollars of work the answer to your question. >>yes. 50 with a $2 million cap on our expenditures over the life of the 15 years >> favoritism port staff is asking this be held over for action in order to give the public an opportunity to read the lease and terms of the first sour agreement at mr. carr has described we wanted to be sure to take and ask to be held over two weeks. >> then i think that when you
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present the structure analysis you should probably have a line item there. >> okay. >> to show the actual net revenue of the port will be. >> okay. >> no commissioner woo ho. >> okay. just foreperson i think we're talking about the cash versus the accounting and what commissioner kounalakis is saying from a cash basis since we'll be giving a 50 percent cash back for the capital improvement to $2 million to be absorbed we've been paying there they'll be pga us rent a question how many years through the various scenarios my question is related to the financial i guess we after a certain level up to the 20 percent sharing and since in san
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diego it was pointed out that patricia is maxed as 4 hundred 25 thousand cars this is 89 acres are half that time they're started off and building up quickly the question how high is high the question what would be the maximum capacity we'll expect to given the size and the market and the potential for and given they were already had all those great relationships with the manufactures so you one hundred and 50 thousand is it what you're representing the high side an upside what's the maximum capacity as that's a great question i'll try to answer if i screw up the answer john will answer for me we think that one hundred and 50 thousand cars is a good rate some modifications to the pier and our building could be leveled
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one of the sheds and their adjacent to the pier a couple of acres what about at not all the cars need to be on pier 80 they've sat in other ports can say as we develop the back lands and develop the industrial pads it this can be used for over space one hundred and 50 is optimistic but not the ceiling if we get creative we can reach higher than that. >> my understanding was that we if expect ships everyday only so many 80 ship calls therefore there are days some capacity a question of turn around, etc. so maybe you can give us more detail going forward so i
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understand we're not trying to project more than one hundred and 50 but if this business as a potential we're trying to said what is the long term potential given the space configuration and what we have to offer and the number of ship calls and the days turn around that is provide in the facility some of the jobs we hope to create if we could get important color on that. >> you're absolutely right the cars through the facility and the dwelling time minimizing that ups the capacity of the terminal by being creative we will get more information. >> the second issue we talked about it is wonderful i mean, i have to sound supportive of this project i should say that it is a great use of a maritime purpose which we often you know don't always have this is a
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tremors use of pier 80 so this is a business model what we intend to do is great two things pier 80 is used as a homeless shelter and clear understanding that shelter will be phased out so no issues i'll saying the record and the impact to the neighborhood that is transportation and now you'll having a lot of movement of cars if you could address how the transportation is addressed. >> traffic. >> one of pier 80s drawbacks we have the inability to handle railway and the distribution throughout the united states the infamous tunnels are too low to handle the trio level of cars so make a long story short the imports for the patricia group as trucking arms and other vehicles use have in the state
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of california high fshdz engines and so forth the beauty of pier 80 you have off caesar chavez and off i pier 101 the export suicides we're hoping a certain amount of manufactures are enticed to use pier 80 they're brought in by truck and it is going to be an issue i think that is the facility is well laid out to handle the efficient flow of cargo with a minimal issues with 3rd street. >> commissioner katz. >> the appreciate the comments of the colleagues and certainly supportive of project i like the
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naifrm comment you took the words out of my mouth this is creating an opportunity i think low benefit our community as a whole and just the the devil is in the details and a few things pie colleagues pointed out i'm pleased and excited this as come forward is a tremors opportunity so thank you to everyone who was involved. >> commissioner vice president brandon. >> peter thank you for a great report and michael and pat thank you very much for their input and i think this is absolutely wonderful that the port staff has collaborated on this effort and fine tuned it with an opportunity to the port i had an opportunity to meet with john a few weeks he was impressed that the operation of patricia how they invest not only in the port but in the community that they're in and all of the good
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work they do and i'm really excited about the fact that john has gone above and beyond the call of duty in negotiating with labor and local hiring and agreeing to hire more than the average employers do so i personally think this is a win we think for everyone i have one question regarding commissioner woo ho the truck how many truck trips will there be through the community based on - >> how many cars to a truck. >> one (laughter). >> please come up to the microphone. >> thank you each truck carries 8 autos on average so depending on how many total vehicles that goes through you
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do do math i'll say largely because no rail this will be a more local distribution kind of opportunity for the port and so you're actually in essence taking trucks off the freeway from los angeles for example and port u next item coming by vehicle it is more efficient. >> thank you and peter has there been any community engagement for this waterfront advisory committee. >> yeah. at the last meeting it was present to the plaque mc ac is briefed and, yes community engagement we anticipate going forward like i said the hard work is started with the employment opportunity and
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continue to be engaged with both the organizations and others. >> thank you so peter one question on the traffic and transportation any planning to do a lot of the trucks perhaps moving off hours versus peak traffic the traffic on 101 is in that area is not good i traffic it all the time it is not good. >> i guess what i'll say typically the resistance we go we don't actually control the trucking that is our committees so if we have a manufacturer that hires a different trucking company if there are trucks we previous in and out another night because of the congestion here. >> i wanted to say too thanks for the presentation in february i had a call with the director forbes and said we
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needed to get this done i ready to get on a flight to australia i want it done no excuses what happened a week after i got back i wanted to say thank you john that a a bold vision sometimes things are more spent this is a substance you took strides and i hope you don't penguin hole ourselves we'll being a after windmills and not pigeonhole ourselves and basically san francisco we have the admit itself touch how we market ourselves we're standing on pier 80 we're open for business come in to san francisco that's what we're saying and what we're going doing to tying jobs to the
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community we keep on hearing what is happening i'm very proud that pier 80 right now is use an a as a navigation center i've been there anticipate mayor ed lee does something that was good but they understand down there and patricia is coming in what we'll be doing this is in the paper we hear about the negative i thought in the communicated we'll be replacing guns and drugs with jobs and at the end of the day this is a what young people want young people want jobs and economic xfrt i don't care what we say development is about jobs we live in the united states the most expensive city those jobs will get people a job and pension you you know 40 characteristic and people want to take care of their family it is positive and good this is something that is long overdue
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i've been on the commission for 4 years i've traveled the work or world and trying to find a customer that is a perfect fit we've found the first one that wants to embrace us i know sometimes that is about money it is about money but give back to the community we're talking about the southern waterfront that people of the was neglected what happens with change change is uneventual will happen and being to put resources into the community to beautify is we're going from the flint stones to the jetting sons thank you. >> the employment opportunities are a model we should consider them port wide
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thank you, john for stepping and creating this wonderful model. >> i have one question you alluded to some of the car companies across the bay any scenario where if they were to utilize services at pier 80 that a barge could brings vehicles rather than a truck given the effort is low elevation. >> honestly probably not the company whose name we'll not mention maybe electric trucks but barges it is inefficient in the truck market. >> i got one question for john a question for you. >> i know in san diego i'm familiar because our union for the ports i know the tooermz is part of workforce will they be
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part of workforce that word has not been uses i want to get it on the record. >> that's a good question i have to get customers and product flowing and all that will come together i should say my comments i need to recognize shawn and david and all the social labor we've spent a year nature figuring out how to take care of each other i think that is probably one of the biggest things we're walking away with a confident approach with labor i'm captivity we will focus on building up the business and creating more. >> are you bringing people in from san diego to start the operations. >> typically that's what we do i hope we're talking to two customers and in short order
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working with michael's group to hire folks that is typical we bring in folks around for 15 years with expertise and train the local hires. >> and hypothetically will it take 5 years to get it to 4 to 7 is that your vision. >> i'm richie that that will be less (laughter). >> okay thanks john. >> okay. >> any more questions thank you, very much for the presentation next item, please. >> item 11 a presentation for the responses for requests for proposals for the leasing opportunity of pier 29 bulk head building and to describe in the rfp for the jamestown leadership for the negotiations with jamestown limited partnership for approximately 25 thousand
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square feet of the bulk head building on chestnut and embarcadero. >> commissioner president adams and commissioners i'm the assistant deputy superintendent of real estate in san francisco and first, i want to say i'm really pleased and excited to be presenting this item to you this evening this is a custom nation of about two years of work we shortly after the america's cup. >> can someone close that door please hang on mark. >> we're excited. >> (laughter). >> so we cameo to you july 2014 first time and on this item this was shortly after the america's cup vacated pier 29
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and very enarmed and interested in how they use the facility especially in the bulk head building we're interested they had a pop up restaurant called the island yacht club that restaurant the use of that space was an eye on we saw that in our we want to see what had we could do the commission was very, very encouraging you encouraged us to be creative with used proposals in the bulk head building we returned to you july 2015 and at
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that point, we honed down the square footage to 20 thousand footprint and had a use program which now revolved around a designer maker innovateer type of spaces with a food ancillary use the audience was envisioned to obtain cruise passengers on pier 27 and passenger side e pesticides walking now and then and the across the street and workers that my par take in the space during the day and evening hours so again you're very encouraging and at this point you directed staff to move forward with developing on rfp space on december 8th with by the actually came to you with an rfp
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proposal which you approved and directed staff to move forward with issuance of on rfp we do so on december 23rd we issued the rfp put it on the street tasered advertised it and circulated it i'm going to step back and give the platform to boris who is our contractor administrator and he'll go to the rfp process start to finish and we also have some folks from jamestown that will introduce themselves and to their proposal absentee conclusion i'll return to the platform and i will out the next steps and close out the presentation so boris. >> game-changer commissioners my name is boris i'm the contract administrator and i
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administrative code the pier 29 bulk head building the item before you is an action item to one authorize the port staff to award the operation of the 20 thousand square feet pier 29 bulk head and to allow staff into enter in with the winner jamestown lp upon the terms of the lease agreement bloichltd the economic perimeters and the requirements and the performance schedule all that will be negotiated later we're simply requesting our permission to begin the conversation with jamestown. >> the project complies with a number of the ports port wide strategic goals carmen chu
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proactively marketing the partnerships and expanding the leasing opportunity with a proposed plan that will serve the cruise ships and tourist and workers finally the project increases the ports income stream settlement portfolio we focused and issued with several key strategic objectives they are worked one too active and envision the waterfront to return pier 29 to economic use we wanted to provide support services and amenity to cruise ship pears and locals and finally we want to reopen the maritime structure that advanced the public appreciation of the ports history as mark mentioned port staff has been trying to reactivate in terms of the
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outreach our rfp was televised by the ports in the newspapers and reached out to the ethnic team located in the small business commission newsletter and featured in the digital magazine and advertised in the business times and sent is it to all the existing tenants with the help of tara we set up a web page focused on pier 29 that featured the rfp but went back to 1915 post fire recommunication and cat drawings and sign in sheets is from the tours and along with the submittal requirements on january 21st we hosted a presubmittal conference to review the rfp guidelines and offer a nefkt opportunities for the potential respondents the conference was fold by a site
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tour on pier 29 we organized 3 tours attend by over thirty individuals we convened a 4 member panel unlike most made up of staff it included a community member from the northeast advisory committee that is stewart. >> thank you for the time he volunteered on this process on march 10 the proposal deadline we received 3 proposals in addition to stuart our community representative we have 3 others rebecca from the port deputy director and cassandra a senior project sponsor that is working on the solicitation for the fine arts and dan the
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projector planner for his expertise related to the urban design and tyrone the real estate division officer priority invaluable analysis and each financial capacity and their economic return to the port that was a team effort i believe our team did a thorough effort in all proposals it was divided into the written proposal that was worth a total of one hundred points and the bulk focused on the firms financial capacity and the economic returns that was worth 40 points all 3 proposals were forwarded to the next phase the oral interview that was worth one hundred points the most quality firm received the highest scores. >> jamestown scored the
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highest and our panel selected all 3 firms both written and oral phases i'm referring to jamestown their team the team is comprised the lp the lead consultant and plant construction the chiefs general contractor and pc v - and page and turnball are responsible for the architects provided the assistance there were a number of reasons can jamestown rose to the top their previous project experience and their notablely responsible for the 2.4 mixed use office in the meat packing district an indoor food hall and responsible for city market in atlanta a two mixed use
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rehabilitation project that has food and office space our project is 20 thousand square feet the team is also familiar with our waterfront having worked on ghirardelli square and a plus that the panel gave them their knowledge of waterfront jamestown proposes a retail and creative beverage alteration with an onsite component the retail use will feature the moveab moveable displays through a partnership with sf made they're a nonprofit that helps local manufactures and their workers to make it and stay in san francisco a network of 6 hundred plus rankling i ranging from
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chocolate to furniture designers to create manufactured locally in the city we were xiefrtd about this relationship to fostered and use this opportunity to create opportunity for our small local businesses and jamestown proposes a corporative beverage operation for the food and winery and coffee with in door and outdoor cafe the panel was pleased with the overall and the ambiance and felt the use will employment the neighborhood and surrounding environment our panel estimate they felt that jamestown enthused the proposed plan as respective fell to the space with open designs that allows foyer subcontractor between the uses the following are slides that were subject to
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approvals by the historical design review and conceptual but helpful to understand how one moves to the space that is the first slide that is the view from the entrance on embarcadero it is compiled as a glass and steel framework that encourages folks to answer enter the space the plan as a bubblehead are a small outdoor spaces with benches and a secondary entrance that faces directly to to the cruise ship terminal itself the proposed materials are all steel and concrete and wood up cycled a plus and feature railcar displays is allow for
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configurations to accommodate fluctuating manufactures presentations and open up for the panels they like to invoke the previous life industrial path of the pier and the railcars that pass through the space there is rails with cars that move on the rails jamestown has the financial capacity to undertake this project all the funds are available through existing equity they proposes a 15 year lease with 5 percent adjustment over 4 years and in addition the proposed plan as a capital investment of $5.8 million available through rent credits all the terms are subject to further negotiations with final approval with the port commission and the board of
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supervisors at this time, i'd like to invite jamestown representative to introduce herself and her team thank you. >> game-changer port commission and executive staff i'm with jamestown thank you very much for having us here and thank you to support staff store recommending us to pier 29 we couldn't are more exciting i know we only have a few minutes and want to dive and share information on the qualification and our proposal but first quick introductions hello my name is david i'm the vice president of the development and construction for jamestown existed to be here and wanted to introduce you our team some of whom are here and also i think you'll recognition from
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the port projects they've excused in the past we have b c architects and jennifer smith are here they are the ferry building marketplace and i think we agree that was a fantastic project for the city page and turning ball and carolyn is here they have compassed many buildings and pier 3 and 5 and a number of others projects i'm sure i'm 20th so page and turnball will be making sure that all aspects the project comply with the secretary of interior for the historic rehabilitation homes and kelly is here the bill and katie and bryan they'll be providing structure engineering as well as fire code consulting they also have port experience and exploratorium and
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pier 17 through 24 gail studios the urban designer and have contributed to the exploratorium we'll have the general contractor they have performed at the ferry building and pier 3 and 17 and 24 and 39 and pier 70 in development plant will be evacuating us with the eagles for the project and gibson dunn is here and bill our long island attorney acted as council for the port of san francisco and has since represented private developers with the port i'm david in my role at&t's as development manager working with the fantastic experience team we've
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seeing and working with the port of san francisco and the community stakeholders to deliver a project we'll be proud of and its community will embrace. >> and again, i'm an offsite manager the asset manager for the waterfront plaza our ground lease from embarcadero from pier 29 the asset manager i'll be the liaison for the leasing and operation for the project so with that, i'd like to speak to japanese town qualifications more specifically we have a deemed ability to operate real estate projects and partner with public agrees own 13 properties in california and a number of large development across the country some was transferred chelsea market in
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atlanta and the innovation and facilities in boston a lot of others they involve partnerships with the public agencies whether cities or ports through those projects and others we pride ourselves observe the notation as well as our proposal outs we have immediate capita that is important for this project and plan to fully fund it to stabilization i believe our team and the team is qualified to execute this project we know the northern waterfront and the opportunities incredibly well and own ghirardelli square and the large office complex as a the asset manager the waterfront plaza i'm acoustical aware how underutilized the land is a few places in the jamestown to grab a coffee and get a drink
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and simply enjoy the waterfront our proposal uniquely addresses that the successful of pier 29 we need to attract the local neighbors and cruise ship passing passengers to the embarcadero and additional from our perspective given pier 29 a between the exploratorium giving people a place to rest and experience something new that encourages the visitors to walk the embarcadero we're really excited about so to elaborate more we're proposing a uniquely san francisco retail and beverage designation for visitors and locals alike we envision to manufactured good ideas in san francisco via argue partnering with the sf made and supported by the rising trend of
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consciousness customers many are looking for an experience the beverage portion will be a platinum for the renaissance and hopefully are multi operators with alcoholic and non-alcoholic beverages to attract morning and night time visitors for a indoor and outdoor places to give me people a place to stop and stay we want to have them linger and the small plaza was intended to emphasis that and financially you saw the terms we propose to the initial equity of $5.8 million we'll talk about that more but looking forward if given the opportunity to negotiate and lastly i want to
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mention we look forward to further community engagement and happy to produce an lbe or present our proposal and given more time now that are proposal is public we want to understand the key stakeholders concerns so with that, i want to emphasize how appreciative we are for the staff's recommendation and how excited we'll be to partner with the port on this project thank you. >> do i get a motion. >> mark, thank you david and remedy so next steps advisory committee everybody is excited about moving forward next steps will be if this resolution is approved this evening we will enter into a period of negotiations with
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jamestown and anticipate that period to be four to 6 months or so at which time we'll return to the commission for approval we anticipate that is around september this lease will have to go to the board of supervisors so that would probably be around october and we would have probably have a leased signable lease by november we could move forward with the deal the first thing we'll do what jamestown it as you may know. >> couple weeks ago at the last meeting angle earthquake study it was presented to you that facility basic has earmarked the 2 had $.7 million to do the structural work at the bulk head building we'll meet and have their engineers meet with our engineers and develop a plan for utilizing that
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$2.7 million in the most efficient manners to address issues and lastly port staff wants to recommend that the port commission this evening approve this resolution and allow basically award this opportunity to james it up and if you are not and enter into negotiations with the lease with that, we end our presentation and are available for questions. >> so moved. >> public comment i have two cards first one is kate san francisco made and mike california state parks association anyone else get in the queue if you want to speak.
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>> hi good afternoon kate executive director of sf made and president we're a nonprofit real estate corporation i wanted to say we're thrilled this proposal has been select to be negotiated with we think there is ever increasing demand for manufacturers and the kinds of jobs this is a great opportunity inform both showcase some of the products they're creating and we hope over time will also be the beginning of seeing more light manufacturing on the port and waterfront we think this is will a super team to accomplish the decision i want to wholeheartedly give you any support and hope you'll vote in favor of this moving forward thank you. >> good evening commissioners
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a new experience i'm a little bit nervous i'm mike the vp of finance for the state parks foundation and representing my boss elizabeth gold stone we're tenants of the waterfront properties on franco is he had jamestown as our landowner in that short period of time they've made substantial changes to the building and brought the level of the building up to high standards we are interested in this project but we walk by this empty space everyday and we'd to see it uses in a fact that things farther away are better than not we wholeheartedly support this proposal. >> hello my name is ross i'm
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here as a citizen to speak to my support for this project i also in commercial real estate i have some understanding of the players and jamestown has done a great job in san francisco i applaud what they're doing in ghirardelli square we didn't do a deal but jamestown is just ready to make deals and ready to make the right deals planned construction it local jamestown knows the environment and finally i'm a huge fan of sf made it does so much to try to diversify our economy and supporting 6 hundred member companies and just a huge fan have been for years their membership is so on fire and
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enthusiastic about what they're doing in the community i think if you don't know i believe on may 11th is the annual ramp it up sf made event this time a in a brewery and the manufacturers are the people that will tenants of this space you should come down and see that event i hope you're in support of this thank you very much. >> thank you. >> any more comment on 11 a james ones, twice public comment is closed. >> commissioner katz. >> thank you very excited about the project and team put a lot of thought into the experience and very exciting about envisioning this space we've talked about that that and saw what was to be
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accomplished when the america's cup was held there the recent activity of a lot of the people in the community get near that area in terms of having options they can walk to that are much closer that will be exist a a big benefit for people there as well i too am a big fan of sf made i want went to the earlier ram it up events i'm not sure that was what it was called one thing i'd like to encourage efforts as it is tentative as heard in one of the prior items reaching out to community that are not always on that part of waterfront to see if there are other businesses that may want to have that opportunity and given the nature of this marketplace will maybe a great opportunity as we've tried to do in other a part's along
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the waterfront to include businesses that might not have the opportunity to get those prime spaces whatever we can do to help please continue to work with the port and our staff i think we've really made and the staff has been extraordinary about figuring out how to add outreach into not had the contract with the governmental entities buses creates those opportunities we would like to see at the various venues along the waterfront i'm excited about seeing this i love the idea of rail lines i think that is a way to showcase different entities and make that a fun way so thank you for all your hard work and excited to see this coming to fruition. >> commissioner. >> this is really, really excited i think we've been discussing
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pier 29 a long time and loots threads it is rare when you see all the threads come together we talked about something we call open spaces often i don't see him today but talking about our jewels we need jewels along the way a missing jewel and have the vision of something that preserves the bulk head but brings the san francisco made nature sorry - the need to also provide locals as well as the cruise ship passengers with something interesting we'll talked about is a need i think to have a very strong sponsor jamestown obviously definitely are proven in terms of the whole team as well as other public partners and self-made has the local element of san francisco is really
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terrific so i think i couldn't be more pleased to see how this rfp has come together in terms of the results in terms of bringing the threads we've talked about and wondered about you're paying something not knowing how it will start this landscape is very, very pro tem i have one question on the technical side as we go forward to - with the negotiation i believe the proposed term are the leased terms that is what jamestown as put forward we've not seen the fringes within the rent perimeters, etc. i'll assume that is something you'll show us down the road those are not terms we'd like to have to see the usual platforms and what we see relative to the perimeter relents we're currently charging in this area of the waterfront.
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>> you're very correct this is their proposal we'll be back and forth with the new terms on numerous occasions. >> i think also the fact we'll also eventually have lbe components as well as near and dear to my heart of all of us on the commission that is a wonderful way how this comes together which is not easy and sometimes, we miss on some of the things this is one of the few projects we've melted together he applaud the staff and all the people involved with the rfp in terms of the panel as well as the partners i've brought here today so thank you. >> commissioner kounalakis. >> so i'll just concur with everything that has been said by commissioner katz and commissioner woo ho i would only add the renderings
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are beautiful so i look forward to the seeing the negotiation move forward. >> commissioner vice president brandon. >> mark and boris thank you for this presentation and thank you for bringing this forward it seems like a wonderful project and i'm really happy by the extensive outreach you did to get the interest in the pier 29 facility to bring this to us but can you tabtd what is the difference a little bit about the difference of the 3 proposals and what a made this stand point. >> we received 3 proposals the second place proposal i can - was i r sf which was a collaboration of artists local designers as well and they proposed putting shipping containers in the bulk headspace
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and with more of an event space and an anchor coffee rotisserie area so they didn't have the experience that jamestown has they have one project that they cited repeatedly throughout the proposal that was a called the courtyard in san diego something that was similar to the yard we had near at&t park they came in second place but a strong enthusiastic group and maybe kind of the right concept but not the right location the third place group was premium structures they partnered are a capital partner out of china they also had
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poison h pecan and should in rile railing it was focused better late than never around the cruise ships and not open throughout the week we wanted you know had that envisioning the waterfront i think that the you know the panel saw that as a decision maker. >> thank you. i've heard so much about san francisco made and but i'm not quite sure what is it what is san francisco made what is the requirement for a membership and what type of outreach do you do. >> come up to the mike thank you. >> so sf made is a 7-year-old authorized unit organization with the economic partner so there are things we do it is
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providing technical expertise and helping to find capital and space and educating manufacturers if start up through companies and tin buck two the second component the heart and soul is to help companies hire and retain individuals if diverse communities across the city we have an agency that works with those in the mission to goodwill to the placement of individuals for barriers of employment into full-time jobs and have a set of youth programs at 3 of the high schools that similarly place some of those mostly high school seniors and juniors into paid internship at the manufacturers and the last thing is partner with the city and the private sector to try to make a more
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hospit hospitalal policy work that led to the creation of a - acting in a advisory capacity to say the planning commission around land use and zoning we work with 200 plus manufacturers that range up to two hundred and 50 folks and employ 5 thousand people. >> congratulations for that wonderful work. >> it is a team effort we're uttering out of space for more growth and at the top of the hierarchy we're leaving no stone unturned for the historic properties like specific pier 29 is a real jewel in our ability
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to find for space for companies we're thrilled to see the direction with the commission support we'll be moving. >> thanks. >> and - i look forward to the terms coming back and the lbe utilization and all the comments thanks. >> mark and boris excellent job i have to say jamestown you guys are on the imprisoned a world-class organization brought in the right partners a visionary and passion you did our homework the presentation was thorough and methodical you got the right people in place and they understand you understand san francisco and you understand the
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waterfront and how it is evolving and what is needed so i think this is a perfect fit and once mark and boris thank you and look at the score the score speaks for itself i appreciate all 3 that were in the finals but your score was head and shoulders above the rest >> colleagues, any more questions. >> actions and questions seeing none. >> all in favor, say i. >> i. >> opposed? the resolution 16, 17 passes unanimously next item, please. >> item 12 for the term sheet between the port and broadway, llc the members are the financial partners kenwood investment, llc for the recent development of a one hundred
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plus room 0 hotel and ancillary uses and portions of vallejo on the west side of embarcadero of vallejo street. >> good afternoon commissioner president adams and commissioners my name is ricky the development project sponsor with the planning division of the port. >> mime e i'm excited to be here my highlights since the last time i'll give you a highlight productive /* preview
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i'm waiting for the slide to be - okay. thank you. >> at the last meeting we covered a number of items one was the term sheet that we said this is a very highly conceptual agreement been the developer and port those terms will be defined. >> important to move forward with the development and that investment of the term sheet and the time sheet those terms and conditions will guide us in the transaction to follow i did know about you about the site at that time, i indicated any discrimination of the
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developer that is made up of kenwood investment and others that are the tenant from 1999 to 2011 and that their lease was maturing agreed to accommodate the 34 america's cup and the construction of the crew timing on pier 27 we gave a summary of the a b and a and one of the performance of the t n e the investment of the proposed time sheet so the parties can move forward we did a summary we covered the term sheet for 3 items we highlighted key ones to you at the last commissioner meeting and staff provided an analysis at the end of the
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analysis we indicated that what we're recommending this is a physical project that the terms we're recommending is with the compatible lease for the transaction so very briefly i'll go over some of the rest of the things we've covered including the site the site is at the corner of broadway across from pier 9 the proposed development has not changed from last time it is going to include a hotel approximately one hundred and to 2 had had hotel rooms and space for designing and include a open space that is privately funded and the costs remain as indicated to $4 million we have
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$4 million in equity and $60 million in debt the port is for the providing any money for the project and the developer has not requested any funding from the port as well. >> this just discriminated of the development concept what you seeing is the ground level lay out with the tint on vallejo street it is a sectional picture of the indication of a basement involved at this point this is the preliminary design the port will give the review to the planning department and during the design review the design will be referred to the
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commission and then go to the waterfront designer committee before this project will come back to you here is the view of the proposed development envelope that is that building in the center of this slides the four story above ground level this is at the intersection broadway even though embarcadero that is conceptual go through the design review and some i'm quickly go over the terms of the sheet we went over two weeks ago the key component is the lease the lease will have a 50-year initial term with a 50-year extension it is a 50-year lease we're recommending the l lda the key transaction
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document it stand for lease and development agreement for 36 months and that is the first amendment going in by the board of supervisors and because it about guide us through the construction period as well as the entitlement period the l lda will provide for to close escrow within 12 months with the location l d and have 24 months and our building extension doesn't go accordingly so two six months extension and two month extensions to complete - we talked about the
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transaction base rent and participation recommend i imagine to go over the percentage of renters we firmly believe that is important we presented this table last times the purpose so indicate the rents during the operations phase of the project as well as the percentage rents after the percentage rent that will be a percentage for the engross revenue from the two key components of the development from the hotel operations and any operation so the fact that the percentage rent varies we start from 3.5 and move to 4. 5 percent and from there. >> the previous slide was showing the first 10 years of
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operation and the second 10 years was showing a percentage reviewing revenue to the port - i highlighted areas where the percentage that was year one and year 6 when the 54. 5 and year 11 the other percentage kicks in i highlighted the key component on this slide in year one of the minimum base represent on the operation is proenld to be $936,000 with the percentage will be nine hundred and 46
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hundred thousand in 6 year for the current parking operation the minimum base rent will be pronged roughly one million dollars and the percentage rents slightly above one million dollars in comparison to the bottom the percentage is standing out at $915,000 this is reduced as we indicated two weeks ago to allow for the development to capture so the first two years is tough for a development to become stable this is the anticipation of the costs it is higher than expect and the operation expenses is higher than they expect and then the revenue that was projected is less than, however, the provision if at the do very well and they achieve 80
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percent of occupancy then the percentage will - instead of ref the $950,000 they'll be looking close to $1.5 million as indicated likewise in the year 6 did minimum basis rents on the hotel is way higher than the current operation as well as a percentage rent. >> again, i indicated this for the tenth year and the 20-year with the previous slide so sort of make a comparison between the current parker operation versus the operations when the hotel is there. >> again, this is the chart kind of showing comparisons between those 3 elements revenue being on that site
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the gray dashed lines are the representation of the current parking operation the light yellow line indicates the minimum percentage rate which is circulated every year we see a rank of 2. 5 percent and cpi. >> and the solid orange line the steps are a point of revenues with the percentage rent do get high cost from 3 want 5 to 4 want 4 and to 6. 5 - >> i think at the last presentation he might have mention this i wanted to repeat some of the benefits of this
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project in addition to the revenue to the port we firmly believe that the development to this site will take to hire investments that will create an architecture fitting hedge to the eastern boundary the district currently that is being used for parking and we did the development we'll be able to activate the site as well as mark the entrance to chinatown to north beach and this is a open space this will be privately fund the construction and the moneyers of the operation are funded by the developer within this open space is going to be unique and a good addition to the community in the
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sense that will be enhanced by being close to the hotel and to the designing space the developer indicated to us that project by project approximately 4 hundred 50 construction jobs and three hundred and 50 permanent jobs i believe one hundred of those permanent part time will be from the hotel and others, of course, the revenue to the city from property tax and sales to the receipts to the city and, of course, the objects and benefits to the port and city as indicated in the staff report particularly 3 objectives of the port planning particularly liveability and objective, and the connective vitality of
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objective. >> last but not least is retaining the designing in san francisco as we get into the staff report that is one of the city policies to retain culture and music venues in san francisco and prevent them from displacement by allowing them on port property that project will provide that. >> this is just an interior view the designing showing the tints and people having fun within this space where they provide music and activities. >> so another view sun shining some of the ac biotics - i'll
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now move to the october 2016 which within that time period as opposed to investment from the board of supervisors as well as entitlement as well as part of entitlement we think this timeline is aggressive, however, we adds the two 6 month extensions if we need more time it will run from october 2016 through january 2019, however, the developer is hoping that they'll finish construction by the fourth quarter of 2018 the lease will run because escrow and the staff construction operations start date is targeted for the fourth quarter
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of 2018 we recommend our approval of the term sheet and recommending that you the director to submit it to the board of supervisors for this as well and one - from the bed-and-breakfast do consider and approve the time sheet we'll start working on the transaction and, of course, your investment of the time sheet is the approval of the development not until when the process has been completed and the necessary reminded on the ceqa has been followed. >> at the last - on april 12th the last time the developer represented particularly non-lane the owner and president of the the theoretical designing spoke before you and to save time they
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indicated recommended at the last meeting being that actually that date requesting our investment of the time sheet and particularly on behalf of the many supporter that spoke before you at the last meeting that concludes my presentation. >> second. >> two cards local 2 and carl you want to get next up. >> good afternoon, president and commissioners thank you for having me. i'm cynthia gomez with local 2 the automobile that represents the hospitality industry workers for san francisco and san mateo county and spoken in support of this project and here today to reiterate our support and enthusiasm for it and hope to
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see it approved thank you very much. >> thank you carl. >> if anyone else i don't have cards just get up in the cue. >> i'm carl i plate in the band for almost 10 years and was the microscopic director for 5 years and wanted to continually endorse this i have been here 56 times enclosing this was a family that got taken away from a lot of us we all still get together on a monthly basis believe it or not on the second sunday of every month and have barbecues and 50 of us b that get together with the crew of one hundred and 50 and i'm looking forward to the project being passed so let's
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get it done thank you. >> any more public comment on 12 a going once or twice. >> commissioner kounalakis. >> commissioner kounalakis. >> i know that is hard wow. >> hard. >> okay. so we heard this too weeks ago and much more thoroughly and i'm just so supportive of finding another location for them it is such an important part of culture of san francisco and it's been miss while it is clear that staff has been working hard you know the commissioners are supportive throughout the city there is so much support to getting them
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back up and running i want to take my kids they were good small when we moved home from oversees e assess they were big enough to go i heard it was temporarily not operational until a new sites was found i have a keenness to get it done all the public comment on this has been positive i stepped up to the plate out for a second but overwhelms the public comment is pro tem a new member of the commission i know there has been sensitive over hotels but we haven't heard a single person come and testify with any concerns about that so you know that's very telling so i think that you know tremors
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amount of work and broad support in the community from what we're heard here i want to thank every even that work hard and we should be counting the day's when they're going to be able to reopen in san francisco. >> commissioner woo ho. >> well as one of the speakers said we have had that open presentation on zoning many, many times and had a lot of closed sessions i think today i know ricky you've covered all the bases sorry and i think that in presenting this i think that everything we could have asked about this project, of course, we're in broad support of bringing them back but want to make sure we did argue due diligence and from the commission stand point to the community and athlete are we - i
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wanted to mention you went through and compared one of our questions if we didn't do anything with the sites what's the potential. >> answered that we said the benefit of going through the development it is a major development and as commissioner kounalakis mentioned hotel are generally not positive been a favorite of what we've seen on the waterfront this has a very good mixed ambiance for the theatre are and to co-whoift cellist in the neighborhood aim favorable for the comment and early on the neighborhood was concerned about this, however, i think that all the stakeholders came together and addressed the concerns so we you know we can
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say now everybody is happy and all the concerns with met and question the commission i want to commend the staff and theatre are and all the neighborhoods that have come together and have the right project and all the terms we think everybody is happy and safety i don't have any further questions. >> commissioner katz. >> i appreciate others that are associated with the project really working with the community a testament to come up with a project that meets the needs of port and the city the theatre and all of us coming together but working with the community to come up with something you don't hear objections and i think that i wanted to thank whoever was involved in the negotiations to
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make percentage happen very excited as i said so see them come back and many times were here and we have a hand and they get upcoming in san francisco look forward to this happening. >> great job and as my fellow commissioners we've heard this many times and many questions and i too support this project and look forward to the theatre ares coming back i have one more question so last time you said there was private open space and this time you said there is public open space funded privately so, now that what's the difference. >> it is a public open space that is funded with private funds which means the developer is funding all of that
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the port is not putting money into the public open space the last presentation there was a typo on the slide it supposed to say public open space not private. >> it will be open to the public. >> yes. >> (laughter) okay great and then so there will be local hiring goals and lbe's utilization incorporated into this report. >> yes. attachment c included the draft term sheets you'll see in that we included those provisions not in detail because this is just a non-binding term sheet to guide us, however, the issue the local hiring lbe and all of that will be covered during the negotiations.
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>> thank you you're welcome. >> ricky staff great work. >> kenwood thank you colleagues on resolution number 1618. >> all in favor, say i. >> i. >> opposed? resolution number 1618 passes unanimously good luck. >> next speaker, please. >> item leveling informational presentation regarding the relayed seawall mixed use development. >> good afternoon commissioners and director of special projects here to present on this property states legislation may i have it moment to pull up my presentation.
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>> good evening in view the late hour i'll try to keep it pretty quick this legislation is actually currently in process in the state legislative it in short is needed to conform prior legislation that the port had gained in 2007 related to 336 in the mixed use development of that site by the development the sgooints with the term sheet enforced by in commission in 2013 i'll run through in the presentation the original legislation the changes we think are needed and proposed right now and then importantly some of the next public outreach steps we need to connect to the advisory committee as we head
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into the senate side of california legislator so in 2007 and really following the recommendations in the waterfront land use plan the port initiated negotiations with the california state lands commission the state agency that has oversight of public trust grantees like the port of san francisco about our seawall lots lots created by the construction of the seawall initially later filled for a long time were used for public trust uses to support a back land for maritime shipping activities in the piers but mainly now are parking lots and so are leased on an intern only to generate revenues for the trust in that negotiation with state
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lands we agreuditor better to develop them with the consistent of the neighborhood to generate revenue for the trust and the state lands ♪ negotiation understood the imperatives the capital plan and agreed to fairly substantial legislation for the lyft the restrictions on the lots at the same time, we did an expansive public outreach and engaged people of the waterfront there was concern about the development there were concern in the more waterfront about the heights and ultimately due to the concerns we limited the legislation to seawall lot south of market street this is the lot 337 in mission bay
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and the legislation really was the springboard for planning through the planning development led by assistant deputy director for seawall lot 336 had an rfp through which the commission selected the san francisco giants what were the major provisions first, the burdening act allows the leasing for 66 years and through the research with the u l i we realized we needed 75 year leases to develop new building on the non-restricted trust mroments without 75 years lease terms the buildings will be the financial state lands wanted a outside of 2094 and wanted did non-trust
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buildings demolished seawall 3367 is a big, big park as part of development project the commission the sea lands commission will approve each lease that had is be favrt and all the money will go into the hectic piers and structures or to fund parks required by b d.c. so subsequent i mentioned the history of the planning process led by the ports development solicitation the inclusive agreements by the
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giants and in conjunction with neighbors throughout the central waterfront area your term sheet approval in 2013 also endorsed by the board of supervisors today, the ceqa clearance for the project is well underway and the draft eir is expected and the project approvals in early 2017 a compelling vision of a neighborhood endorseed by voters what are have thought issues in sp 15 were problematic that as per the project you endorsed for the term sheet all the revenues from seawall lot 337 goes through go huffing or parks approved by bcdc the term sheet looking at partially prepaid
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leases to fund the infrastructure that was needed to that will be needed to support new development that was something we hadn't for seen in 2007 didn't understand the horizontal development in scale for 337 the 2094 date is a problem if we want to do 75 year leases a phase development over time that 75 year term will be compressed for every lease adopted you know or approval over 2018 that is around the corner we'll not release the whole 75 year lease term and a the parcel in a parcel 20 that actually is being incorporated in the project and the state needs because of the
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disillusion of redevelopment agencies the state needs to approve the addition of that parcel 337 for addition purposes so we initiated after the ballot measure passed last november negotiated with the state lands to be open to some changes to enable the development of 337 and we did get a late start normally when we are start we start early in the fall a greater opportunity for public outreach before bills are introduced here we're xhovend with the fact unless we get legislation for that legislative cycle it could slow down the project for project approval which is why we started we want went to the state logical committee in
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september to authorize the legislation they gave us the need to go ahead sooungd that permitted loans those prepaid leases to help to fund infrastructure while we wait for public financing sources to come in and repay the legislation will require the repayment we deal with the issue of the 2094 outside date and permit the leases to be 75 year leases and getting rid of the demolition requirement i think could be a problem for marketing those leases and then adding parcel b 20 so we've been lucky given the late start for positive votes in the assembly local government we're only halfway through the
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process with the senate side including the committees on the senate side and we expect additional amendments through the senate and with our blessing we want to go out to the central waterfront advisory committee and engage with the constituents to make sure their comfortable with the legislative chances and pursue robust public outreach and that concludes my presentation. i'm available to answer any questions >> okay. >> i have one card corinne woods. >> if anyone else want to speak come up to the mike. >> good afternoon commissioner
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president adams and commissioners my name is corinne woods i've served on the central waterfront advisory committee for what feels like 50 years probably isn't been involved in the seawall lot 337 from the beginning i am a little bit disappointed brad knows that we that the seawall was not informed of the legislation in advance we're looking forward to having this come to sea wag so we can review it i've downloaded the legislation that is more detailed and have our comments the one thing i want to say today in exchange for some flexibility for the port and the developer in how the money is used i really want to reiterate i've said this before that the
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trust consistent uses particularly the development of the waterfront park china baseline park needs to be include at the beginning of the development that the trustees one of the few trustees left on sea level lot 337 not cheep cheaply it will probably need supplemental funding but critical that the public trust uses particularly the park is done early on in terms of the b 20 slice of the park in mission bay i've worked on that project for many, many years this sliver of land if make sense to be part of mission bay having this legislation to rational lists into seawall lot 337 and the
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mission bay plan all subject to public trust makes a lot of sense i'm glad they're doing it thank you. >> good afternoon, commissioners. my name is jack bear the inclusive vice president of the giants we've worked with the fort for the last couple of months it is technical in nature and critical as pat outlined so the project can move forward corinne woods mentioned the park built early in the project and part of legislation is aimed at that so we can finance the infrastructure more efficiently and wisely to return the port faster and get the infrastructure in place faster that is technical and important in terms of the lease term applying to all the parcels in
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the project not just the first parcels developed and fixing the project boundaries so their accurately described they're not currently so obviously i'm here and brad is here to answer any questions and move forward we have been working hard to move the project forward so we can get going this has been in the like many projects it takes time to get though the process we're well on our way as the steps with the eir and the regulatory approvals and the city about the streets and all the details of this project it is very important and a major project for the city so we're looking forward for the legislation to go forward we, all break ground at some point in the not too distant future >> brad more comments.
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>> any more public comment on 12 b any formal presentation that being said public comment is closed. >> commissioner woo ho. >> okay thank you well it is pretty clear we obviously need this legislation in order to proceed so i know i have any comments on what you're trying to achieve i'm a little bit surprised this was not triggered earlier obviously that is necessary i'm not sure how it - and you mentioned a little bit late in the cycle to introduce this bill what happened. >> there were some informal staff discussions with the states lands commission in 2014 about this issue that got shelved around the time that prop d happened frankly
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during the whole last part of last year the giants were focused on their community outreach efforts in support of proposition d that grants them the height increase in the port commission and the board of supervisors approved the project that wasn't until after proposition d passed in november sort of late in november early december that the project team at the port level and the giants team got together to look at what next after the height authorization had been granted and going down list that's when people identified off go and get the state legislation we talked about the fact it was late but it is complex so we decided to go ahead rather than see the
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project detailed the calendar state bills they get approved in october and become effective in january we have a chance to have a goal that might be effective in january of 2017 but for rushing we're looking at january 2018 that was some of the timeline consideration we were talking about. >> i guess the second one is obviously and sounds like you're going to reach out to sea wag we appreciate that so hope you'll complete that and it sounds like you feel that you've cleared committees already in the assembly and when you say additional amendment possible in the state senate what do you mean we've been 0 through two committees there is you know it's been paramount we have been
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negotiating with the state lands commission our experience we can't get legislation there the california legislative without them they don't endorse the bills but indicate they don't have a concern about the bills so we went through the assembling 9 natural resources and had another negotiation with committee consultants would wrote up the analysis and had a similar negotiation with the local government consultant both of those recommended in their analysis some trailing amendments that the author will pick up on the senate side we're working on those particularly some of the natural resources committee recommendations. >> how did they effect the project to what's the impact those amendments have. >> those are highly technical amendments and haven't been
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worked out i could come back to the commission with an explanation of. >> i guess my question should we be concerned as as commission or as you said highly technical and don't impact. >> i don't believe the fact that we have two committees on the votes we're in a good position and not concerned we have good kwofrpgsz with the state lands but put our focus on public outreach to make sure we have pickup consensus. >> in the state senate will this bill pass. >> i believe so. >> and the timeline. >> the state senate will take up the bill in september. >> and in june in terms of the timeline otherwise, it will not impact what we're working with the giants right now. >> right now the legislation is conforming to the projects
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schedule and your approval the project if we don't get introduce the senate we have a problem and have a water until there that impacts our schedule. >> commissioner katz. >> thank you for your presentation and for dogging this through i appreciate you'll go to sea wag and appreciate corinne woods comments they've been consistent in talking about the parcel for the parks i saw head needs from the project sponsor so hopefully that will be addressed but in other words, to benefit the port having that 75 year lease on the difference parcels we're facing it make sense so this is clearly something that needs to be addressed and so
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thank you for giving that covered and i think that is probably one of the more significant pieces of allowing this to go forward that really is the cornerstone of the project and essential to making it pencil out for all of us. >> lessons leaders we've gone along so thank you. >> was that a stone to say commissioner kounalakis. >> you will find a nickname. >> (laughter). >> okay. so i'm trying to understand this i think what i understand is that with intersection 815 doesn't contemplate putting the property into a bonds district we were not aware the staff level of the infrastructure requirements the building site in a normal redevelopment context unusual u usually the only sources to pay for the
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structure a tax increments and special taxes you might use those tend to lack the development a little bit and the financing plan both the term sheet and the financing plan circling under deduction that will be tsubject of many will contemplate the lands value in the form of prepaid leases to help to funds the structure while waiting for that. >> - >> bond sales. >> no a prepaid lease they'll prepay the value of the 75 year lease and that will create precedes and then fund the infrastructure early while the project is waiting for the tax increments precedes to be paid and it is a way of you know
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there was expensive eligibility that was pegged for a horizontal project that is aribnb you know an annual return and the goal of this to stop that return quickly - it is something we can demonstrate to the non-performa. >> if it is put into a bond district then the land is essentially used in collateral but that's not what is happening or is. >> yes. to your question both what i described will happy and wasn't your describe will happen if we form a community district over this then land - yes your absolutely author that's my only
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question. >> thank you brad for this presentation. >> i'm a little bit disappointed by co-sponsored the commission was not advised this was even complicated and probable a little bit more of a presentation about what exactly we're doing a beneficial for the 19 year leases to go beyond 2094 what does that mean. >> we'll get if the giants a phasing plan for this project a term sheet will be up to 4 phases and each phase has many
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parcels some infrastructure and each financially feasible so phase one a happened in 2017 and their 4 leases in that phase their 11 i believe 11 leases in the whole project so some of the leases maybe in phase 4 starting in 2030 because of up and down market through the phases so i think the goal of the 2094 amendment to likewise allow us to have a 75 year lease starting in 2030 consistent with the agreement - >> this is no longer a 75 or one hundred and 20-year bill this is a that's consistent coyote term sheet the term sheet contemplated that phased approach in 75 year lease but - >> there was a 2094. >> there was.
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>> term so not open-ended. >> and as to the open-endedness of the development you will have before you in the deposition and development agreement for the project the ability to set an outside date for when the phases has to think taken down. >> we want to know about the flexibility of the phase one and we're agreeing to the term of deal the flexibility go beyond 20940 the legislation was passed we're not saying we're going to give one hundred and 20-year leases. >> that's correct it will be in your purview to determine when the development has ton completed by. >> thank you. >> thank you. >> thanks for the presentation
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brad you you know, i kind of think it seems like the director mirror leaving and others leaving perhaps the ball got dropped it seems to me but it pertains out we need more legislative updates i think this is imperative and that's not happening we need it transparent so we can understand and i have to go back with commissioner woo ho said commissioner kounalakis i noticed this stuff a technical trying to make us understand in layman's terms i don't have have a problem but need to be abbreviate and like corinne woods we need transparent we need to know impeople are all good but we needed to know where we're at and appreciate going forward i'll give you you one out sometimes things get caught
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in but going forward i think this will be important so - >> and to that point i think that the top of list in our next biweekly meeting a discussion how we will bring to the commission the legislative program to make sure we have appropriate direction and involvement and express our ideas thoroughly. >> commissioner president adams what i think what i understand might have happened is that the problem was maybe recognized during the process of setting up the community facilities district that land inside the area that is leased land and so how you use leased land as collateral becomes a problem so i think what is important for
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us to know is this is still leased land even with the changes that are going forward at the legislator i'm supportive of this project about you it is important to be reassured that even though you know, i would support be able to put this into the cf d and allow the developers to use it as undermining collateral for the greater projects they have to have that just to know that we're not giving up the land we are still leasing the lands and the developer has the obligation to make sure that is not enencumbered consistent with our leases at that point. >> i think the issue goes to the fact that you mentioned
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earlier if there was any the prepaid leases the revenue normally will be applied to the historic presentation in this case we're obviously talking about brand new construction and the infrastructure for brand new construction so the only question i mean back we've known all along and maybe you all knew in 2014 there was an issue by holding odescribing to do - i think that will be crossing our fingers and unfortunate the legislation didn't hold up the bill this delays things by another cycle not good for us or the giants it seems last week the leased land concept to a
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district this who concept the prepaid lazy remember a long discussion with you and jonathan we came up with a structure but this is now another written to figure you can uses the preys in 815 was designed and put handcuffs on we're trying to take off the handcuffs am a correct. >> so the combination of the two so i think i agree with commissioner president adams that somehow if there are legislative issues that helps us resolve the bumps along the way we're surprised to here hearing about it now you need to keep us
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apprised earlier. >> she's right on. >> she's absolutely right we're talking about securing the p f p that is in the the e undermining fee only someone with a knowledge would know that (laughter). >> any more commissioners questioning. >> brad thank you and jack and others thank you. >> thank you how next item, please. >> item 12 c approval the costs reimbursement between the city and county of san francisco and exxon mobil corporation for the managements of ohio carbons city properties with the bond by jefferson heights and leavenworth streets in san francisco bay.
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>> good evening commissioners and commissioner president adams and executive director forbes i am pleased to be here this evening to bring you a successful resolution that is a very long returning site investigation remediation project and try to make this long story short (laughter) the agreement that you are considering pertains so a block in fisherman's wharf bound by leavenworth and hyde and the san francisco bay the shoreline of this block were forming covered by a wharf as wharf j 10 you'll often hear the area as j wharf 10. >> this long story shattered
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in 1913 i'm not going to walk you through this in the surroundings block several oil companies operated petroleum and others facilities including two procedure companies to exxon mobil in 1986 contamination was discovered the regulatory process for the site investigation and remediation and exxon mobil did numerous studs in 2008, the regional quality control board the regulatory agency that has jurisdiction over this kind of contamination where there is a potential to impact san francisco by the way, wrote a clean order as mobile to the
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responsible party and the port as a pertaining to force clean up of this site one of the conditions of that order was that a mechanism ultimately be established under which exxon mobil has long term responsibility for management of the area this series of slides or photos shows the demolition of the former wharf and over lying building and in the lower right shows the condition of the shoreline when this demolition work was completed that is pretty much the way the shoreline looks to this day this was in 2007 this illustration shows exxon mobiles clean up plan in cross section so between receipt the water board odor and the
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demolition of the achiever along the shoreline exxon mobil conducted numerous studies to delineate the nature of the contaminations at the site and they this engineering design of their proposed remedial action and got permits for this massive shoreline evacuation that is not a small feat to get that permitted so, anyway that illustration should see the cross section the large wedged shaped section where the concentrated soil and the clean up action was to review remove that and eliminating the petroleum contaminations so these photos show the clean up work in progress they basically exxon mobiles
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contract was build by driving sheet piles of boxes around the remediation area used barge equipment to remove the concentrated soil by the watertight containers to be hauled off in the lower left the clean backfill to rebuild the shoreline and it is worth noting in the lower right photograph that material shown is a reactive material that reacted to the chemical binder in any petroleum that is present and possibly mitigating to the bay might be captured by even though material and not been able to mitigate to the bay so at this point the "x" on
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mobile investigations and clean up has said the pump is treated or removed a small area that is shown in the blue outline where the resingle petroleum low contaminations of low quantities maybe present in so i soil and ground water in the area as a consequence we have a risk management plan that governs how work is done in the sub surface of this area in order to protect workers that might be exposed to it and conditions in the risk management plan how construction will be done to protect the remediation material that the looking material you. >> saw in the last photograph they have a potential to cause the ports or tenants undertaking
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the maintenance or construction to occur different costs we've negotiated the cost disbursement that is the items for your consideration today in order to provide a mechanism for that the ports or tenants to seek disbursements for the additional costs the key terms for the cost reimbursement it establishes a process the ports of tenants can seek reimbursement for additional costs and the term will be the shorter of two. >> yes. or whatever the remediation caps $5 million spent and that $5 million comes down with a 3 percent annual circulation
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circulation - more didn't it stop the port from seeking a remedy upon expiration the agreement contemplates that exxon mobil and the ports will negotiate in good faith to extend the agreement or enter a new one that accomplishes the same go objective of the providing a mechanism for reimbursement from exxon mobil and holding their financially responsible for the contamination and business aside i want to mention this kind of approach to managing environmental contamination is not at all unusual we have a risk management plans at other port sites and also the city and the port have a reflex
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management and a similar agreement that applies to all mission bay areas for managing the remaining presence the mission bay project area we've provided risk management plan and the cost reimbursement to tenants in the area who could porsche be effected by or party to the all the time and met with each of the tenants personally or over the phone so with your approval port staff takes the cost reimbursement agreement to the board of supervisors for the term it requires that will require the board of supervisors approval. >> so moved. >> (laughter). second that's my presentation >> (laughter). >> second. >> is there any public comment
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on 12 c? going once or twice public comment is closed. >> commissioner kounalakis. >> activeually toughing it ou not audience was exxon mobil she's the project manager here to demonstrate exxon mobiles commitment for the responsible remediation at the site. >> okay i'm trying to understand what is going on so exxon mobil clukt a major clean up but now a reimbursement in place in this a users has a need for remediation they can seek those funds to
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cover the cost and that's almost right except for the remediation the port and exxon mobil and the regional quality control board says the remediation has gone as far as it can go to get the last little drop would pose a sixth reflex from that activity from a dmifshd return so the idea is to leave that last drop in place and to create mechanisms that insures it if pose problems to the public or anyone else in construction. >> exactly, exactly so the cost reimbursement to address those things and at the same time their liability is not reduced at all as a result of that in place. >> no.
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>> and it ended up finding something else a dollar is an opportunity for exxon mobil to provide whatever is necessary and exactly. >> so if something new was discovered the water board will reopen that case if something that is awe nutritional to exxon mobil they'll be liable for it. >> commissioner katz. >> this doesn't address potential liability issues and it is still - well in terms of the assignment of the responsibility for clean up it stays with exxon and this is just a fund that will cover the costs if some remediation is
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undertaken in the future by - >> no if so actually more limited than that the agreement will only cover costs that the port or tenants will occur because they had to maintain or construct differently than otherwise not for remediation it is for sort of extra measures we might have to take there is some - >> unremediated. >> again - so this wouldn't address if there is some further technology that makes it financially feasible and get it last drop or is that open ended for example, we now got - >> unless we find something different ms. out there and believe me this site has been studied thoroughly unless somehow no more contamination than we think 2 wouldn't be
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prudent to remove the last drop. >> so some enzymes that may not be cost specific. >> it wouldn't preclude that absolutely not. >> commissioner woo ho. >> i really do think i a have substantial questions to ask it's pretty straightforward. >> thank you. >> i want to say thank you and appreciate our presentation thank you very much. >> colleagues on resolution number 1619. >> all in favor, say i. >> i. >> opposed? that that item passes unanimously and once again thank you. >> thank you very much. >> item 13 new business.
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>> i was wondering e languish at some point we could get a staff report were any ordinance his project. >> i have a few things marry i'm in the future every 4 or 5 months a legislative update from daily or whoever is doing something today i'd like to have heard in byron and others 5 minutes a piece they went to washington, d.c. with the chamber of commerce what they did and met with and what were the issues i'd like it going to the future that would make things clearer and one other thing going forward commissioner woo ho said if david chiu is
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carrying our water we want to commend report in sacramento they're lobbying on our behalf i think we deserve some clarity someone came up to me and said they're in sacramento lobbying on behalf of you guys giants i would say what we need a heads up and be involved i know they're not doing anything wrong david chiu is a friend of mine but i'd like them to send a representative they come down and let the commission know what they're doing we are clear when the technicalities we need to know as a commission thank you. >> amy motion to adjourn. >> second. >> one