Stability in the area were lucky its been a success with colocation of our parking tenants providing services to the industrial tenantses and the highways in the area. With had a land rate that represents subterranean infrastructure and a site to represent Cell Site Technology improvement that dont require the same footprint previously required under cell phone technology. And our vacancy rates are low. And with all that in mind were trying to leave 43 unchanged for a grand total of 75 rates. One par thing we are proposing to do this year tart a pilot event and a Company Needs to have an Office Located in San Francisco and meet the qualifications they can apply for a fee waiver through the port and presented to the commission for approval. We also would continue the permitting to the s. F. Commission. And were available for any questions you might have. Thank you. Commissioner is there any Public Comment . Seeing none, Public Comment is closed. Commissioner. Thank you for the report. And thank you for the staff report. I did want to commend staff. Its a point i raised nine months to a year ago on page 14 on the staff report how were charging our nonprofits for events historic in nature over a decade. Im very supportive of the fee waiver for the entities you outlined in the staff report and pile olling the program. I piloting. We let our nonprofit partners know this and its a way to attract to the water front from a Civil Service or societal cause to get more folks to come forward and do this. And i appreciate the capping of 2 million. One small edit would be the major activities of the nonprofit not just in the city and county of San Francisco. Its just one suggestion i have so we really are targeting grassroots for instancebased small nonprofits and i am generally supportive. Thank you. Well take that feedback. Commissioner thank you. Commissioner woo ho. It was very comprehensive. I know you did extensive market surveys. You talked to a number of real estate firms. The sense i get is you made decisions on rental increases. Where would you say that put us in the market . Medium . 50 percentile, 70 percentile. Where are we and where are most the unchanged rates and what sectors. To get a sense we benchmark and analyze but where do end up . Were actually bumping up to from market and were fairly high. Some of the increases were contemplating are as high as 13 , 20 to make sure were pushing that market. Commissioner could we be at the 90 or 100 . Im not sure it correlated to the decision made. Well, we start with actually what the market is for that specific type of property i think were within that percentile. Commissioner is that a goal to benchmark ourselves that the level . I know its a strategy question. Our goal is to benchmark our rent but our properties are stressed. We earn more then condition of the property but we cant completely overcome the condition of the property. As you see in the staff report on table three the vast majority of our properties are class c and no class a property at this point but were directly managing. In class c youd know where you are relative to other class c. Were strong in our other class c property because of the uniqueness of our properties. Commissioner what types of properties are in the unchanged rates . Theres sheds that are not fully full. Theres still vacancy we want to fill up. Were hitting some price points where we cant penetrate right now. I think especially in the northern water front were not going attract larger warehouse users because of the traffic we have. The traditional tenant, our tenant is really the smaller tenant. Its the contractor who needs space and the Wine Merchant who has a small space for overlow and that sort of thing. And same for the office space as dimitry pointed out, our office space is not large office space. It caters to the Small Business person and the lbes and that sort of thing. I cited two deal in the staff report that were going on in i call it the big city. One was for Something Like 500,000 square feet for pin tryst pinterest and one was for sales force. Those are largeblock Office Spaces for tenants. The one tenant uses up more space than we had in our portfolio for Small Businesses. To a certain degree a certain amount of last stop for Small Businesses. If theyre priced out of our property theyre usually leaving San Francisco or going to work. Commissioner my last question though its obviously under our Development Deal and master do we compare what theyre charging with the subtenants to understand what the subtenant rates are relative to our parameter rents . From we are more and more, yes. Unfortunately most the properties are class a. We get information so we know what theyre charging . Its part of the albeit collaborative networking we do. Thank you very much. Commissioners thank you for your time. Im the project manager for the Mission Bay Ferry Landing for the construction of a landing in mission bay. Todays presentation is information on the project. Our objectives for this presentation is to provide Background Information for future actions that well ask you to consider to support scheduling milestones. Later ill be discussing restrictions that could impact completion and funding. This is a birds eye rendering of the project. Were looking north at terry francoi francoise left and pier 70 in the dry dock to the south. As we will discuss throughout thes informational presentation the project will support the ports Strategic Plan for stability and liveability, sustainability and economic vitality. In particular, the port is proactively working on the area and mission bay has constructed Housing Units and office and commercial space and 1 million square feet of retail space and open space and nearby is the ucsf mission bay hospital, San FranciscoLife Sciences community and the new home of the Golden State Warriors. Weve had plans to develop service at mission bay however they did not have the capacity to undertake the project at the time. The port wanted to assist so the port conducted a planning study to analyze several candidate locations with the criteria to be near housing, retail space and minimizing impact of mer Time Operations and the environment as well as conforming to applicable seismic waves and the location was the best fit. In 2017 the Port Commission approved to proceed with design and entitlement and were now finished with the design. This say is a site plan some performed by the port and some by others. Terry francois is shown here and the ferry plaza is in red. As a second project theyre starting the project at the park. They may build a water taxi landing however its not funded at this time. The park is to the right and the port already has funding. Public works is performing the design. This is a closeup view of the project. The landing will have a float. Its designed for all weda golden gate ferries. The plaza is also designed for Emergency Response by San FranciscoFire Department and provide a connection to the newlyextended auxiliary water supply system. These are some prospective use and renderings of the landing. The pier and bang way and float will gang way will protect from the weather and wanted welcoming lights as well as to guide people to and from the landing we felt it was best used as a canopy translucent designed. The pier was also designed for sea level rise. Signage will incur community and therell be 11 vessels in the morning and afternoon. Throughout the day weta is linking service to mission bay. In the afternoon weta plans to have direct service back to almeida and vallejo. And they plan to have regular services after all home Warrior Games and preseason and playoff games. In addition, weta plans to provide Additional Service for events if deemed economically feesable. Its assumed fans could woman to the area by service. In summary 1500 commuters each workday and up to 2100 passengers to special events. New dredging is required. Approximately 8 acres will need to be deepened. Sediment studies show carbon which will need to be removed and disposed of. Were working to finds finalize the details and include sand as a buffer and will then have a grout filled marine mattress designed for this application. B grout filled marine mattress designed for this application. It will encourage new habitat for marine flora and fauna. A pier review of Construction Costs was recently performed and confirmed our estimate. Escalation has been included. We dont have contingency for steel price or tariffs at this time. It was passed by voters in june however, scitizen groups filed lawsuits and they were believed to be in validated after indications the claims were not reasonable. An informational present was given to wetas board last week and expect a request for the funding process. However at the meeting we received a new meeting a group may be filing an appeal after they indicated they would not do so. Were uncertain of the development and will appraise you shortly. Port staff will have more from the transportation commission. The major regulatory in water work windows for pile driving sorry, it should be noted the major schedule constraint is regulatory in water work windows for pile driving and dredging. This is limited between june 1st through november 30th in a given year. A significant delay may not allow us to drive enough piles sacrificing another year and cause delays of 1. 2 million and possibly forfeit 8 million funds retired to be spent by august 2020. Port staff will ask for authorization to construct management and general contractor condition tracting strategies. And there was an information strategy and well be allowed to collaborate to have a price that meets funding and schedule. In the meantime, Dominick Moreno will discuss interim service until the Mission Bay Ferry Landing is complete. For the next step port staff will return to the Port Commission for approval to advertise for cmgc in july, continue to secure environmental permits expected in september and return to the Port Commission for Funding Sources in early fall. This concludes my presentation. Commissioners, thank you for your time. Were available for questions. Commissioner thank you. Any Public Comment . Seeing none, Public Comment is closed. Its a project thats been near and dear to the commissions heart in supporting more water transportation and i think its an important step. I have a couple questions. One, you said theres an appeal being filed. Whats the basis of the objection to this Ferry Landing . Good afternoon, commissioners. The port cfo. The Taxpayers Association sued on behalf of the tax payers. Their argument is the poll increase that is funding rm3 was a tax and not a fee increase and as a tax it required twothirds of the voters approval. And in fact the measure did not receive twothird vort voter approval. My understanding is there were two suits that were filed. The first suit was dismissed. And the Taxpayers Association said they would not file an appeal. I think they were concerned with the precedent they might set if they lost. They have since notified theyre intending to appeal and theres a second lawsuit to be heard in the next couple of weeks the hope is that suit too will be dismissed and at that point theyll simply give up. We have no idea how the lit gait will unfold. Its not to do with what we are trying accomplish but what is tax and not tax. This cost us 47 million. Its a good example of one pier. Im wondering, do we think this is the average cost every time we want to put in another sort of ferry pier . This is what the average cost is going to be and what are we learning about this and can we be more effective in the future . We still have the question ive always asked about floating piers because i think we want to figure out how to continue to network of Ferry Landings and this has come up in terms of us looking at a specific cost. Id like to throw you a question for when we answer another question which is wa are the economics of delivering water transportation infrastructure and specifically how can floating piers be part of that equation because were working on that internally and will bring that to the commission. On this project i would not call this a typical cost structure for a Ferry Landing because theres a lot of drudging, capping, water improvements here. The landslide would be similar but the contamination you heard about and the capping is the driver of costs that may not be an equivalency of other locations so its a little above the average. If you could break down the components of the budget and theres landslide dealing with sea rise. Whats the cost of the Ferry Landing itself . Approximately 21. 5 million. 27 million if you add in all soft costs so 21. 5 million if we didnt have dredging. We want to continue on this path. We want to encourage you do not incur so we dont lose the funds. I know you want to point the risk out to us. Whats the probability . Well, well problem solve nor funding issue. We originally had a request in the general fund for a gap measure for funding as the litigation is reconciled and because we got good news on the last we didnt receive the funding. If we continue to see delays kati look will be working hard to keep the project on scale. Well need to do a reimbursement resolution. Well need to get a lot of ducks in a row. Were not intended to delay the project due to this funding issue. Is this even the time line from the oci side to work that issue as well as an extension of time line. Theres not a lot of flexibility on the 8 million from ocii because its money from taxexempt bonds that must be sold by a certain period of time. At this point, losing that 8 million is the real driver for us in terms of figuring outs the funding that allows the project to move forward to spend the 8 million. Were very conscious we dont want to lose that money. Thank you. I think in general im very supportive of this project and appreciate the update. Im hearing and seeing in your presentation the cost of 45. 7 but in our packet can you walk me through page 6 where it says use of funds . I also see the similar 45. 7 number but the numbers dont add up. 45. 7 number but the numbers dont add up. The funds dont line up. Want to walk me through that. Total funds is 48. 4. Source of funds equals a different amount. 38. 7 million was a subtotal and it was 21. 5 million. 12 million and 2. 5 and the project management and design and entitles was 7 million thats been secured. Im supportive and happy to see the opportunities and numbers showing. I look forward to supporting this item. Commissioner commissioner . I have no questions at this time. Commissioner that you for this report. I want to know what was the original estimate of this project . And we were at 37. 5 and that was six years and many years ago. I think its been consistently strong and good. There were many surprises here in terms of extending costs for unforeseen conditions. Commissioner where do the new sources of revenue come from . The new sources there were some fundraising and city general fund. We didnt have a fully financed project when it was at 37. 5 million. It was in a conceptual state. We had a real cost estimate of the figure in an approximate to 45. 7 when we started seeking. And the potential water taxi location at the aqua park, is that in a planning stage or a possibility . Were fully designing the Ferry Landing so theres a demand for it and we can find a Funding Source its ready to go. We kept it in the project in terms of design and ceqa. So it will be shovelready for us if we want to move forward with that infrastructure. Can you walk me through who decides that was it a policy. The Mayors Office is helping problem solve a gap in funding. They worked on the Ballot Initiative and set a priority project with the state and help out with fundraising and general fund. We owe a debt of gratitude to the Mayors Office for the funding here. Commissioner thank you, jonathan. [offmic] thank you. Good afternoon, president brandon and commissioners. The item before you is an action item to recommend approval to authorize the port to enter into a mum memorandum of understand forg the planning, construction and Operational Management of the proposed landing at pier 48½. The landing will assist in Traffic Congestion later this year and will serve to promote public use of large transportation in the southern water front. The mou will serve to identify roles and reasonabilities of the participating agencies including operating agreements and funding strategies. The project complies with our port wide strategic goals with liveability and working with partners to ensure a Transportation Plan and programs to ease Traffic Congestion among the water front and expand public transportation. Stability by seeking traditional