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tv   Special Transbay Joint Powers Authority 32417  SFGTV  March 26, 2017 12:00pm-4:01pm PDT

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>>[gavel] >> good afternoon i will call to order the tjpa board of directors special meeting for march 24. >> thank you i will call roll call and over the writer-director kim and sartipi so they will not be present today. with that harper here, reiskin here, gee, here nuru present >> you do have a quorum. i'll call you next item >> yes >> public comment. members of the public may adjust the authority on matters that are on the authority's jurisdiction and we've not any indication members of the public want to address you see none we can link your special calendar
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>> okay. >> >> item for authorizing the executive director to enter into an asset management agreement for the transbay trended center with the lincoln property of any for a term and certain financial considerations. >> good afternoon directors. i'm pleased to be here today to present this asset management agreement with lincoln property management. for your consideration to imagine of this agreement as a result of many months of work to develop an effective rfp produce a strong number of respondents, and you can shake an agreement that maximizes revenues for operations of the transit center and also the [inaudible] with visionary programs that reflect local character and context that ensures a high quality user experience. the rfp was developed working with our retail consultants [inaudible] advisors who designed-it was done to give maximum flex ability to potential respondents because we recognize the unique nature of this opportunity to enter a transit orientated neighborhood emerging around the transit center. by entering the [inaudible] to consider any
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deal structure we were able to get a very clear picture of the market for this opportunity including the best opportunities for revenue generation. today's presentation hra advisors will describe the extensive outreach done to ensure strong response to the rfp which resulted in a tjpa receiving three saul proposals when we enter negotiations. negotiations focus on the ability of response to effectively deliver the services outlined in the rp including their ability to maximize revenues from the transit centers retail leasing event programming and [[inaudible] we are recommending today with consistent with the recognitions from the evaluation committee formed to review the proposals. we believe this deal at lincoln property management company with just over the strongest possible results for the tjpa and the public. the lincoln team composes collier international developing ventures and-media demonstrates
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a proven ability through the negotiation process to run the transit center efficiently develop visionary retail plan unique to the transit center activate the part to its full potential and provide a robust work promotional platform unique to the transbay transit center. with that, i'd like to invite olivia moss and [inaudible] to provide you with a quick presentation. >> thank you mark. good afternoon directors. as mark mentioned in his introduction, i represent hra advisors. hr&a is a real estate advisory firm
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working with at the discretion of the public and private sector. we have offices in new york la, dc, dallas and raleigh north carolina. one of our sort of major expertise areas is working on transit facilities and transit area plans. we worked at the home depot in minneapolis at the [inaudible] center in new york working on both those cases to secure private operators for those facilities. in terms of station planning, we are currently working in union station in washington dc as well as [inaudible] amtrak station in philadelphia. in addition to hr&a advisors the consultant team included two other firms. we have sensory interactive which was assisting us with the digital platform and we had sheppard mullin, who was tasked with drafting the asset manager
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agreement that is in front of you. my name is--a partnering hr&a advisors based of new york. i'm joined over here with olivia moss principal at hra advisors and the project manager on this assignment. olivia and i will do a presentation in parts and then, as you have questions, we will-we can respond and bring in jeanne story, from sheppard mullin to answer some of the questions as well. we started this process nearly 3 years back in may of 2015. we were sort of test with five different sort of tasks. the first task was evaluating partnership structures that would be-i
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would work for the tjpa and the facility. the second task was to conduct market our reach.. ether was to actually draft the rfp. the fourth task was in evaluation of response to the rfp and the fifth was to negotiate and select a designated partner. you will see in the slide in front of you, how these five tasks laid out. we will go into each with these in a little bit more detail later in the presentation. the transit center presents a unique opportunity for private sector partner. we sort of believe there are three major value propositions for the transit facility. the first one is a creation of a thriving retail center with a rapidly growing office and residential
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neighborhood. as we provided in the rfp, looking at sort of new office and commercial development in the south of market district as well as existing and new residential development in the district was a significant amount of critical mass that's already here and going to come online in the next five years. the second value proposition was the operation of the nation's newest multimodal transit station, what is been called a grand central of the west, and finally, it one of the specific amenities including the 5.4 acre rooftop park. the management of these civic amenities with something which we felt was a clear value proposition that would attract the private sector. there were four distinct scope elements that we saw as sort of in terms of management and operation of this facility. for phase 1. we asked for these for specific elements in phase 1 and we asked respondents to propose
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interim programming for the lower court concourse and the train platform private space two-if they wanted to. so in terms of the four distinct scope elements, the first one is the fit out leasing and management of the facility retail space, about 100,000 ft.2 of retail. the second is the development and operation of the high-quality promotional platform which includes digital advertising, sponsorship and naming rights and events. the third is a management and production of private and public events in the rooftop park at about the facility. finally, the silly operations maintaining some capital improvements for the facility once it starts operating. as you will see from the four distinct scope elements, this required a team with a very strong market experience. we obviously needed retail developer and manager to manage and maximize the revenues from the retail space. we then in
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open space manager who could manage the rooftop park and make that a compelling asset for the entire facility. we needed a facility manager would take care of the o&m the entire facility and capital maintains. and finally a promotional platform manager who could leverage the significant revenue opportunities from both [inaudible] advertising screens as was naming and sponsorship rights. as mark mentioned in his introductory remarks, and as i showed in the initial sort of schedule, hr&a spent a considerable period of time in the second half of 2015 marketing the rfp widely to all these four different types of potential partners. retail, operators managers, facility
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managers, rooftop open space manager, and promotional platform entities. in total, we reached out to more than 40 firms across the spectrum of disciplines. as i said, it included both local firms, national firms and regional firms in all the four different categories of expertise. we developed marketing materials. we had in person presentations and telephone and video presentations here we organize site doors for some other firms interested in taking a look at the neighborhood surrounding the neighborhood. i think one of the things that's really important here is as we market this operation we made it very clear to them that we were looking for financial arrangements and structures that were-that they were comfortable with and that the delivery value to the tjpa. you will see in the next sort of
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slides we also did and ask range of different partnership options for the tjpa. as you can see on the left and the dislike about which is not very clear in this-on the tv-starting from partnerships opportunities, which are 100% public, wherein it's a direct management transit center but the tjpa to complete private public partnership with the tjpa might consider the disposition of the center to a private party. we looked at everything sort of from public to private and in between. there are sort of generally speaking four different models under these partnership options that we analyze. the direct option is where the tjpa would manage the transit center on their own, a great example is san francisco airport where it's already the authority runs
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the airport on its own. kings cross in the uk where british rail are responsible for running the bonuses. asset manager and we will talk more about this-during the presentation, is a public-is a partnership structure that management of the transit center is done by a [inaudible] with oversight from tjpa. grand central station in new york is a great example of that where the mta engages with an asset manager to run the facility on their behalf with their oversight. the card option was the [inaudible] lease with tjpa would master lease the transit center to a private third party who then would take all the risks and rewards of running the transit center. with very limited oversight from the
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tjpa. for some center which i mentioned which is a project that i worked on in securing a private operator for that for the mta is an example of a master lease. they entered a massport master lease with westfield union station dc is another example master lease. all the way to the right, is the most private of these options where the tjpa could potentially sell portions of the facility to a third-party which the port authority did for the shops of the world trade center in new york. we looked at each of these partnership options and evaluated them based on tjpa's priorities and the risks and rewards inherent for each of these options. the three priorities that we looked at was tjpa control, the revenue shared with the amount of revenue tjpa would receive and the cost and the risk of the tjpa been able to to bear on the operations and maintaining the site. after reviewing all of these options, we felt that the master lease option was probably the most relevant and
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appropriate for the tjpa for this facility. but as i mentioned, as part of this process when you're drafting the rfp, we made sure in the draft of the rfp we were open and the preference from master lease option but we were open to other kinds of options as long as they were in the best interest of the tjpa. per the board's guidance, we impaneled a group of local experts and subject matter experts to review the draft rfp, including its structure and contents and provided a street they provide us feedback the panel's members included john updike director of real estate for the city and county of san francisco, todd will vote the director of the san francisco office of economic and workforce development, cheryl nasher from sfo, brian-director of planning board of san francisco bob moser, commander sfpd, and
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peter--design principal at perkins eastman architects. based on the feedback we got from the market our reach as was the feedback we got from the payroll experts, we outlined four goals for private sector partnership for the management of transit center. the first goal was to operate a clean safe and well-maintained transit center the fitting a world-class transit facility. with the idea the selected part or would ensure high standards of operation and maintain maintenance the benefit of the transit center visitors and [inaudible] the second goal is to deliver a visionary program the reflects local caliber character and context. we selected partner would have to have an ambitious vision for retail digital and events program with within the transit center and would be experienced
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[inaudible] lead a team to execute the concept of death article was to ensure a high-quality user extends in this facility. we believe that this facility will be used by four different groups of people. obviously the commuters were going to use this on a daily basis but also office workers, residents of the area as well as visitors who come to the south of market district from any sort of cultural and other kinds of [inaudible] finally, the fourth goal was to maximize the economic value of the transit center. the selected partner would have to maximize the value of facility but by executing a premier commercial program that generates revenues to the tjpa. so those with a four goals that we which are enshrined in the rfp that was released in march of 2016. in terms of the terms
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that were laid out in the rf peak, there were six key terms. the first is the deal structure as i mentioned previously. it was a preference for a master lease in the rfp but the flexibility to except alternative partnership structures as long as they were in the best interest of the tjpa. we had outlined an initial term and renewals and a way to project revenues and operating costs. under the master lease structure, for the respondents to provide both fixed rent and participation in back of the tjpa. shared and reimbursed the costs both for operating expenses, capital expenses of those cost overruns, and finally management fees. i'm going to turn this over to olivia to speak about sort of the responses we got back in our evaluation process we set up. >> so before we get into the responses received all talk a little about how the tjpa set
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up a processed to evaluate each of the proposals could the evaluation criteria was laid out in the rfp and included three major categories. qualifications and experience, others on the team, including their experience managing a large mixed-use facilities, transit facilities, retail testing, managing open spaces, and managing the promotional platform. their concept for the major components of the facility aligned with the scope including the retail concept promotional platform content and open space. then there are economic proposal. the overall economic offered to the tjpa as was their financial ability to execute the scope laid out here. was it totaled 270 points allocated to those three criteria and for qualified respondents to find those with over two and 20 points in the initial evaluation will be onto interviews worth 30 points for totaled three and points out of which all teams were scored. to
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evaluate these proposals, hr&a help to put together a committee of local experts to facilitate a committee of local experts including public and private sector expertise in real estate and around the transbay transit center project. these experts reviewed and evaluated proposals conducted interviews and provided scoring based on the criteria that i just reviewed. the evaluation committee members included keisha bailey, member of the transbay joint powers authority citizens advisory committee, an executive consultant shepperton-hr&a, anthony birds a, also cac member and a senior director at tishman and spire a member of the board of directors of the [inaudible] health committee benefit district and scott-from the tjpa lois rollins [inaudible] ben sigman executive vice president with consulting from economic and planning systems, john updike, director of real estate from the city and county of san francisco. additionally,
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understanding the retail component and concept is a major part of the activating the transit center, the team also worked with a committee of retail experts to review and comment specifically on the retail concept put forward by each proposer. this evaluation committee included public and private sector participants with retail expertise and local retail expertise including jeff--from [inaudible] susan reynolds also from the port of san francisco and two members of her hr&a team cape cockburn regional practice leader and justin schulz director with our firm. upon receipt of proposals the tjpa received received three proposals that are summarized here. a team led by cushman and wakefield propose an asset management structure with some consultants providing expertise in retail rooftop park management promotional platform and advisory
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consulting. a team led by lincoln property company also propose an asset management structure and similarly, includes [inaudible] to provide the rest of the scope and the team led by-and associates propose we called here a hybrid master lease. this included a master lease for the commercial portion of the facility focused on the retail component and then asset management of the facility management agreement for the remaining portion of the facility along with some consultants to manage each portion of the scope. i will go over brief overview of each of the firms were part of these three teams and their experience and then their evaluation. the cushman wakefield team included cushman and wakefield both asset management services and retail leasing and management team. mj am management group to manage the rooftop park and activation through events within the facility. network rail and [inaudible] consulting provides an overall station operations, and a team led by--including
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upfront media to manage the promotional platform. the teams asset management team on national experience managing large-scale mixed-use facilities and significant in-house capacity and industry relationships to executables go of asset management facility management services. the retail lease and management team brings strong local capacity and market understanding coupled with an existing network of potential tenant relationships based on the relationships in san francisco market. their open space management team member brought strong local experience executing open space management and a programming vision that was particularly focused on activating the park for local community groups. the promotional platform managers brought all required functions through a set of subcontractors with significant technical expertise and revenue generation strategy i merely focused on the digital advertising component. each team member brought experience
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in their core area of expertise is with cushman lakeman asset servers are providing asset services expense for the bay area headquarters. the retail leasing team has retail lease number projects in san francisco including the four seasons retail mj am management manages union square here in san francisco. upfront needed is programming of digital advertising for the mta and in new york and vicki-lead a team from [inaudible] on the technical side of the promotional platform helped to set up the content management system for the digital advertising program at sfo. the proposed retail approach focused on high-quality dining
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and everyday service amenities particularly with an emphasis on food and those who focus tenants would concentrate on ground-floor spaces and services located more on the second floor. they also innovation activating the rooftop restaurant as was the rooftop café as destination spaces. their local retail program was donnelly across their categories without commitment to a specific portion of local retail though technology note porn part of the program they've included in the proposal the sample potential tenants like those shown here including [inaudible] by right, to service uses like [inaudible] as well as potential restaurant opportunities. the lincoln team includes lincoln property company as the team lead and asset manager. peterman made him and managers of the rooftop park manager. colliers international to manage retail leasing and management, perl media to management digital content and [inaudible] marketing. asset - i'm sorry - their asset management lincoln brings local and national 20s manageable the large-scale mixed-use real estate as was transit. in the necessary in-house capacity industry conduct acceptable scope of
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services shown. the retail leasing team things a strong local market understanding with proven relationships in leasing and management capabilities throughout san francisco and really some really innovative projects and open space management team plan for the rooftop park really emphasized both a high standard of maintenance and management as well as a robust program strategy link to robust revenues. the promotional platform management team offered a robust concert for coordinating all aspects of the promotional platform. again digital advertising, sponsorship and naming rights components while incorporating those throughout the facility to really drive revenues which i will show you in a moment. as i mentioned, the lincoln team brings expertise managing transit facilities including our tech the charlotte transportation center, colliers brings extensive leasing and creating retail vision for spaces such as market square in san francisco. peterman
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development ventures brings national turns activating and managing open space from [inaudible] in dallas texas to [inaudible] park in new york and perl media beings rakes and extends operating the [inaudible] and chelsea market. the lincoln property company retail vision recommended a wide mix of potential tenants from full-service food and beverage to pharmacy and fitness apparel and sundry stands creating retail merchandising plan that lays out simple sample demonstrates face innovation that included local regional and national tenant serving all aspects of the firm and market. their local retail vision also contemplated a locally 10 programs visibly concentrated food and beverage tenants. you will see some examples of those here like [inaudible] organic food [inaudible] as well as
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larger national tenants. then their vision for the park also included activating those rooftop park restaurant and buildout of the rooftop park café. the third proposal received was from [inaudible] associates based in new york. they are team lead with top part management at which is provide by from called town square. retail strategy consulting provided by denzel or. promotional platform management bite big outdoor and facility management by--. a larger mix of retail tenants or potential bejeweled sensor put to perform to anchors martha stewart american-made market and life which is a fitness and lifestyle concept. their asset management team brought expertise manage the facility could go the nature of their teams hybrid proposal was really that the master lease structure for only a small portion of the total o&m cost and responsibility leaving the rest to a separate piece of the scope. the retail leasing management team brought an innovative retail concept and design expertise for gensler but little to no little local
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experience. their open space management plan was to supervise [inaudible] event driven rooftop park with multiple event partners are used to activate that space in the promotional platform management team throughout the capacity to manage the digital advertising portion of the facility nuclear approach developing a cms but not necessarily from the other elements of the program. [inaudible] experience from new york now developing pier 57 historic pier on in your city waterfront into a mixed-use retail and office space with open space on the roof during town square brought experience activating and managing the commons in open space in minneapolis. gensler's retail design group brought experience designing some local retail spaces here like [inaudible] in the ferry building. big outdoor brings digital advertising experience was recently from city point in brooklyn
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and-brings management facilities management expense in public spaces like the oakland international airport. all the respondents as mentioned were asked to provide projections for revenues and cost of the facility of operation. the projections that you see here are for the tenant is between the first stabilized year. the tjpa fiscal year 2021 after facility opening ramp-up has occurred. what i will point out here is that the proposal that we got had fairly similar revenue projections for retail space based on fairly similar retail rents per square foot between about 55-$65 a square foot. the advertising projection were similar between the lincoln and cushman and wakefield. slightly lower for the [inaudible] team. promotional rents and event rentals so both events that are
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sponsored and also events activation specifically for the community to draw activity into the transit center again, we are fairly similar between the cushman and wakefield and lincoln team with-a little bit lower. then you'll see a naming rights and sponsorship or significant variation between the cushman and wakefield team and young lieutenant which were closer together and the lincoln team brought a much more robust approach to activating sponsorship opportunities and potential human rights opportunities within the facility and on the rooftop park. promedia beat him and greeted him and ventures felt their significant assets with the transit center is a significant aspect that can draw significant interest in sponsorship and activation and sale of naming rights. so in total revenues, the cushman and wakefield team proposed about $16.14 million. lincoln, 20.65 and-10.8 the stabilized year. i want to pause and note here, the next slide they sent her to
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spin rate does not apply to all the respondents because two of these proposals are asset managers cushman and wakefield and lincoln as i mentioned, will not pay a fixed rent. they will pass revenues on directly to the tjpa.-proposed us fixed base rent and some participation rent resulting in the stabilized year of about .4 3 million were $430,000 flowing to the tjpa. superteam mentioned earlier that rfp had allow for flexibility in structure as long as proposers to demonstrate was advantageous to the tjpa and their rationale for proposing so. i think as we examined the responses and the projected revenues and cost overflow to the tjpa, the young proposal quickly revealed itself to be less advantageous than the asset management structures being proposed are moving to expenses, the o&m cost proposed by the respondents were based on o&m guidelines and reporting from the tjpa that they had construction plans and information about the scope. we
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anticipate these will be refined as asset managers brought on by to start, and cushman and wakefield the proposed about 9.8 million. lincoln approximately 13.2 men and young loop about 1.4 million. as i mentioned, i think we'll talk about in a moment as we get to the agreement, this is a place where the detail these estimates will be sharpened and [inaudible] as the pistol begins operating. respondents [inaudible] fees and administrative costs you will see are fairly similar and i would note lincoln is higher cost here is also linked to their higher revenues. were talking a moment about how these are related to the revenues as a final agreement, but one of the things that tjpa's were done with all response over the course of the clarification. in most recent with lincoln in negotiations, is making sure that these fees
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and revenue sharing are appropriately incentivizing the team to perform well and produce higher revenues for the tjpa. then tjpa assumption for administrative and insurance costs paid by the authority as was a sturdy which we severally pictured from this agreement. there will even estimate your from going tenant improvements which are funds saved to support tenant improvements if there's turnover in the future. so getting to our towards the bottom line, the estimated net income for tjpa, based solely on respondent projected costs and revenues, under cushman and wakefield sinner is about $12.45 million lincoln is about 11.969 and-coming back to the point that the masterly structure as propose was not advantageous approximately $27.699. i would just note that initial tenant improvement is typical under an asset
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management structure would be paid by the tjpa under the cushman and wakefield and lincoln asset management structure proselyte 27th when he 79 dollars while-would've made that upfront investment on their own. it's so not awaiting the larger annual gap. as we go on to the next slide, as tjpa has examined these projected revenues and expenses, they've also been thinking about the source of public funding used to close this gap. right now, the sources contemplate contribution from the cbd community benefits district, which we specifically used to sport management and operations that the rooftop park is estimated to be about $1.79 in the first stabilized year. the mtc consistent with what is currently contributed to operations of the temporary terminal which is about $5.38 million and then leases to other occupants or transit operators will be in the transit center and a son rent them about $4.3 million. so this brings the gap down quite a bit to about between 4.9
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million, 4.3 million from lincoln to 20.6 million under-proposal. we've also contemplate a contribution to the facility operating reserves to enter the transit center in good functioning order is needed in the future which brings us to about 4.9-20.6 my dollars in annual gap. this is all taken into consideration by the evaluation committee throughout their evaluation process they issue the highest average score at the end of the evaluation process to lincoln the score of 261/300 points. lincoln square was based on their complete strong proposal and compelling team with invalid to executable scope which we will describe further as we move for. following-250 points with compelling retail and activation program but
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significant need to clarify their team structure and economic offer followed by cushman and wakefield demonstrate local expertise and ability to execute facility and asset management scope. the requiring further class edition of the promotional team. all respondents were advanced initially to negotiation stage. after which the team entered a period of evaluation and clarification is really seeking clever addition of those things evaluation committee had identified as outstanding or needing further thought or clarification. this one for about june 2016 rentals september of 2016. after that point, we moved into term sheet negotiations the term sheet was offered to both lincoln and cushman and wakefield. young lou was notified in december 2015 they would not be offered a term sheet in their negotiations the tjpa had concluded. then in early 2017 the tjpa start exclusive contract negotiations with lincoln to find cushman and wakefield tjpa was entering these the gauche nations in moving forward with discussion of an agreement. the tjpa
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accepted these axles of negotiations with lincoln based on the quality of their proposal as i mentioned before the highest-quality proposal that address. of mixed services and all that all the records laid out in the rfp. lincoln consistently worked to provide requested additional information and strengthen their team and approach to generating revenue throughout this period. it seems capability and experience which included their private expense managing not only large mixed-use facilities but also transit facilities, and their high degree of professionalism and cooperative approach in doing so. their significant local experience in san francisco and the area including management experience and market understanding. the tickly, colliers expands leasing complex and innovative spaces in san francisco and lincoln bar experience managing approximately 26,000,000 ft.2 of space in california. the
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decision is also based on their deal structure and economic offer which was presented the most competitive offer based on the strongest approach to driving revenues and then tjpa perceived as an o&m cost that we anticipated to be similar other two respondents mostly because this is dictated by the scope lb consent control by tjpa and [inaudible] that provide the services similarly relative to the teams management. i will turn back to-to talk about the asset management agreement has been under negotiation. >> thank you olivia. so in the next section what i will do is flush out the deal structure and economic offer a little more detail. but before i jump into that, let's just talk quickly about what lincoln responsible his will be under this naming structure and what is the compensation generally speaking that they would lincoln team would receive. so
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running down first with the responsibilities, lincoln will manage a team of multidisciplinary experts will be passed to activate and operate the transit center including building a bv out facility maintenance retail leasing and management rooftop park activation and maintenance, promotional platform activation management and other facility activations and programming as needed. they will be tasked with optimizing revenues, generated through the commercial program elements which will flow directly back to the tjpa could they will manage construct contractor service provider scopes and contracts including managing the cost of services procured on behalf of the tjpa. they will courtney with the tjpa security provider to ensure that facilities operating a safe and secure manner and they will coordinate with transit agencies and community groups to make sure this indeed, works
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as a transit facility in public facility. in exchange for providing all the services, lincoln will receive fees for asset management construction management, rooftop park management, and commissions and center base commissions are shared revenue from retail leasing and promotional platform activation. i will spend-i will take you through what those different fees are. the key terms of the asset management agreement we have an initial term for six years with an optional extension for five years. with an agreement for both tjpa and lincoln. lincoln has provided a performance type of-i think lincoln has provided a performance guarantee loan to fees paid to date with a floor of $500,000 to start with which will essentially guarantee the tjpa against certain acts for
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lincoln. in terms of termination, tjpa has the right to terminate the agreement and lincoln is not performing adequately and does not cure default within a specified period of time. getting into revenues, office of the revenues will flow to the tjpa with the team's performance encourage by guarantee revenues and incentive fees. the promotional platform revenues those of the revenues which come from advertising naming and sponsorship will be guaranteed or the greater of $1.25 million are 80% of the prior year's digital advertising net revenue of tjpa. continuing with the key sort of asset management agreement terms, the tjpa will reimburse lincoln, the lincoln team, for three different sort of different portions-different pieces. the first is management fees and commissions and revenue sharing. as i said when the lincoln team will collect fees and commissions and revenues or their services and
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some of those fees will be based on performance. operating expenses, the lincoln team will oversee o&m of the facility including directly providing some services in procuring some services to service contracts. finally, staffing costs in terms of management staff which will be-which will talk about in terms of something of the tjpa will have the ability to work with lincoln and refine based on the operating of the facility. so in the next few slides, i will talk about each of these three buckets over here. in a little bit more detail. in terms of the management fees, lincoln team will receive fixed and incentive fees.. there fixed fees asset management fees will be $200,000 for the first two years followed by three and 1000 in the following four years. years 4-6. plus, 15% of
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retail revenues that they can achieve oversight threshold. the set threshold writenow are 3 million in the initial years and five point 3,000,001s the project is stabilized. they make about that though get a 50% revenue participation. for the rooftop park, there's a fixed annual fee of about $800,000 which includes approximately $574,000 in management-in staffing fees and about $20,000 in fees. construction management, 5% of costs up to $500,000 and 3.5% of hard costs of about $500,000. in terms of retail commissions, 5% directly lease long-term leases 10% for short-term prop up these is to activate the visit which i think is can be really
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important and initially. he revenue sharing for the promotional platform, 75% of the revenues from advertising and sponsorship will come to tjpa 25% will go back to perl. as i mentioned before, the previous slide, pearls lincoln is guaranteeing a base of $1.25 million every year, or 80% of the previous years revenues which ever is higher. and 15% of the naming rights or 85% of the naming rights revenues would flow from the promotional platform managers back to the tjpa. so if you add up all these management fees and commissions and revenue sharing, over the course of the initial six-year term, february
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included things like construction management fees the fixed asset management fee, and the fixed fee associate with the top part. as you can see from the pie chart, significant portion of the incentivize payments nearly half is for the promotional platform. we feel this structure is one which is uniquely incentivizing lincoln team to go and leverage the assets of the facility to make sure we maximize revenues. moving onto our second market, which is the cost control mechanisms, i think it's really key that tjpa will prove lincoln staffing and administrative plan on an annual basis. with consultation
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with the lincoln. lincoln will competitively bid a scope of services for janitorial and repairs and maintaining services to the market. the agreement calls for three goods. so that tjpa is assured that once a scope of services is agreed upon with the lincoln for some of these service contracts, the tjpa receives the most competitive bid that the market can provide. there will be annual budgeting procedures where we will set both annual operating budgets as well as a capital budget with tgv oversight of cost. tjpa will obviously review and approve the capital expenses with lincoln each year. in terms of sort of review and reporting, lincoln will provide monthly reports and expenditures to tjpa preparing expenses. tjpa are required for
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any nonrecurring expenses such as one-time repairs. any cost incurred over the approved budget will require approval by tjpa prior to lincoln engaging in the worker signing on a contract to engage your contractor to do the work. so the significant amount of control mechanisms and reporting mechanisms for this deal. to give you a sense of what the operating costs recount is likely to be, we will show you another pie chart over here. where come if you look at the greenpeace of the pie chart, and this is for stabilized-for the first stabilized year, again, more than two thirds, 68%, of the operating costs will have to be competitively bid whether it's janitorial contract repairs and maintaining contract or rooftop: m. only 32% is going to be what we call for lack of
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a better word ago she did costs which will include staff administration. the rooftop park ambassadors, the digital media 01m and utilities [inaudible] the grocery cost but will vary depending on how may stores are open and how many stores are lease. so that in a summary is the deal terms and some of the major sort of economic terms that are enshrined in the agreement. some of the controls that are in there in the agreement. you have in front of you a draft agreement, which is mark mentioned is substantially complete in terms of our agreement with lincoln. for next steps, assuming we have approval from the board, for
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[inaudible] there's a number of tasks that the tjpa will have to engage with with the lincoln team over the second quarter of this year. starting with sort of training of lincoln employees, maintaining some security, creating protocols for budget that checks for tracking and even programming calendars to begin the planning process for the design of tenant improvements and base building improvements. start the determinants of vendors and service contracts in terms of setting their scopes. developing and present to you retail market merchandising plan and commencement retail marketing and leasing soon after. and start trading the messaging and content for digital screens. as part of the ramp-up of activities that tjpa will on board both facility manager is was a chief security officer it will be very important in coordinating with the asset manager going
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forward. so at this moment, i'm going to turn to scott will speak a little bit of the funding >> i have one question on the last slide. when will lincoln execute the agreement? >> lincoln will execute the agreement am assuming mark will be helping out, if the board approves the resolution today, we have a few small minor sort of amendment adjustments to make in the language. there's a few exhibits would need to be finalized. my anticipation is that within a week-two weeks time lincoln should be able to execute the agreement. >> if i could him provide on that, my aniston is the language has now been agreed to and the agreement and that what we need to still do is to finalize all the exhibits. the
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number them our drawings of the premises that have to be converted into a form we can attach them to the exhibits and there are some of the guidelines design guidelines, we think those kinds of things, that have to be finished up. >> that's what prompted my question to you for a 30 exhibits here that we are looking at. some of those-number those exhibits are pretty much sketch of the property and things. but a lot of them are what they say in response what's our concept, what is our design stuff all that. i don't know-i don't know what those could not have been prepared long ago for us to look at and which of them -lincoln is saying, look, we are ready one not to do these things. that's what we have almost nothing in terms of exhibits. >> i don't know if you want to comment. a number them are in
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box and they are in final form. they just haven't been appended to the document you have. the leasing guidelines themselves-that includes designer standard, and maybe the team can help me out, the design guidelines the when i talk about o&m guidelines, those are final. the ones that are not is the leasing guidelines and the agreement specifically states that will be agreed to by the parties during the transition period and appended as an exhibit to the lease so it's not contemplated that it would be finished before the lease is signed >> what about the initial budget? that is exhibit f >> which is anticipated to be created during the transition period but surely a possible after if sufficiently agreement >> so is anticipated can be called women is very executed
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by that without a budget by both sides? >> been executed based on the projections we have >> the agreement with business terms and would get some revenue over tennessee >> i just want to-this board has the agreement says, arrived to agree upon the budget each year. so i we doing something that is a preapproved budget in it or not? >> no. lincoln will provide a budget and we will continue >> then there should be anything or an exhibit of an initial budget does i read that as the first as it 16-17 budget. 17-18 budget >> no. lincoln will once they're on board the agreement link will appear budget for the transition years. every year an annual basis though come to the budget to work with the tjpa to approve the budget to come to the board for approval of the budget >> so what's the point of putting an initial budget in the agreement?
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>> i think it's there as a placeholder with the thought that like the leasing guidelines would be appended after the fact. i agree an initial budget is a one-year partial year that are and so if your preference is that we simply eliminated it is an exhibit where we have the full description of how one gets to approval of initial budget we can easily do that >> i just wanted-based document and the exhibits to correlate. if it's to be prepared later within the base documents says it'll be prepared later or whatever. if they want it at all. just an inconsistency. the other one is the that particularly as i was reading, the form of performance guarantee because i've heard-i don't open store not-lincoln we won't even be doing with lincoln itself. >> that is a final document at this point. if it wasn't circulated to you, we all apologize that you should have that.
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>> yes because i want to know how much lincoln is really behind this agreement. so that was an important document to me. >> the performance guarantee is of the indemnification provisions in the agreement which included indemnification for gross negligence, willful misconduct or fraud by the manager or the manager's agent. it is limited in-it has a cap dollar amount that starts out at $500,000 and is increased by these actually earned, asset management fees, rooftop management fees, construction management fees as those fees are earned. it is not a security guarantee.
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>> yes. i'd like to find out it's a limitation of liability. in other words we won't be liable beyond this or beyond that. you're calling it a performance guarantee and so on trying to see well how do the limitation of liabilities become a performance guarantee. is it true that lincoln is not to be executing this? they're going to grade some organizations a mother corporation, brand-new, that is now the people we are dealing with? >> yes they will create a single-purpose entity that will not have other assets that is why we insisted on a guarantee from a parent organization. >> that we are not looking at? >> well, again, we apologize if you don't have that confronted as you should. >> that's why i want to know that tom would be meeting and another two weeks. three weeks, maybe. something like that. then i have a right to the meeting in april? >> no. we were going to-we want to execute discriminant
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next week director harper. >> i know. i know. i'm missing 22 exhibits and not knowing-to me you've got a ticket lincoln, lincoln, lincoln, lincoln and the basically saying work in a form xyz. maybe a california corporation may be a delaware corporation birds can be brand-new and then we are going to stand behind it to a certain limited extent via our performance guarantee so this whole idea of who's want to be there and what they're going to be doing this kind of up in the air. >> no. good you are understanding correctly that it is a single-purpose entity and that it's bad acts are guaranteed by a creditworthy parents up to cap of the amount they've actually get paid under the contract. >> okay. as long as we know that >> there are even is there not a tenant and they're not assuming all the liability. a tenant would as a master
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tenant. they are a manager of the property. >> yes. so this whole thing what they're doing and everything, [inaudible] if lincoln is can be a guarantor or performance, i don't care if they set up a single-purpose entity that they want to avoid getting into massive court suits and that's all good. but to not say that were coming on as lincoln and were going to be lincoln and them deal with lincoln and the not guaranteed the performance under the contract to the post extended whatever it may be unmasking myself, well what is going on. i'm not asking that they don't compare xyz to limit their tort liabilities. fine. that's not out of the course of scope. but usually they come in and say, as were contract, we are fully behind.
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>> that's where we started this negotiation. we were unsuccessful in reaching that result. so it is a board decision whether you are satisfied that you have an off wherewithal standing behind performance including the reputation to justify the contract. >> well, at this point without seeing a performance guarantee and evaluating it on the basis of just how far are they behind this contract is [inaudible] >> [inaudible] they provide a net worth of 4 million? >> a minimum net worth of 19 >> i took no. 1.2 5 million net and among? >> no. that's the revenue guarantee that separate. >> that's the digital revenue and it's not ashley guarantee. that is a letter of credit. so that is essentially [inaudible] >> their performance to $4 million is about what they are
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saying? >> no. they are saying- >> of the indemnification provisions of the agreement. >> well, the indemnification yesterday for their insurance and we will be indemnified. >> you pay for commercial general liability and the excess liability. you do not pay for the other coverages that include coverages that cover you against bad acts that include crimes, insurance, fidelity insurance, professional you know interns did they pay for those. >> yes they pay for their own little internal subject i'm not so much worried about indemnification. but i think that why can't they say there's an amount of money we will guarantee performance on. i don't know. i understand why he started out that way. and could not get-but i can understand -because that is standard. that's the way these things usually work. >> well, i think the argument
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that they have made-and it has credibility-whether we agree with it or not, is that if they were active as a master tenant, yes, there should be more standing behind it there simply acting as a manager they are earning a fixed fee within an incentive but they're earning fees only and they don't share in any of the profits and therefore, they should share in the greater portion of the risk. that's the argument. >> sharing the profits that's what they did good they got 25% of that. >> that the minor incentive the participation fee, yes. >> okay. i think were jumping ahead here. i don't mean giving him a conceptual agreement
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here, but with 4/30 exhibits and some of these things not being done >> they do in fact exist. and they were not informed that we could actually append them to the document. but they can be provided to you every one of them >> okay. all right. >> we have three more sides to talk about the funding plan. scott. >> good afternoon directors if we just do have a few slides to wrap up to talk about operating funds going forward. you see come on the slide in front of you, a summary of the cost sharing revenue estimates because she did with the lincoln. the reason you see four years is because that timeframe represents three ramp-up years during which operations are up and running better revenue streams are still reaching maturity in the
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fourth year is what we refer to as the stabilized year when the revenue streams have reached maturity. i would know all of this raises three years because operations will be beginning in the latter portion of fiscal year 17-18 this represents just over two calendar years. so below those revenue and expense totals, you see some of the numbers that olivia described earlier which was talking to the lincoln proposal include a small amount for ongoing tenant improvements a contribution beginning in the stabilized year to an operating reserve and then below that in terms of income authority committed we have the community benefit district which is committed to paying 80% towards the operations and maintenance cost of the rooftop part. just below that is the amount were already receiving from mtc. this is funny that used to go to the old terminal it was transferable to the tramp when i began operation business going on that each year and i will be available for the new
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transit center. then small amount of income from greyhound and amtrak leases meeting to the totals at the bottom of the screen. you see the first years just burst your operation. the second year is the most challenging year because that's when we have a full year of operations that are revenue streams have not reached maturity and then in the first stabilized year we have an operating shortfall of 4.9 3 million. i would note these do not include the upfront tenant improvement costs were described earlier were posing those would come out of program reserves. so these next two slides from our last two slides just show how were proposing to address these operating needs. the shortfall. this shows each of those first four years with the constant divided among our operators based on their exclusive use percentage of square footage within the bus
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operations portion of the bus deck and the bus plaza. in the second year, the portion in green, that represents an initial upfront funds we had from distributed and tenant systems contract. those are upfront payments that would be made. depending on how quickly carriers come on board, that range from 2.2 5 million up to 4 million and then we've got some amount about 5.5 million ac transit has been paying into an operating reserve so when you combine those two amounts, we have the total amount available of 7.7 5,000,000 to 9.5 million. so we are proposing some of that could be used to offset those-that operating shortfall in the second year. that's represented by the green. the first two years are significant because
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they are before we would be able to go to mtc and request funds from-started conversations with mtc about her interest in seeking some are m3 funds for operations. farm three were passed mtc is looking at the 2018 ballot. beck be either june or november. so those funds would not be available until the third of the three ramp-up years. but we would be requesting to mtc to help us with operating needs going forward beyond the point of potentially 12 backfill that initial operating reserve the portion in green you see on the slide. this final slide shows that with those exclusive use percentages i described a moment ago and using about 6.6
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million that initial operating reserve in year two, this is how those annual costs would be distributed among the operators we been up to fiscal year 2721 which is our first stabilized year. that is our final slide. happy to take additional questions. >> okay.. directors on sure you have questions. >> thank youin some ways this is been challenging but in a way equally as important and i think my general thought on this is that first i want to commend the staff and team for getting us to this point. i think i spent a lot of time up front in this presentation process productivity is a very thorough prospect like to think the board added some value by requiring some peer-reviewed steps in the process that you
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walked through and i feel kind of comfortable with where we are based in part on the fact that a lot of different eyes looking at this. for the most part, this realm is not the expertise of the lease some of us up here so having the third-party vetting of this as well as the expertise, the consultants, i think was helpful . i think the fact that it was as thorough as it was to me, makes it a defensible process so i think the process has been outstanding and i just want to commend the staff and the team on it. i think we are and maybe hear some of it coming out in director harper's comments which i very much appreciate that the end result is not quite what we were hoping for, at least in some of the terms of the agreements. it seems like we have a very strong team and a good approach. i think we have generally a good to the
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extent possible management of risk and alignment of incentives but i think the fact is, this building is not going to in its first phase, is not going to be money generator or even self-sufficient which i think is where we started this process hoping that it would be i think we are finding some of the terms that we would like and again i'll thank director harper for raising the issue of things like performance guarantees, it seems like were not able to negotiate what we ideally would like to have the may be the case for some of the other terms. but i think because we had a very i think on prensa process in a competitive process, what we have is with the market believes is affordable for the facility that we have peered i certainly hope that changes once the trains come with our full facility. i would hope at
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that point the economics will flip a little bit and maybe in and be in a better position to negotiate different set of terms with the successor to whomever we award here now but i feel comfortable that for the most part were probably at the place that we need to be that's reflective of the reality of the market. i do share director harper's concern to some extent but the performance guarantee. i'm not sure i fully understand that i get where it starts. i'm not sure i understand-it seems like the cap on the liability grows over time. some interpretation on that would be helpful for me. i guess i'm comforted we'll be started from where a radio was recognizing that we got something that was negotiated out outcome. so that's one question i would like to have a better understanding of. the second
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question has to do with the option. it looks like it's a six-year contract which i think given the ramp up time i think that's a good length of time in terms of the initial term is my question on the option is in terms of being a five-year option, is it just-is it five years, or nothing? can be done in increments? i be much more comfortable with incremental approach because i think any process that we are going to undertake for successor is probably a two-year process. if we decide-i don't think we'll know another probably by your five how comfortable we are with the performance here. but if our only change choices are five more years were none, that puts us in a difficult position. so i would like to understand the language of the
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option. so that's my second question third question is, and i apologize if you said and i missed it-what is our solution with regard to naming rights? because i saw some of the charts promotion and naming rights. are we assuming that-i guess i'll leave it at that. what is the assumption the guard to naming rights? then i simply have questions on funding but maybe since the funding is not part of what we're being asked to approve maybe i'll pause there and you can help with those parts of the agreements come i would appreciate it >> okay. julian, you might want to-i need a lifeline. on the performance guarantee, it's 500,000 minimum. then whatever revenues they earn. >> it sounds like it's initially 500 maximum? >> no..- >> it is a guarantee in the aggregate. so if you had multiple claims that was using
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portions of it he would reduce the total amount. again, once we got to a cap on the guarantee we asked for it to be per claim and they also declined to do that. they said their corporate management would not agree to that. but it starts at 500,000 and then it grows each year as they are paid more fees assuming no claims. now can you provide numbers were proximate numbers about how many dollars? >> so the fees, the fees that would apply to the this director reiskin are the fees that lincoln receives both from their asset management as well as from their construction management. sorted based on some the projections that we have for construction buildout, our projections are that in the first year itself the cap just on the pieces want to start somewhere between 700 and 800,000 and it's going to go up by about 3000-4000 in year two
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and then three or thousand heavier once construction is complete and they don't have any more fees maybe three or thousand every year more on the keynote of basis for the asset management >> but i think were talking a total 1.5 million have dollars over six years >> is more than 1.5. it [inaudible] to it or thousand dollars for the first two years and three or thousand for four years and then remember, they earn- >> they earn $1 million the right than the construction management fee on top of that they actually own some of their asset management fees which is 50% in revenue on top of that >> so without the 15% were talking a $12 million? >> correct. >> so that money, in case they mess up, we can guarantee for us. i know it's not-it's
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kimball took, but realistically, if we run into issues when going to keep the contract anyway. any issues we have to use that money. sweep a couple million dollars we can go tap into basically that's basically the fees they have the 20,000+ the $3000 and $1 million loss they get from the 3.5%. >> i think we are probably different opinions on the board about the adequacy of that and that relative to what we would like to have. to me, that seems pretty low. but i appreciate just understanding factually what that is good i understand it's gross negligent negligence or other pathways. so it starts at 500 and up goes up over time to the low millions. >> great. effectively in the first year it's actually going to be somewhere we think based on construction schedule, summer of 700-800,000.
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>> the second question director reiskin on the options it can you clarify is it five-year? >> it is a five-year option to renew. so the first is six years. at the end of your five you are correct. the decision -tjpa initiates the option if they want to. lincoln has to agree to accept the option but it would be than for an additional five-year on the same terms. that of course doesn't preclude you from saying we don't want to exercise the option. we want to renegotiate terms if you chose to. >> okay. again i get you can always renegotiate it to me, just a five-year kind of quantum step is not ideal. so the question is, given where we are, and asking the board to approve it today, do we think there's willing to negotiate that into two smaller options?
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to, to your options, three to your options add to your and three or so we could break up and not have that one step function under these terms? >> we cannot easily go back and try. >> if the board approves- >> yes interestingly enough, lincoln initially proposed options for one year for five options for one year each. we felt as consultants that would open up a lot of uncertainty and unpredictability for the tjpa because in a given-you're not just acquiring a facility manager. you are acquiring a whole number of different sort of disciplines under one roof but that would sort of actually create more problems for the tjpa and that's why was sort of our recommendation that he would be a longer-term deal because you would be hard for us [inaudible] we can always do
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that who you are not satisfied with lincoln's and you don't want to extend their agreement, but you would be hard to do this on a one-year basis because it would open us up to a lot of [inaudible] >> i think to me one is short. they be three-year extension >> two three-year extensions. >> to me, again i'm speaking for myself, but i think don't be much more favorable. i'm involved in another procurement were contemplating an extension right now, where where this exact situation and because the contact option term is only five years and we really don't need five years, the kind of at the short end of the negotiating stick and i would not want us to be hopefully this will be n and would be happy to re-sign for whatever the contract provides for but we need to plan for all eventualities. >> you had one more? >> the naming rights, give
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sponsorship and naming rights but at $6 million >> so that's assumed in these numbers? >> yes. yes. that assumes naming rights are secured by the lincoln. of course, we have the right to change our mind per contract >> okay. if i could, just moving to the funding i wasn't-and again if you said this i missed it i apologize-can you tell me with the assumption is for the tenant improvements? there in the first chart there is $27 million worth of initial tenant improvements and i couldn't follow it through to the latter slides to what the assumption is? >> yes the tenant agreements are not included in this spread across here. they are treated separately. we are seeking some
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of the program reserves and other funds to fund financing improvement so they are not shown in the first three years or three years in the gap the 7 million, 49 that is not including proven costs. the thank you. then, i guess this is commentary that were not voting on this funding strategy right? it's not referencing the resolution. and even more the case for ac transit than for mta or the others, given the size of the dollar amounts, but this terminal-this joint powers authority is called transbay. this terminal is called transbay. when the main benefits that we get in this first phase is improved transbay bus service. ac transit buses will be able to go directly from the bridge to the facility without having to wait or increasingly congested
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streets. so that means ac transit while better transbay bus service. which, we hope means we'll have more riders. the economics of public transit are such that more riders given that every writer subsidize means more cost. so ac transit will benefit from this facility by having more costs in terms of more riders but that's what we want as a region we want more people crossing the bay on transit than not. so it almost feels like a little insult to injury and then slap them with additional [inaudible] with a party committed i would say this to a lesser extent to the other operators, kind of assign additional costs of this facility to the agencies that are helping to take cars off the street. meanwhile, seems
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like some of the folks who benefits from this facility when it opens-because more people can come across the bridge towards a better option for people to come across the bridge and ac transit bus, or the people left driving. they pay bridge tolls. so i would have preferred to see,-i get this is notional. i would've preferred to see a notional funding strategy that would have shown the toll payers came the balance of this, not the transit agencies who will be both blast but fiscally burdened by the additional ridership. that's really just commentary but from a policy standpoint, we want to encourage ac transit to be able to bring more people across the bridge because that's good for the region. it's good for the city it's good for the region. i don't want them or the mta or other operators to essentially
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be penalized for picking up more ridership which we hope the whole purpose of this terminal inserting is the grand central of the west is not just the transbay but all the chronic connectivity. make solve our services better which means more ridership which means more cost. we are doing this to benefit the region so >> if i could offer one thing directors did i hear you loud and clout and hearing director harper louder and clearer previous. cargill regional measures passes in june of 2018. we've had discussions with mtc discussions have been favorable that they would pick up the cost of moving forward. so i'm asking [inaudible] for the first two years and hopefully after that maybe we can ask mpc to pick up a balance. i think that's a very
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fair asked to the point that you've made and also mtc is currently injured bidding $5 million to a top rate terminal. while the new transit center is much bigger and much more robust and to ask them to contribute double that amount is not unfair. so if they were to double their their contribution we could [inaudible] moving forward after the rfp passes. [cross-talking / off mic] >> then the operating budgets of the transit agencies and i guess my point is the optics and symbolism, that's what we should be assuming it. worsening some other more kind of policy optimal approach than just assuming we will head up the operators. thank you. >> director gee.. >> well, control the trains get here,-[laughing] no. i would still like to say i'm the new
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kid here on the board so i don't have as studied history as many of you do. from the dialogue databank hearing the assumption this would be a self-sustaining facility with no additional funds from an operators are partners i can't figure out how that fallacy came to fruition but i'm assuming that's how it all started because when i look at 100,000 ft.2 of retail space and listen to the discussion about security, homelessness, how to be a world-class facility i can get the math to adult. and have people rent the facility. i just struggle with trying to put everything together and say, this is going to be a net zero the tenant is to pay for all. >> it may be wishful thinking >> maybe wishful thinking but its were like me when i'm working on budget i hope i can make project with a low bid on big day and that rarely ever
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happens. maybe it doesn't san francisco but it rarely ever happens. to pick up on director reiskin's comment about terms, but i look at the last slide about funding strategy i struggle i think i said this previously with the base five-year term. if we are looking at three years to get to a stabilized year and it took us two years to get to this point, we are not going to have enough runway to know of lincoln or wherever we choose their doing well. because love to make the call to start anew are key all of a sudden. i'm sort of in the same place you are where i would like to see media base year of six with two, three year options. i think my three-year options so they really does take us two years to the pick a new incumbent love the little contingency and potentially an overlap or handoff because i don't think our organization with the organization we have today can step into a gap i
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don't care for the master lessee or asset manager who says i am done i am out of here. i'm just more pragmatism when i look at if it's two years doing rfp selection and where we are now and it takes three years maybe to get the stabilized were not going to know enough if link is doing a good job or a bad job and if we have to do it all over, were out of time already. so i just would ask for a little bit more study about how that might work because when i look at the calendar just is not at all enough for us to protect this organization. >> i think the bases proposed to be set >> [inaudible] >> six is good but i think two, three years is better. >> all be making some phone calls tonight, director. >> the five when your option does not work. not at all. >> it'll be too three-year option. b was i apologize i
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knew there would be [inaudible] the other side is, we need to move on and the best we can given where we are. i agree with the process i saw peer-reviewed panel members this morning we are where we are and we can undo the history. i just did the math and i know ron is here, were about 70% complete of construction, if not 75%. from my-my preferences of the building maintenance people involved at 50% completion of construction. every single month we put this off the more difficult it is going to become the operators to step in to maintain and manage the facility. while the last month's presentation was 77% complete, i think ron, you said were putting about $1 million worth of work a day. so we by
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the time we meet again will probably be over 80% complete. it just makes it even more difficult to have an operator command, maintain the facility, secure the facility, and we are going to incur costs. though matter what whether we have the asset manager on board or not. it's probably going to even more for us to fill the gap. so i think it's imperative that we look at where we are, move forward, and manage the heck out of what we're going to-but we can control by looking at the budget, the bids, and german for security needs and operations all the parts that we do have a say in and so i think it's important. i respect from my role as it represented we don't have a lot of skin in the game get until the trains get here we have to move forward because this is just going to-the larger gap we have the more exposure we have terms of risk of the facility and cost for maintaining operating and securing the facility.
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>> erector harper >> dir. harper >> i appreciate sass responsiveness to my comments on earlier drafts. that was appreciated and appreciate the chairman's support their because ac transit does have a lot at stake in the good functioning of this contract and i also do this for a living so between the two of those things, ac was really saying get into the weeds of that one. you are going to be responsible. so i appreciate-i appreciate the responsiveness that i have received in the last month on some of the nitty-gritty. i
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do-in response to some of the things that have been said so far, one of the things that tree shaded in here was owner's rights to terminate without cause. that's actually very generous. i think that the main reason this is taken so long is because these people have any idea what would be happening here. not only with all the big stuff in terms of when is the real coming in house the rail coming in, all that, on top of a big operation like this, was very difficult to get to the meeting of the minds but after a few years, we are going to know a lot about what it takes to operate this terminal. we are going to know a lot more about what the market thinks of
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our terminal. so i am actually looking at this like, 3-4 years from now let's look at this and see whether or not we like this because i think we can do termination clauses very good for us and i think we can basically go to xyz or lincoln or whoever it is and say, this is the situation that needs some improvement if we are going to-if we are going to renew this into years, we are going to have to have an understanding now. let's start negotiating. we can't get anywhere in six months were going to go out and anticipation that's one of the good things. i really appreciated the fact that we're into an agency situation out fairly clearly. that is going to get us a great-that's what i was a lot if we get into any litigation on this contract. from what it was which is just an ordinary contract to property owner situation. we do
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have a higher level now the standards. i think the biggest-my biggest problem with this right now is that we don't have a direct deal with colliers and were greatly dependent upon them. they are true agents and i'm not sure from this deal whose agent they even are. because we are going through lincoln to get to our real estate agent and we have a direct conflict of interest with lincoln and disrespect. there's a direct inverse- there's an inverse relation to bring tenant improvement allowance and rents. if you look at how that relationship works from lincoln's perspective, to how it works from our perspective, you see that they're not the same protected so if interior of two potential tenants coming up one of them wants low-rent whose went to putting a lot of the
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finance a lot of the tenant improvements versus someone who is willing to do high rents but doesn't want to finance any the tenant improvements. we'll see how they reward us very differentially. so i really think-i don't know if they would object to this but they been saying collier is can it do all this. why don't we go directly with colliers on her relationship with the people who are to bring us some tenants? >> the concept from the outset was not set up that way. so we never pursued it that way. but, i will say that we added language that said basically that they are a subcontractor to lincoln but they are acting as the agent of the owner and of course, it's not the way you want to do business but you don't have to approve any lease that the tjpa thinks has
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sacrificed rent in order to increase tenant improvement allowance or do the amount of tenant improvements the tenant pays for, that kind of thing could presumably, at the end of the day, it is a question of whether it's lower rent and tenant pay for improvements or whether it is higher rent and landlords pay for improvements, but we set the rates at which the landlord is willing to pay for improvements. >> yes i just hope lincoln has -were counting on lincoln's integrity to protect that or reject them both equally. i don't think we can get an agent principal relationship of collier to us unless we are approving the contract. in some sense >> there is a requirement that
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all the subcontractors that would include colliers, that the contacts indicate, state expressly that we are intended third-party beneficiary and we can also make sure that one also states expressly that we are third-party beneficiary and that in performing their duties under that sub contractor there acting as agent or of the owner. >> okay. maybe that will work. >> one came quick thing director harper interest your comments of the negative relationship between contribution versus runs. yes, colliers is getting commissions based on the rents they drive but lincoln is as well incentivize to get incentive payments based on retail rents. so we are-there's a sudden base threshold in initial years of 3
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million in the first stabilize your it's 5.3 million increasing by inflation but anything in the rent that's beyond those numbers, they get 15% out of that. so they are also incentivized to sort of do the right thing. not just because of the reputation but also their incentives in place in the businesses to do the right thing as well >> they only get 25%. they did for rock amount of the construction management fee during construction? a little bit of change off there. >> they get 3.5% of construction >> yes anyway i don't want to dwell on that but i'm just more focused on legally getting colliers wrapped around costs the right way >> yes and it's one permutation on it and i don't know it became through the presentation is that if it is a landlord-if landlord pays for the buildout or if tenant pays the landlord does the buildout they get the full 3.5%. if, instead, it's a
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tenant pay tenant buildout tenant uses his own contractors, then it's 1.5% because their role is essentially to be an owner's representative, not a full construction manager whether running the project. >> that would've been in the exhibit that were missing. >> no. it's in the text of the document. >> okay. >> i just realized it got glossed over a little bit, yes >> all right. >> let's see, that was taken care of. thank you very much. having the lincoln policy be primary on coverage and towards situations is great so we don't have to get into every single slip and fall that occurs in the terminal. that is much better. i think the 16.2.1 is confusing on insurance because
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basically we have discretion over the budget and when it comes to insurance and says owner requires manager printer is so cost expense unless otherwise provided in the budget. policies of insurance to be enforced. i don't know if we are fully agreeing to exactly what insurance were going to provide but you might look at that to see if there's any conflict >> we added in another provision and it would take me thumbing through here to find what it is-but a provision that said that managers-commercial general liability and excess liability insurance aren't operating cost. the rest of them are intended to be there cost. because is managers cost
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unless otherwise approved budget we do have a provision that says those two coverages will be approved >> yes okay that would clarify that. if in fact we got that. yes, think the whole insurance situation is one we will learn from. because it's a situation in which there so much overlap tween us in the asset manager that i really do-it would be nice if there was a paragraph in here and basically said that the whole insurance thing as long as we can provide them with the coverage in this agreement of insurance that if
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we can renegotiate that the terms of a wrapped into the insurance we get or something like that and maybe we can. maybe they'll be that reasonable but the insurance is going to be expensive on this one could i do know how extensive but there's a lot of insurance here. so i would just have a clause that basically says it sort of like a reopener and if we've got some deals in which we can provide insurance in other ways cheaper you got to listen to us and be reasonable. something like that. it was great manager does not have signature authority over those cbd funds and should not have. i thought that was much improved. these are just what we need, exhibits. yes so those are my comments but i do appreciate having early looks at this and having some response. that was good. >> okay. thank you. so i would start by just thinking the staff are working very hard. i think for me who came after
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director gee is been quite an experience going through the process, but we've asked a lot of questions. we tried to go through every piece of this contract negotiations are difficult but we are in a position where i wish we had an asset manager earlier than we do now. as you heard from the director, we do need to move on and in good faith i think the team has selected and worth of stuff good dialogue and as board members of this body, we have to look closely to ensure that things are working that we have negotiated them and it seems all the different aspects whether it's insurance or the buildout or whether what you're doing for ramp-up that we are watching closely. it is a huge facility and is construction
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is moving good so december is a reality. we will start operating some parts of the station and gradually building to that and maybe that gives us an opportunity to see things a little bit more clearly. so the way the deal is being worked out having the options to back out if we want to i think it's great for us. i just feel were at a place where we do need to just follow the recommendations that we have and where a very healthy discussion and keep on moving forward. get the station up and running as fast as we can and work with all partners. >> directors, i do have appreciate your patience. this is been a long process. it's been educational to me. [inaudible] probably the newest person on the block. so but i
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think we do have a good deal though we have a good team and i think yes, there's no guarantees on the revenues but i think we were very good capable team that can meet the projected revenues. as we move forward really looking for efficiencies as far as operations and so forth so we can reduce that gap that we are projecting here and we will be seeking funding from mpc to also fund the gap. >> so just for clarification, what are the next steps or milestones that we need to be aware of the grid >> after approval of the contract will be sitting down with the lincoln team to start looking at staffing levels that we need for transition year and after years. we need to get them acquainted with the building, how the building operates. there'll be shadowing ron basically look at the commissioners building and so forth were ready to operate the building. and looking at leasing
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constitute a leasing plan. what's the retail land and we will bring that to you later in the next 3-4 months. so they can share with us and share with the board what is the mixed retail mix. so we have quite a bit of things to do >> the retail mix i think would be very important because marty getting calls from restaurants and businesses and they want to be in there. so the sooner we can make some of those four processes those would be, how would i think make sure the local participation really has been given an opportunity to work with us and management and your team to get things up and running. >> yes michael director nuru in june we bring the board some kind of a draft to make sure that were going in the right
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direction to the board. >> okay. >> we do have one member of the public don't want to address two on the item mr. jim patrick. are there any others? all right. >> good afternoon board directors jim patrick patrick and the money in san francisco here. i want to talk about this agreement. this agreement you have a poor policy 001 - i'm sorry - 011. it talks about card checks for union people in terms of bringing in the union. i suggest by having this paragraph in there you will have a union on day one and you are going to have a consultant a new consulting, on the job on day one. but you know nothing about. i believe it's a lot smarter to build your team
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employee or team, and if the employees would like to formally and have the right to do that. let them do that and bargain with the union but build your team first. bart shows will bring them in and work together and i believe it was a disaster for bart workflow paying for today i think it's about policy have in there. number two, security policies. i do with german harper there's nothing in there about security policies. the biggest problem with this thing has his homelessness. unless we take a very hard strong top public policy about how were they to do with homelessness organ have a problem. that was the feeling part of predecessor of the old terminal. so i'm really looking is he a that flows out. we must be talking to give the homeless. i have to do with him every day in front of our store every day. it's a big big problem. if a part gets a great sunbathing place for the homeless. number three, there's a section in there i forget which one it is talks about the
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kind of stores that can be there. we can have a sex shop. i agree with that began up dry cleaners. i agree with that. that is okay. i like to add that a marijuana grower or sell shop. i believe you see them once while in the streets that doesn't add to this and it ought to be prohibited. number four, i've argued strongly the board needs to move along in this thing because we have to get in the market on this. we have to be leasing this material. the salesman need to be on the street talking to the customer saying, hey i want to in years we can get the revenue flowing. please number one board policy 011 i think is a mistake number two, we need to it aggressive security policies. number three, i don't want line of marijuana stores. number four, let's get going. thank you. >> okay. that includes members of the public don't want to address you on that item. >> something i'm supposed to
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ask that lewis rollins asked me to ask which was on our review was is anybody going to be at eye ccs or icrc could she says to ms. that may convention is to miss a huge opportunity and i was supposed to ask it and i forgot. [inaudible/off mic] with the huge model she says. [inaudible/off mic] all right. >> on that note i move approval of the resolution with the additional direction to staff to follow up on the item that we discussed for negotiation for the final negotiation and i think there's probably bounds within which the director can negotiate with disapproval that would require us having to come back to us. extending the option from five
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to six years> oh i don't know if that would trigger-to come back and if so i would say just whatever the rule, i would say the direction should be to negotiate within the authority of the resolution so that you don't have to come back so we don't want to delay this any further. >> so, dir. reiskin of the suggest then certainly for the option i think i heard clearly that something the board would like to condition their approval on? is that correct? the board is condition and the approval of this agreement condition on negotiations and run new option 22, three-year terms? >> yes well having not been part of the negotiations i don't want us to be specifying terms of negotiation. i think the spirit of what the board
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was seeking was there. it sounds like since they themselves proposed short options that is probably not a problem. i don't want to condition it to find out we can't get to a deal and were back here month later. so i was not thinking of conditioning the approval but just directing staff to advance few things director harper mentioned as well as part of the final negotiations. >> and that the executive director is authorized to execute the contract is conclusion of that effort >> correct. >> okay. p demo shall understand that's the motion. do we have a is there a second? >> second. i will second. >> okay. with the first and second no other members the public wanted to comment on them harper aye reiskin aye gee aye that is forced the one item
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4 is approved. >> thank you directors. >> that concludes the agenda. >> that includes the agenda? >> that's it for today >> thank you all for coming and we are adjourned. >>[gavel] >>[adjournment] >> >> >>today.
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>> (clapping.) >> i've been working in
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restaurants forever as a blood alcohol small business you have a lot of requests for donations if someone calls you and say we want to documents for our school or nonprofit i've been in a position with my previous employment i had to say no all the time. >> my name is art the owner and chief at straw combinations of street food and festival food and carnival food i realize that people try to find this you don't want to wait 365 day if you make that brick-and-mortar it is really about making you feel special and feel like a kid
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again everything we've done to celebrate that. >> so nonprofit monday is a program that straw runs to make sure that no matter is going on with our business giving back is treated just the is that you as paying any other bill in addition to the money we impose their cause to the greater bayview it is a great way for straw to sort of build communicated and to introduce people who might not normally get to be exposed to one nonprofit or another and i know that they do a different nonprofit every most of the year. >> people are mroent surprised
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the restaurant it giving back i see some people from the nonprofit why been part of nonprofit monday sort of give back to the program as well answer. >> inform people that be regular aprons at straw they get imposed to 10 or 12 nonprofits. >> i love nonprofits great for a local restaurant to give back to community that's so wonderful i wish more restrictive places did that that is really cool. >> it is a 6 of nonprofit that is supporting adults with autism and down syndrome we i do not involved one the wonderful members reached out to straw and saw a headline about, about their nonprofit mondays and she
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applied for a grant back in january of 2016 and we were notified late in the spring we would be the recipient of straw if you have any questions, we'll be happy to answer thems in the month of genuine we were able to organize with straw for the monday and at the end of the month we were the recipient of 10 percent of precedes on mondays the contribution from nonprofit monday from stray went into our post group if you have any questions, we'll be happy to answer theming fund with our arts coaching for chinese and classes and we have a really great vibrate arts program. >> we we say thank you to the customers like always but say 0 one more thing just so you know you've made a donation to x nonprofit which does why i think that is a very special thing.
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>> it is good to know the owner takes responsibility to know your money is going to good cause also. >> it is really nice to have a restaurant that is very community focused they do it all month long for nonprofits not just one day all four mondays. >> we have a wall of thank you letters in the office it seems like you know we were able to gas up the 10 passenger minivan we were innovate expected to do. >> when those people working at the nonprofits their predictive and thank what straw is giving that in and of itself it making an impact with the nonprofit through the consumers that are coming here is just as important
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it is important for the grill cheese kitchen the more restrictive i learn about what is going on in the community more restrictive people are doing this stuff with 4 thousand restaurant in san francisco we're doing an average of $6,000 a year in donations and multiply that by one thousand that's a lot to and call this meeting o the sfmta and parking authority to order tuesday, march 21, 2017, ms. bloomer call the roll. >> director brinkman director borden
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director heinicke is anticipated director hsu director nolan director ramos is anticipated director rubke madam chair we have quorum. >> thank you item 3 please be advised the ringing of and use of cell phones, phones, please be advised that the chair may order the removal from the meeting room meeting room meeting room responsible for the ringing or use of a cell phone, pager, or other similar sound-producing electronic devices. >> item 4 approval of the minutes for march 7, 2017, regular meeting minutes. >> do i have my any public comment on the minutes. >> i'm sorry in or a make
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public comment. >> it is announcing any comments on the previous meeting do i have a motion >> all in favor, say i. >> i. >> opposed? nope hearing approval of the minutes and directors i know item 6 introduction of new or unfinished business by board members. >> i do have one thing i'd like to i promised to put this on at the next board meeting i'm going to go ahead and put it in and acknowledge all the work that the staff of 3 agencies have done for the transportation sustainability program and one time call out the staff of the mta be, the ta and planning department with the amazing work they've done and want to recognize the magnitude of the effort of transportation sustainability program and just remind everyone this
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representatives a lot of work of how many years it is the beginning of this transportation sustainability program it is a living program the ordinance will continue to view i once again want to recognize all the staff from this agency that worked on 3. >> thank you directors anyone else introduction of new or unfinished business by board members. no thank you item 7 director's report good afternoon madam chair and members of the board and members of the staff and public want to start out talking about vision zero and unfortunately convey that bad news we got yesterday as a result of a collision between a mason cable car and a pedestrian a 93-year-old gentleman that was crossing the
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street we understand as a result of the collision the gentleman was taken to the hospitalization and succumbed to his injuries obviously this is under investigation with the police department handling it and we're coordinating with anything they need acknowledge that happened and express our deepest clones to the families and friends anyone that knew this gentleman this is tragic and it is all the more painful coming from our own service i know that cable car staff were involved were shaej understandingly but want to express our condolences so just a reminder how important to
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remain continuing focused on vision zero and we did last week with our two year action strategy for vision zero for 2017-2018 this action strategy is a foundation for how and why san francisco is working to end traffic deaths on the street we're hoping to do so by 2024 the document outlined the initiative so we have vision zero policy and goal that is high-level this action strategy gets down on who does want to move the needle to get us to zero and includes the progress we adopted vision zero in 2014 including the number of lives lost in 2016 and the impact of our efforts to try to get that to zero
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this strategy is focused on 3 main outcomes in order to achieve the organization of traffic fatalities and that's the streets that people in vehicles it is a little bit different orientation of the approach that we're taking counting more to outcomes than just the input and education and enforcement not replacing those but anymore outcomes so this action strategy has 3 action we think we need to take to achieve the 3 outcomes including the continuing engineering and enforcement and education so i'll encourage you to check out open website and it is a lot of clofkd work with the city agencies and the departments to get this to get this to the action
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strategy in place also on vision zero i mentioned i believe that last month supervisor chiu introduced that gives san francisco and san jose the pilot of the automated speed enforcement that is proven and cost effective in ahsha safai lives the update we've been working with the advocates and the community groups like the san francisco bay area families for safe streets to make sure this tool has been proven and once i think in 40 jurisdictions across the city u across the country to move through the california state assembly and last week the board of supervisors and the sfmta unanimously proved the resolutions for ab 342 and it is likely to have the first hearing
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next week in front of the consumer protection agency for march 28 we sent a letter referencing in the letter the fact we've worked with the key privacy advocacy groups that have generally concerns about cameras used by government and i believe we have very stringent protections that will pass in terms of the concerns so look forward to that hearing and continue to move this bill forward not only our vision zero action strategy but we also launched a document for the visions and plans important bicycle for the city and it is kind of our approach to have a bike friendly city on the strategy to
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investigate more than one and $12 million in the 2 infrastructure projects in the capital improvement plan you approved last year and the document is called peddling forward on the website the easy way to go to the blog sfmta/blog a good looking document and readily lays out the path forward how the funding you approved under the that 0 translations to the streets continuing with vision zero you may recall the mayor's droifk to advance the work on 7 and 8th street a high injury corridor in the south of market and to small the bike lanes in november now
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underway and this recycle most of our safety projects seems to improve the safety and in this case by tempering the bikes and cars for people on bikes and numerous pedestrian safety improvements for people as well so the scope of the project to remind you of the protected bike lanes and the programs on 7th street and reconfiguration of the loading consensus as part of parking management the full scope and blow the range can be challenging where we're hoping without a lot of rain it won't rain this the work will be completed by the end of may and we have updated information on the website also on our weekly
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transit updates people can see the impact of lane explores and other impacts to more project updates another one you legislated the itself signage and red curve striping should be completed in mid-april and parking enforcement starts for april 21st and so a month from today after working with the engineering i'll include 3 parking warning signs a lot less signage than anticipated that called for 40 signs we've been trying to be mindful of the cluster as it will bring to the greenway we continued to work with the neighborhood groups and the institutions to assure that resident and visitors and
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everyone have aware of the changes in advance of the implementation again, our goal not to give citations but part of pilot that's why we did the pilot in the first place lastly in terms of of projects updates we're bringing 21st century technology into the parking garages with the revenue controls system that is conveniently has the acronym parks we'll bring faster and improved conferring and add credit cards are security to the parking facilities it is a 3 year rolling installation program with a contract that was approved earlier this year or last year which will get yu79d revenue equipment to all the facilities by 2019 it is hard equipment and
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the software to run the facility for the ticket machines and the arms and cameras the whole process which will be a significant upgrade as you probably know it is a useful life with the limited data we can get to manage the operators to manage the garages so it is exciting this is happening the first garage is under a way now should be completed by the end of next week it is good news and great to have enhanced parking capacity next to the zoning along with the construction we can put our parking assets to better use now, when you go to the garage in addition to admiring the photos on the wall with the revenue controls as well and then finally and not to end
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on a downer but last week president trump released the skinny budget proposal starts with this coming october the reason it is called a skinny budget a high-level bucket i budget the new administration koimentsd office at this time point to have a document so the city budget is a way for the administration to projected the priorities and this documents by the president was pretty clear in that regard focuses on the consideration part not the entitlement such as the transit formula much on the consideration does the big news is that it seeks to there the
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defense spending $54 billion opportunity as well as the increase in homeland security to increase the border enforcement by cutting all the other agencies we've heard already if bodies of the aisle strong concerns of the budget i'll not say had a great reception not to difficult but this one has significant cuts cutting the especially and the state dependent on thirty percent agricultural by more than 20 percent the department of transportation had 13 percentage this the consideration budget those are when you translate those are into dollars significant numbers
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the transportation budget the 13 percent change is accomplished in a number of ways but really too big ones are that the cuts some of the biggest consideration programs cuts the capital investment grants program where the grant programs have large and small starts comes from and cuts the tiger grant program that was started maybe four or five years ago it was popular in congress and throughout the country tiger stand for transportation go economic recovery tiger what is different about tiger rather than one of the mobile transit highways and aviation in the secretaries
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office to fund mobile projects throughout the country that is to make more streets projects currently tiger grant for example, is work in the mission bay it goes to the funding to complete the railroad with the t third and subway and some of the straight work within mission bay one the examples of the tiger grant that is something that interesting the transportation secretary as well as for a financing program during her confirmation hearing she expressed the support but her boss is killing those programs and with regards to the capital investment program the funding that is with the subway the
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expansion of the airport, the future expansion of caltrain and high speed rail to the downtown san francisco and bart to downtown san jose part of funding plans for caltrain electrification 4 better market street with the brt that program the direction from the president skinny budget it will essentially stop the program and not starting in 2018 and regrant the suggestion they'll honor the grant agreements with the ones with the central subway such we'll be seeking for the dispensation of high speed rail to downtown this is met with strong reaction from across the
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country this is really critically important way that the federal government has been able to leverage the fund for the critical infrastructure projects and it does seem more than a little bit con reimburse with the president made during the campaign and then with the rest of congress about the importance of investing in infrastructure and in the country with a well established prominent program for the preinvestment in the country want want to increase the infrastructure but at the same time cut the federal program that brings that didn't seem to add up so i guess so obviously a lot of activities the detailed budget that come out in early may we're
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hearing it is already been significantly reaction to the federal budget with the national organizations will come out with statements somewhere between expressing the concerns with the transportation happening pretty much on the other funds of the budget everything from homeland security those are pretty big cuts we'll be engaged in the process that was for all for the fiscal year 2018 the current fiscal year which end on september 30th of 2017 has to date been authorized through the end of april so as far as it is authorized through i guess 712 so congress will soon have to ask to extend it partially or completely to
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the england of the fiscal year go likely to the end of september and pass a new budget a complete budget act so there are opportunities in this process to make sure that existing obligations continue to be met like the noah vally subway has part of grant agreement with the federal government and provides perhaps an opportunity for caltrain was proposed for one billion dollars for the property grant received funds in the past to the extent it gets appropriations this year from congress and then to the extent we get grant agreement approved than it essentially even if the president is successful in
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cutting off this program going forward it will be one of those existing grant agreements that has received a bunch of funding and not a burden to the budget going forward for the purpose of cutting those grant will not continually burden the agency of the federal government with the infrastructure projects so we continue to working closely with caltrain and state and mtc and other regional partners because with all the budget talk immediately in front of us is the caltrain that is nearly a third of the modernization budget without which we don't have a clear pathway so we'll learn a lot more through the rest of appropriations process which is this fiscal year will be happening in the next month and come out in the presidents
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budget and with that, i'm available to answer any questions and happy spring. >> thank you mr. reiskin when you talk about the central subway and the more thany challenges i work downtown and see a lot of the central subway construction as well as transbay and all the men and women in their hard hats and the construction vest when i think of the jobs that are created by those programs already and the jobs that remain to be created definitely will change the region if we fail to get that funding as well as change our future in the region and thank you for acknowledging the death felt gentleman by our cable car i agony death on the streets were working hard to get rid of
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but having it come but our service is we'll be upseting for everybody. >> fellow directors. >> thank you director reiskin i nodded a great deal of interest from supervisor peskin and supervisor scott wiener for the high earns in san francisco the idea to have a homeless program and i'm wondering anything that in terms of caltrain and transportation projects considered a the this point with no clear pathway. >> yeah. i guess i should have mentioned an update from the state one other point on caltrain i heard a consummation a delegation holding a press conference that that preto continue this issue and speaking of this this is a shovel ready
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project the day that grant agreement comes the work starts at the state level there are have been to paths that are coming together the governors proposed budget in february had a i think $6 billion transportation package state assembly and senate transportation committee chair introduced the builders if you want to the sbe for the season out of sacramento and with the transportation funding might have been more like $4 billion but we're hearing right now is those both sides are coming together hopefully in a consensus transportation package and initially dates back to 2015 with the steering wheel session the governor called for for the transportation funding for the
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state so if they're able to get a deal and two-thirds vote in the legislative that will financially provide for funding than we have today for transportation and a number of elements in that the vehicle fees and the gas tax so diesel a number of revenues that can generate the billion dollars so the good news is that we're hearing that the deal might be coming together a big lift to get two-thirds of both houses that is necessary the less good news we're hearing the deal coming together is not super strong on transit it is on highways and the local streets and roads will help us locally but not as strong on transit as we're hoping so we continue it advocate for that and supervisor
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scott wiener is advocating for it so or may not be helpful generally for transportation in the state with regards to the caltrain in particular there are absolutely discussions happening at the local and regional and state level in terms of what alternatives we have but there are not a lot that are kind of jumping out obvious for $50 million and there is some immediate things contracts that are pending waiting to be counted but there are lots of discussions focused on trying to get the security of the funding grant. >> thank you. appreciate it. >> seeing no other questioning questions or comments for director reiskin public comment. >> several members have
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submitted speaker cards herbert weiner and followed by (calling names) all right. (calling names). >> an opportunity for comment items discussed by mr. egan. >> directors taxi drivers we've seen on the industry streets with vision zero especially the market street right from the main street all the way down to 3 and fourth street street thirty buses lined up behind each other won their honking their cars they're taking the second lane to turn right you have any department that will go and watch those people i saw a barb going on california to montgomery and hitting a car from the back just last week pr so the thing
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their honking and speeding they need to get to the moon or will be detailed one or two a more minutes please look at and number two, the vision zero i've been questioning the city streets if you walk one time incident a girl was killed by an uber driver and 9:00 p.m. anything you can't see the road the light is so dim on union street to columbus you can't see anything on the road the light is so dim we have to open the eyes and our areas and just to look at what it means what is in front of you on the right and left how you can make vision zero in the city when the lights is so dim you need to put in lights like other cities so we
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can see the road more clearly someone saved a pedestrian from an accident the driver saved him and the jaywalking is so of in the town start the jay walking tickets or not one day the police department should be on the rod telling the people stop the jaywalking thank you very much. >> thank you. >> next speaker, please. >> i've received no other speaker cards from the members of the public that wish to address the board on topics from mr. egan. >> david pilpal here's my card. >> nice to see you touching on what director reiskin spoke about from federal transportation funding and this is very comprehensive overview that clearly the budget has changed if so it parking control officer to write that up in a memo to the board to make it
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summarizing the situation particularly at the federal level to some extent it seems to me to the extent that any of that happens will have consequences on the capital budget and the capital plan and will likely lead to shifts and assault weapons at mta and here for certain projects keeping them in line you've got a lot of implementations clearly will be known as time unfolds, etc. but some.
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>> now a culture against disabled in the city their expected to walk a quarter of a pile to a bus stop it is an ultimate insult it is disgrave it walk sf is fund by your agency is resorting to this this is disgrave and disbursable and pull those posters immediately and flap the walk sf on their hands for doing this this is an audacity and if you don't do anything about this don't be a
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bystander in this conflict >> thank you mr. wiener. >> next speaker. >> (calling names). >> directors taxi driver walk you through the taxi driver situation i worked 2 o'clock afternoon night life 8 o'clock 6 hours i collected $87 i have to collect one and $37 for gas and one 50 or whatever in 6 hours i make 87 in 10 hours how can i cover my gas i went to the airport that's a chance to make money i got there and encouraging if 8 o'clock to 9 o'clock and no where to get in one hour circling the airport after i got into the airport my time is one
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to $2,000 most people get $50 fair how will they pay now i'll walk through another situations taxi drivers $4.7 million in october by a taxi for the public to the drivers to the medallion they're going to make a driver populated panel a they'll will be 13 members and instead of the drivers for the growth the one day cleared they have 27 members and 95 medallion holders not the best and the other driver sent an e-mail and when i pursued it they said we've not had an e-mail from him but we - probably they don't want him
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okay. so 27 of the missouri in october the day or two the last day to put your name i've pursued two times and after that we talked about it who are the people going to be oh, we selected 27 members how did you select them i never received any notice of that malia cohen and two months gone no, no in the next taxi meeting we'll settle for the number of 27 medallions holders a lot of people told samantha was appointed and trying to run that meeting she received a lot of e-mails saying we want to be in the afternoon she didn't care she said i'm not available in the afternoon and loots wrong things this item
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will put-down money for advertising please tell them not to do that the driver money should be given to us and 70 percent for the distribution to the drivers they - >> thank you. >> next speaker, please. >> david pilpal the last person to submit a speaker card. >> david pilpal a number of items the twin peaks tunnel that was director reiskin gave an update at the last meeting i understand some significant changes since the last meeting and the shut down plan for april is moved to july i understand that is longer and different shut down than the board approved initially and the environmental document covered so i ask you get another update on that and i don't know if you no idea to bring a contract amendment to that and last week
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muni service met on tuesday was very difficult for everyone i don't know what it was an a.c.t. s what the problem was in their opinion that problem should have been been settled and resolved and continues to be have problems in the subway for everyone and alternate service plan practiced and available when things happen a way to deal with that quickly the stop removals an van ness those two boarders in particular i'm opposed to i think that made to assess for pears more difficult and slower and with the toll trip time the vehicles maybe operating faster it is slower for everybody to get to point a to point b and ridership my understanding is that ridership
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thought bay area with the mta is not increasing at the degree of the population that suggests a higher income and tech companies and others are opt outing of transit and taking uber and lyft and other options so that suggests to me our demographics is changing and the riders are leaving the system i think that is a case a bad omen for transit going forward and other consequences perhaps the next relationship survey will show you it costs opportunity and the last two points in case i'm not here in the last month thank you director nolan for you service that comes to an end and we've agreed aon things and done so effectively i appreciate his
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service of transportation and the last thing i'll note the loss of natalieburg a great leader in the city in the so much on transportation but education politics on the democratic party and a great lead era friend of mine and great loss to the city thank you mr. pilpal any more speakers seeing none, we'll move on. >> madam chair of the commission. there will be no separate discussion of these items unless a member of the commission, the public, or staff so requests i have received a request for item 10.2 traffic modifications. be severed that has to do with with a bike lane on page street and i have not received a request for any other items to be severed from the public or members of the board do i have a motion to approve on the consent calendar
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10.2 traffic modifications. >> all in favor, say i. >> i. >> opposed? hearing none item 10.2 traffic modifications. shall we hear public comment. >> yes. david pilpal. >> thank you david pilpal this is my last item i happened to look to this item carefully for the ceqa and that is covered on the bottom of page 35 in the staff report for items a through t but didn't have a subsequence of this item item u and the accompanying resolution fails to address on page 2 and the circumstantial clearance so i'm surprised given the deputy city attorney under ceqa i'll strongly urge you to sever well, you've severed the item to defer to a future meeting and clear up
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the ceqa item should be included in the staff report for the public and for whatever reason all the other items were covered in the slide somehow got lost. >> i see one more public comment. on .2 u only. >> hello board my name is janice the director of the bicycle coalition on item item 10.2 traffic modifications. just on page 3 we received this bike lane working it was a big deal for people biking on this going downtown what it does able to separate the different things that occur so on octavia they're making a right from octavia to page street and all bicyclists down a fair steep hill fartsz market street when mta did a
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count for the neighbors here during time it was the same number of bikes here as cars here we know how far this is for bicyclists we're seeing this is great plenty of room who are waiting at the light it is improved for red lights as well and so the extension of this green light from this is common sense we're hoping that that can be included a really positive open house speaker that item was spoken before previously but more built for a variety of projects including page street and support for the center bike lanes that is one step for the vision of page street we need to continue this so page street what about prioritized from market to golden gate park
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and so i'm asking the attorney to resolve those issues has already gone in and quite a bit of ceqa with the planning department you know going with the mta as the transportation impact measure we're hoping this will move forward and the issues are resolved thank you any more public comment on this item. >> no seeing none, do i have a motion to approve. >> do i have a second. >> all in favor, say i. >> opposed? hearing none that item is also approved. >> madam chair to item 11 the regular agenda item 11 fy2017-19 revised overall dbe goal. for disadvantaged enterprises and contract signing for the assistance from the federal government transit administration you do have members of the public who wish to address you
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on this matter. >> staff report. >> i believe virginia who stepped out will be presenting this item i guess i'll give an introduction this is a great opportunity we have that we've not had for many, many years to try to finally take steps to correct this barrier we've seen in the contracting i want to support and commend virginia and they are staff for an outstanding not an easy task to get the sfmta approval on january 19th of this year so i think we're at a significant milestone this will help us ample up the program and the policy goals were strongly believed in at anti achieving so
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- >> good afternoon director brinkman and members of the board and staff and the public virginia harmon i'm the agency go 12k5ek9d officer i'm here to updated you on the status of program before a year ago you accepted this and authorized the dbe program waiver to remedy the sdrimgsdz we've identified in the study specifically with the women and african-american open all the contract and at the end of january january 19th the fta approved the program waiver and directed us to rise the program consistent with the wave and revise it to have a 3wr5ek9d of percentage of participation you'll be able to achieve with the raising the conscious we've completed that analyze it
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is included in the calendar item and we conducted a public hearing with public comment and the results that are overall dbe goals will be set at 15 percent 6 percent had will be through gender and conscious means specifically goals on the contracts for african-americans in construction and women for all the contract and 9 percent achieved will make essentially a continuation of fte program we're excited to enhance our irish-american successful fte program with specific tools that will start the efficiency of identifying the disparity study that is specific dbe tools for individual firms that have been unable to compete in the fte
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program so today we are asking you to authors the commissioners revised goals a beaked through the fta to have the implications and look forward to seeing the results thank you very much. >> answer any questions. >> directors my questions for her before public comment. >> seeing none, do i have public comment. >> madam chair you do 8 members turned in a card requesting to speak on this item. >> go ahead and set a 2 minute time period. >> yes. madam chair (calling names). >> the honorable commissioners and director reiskin my name is eddy i represent the asian-american association called capping pa i'm here to
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speak in support of the waiver at the sfmta has received from the transit administration i think that the revised program will provide counteracting opportunities to african-americans and in construction and the women firms in service as well as construction i think two groups need a hand to work and move them forward in addition i'll request that these to items be implemented number one, is unbundle some of the contracts so that the dp firms can prime the contracts that will provide some kind of training and mechanism for them to grow otherwise subtracts -
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the second item i want to raise on 49 prop 6 the c pe program there is a set aside for small business programs i urge the director and the staff implement this program that's all my presentation and thank you allowing me the opportunity. >> thank you. >> next speaker, please. >> (calling names) i'm yolanda jones good afternoon. i'm yolanda i represent the folks in the bayview hunters point inhibited 56 years old a resident of san francisco and educated in the san francisco school system and now pulling my people from
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by lefttwo: community that waiver passed will help a lot of african-americans including african-american women and contracts like myself that have strushld go for seven years to keep my doors open and our children safe and keep the community safe as well and employ them i presenting employ 22 section 3 local district 10 residents in my firm it has been very hard and with this waiver being worked out infected i'm employ more people union people from my union family shop and union business i believe in san francisco and i believe this commission wanted to see african-american firms grow and stay here with the population of african-american i hope you support it anything i guess do in working with my community or
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any other district in san francisco so, please reach out to me. >> thank you mrs. jones. >> next speaker, please. >> (calling names) good morning thank you all for thank you for having us. i'm carr a lot tucker the owner of construction services located my business is located in san francisco district 10 the below grade district for the most part i provide professional support services for small businesses in our community to help them continue to be successful there is a lot of development it is going on in district 10 specifically in the bayview hunters point candle stick point view as an african-american minority female along that had that myself and other small businesses who are also a growing amount of talented
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growing female owned businesses in the district with that said, we don't want to be unrecognized we want an opportunity to be part of the development in the community and you we're excited about the development so floor we want hands on my business is here to support the contractors and we appreciate your moving this item. >> next speaker, please. >> (calling names.) >> good afternoon. with the enterprise group a small program group we work with the african-american businesses i'm here as the chair of the construction for african-american chamber of commerce will also a board members of the association of minority krashtsdz the northern california chapter and we're fully in support of this waiver and hopefully get the support of
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commission but withhold to make a specific point that is historic on behalf of what this agency is doing and the leadership from the director and the staff there is the disparity showing up in every agency in california at the pertains to african-american businesses not anticipating and there is a disparity consistent with the disparity study yet the agency is not coming up with solutions your agency has but commend the staff for bold and bringing to the director and commend the director for taking the stand and understanding the data they rainy-day fund and being able to come up with a solution that will impact our communicated and make a true change as yolanda said not only the african-american businesses we employ he our community there is no events and and buts but it
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takes those type of rules to bring about true change we'd like to see this broad support not only support it but also encourage other agencies in the city to take a bold step as well thank you. >> thank you mr. butler. >> next speaker, please. >>. (calling names) >> hi commissioners and director reiskin sorry for i was not born in san francisco i'm kidding (laughter) i want to thank the director and this staff for really putting a strong showing in place one of the problems we've had historically this issue of ability businesses are not available and african-american businesses are not available they're available because we're
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not getting work it is exiting this resolves the issues in two years we don't have businesses showing up for contracts we know truly but if a business didn't show up the african-american show up they give us policymaking to make sure this studies address the difficulties that those groups are had in contracting over the city all in all your staff has done a wonderful job hopefully that is a model not only for the city but the entire nation thank you for being pro-active and i'm going to be thank you for supporting and producing approving it even though you've not done it yet thank you. >> thank you very much.
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>> next speaker, please. >> (calling names) the last to people that have turned in speaker cards on this matter. >> good afternoon director brinkman and commissioners on the board and the general public comment i'm a native san franciscan and also an african-american woman owned business could i i'm representing the african-american chamber of commerce our president it is important it you understand we definitely support this waiver and we have had many conversations in the past for a lot of reasons but could i i see this is a milestone and like to congratulate sfmta what this really other departments said taking a bold step in making sure the other agencies fellow that and in closing, i would like to pretty much for the general public comment read the african-american chamber of commerce it is one of the california's most influential business organizations
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representing and promoting african-american leaders with the city of st. francis with the economic development and the san francisco chamber of commerce is creating a firm base that supports the self-determination of african-american businesses here in the city and again, thank you for your support. >> thank you. >> next speaker, please. >> last speaker. >> bruce. >> thank you very much for allowing me to come here and my fellow other companies to talk but and express our appreciation for the leadership that your department has taken on this legislation while it is convenient and georgia great to have the data that proves a point people like myself don't need that we lived it from the relevant it consciousness in country has built structure impedes for companies to enjoy the same
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prestigious that are out there while this in and of itself is not going to address everything to fix it pvrment that compliments the other small steps they're doing at heroism some at this time we'll get that behind us we want to live a better life through our grandchildren and one i want to make a difference in the world today we've got to undo some of the things and make pro-active steps to really make america was it tallest itself as being worked out it goes a long way for this legislation so i thank you for your leadership and thank you very much. >> thank you any more public comment next year no seeing none, ms. harmon i have one
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question if you couldn't mind the first speaker does talk about some unbundling of contracts to give people more direct opportunities to bid on controls i know that is something the sfmta has done we did that with our parking tickets program is that small business owner something through perhaps in not in this legislation we can look at. >> we can look at it on an ongoing basis with the project sponsors projects are prepared so it is impossible we tried to unbundle the contracts and will continue to do that. >> i was going to ask a question how do we make sure that many contractors they're the sub the prime activity did work with the people how do we make sure that happens. >> we do ongoing monitoring and are available for
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subcontractors to assure that contractors that are listed work on the jobs are working and have monitors it check the projects to make sure that work is performed by intaushgz intaushgz that are listed and able to take advantage of that. >> i wanted to say one thing thank you staff for this creative version in the first place it is great the waiver option i hope we can see a great uptick this is important program and i think obviously it is great this agency has taken a leadership role something we know brake to places to make sure that across the country they do it and as well as other agencies. >> is that a motion. >> a second. >> all in favor, say i. >> oh, yes director ramos.
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>> before we move on i do want to commend the staff and also want to thank the public speakers you can be somewhere else today but it means so much more to hear the comments thank you for your time and for your commitments to this process and thank you to the staff for the good work. >> thank you director ramos and thank you public for coming down i have a that has been > all in favor, say i. > opposed? that item passes. >> clapping. >> directors item 12 for a closed session do i have a second. >> all in favor, say i. >> opposed? we'll move
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>> - any bike it is parked at a stati a stationless practice do we have a staff presentation. >> good morning, director brinkman and board members jane kim write with the sustainable streets and oversees the bicycle program don't have a presentation but want to walk you through for your reference we're excited to be here to present this proposed legislation that amends the division two for the item 15 stationless bike share permit transportation code amendments. that was heard by the board of supervisors last week we feel this is really important legislation to make sure the stationless bike share permits it continent with how we treat the bike shares and two i mentioned we work closely with
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the board of supervisors in developing the joint division one and two legislation and the efforts were well coordinated so the in summary the division one code changes the transportation code to prohibit the being able without a permit that division two code language is a environment to create the permit itself as well as the regulations associated with the permit so today, i want to provide a brief overview of being able and describe the emerging trends in the stationless bike sharing and how the legislation fits both the overall framework with the past policy where we see bike share to san francisco has successful bike share the system launched 2 f in 2013 with three hundred and
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50 bicycles around 35 stations around san francisco to get started trying to expand in 2007 with the mtc to form an agreement for the bike share to privately fund a substantial system with 7 thousand bikes with the bicycleing in san francisco in 2016 motivated announce a partnership are ford to have a private funding and we're saying the expansion it underway 8 new stations in the field we've issued permits for over 70 stations already and motivate has placed orders for the new equipment in the ground over the summer to expansion is well underway and bike share is
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evolving as something we want to address through the legislation so the first people for those of you who don't know want to give a quick definition may not not familiar in brief it is bike share and zone requires the bike share you return the bike to the station and the bikes themselves have gps and technology they have internal locking mechanisms to be locked at the bike rack or against the tree or in the admitted of the sidewalk it is been around for a while ones in portland offer the docks to organize and regulate the public right-of-way a lot of stations systems meeting systems from chinese companies forego those altogether and you know the
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right interest from blue jog go is the well known the bike share companies but half a dozen competitors we'll have approached it differently one operator or interested participants knowing the interest in the bike share we want to have legislation that low make the well regulated and showing we're pro-active so in particular we're trying to make sure we treating the bike share consistent without the bike share that went through negotiations with motivate so you look at the legislation a lot of terms associated would the permit we've tried to be consistent in a manner that fits well, that the bike share model the bulb benefits that motivate has provided for the bike share stations for the same benefits
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so the board of supervisors vision one makes it a violation to operate bikes without a permit and unoperated this like other unauthorized items in the public right-of-way to be collected by public works and so distinction two creates the permits and conditions so a - dollars a lot of details i'll bring up a quick few points we defined what a station with a bicycle and a bike share program went through work to make sure we're capturing only exactly what we want to capture and not accidently like other programs we didn't consider as part of the bike share this is a fair definition the permit conditions
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3 major themes we want to highlight number one, is equity so making sure that bibles are available across a diversity geography in san francisco not limited in the city but outlying areas and the memberships are available to people of low income and so the bike sharing is continuing to be something sort of in the news and second is making sure we are maintaining the public right-of-way in a way that didn't allow the bike share to either be a nuisance are a hazard to the public right-of-way to travels to cluster the sidewalks to make sure we're promoting good use of public right-of-way and then finally the third piece is data sharing we want to make sure that as the systems come into place their sharing data so we're able to learn the same things about the system and have
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access to better manage the system and key bonuses of the regulation includes an approved maintenance planning and reminders so in about summary we're excited about this legislation for example, for the collaboration an example of pro-active as a result i feel it is helpful to make sure that any use of public right-of-way is in the publics interest this standard applies to private companies as well i'll be happy to answer any questions you may have. >> decorations my clarifying questions before we open up to public comment. >> yes. >> all right. thank you i think we'll have public comment first thank you >> madam chair only one person submitted a one speaker card. >> let's see two minutes, sir.
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>> i'll keep this short just. >> the main microphone. >> i'm keep this short congratulates this is interesting how it is changing the industry and forego prerogative and keeping rules in place loan with the innovation thanks your work. >> i think i see one more speaker. >> doug johnson. >> good afternoon mta board members and director reiskin i'm doug from the metropolitan transportation to speak in support thanks to our staff at mta for tackling this important issue as jamie indicated 5 cities san francisco and berkley and oakland have collectively reached on agreement for the
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bike share 7 thousand bikes as the mpo for the bay area for the mtc as i said on to the agreement and helped to negotiator the amendment with half of the cities the amendment will motivate negotiated in good faith minutes the city over a year for public benefit focusing specifically on key provisions increased the vacant and used by low income residents of 5 cities for example, and mtc appreciates the effort to help to delivery bike share expansion as negotiated thank you thank you, mr. johnson. >> next speaker, please. >> please. janice the last person to turn in a speaker awning advocacy director for the bicycle coalition last week he spoke in
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front of the board of supervisors land use and transportation committee to support the division walk transportation isn't it many in a funny position companies are fighting like this is a happy moment generally but you know a happy moment that we are pro-active to design so this can actively have a framework i think that janey said to make sure their consistent what the bike share with the prop a to fight for a plan there are strong measures to build affordability and spiking not having a bunch of bikes it can only serve a small portion of the population like 80 percent be bike share we want to envision i think that you know why this needs to move forward those
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companies exist and some have begun their operations here in san francisco so we know there are more companies to come that have reached out to the city and it is important that moves forward today we want to note we want to make sure as it move forward and this companies gets especially implemented no loopholes there is you know ways that companies can get around the definitions we want to make sure this isn't presidently over regulated a bunch of loaner bikes in the office you know this is a mundane example we want to make sure the permit will regulate but hopefully move forward today thank you. >> thank you, ms. lee any more public comments seeing none, i know we have a few comments and then vice chair
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director heinicke. >> so let's speak to that example whether they're loaded with gps or not the bikes 0 office comes out and back that will not be subject they're not using the arrears; is that correct. >> the right-of-way - their regular bikes so this is the definition of self-service. >> it is interesting to see how this will play out to control how it plays out for the bikes are left at that sort of thing i'm fully in favor of this one question i want to ask about the requirements that relates to
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the data you do you have a sense i mean too early to know a sense how companies may play in the base in the city eventually. >> it is hard to know how many companies will be interested in the permits we're aware of half a dozen companies that have a bike share model so somewhere in the range of one to 6 not going to be dozens i don't know that but several. >> even if it is several and shows my taxi backward i'm glad we're looking at this other ways to people to get around town will there be the ability to do this not now but share the data across for example, i've advocated i think we should have a system hike fly wheel for availability for use i'm wondering if at this stage the
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requirement for data we're getting will be able us to if we wanted to have an app or some system someone wants to use the being able all the bikes available not just one alleviated with their company but i'm wondering if we have the ability eventually to use the cat and we're reserving the ability in the permitting process you, you can see the entire network of bike share that will show the availability assess. >> yes. i believe we don't know exactly where this model and data is going but to capture as much as possible to be global to the term it is written requires realtime gps data for mta so the realtime location, location should allow this to be
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built there is a lot to go into maintaining the establishing the data from different companies will be coming in the same thing but this supports that. >> great point is the plan that has the data come in a standardized format. >> if we're not planning on sharing is it makes it easier. >> the legislation allows us to use the specifications for the data we've not developed that yet. >> very good thank you. >> director ramos. >> yes. i appreciate this coming forward i had the privilege of traveling to copenhagen i saw so many bikes on the street it got to that
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that was kufrm that will be great to go ahead ahead of it so if there is more of a angle that is put on the service we can anticipate it because i will hate for those things to become a nuisance to start to block passages and people start to dump them around and it will be a safety dangerous, if you will, you without having the maintenance approval plans i saw were part of the legislation i think this is a fantastic step in the right direction at the same time i want to list the concerns i've heard from ms. lee and others will the prospect of other more grassroots being able programs it will come in the future you know other folks are trying to get more bikes in the
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community without - securely from a service perspective and not a commercial driven idea and so i'd like to hope that by pga this legislation for the policy we would not - still be welcoming the ideas out there consistent with trying to conveyance that in a way and that we'll try our best to accommodate future nonprofits efforts in a way that might even work better to address their needs in the future i suspect we'll be looking at themes. >> absolutely we point will be open to the opportunity like that for new models for increasing the bicycles we've written the definition at the same time, we don't know all
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models at some point in the future but we're definitely open and hope this is the framework for doing that. >> this undermines if i may director brinkman we're sort of past the day's we're in favor of biking and seeing the city is more crowded there will be a push and pull with everything a few years ago we would have seen the idea of bike share but now, of course, our sidewalks are crowded you know, i can't - i think that is important to note i saw a telling comment if our governor jerry brown how that driving down 950 market street the way market street is walking is to driving this is the quick itself way to get down market street so hopefully, we'll work on market street that is another
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topic but here while i'm in favor of idea i'm glad our cognizant of the right-of-way for sidewalks we need to recognize that our sidewalks are in and out major arteries for people getting around not one mod trampling the sidewalks i'm in favor but i think that will be regulated with the situations and others right-of-ways so one or two clustering bikes causes a lot of problems. >> i should say in coping hag it was so bad they called it bilk butlers to see how bikes are laid out because people abandon them so many bicycles there and bicycle sharing is another level it is like people are no regulations whatsoever gotten to the point where you
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know without a bicycle butler those bicycles are blocking bought to train stations so i appreciate the vision that you come up with here making sure that we don't find ourselves in a position like we're having to pay people to pick up after folks that are trying to get where they need to go i understand that but at the same time, a temptation is two great to jump up i remember as a kid you'll run up to the houses and through our bicycle anywhere i appreciate you on that and support that wholeheartedly. >> director hsu. >> i have a question about the empowerment 25 thousand over 10 years is there my provision for some of the companies are talking about putting out thousands of bikes raw and the
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second piece is 24 hundred a year they go through it it with costs do they have to level and put up the $2,500 and then up to 25 hundred going forward. >> absolutely with respect to the endowment we kind of got our best guess this is architectural given the program but it is no a moonlight on the amount of fees it is an endowment for the maintenance but something receives a permit their maintenance fees are well in excess of that we reserve the right to bill them for this is kind of anticipation of some causes and over time we see the $2,500 a year this is based fact we're willing to make that higher than without a lot of
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information. >> move to approve. >> director i have a quick question. >> i think that a small point and i am aware the regulation but the requirements one of the things that called out the requirements that they require that has a multi illegal unit website and any thought to adding the accessibility provisions to the app for low vision which some people boo don't ride bicycles as a general matter it defines the federal law around the sergeant that will not be two onerous i was wondering if. >> it didn't make it into this is the something we'll be open
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to adding something similar in terms of the saeblth requirements. >> go forward and add that as an amendment now. >> is there a motion? >> second. >> i think let me finish the question i know that vgsz has a question and move on to the amendment. >> so i can't imagine a reason to oppose this amendment but fair to check with our current holder to - in any event we have after the fact on this proposal is a permit holder required to hold their insurance arrangement yes. >> it applies to the reliability for the bike malfunction or the improper maintenance the bike.
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>> it is a fair share broad indemnification of the city and the point is it applies to not only with the bike but anything kind of user error. >> my question is not indemnification but hold a third party policy. >> yes. >> so section e or - yeah 6 e there is kind of a through f section of the permit requirements e describes what is adequate insurance we'll review that. >> thank you very much. >> that's fine. >> first any more questions from the decorations on anything i have a motion to approve it sounds like we want to amend the legislation so i think our
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intent to amend the legislation to note that it that website and the app will be needed meet the standards of information with the technology provision of i think section g 08 of the rehabilitation and sorry 255 as the communication. >> excellent do i have a motion on the amendment. >> i move that. >> a second on the amendment. >> yes. >> i'm just not sure that might complicate things for the contact. >> isn't that based on the concept. >> so i think it shouldn't make any difference. >> i think to director rubke's point something we should be generally doing with the contract to make sure there is in compliance with the federal standards i have a second on that
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amendment. > all in favor, say i. > opposed? no hearing none, this is added to the legislation now i need a motion on the amended legislation. >> so moved. >> > all in favor, say i. > opposed? hearing none, this also passes. >> thank you, mr. parks your work i appreciate it. >> madam clerk, any other business before this committee? >> thank you, we're adjourned thank you very
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>> good afternoon, everyone and welcome to the today's event i'll rick your mc for this average you know me as a sports coast for abc 7 my mom says i am an american born chinese i'm excited to be here that's because of my chinese heritage and i love sports very much so i'm the first chinese-american television sports coast in this country i am proud and old at the same time i've been covering sports in the bay area since 1987 during that time i working closely with the wirings in 2015 i was invited be
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part of unveiling of jersey for the wiringsburg during many season he took part along with mayor ed lee and the wirings president rick and former warriors the warriors are activity in the chinese up community in chinatown along with the chinese new year for the past 6 seasons some of the warriors take part in question and answer through wave have a hybrid between facebook and fweert they're the most followed with 3 million formals we're here to make exciting news about the warriors participation in the innocence nba more the 2017 preseason before the details i'd like to introduce ourselves guest speakers first of all,
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warriors cfo rick wells. >> (clapping.) >> san francisco mayor ed lee. >> (clapping.) >> from the mayor looks grumpy i lost the nasdaq tournament out of the office pool now (laughter) we have the executive vice president howard ticket. >> (clapping.) >> the san francisco chamber of commerce president and coo cal i can't heart. >> (clapping.) >> the bay area business dell christian and from the united airlines mike hannah. >> (clapping.) >> there are also some people in the audience to be recognized we have the president of the
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chinese chamber of commerce mr. chang >> (clapping.) >> the chief the protocol mr. smurlths honored to have he hear and from the united airlines melinda franklin okay. >> (clapping.) >> we would like to bring up to the podium the president and cfo for the warriors mr. rick wells mr. rick. >> (clapping.) >> thank you, thank you great day rick also nice to have you been part of this so we're here today to announce the rosemary i warriors will be making their third trip to china this october 2nd games between the minnesota tinder wolves in shanghai we'll be the nba team
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traveled to china more than any other tomato in the history. >> (clapping.) >> the first change to go there and hear amazing things our second trip to our sister city shanghai we'll get to visit the nba in hits desirability is such a global trend i've had a front row seat to watch that waterproofsables are years i was in charge of the international offices and had the thierl to be part of opening of our very first international one person office in melbourne as you traditional it is amazing to see the hundreds of employees and the offices all over the world to promote this support of basketball and the nba for the nba there is no question that china is the single most
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important mashthd outside for the basketball it is the most important team sport staten island one hundred million people play basketball and again, economically did most important place outside of the united states for the nba for the warriors i think we do that exactly the is that you not only because the great connection to china but your asian community here in the bay area but for our business as well we 345i6r7b9d the warriors team is the new haven selling team in a china not surprisingly we were the. >> (clapping.) >> the first team to create all chinese language website we were the first team to launch wave
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have and now more wave have in china 0 more than any other team we celebrate the new year with especially created jersey to celebrate china it is something we'll do thought future and our players in addition to the time warriors that team jeff curry and draymond all on that's what it's all about their own team spent a lot of time in china and last week we were talking about this announcement made plans do go back to china this year an amazing opportunity the purpose the players individually as well as so for the nba and if this is not enough the warriors in oklahoma city not a - that a game will be on tv as their game
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of the week we're thrilled that we're part of this wouldn't have been possible without the partners this is what i think as we get the opportunity to showcase san francisco a welcoming place to our chinese friends we look down this year the people that make a happy everyday for the most part our first chinese-american mayor he came on the last trip and very much the reason that we have the four square block 11 pile of dirt in mission bay that will be the new chase center to open in 2019 a fan of the warriors but a friend of warriors and san francisco partner in everything we do with we're thrilled the challenging chamber it here i've been getting fab reviews you might
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consider quieting the bay area council traveled with us to china and doing that again in one of the first founding partners at chase center united airlines to be part of what we do in the city and obviously the connection between the bay area and china that's where we want to be as the warriors no reason the warriors can't be the team that the fans in china most society with the nba and through that the association with the bay area in san francisco and that is the big part why we're doing this and hoping to accomplish so thank for having us you're welcome to come to china i'm going to turn it over to rick thank you. >> (clapping.) >> thank you, rick if you have an extra seat i'm on it okay next have the mayor the san
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francisco mayor ed lee to come up he got literally off the plane from a goodwill trip to hong kong. >> (clapping.) >> thank you, rick and for being worked out great sports coast for the local bay area stations i want to, of course, thank rick the warriors and if it is exciting for kids for families and just coming back from the far east you have to understand that charlotte does every time we met ones an international trip our welcoming weer to the rest of the world particular is a party and i came from vietnam you know that with our sister city and hong kong with the chamber as an international gift we've got to really understand how san francisco is more than
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welcoming we have 80s cultural gifts we're exchanging with other countries and it is more than what we see it is i think during this time rather than countries giving each other challenges they rather see gifts of a cultural and now with your sports teams that is even more well-received thank you to all the sponsors here from our bay area council to united airlines to the chamber of commerce and the sfaefl and all the partners that the warriors have this announcement is significance for the world we're a gateway to the far east and we will continue to be a gateway with those kinds of gifts the nba allows the warriors to do you want imagine how valuable a warrior sitter is in china i've been asked several times to bring some over as
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international gifts they don't want appropriations they want a warrior gifted and you know this is amazing when the kids of government officials give me one of these i don't care what you have to do and you know the main warriors, of course, is extremely popular but now it has that imvote of coming from san francisco it is almost as if it was made in san francisco the brand is extremely popular but as importantly is the teamwork the acceptance that your giving more than a sports team a values of group collaboration, of teamwork, of great plays of innovation that the team really representatives that is extremely popular all over china to have it in places it is one the hot beds of
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extension in all of concern china to be complimented by shanghai is an audience of tremendous impact so i want to say thank you to the warriors for including us of course, october will be another one the exciting times because they'll have already parades through the country hopefully with yet another win and we look forward to that you know, i must say that sports continues to be be an international language in and of itself that's why i appreciate the chinese chamber here that is going to probably. >> wage again, the community support that the warriors have given all the communities of san francisco and not just chinese community i know filipino community and asian community
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all the ethnic organizations that are diverse in the bay area welcomed to the games that's why i them comfortable at the games when you go there on our games you see people from you'll different backgrounds there yelling and screaming but also for the team and also just recognizing the value of diversities in the san francisco bay area have that recommended open on the teams of players and ownership of the management that represents that diversities extremely well and make sure that that is a part of the discussions whenever the warriors with introduced it is more than a basketball team it is a welcoming sign of the united states of america in my opinion this is great for san francisco and another wonderful win i can't wait for the chase center to open up more than basketball by international groups to
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colonel together and celebrate and have what i think the airlines want more travel all across this will be wonderful for their hub in the san francisco bay area to gragsdz and sfaefl will be smiling and china is sf is one of the successful entities for linking us up and investment if china and i's companies and the chamber representatives over to china that is also helping to stabilize and normalized a lot of activities that wouldn't happen trade, friendship, cultural gifts, sports gifts they're all being worked out interpreting welcome at this time because i think that what ask necessary more than ever is giving each other gifts rather than challenges all over the world and this is what the warriors are doing for us so
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thank you very much. >> (clapping.) >> thank you, mayor ed lee next we would like to invite to the 0 podium the executive vice president of sfaefl howard picking even though. >> (clapping.) >> thank you, mr. mayor you're right about one thing wife been smiling about this opportunity since we've talked with rick about that chinese is for 0 more important market for those in san francisco the faster international market the largest and been the most money when it comes to the market the market we've had our eye open to have a podium to work with the warriors and technique with the chinese customers and operators and the different people we do with a podium of a brand like the
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warriors is unmatched for obvious we are excited about the the subject property and going on the mission bringing our partners along because it gives our be partners an opportunity for great assess for you operators that are excited about this so give context for china about a half a million visits every year and spend one $.7 billion in the city that is an important market and the faster growing in a business and spending stand point we're looking forward to this opportunity thank you for thinking about us and including us we're excited about going to china and talking about san francisco thank you >> (clapping.) >> thank you howard next we would like to invite to come up to the podium the san francisco chamber of commerce president and coo caylee heart.
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>> (clapping.) >> well as you can tell from my stuart i didn't have a long career in basketball, however, olympian more than a a long time and nothing brings people closer it together than sports for partnerships and building bridges thank you to the warriors and everyone to have me out to celebrate this cleaver the mayor is correct an incredible partnering with the center to the chamber of commerce and we have sorry about that chief scotting relationships since 2008 a couple of things i want to talk about that effort has resulted in the recruitment or over 70 businesses thousands of jobs created, hundreds and thousands of leads and then over $5 billion in economic activities right here in the city city in the bay area.
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>> (clapping.) >> so thank you, mayor for that partnership the economic impact it obviously incredible important but relationships that i think we've talked about the partnerships and conflicting things overseas and commerce can build bridges and relationships bridge that gap between things we don't have common areas we at the chamber are committed to those kinds of partnerships and watching from home and celebrating as usual cheering on the warriors. >> thank you for the opportunity this is an incredible opportunity we'll see a lot of economic activity and continued friendship there is those kinds of things i've been practicing and would like to sings chow chow. >> (clapping.)
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>> okay. thank you and next, we have the bay area council chief of global business development the all the way down christian center. >> (clapping.) >> thank you, rick i'm very happy to be here and honored with rick wells and mayor ed lee who went on the trip with us last year, it was visa exciting do go had in 2013 with the warriors it was an easy ticket to sell we filled united airlines carriers to go and united airlines a one great partner to go to china and the work in china we appreciate that all the work with them but the 2ri7 last time and this time was tyler and exciting the stadiums filled up the fan base in china is extraordinary and i
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think that you're going to do well, there that is appropriate that the warriors are taking the lead for the nba because san francisco and the bay area are the bridge to china and always been the bridge to china the fact that you're going to shin descend if you're doing business with schien you need to do that on behalf of the bay area council you have our full support i'll be going on the trip it was decided friday by me and (laughter) i very much look forward to that so thank you so much for your leadership. >> (clapping.) >> okay. thank you dell by the way, for those of you who don't know united arld is not
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just the official airlines for the warriors but the for chase status quo sports and entertainment center we hope to have in 2019, 2020 nba season now to represent the united airlines the vice president of the operation mike hannah. >> (clapping.) >> thank you, rick what i'm hoping we have faith we have faith in rick here and, of course, everyone else in the bay area leakage honor and privilege to be here and stand proud with an amazing brand like united and, of course, like the golden state warriors as well as the amazing city in san francisco last fall when we announced the partnership it was an amazing, amazing time and i'll tell you why joe dimaggio's taking an aircraft hanger we don't heavy
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maintenance and rebuild engines and anything you like to do on an airplane and transform it into a basketball court with a the warriors logo in the center and put a lapsed and have rick join us and the players and announce on muslim partnership that's how we started and here abused of comboirz in the city of san francisco being worked out the worlds best city we're proud to sponsor the warriors and it is the sounding partner of is chase center brings happiness not only to mitchel and 13 thousand employees but 86 thousand employees around the global through the sponsoring with the warriors our customers will see assess for premium seats and vip experienced and,
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of course, the warriors all graphed items pretty well cool, huh as we head into the playoffs all i can say you'll soon soon soon see a truly great partnership for the united customers and, of course, warriors fans as excited as i am to be part of this announcement that the warriors are more thrilled this is about the warriors expanding into china for the third time united was did first carrier over thirty years ago over thirty years ago they're the leading u.s. carrier in all of ata's fly to more non-stop cities 6 chinese designations by a shrink and hong kong and, of course, honk joe last year, we launched
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routes and connected from silicon valley with chinese silicon valley and the first u.s. carrier from u.s. home of china's first define city and the warriors at united our shared purpose connecting people and oountd the world no place else than sfta san francisco we're the global gateway to china we fly 11 daily flights serve 11 million passengers nine hundred flight a day out of sfo and recently announced we're expanding to 5 any market value sin national and, of course, in san rose will fly to san francisco as well this summer we're expanding to
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new orleans and montana previously not severed during the summer months and the support off our community-based organizations organizations lecturer the san francisco opera and asian art museum and, of course, boys and girls club and supporting the community allows us to give back to the san francisco bay area and absolutely amazing to give back to the people that live right here on behalf of the 13 thousand employees in the bay area so ladies and gentlemen, the hometown carrier and by far in my opinion the best carrier be we're proud to partner with the city of san francisco, of course, be rick and the entire warriors team we're proud of and the chamber and sfaefl and very, very happy to be here go warriors, go warriors. >> (clapping.) >>
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okay. thank you very much mike all right. that will be do that to summarize the warriors will be playing two games between the minnesota timer wolves in china this is something to look forward forgot about the great wall that this is the great road trip thank you for the speakers and being worked out a great audience it is really exciting to see the warriors stay involved that the chinese community not only here but on board and it be to do see we'll have a quick point out stunned with mayor ed lee and rick and hosting the jersey that will be one or more if you want to take point out opportunity so until then thank you very much and good-bye hope you, you had a great time this
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>> good morning. all right, ladies and gentlemen good morning and welcome to the regular meeting, to my left and tang and yee is excused and our clerk is mr. victor young


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