these projects. we do need to consult with the national park service and the i.r.s. about whether or not the sea wall would be qualifying. we think it is at the staff level because it is a contributing resource. to the embarcadero staff. >> and then piggy backing on some of the commissioner's comments about the potential for expansion or more funding for infrastructure. i think, you know, might be worth exploring and we've talked about this repeatedly, expanding the water taxi and ferry service and opportunities there. so, if there's a way we could start getings on the table for any funding that is coming that direction we may want to think about that and argue that building out more terminals throughout bay and partnering with the other cities in the area to help expand water service would be a useful effort to undertake. and then looking at where there might be support for p3 projects. it seems like we're looking for the funding, particularly for the sea wall. frankly there is a lot of large companies that are going to benefit significantly and we might explore where there is some funding opportunities at the federal level to find some added partners that would enhance the partnership and i think we have willing partners if there are ways to participate. they may get waterfront property, literally, as it floods into their basements. i think it is going to be such a significant project. there may be ways there. please use us as resources at the tate and federal level as we all have fairly good relationships with people in both places. thank you. >> great job. you know, i'm so glad that we're so engaged. i mean, the port -- we have to use our bully pulpit sometimes. you just have to use that. we got david chiu and scott weaner and i'm glad that we're playing in sacramento. i know unfortunately the senior leadership that got the seniorities in southern california. but eventually they will have seniority. i know they're going to have a new senate pro tem and these are relationships that we need to have. and i want to piggy back off on something that the commissioner said. i don't think we can take no for an answer on this infrastructure. senator feinstein is at the top -- almost the top of seniority in the u.s. senate. maybe we need to get a letter from her, senator harris, leader pelosi and have them send a letter and saying hey, we need to be a part of this discussion about infrastructure and how important it is to the port of san francisco. we need that. and i think that we shouldn't take no for an answer. we need elaine chao here. he is the secretary of transportation. i don't care what we need to do. we need to use the politicians if d.c. that we have and ask them, you feed to get secretary chow here. i knew her from her days as secretary of labor. she needs to come to the bay area. and she can visit san francisco port and oakland. i was thinking from the governor's office it would be nice if we could get the >> tear of transportation from the state. but someone from governor brown's office to come down here to the port so they know what's happening with the port of san francisco and give them a tour. i think that that is so important. i think we really need that. and i'm hoping this year that president brandon and director forbes and others will be going back to washington. probably you, too, brad with the chamber. it is important. we have to be back there scraming and even also talking to the army corps of engineers. and get the leading democrat on infrastructure and transportation. we need to get them down here and sometimes we have to remind these politicians they work for us. we have goat them out of the office and roll up your sleeves and see what is going on in our port. we have a great port here. sometimes you have to call people out and have them come down. and then the last thing i would recommend, and this is just a friendly recommendation, i know we got some new supervisors on the board. i don't think they've been down here to the port to visit this port. some times we have to start at home before we go to the head table. sometimes you can make a big splash. but i wonder if you can swim the lap of the pool. so i think we get those supervisors down here to give them a tour of the port. i don't think they understand what the port of san francisco is. they see it driving by. they need to go out on water so they can see the dems and what we're doing on the southern waterfront and they can see the port. we have to engage them. i know a lot of times they're busy. we have to keep hammering them and keep needling them until they get tired of us bothering them and finally come down here. so that is what i want. i really like this. thank you for all your hard work. i hope that maybe once a month, send the commissioners an update on what you are doing if it is something that you can do or somebody you want us to call. i have no problems with calling them. because we have to make these politicians accountable. we have to make them accountable. this is our port. and you know what? if we're silent about it, then they ain't going to do anything. we have to get them to say yeah, i'll come down there and see what you have and get that letter from senator feinstein, harris and pelosi and get elaine chao and maybe doreen can work her magic. but we need secretary chao down here. thank you. >> thank you, daly and brad for all you've done for the port and our legislative priorities. as we can see, there are a lot of them. i think my fellow commissioners have made great recommendations on how to move forward and what we need to look for. i do think that outreach is very important. on every level. national, state, local. i think we really need to get out there and i think we did a great job this year. so we can only continue what has been started because we have several prioritis that have to be funded. i agree with my fellow commissioners and their recommendations and thank you for all that you've done. thank you. >> thank you very much. >> item 12-a, informational presentation of the port of san francisco employee drone policy relating to the port's use of drones on port property pursuant to the city and county of san francisco's city-wide employee drone policy adapted by the city's committee on information technology. >> good afternoon, president brandon, vice president adams, commissioners and executive director forbes. my name is diana bartrum and i'm your emergency services coordinator. for the port. so today we're here to discuss or to introduce you to this policy addressing employee drone usage at the port. not public drone usage. so, just to clarify that. it's how employees or contractors or staff would use a drone or a u.a.v. to conduct different assessments and i into that in detail. for port usage. so, not public using drones on port property. and as stated in the staff report committee on information and technology adopted a city-wide employee drone policy in may of this past year, 2017. the city being dedicated to embracing technologies that help improve its services and operational efficiency and dedicated to protecting the privacy and safety of its residents and for us for our visitors that come to the port. its intend is to guide officers, employees and contractors in the use of drones and u.a.v. on port property. there are five participating city departments in this programme. the port of san francisco, the san francisco fire department, public utilities, recreation and parks and the controllers office. it all. created policieses for their employees to use drones. there are three reasons or uses -- authorized uses for drones on port property and that would be for disaster response and recovery, for inspections during and after a disaster, for example like the earthquake we just had. if we could put a drone up in the air to inspect around it would increase our operational efficiency and most likely address a lot of safety issues that could happen post disaster. for the inspection for surveys and assessments of port properties regardless if there is a disaster, we could use it for roofs and inspecting things for our engineering departments and for maintenance. and for marketing to capture a video and still photographs. for example, if we wanted to do something for pier 70 or for the sea wall project, and use a drone to get some great ariel images, we would use this policy to address that. thater lot of requirements listed in the policy that you have before you. there are specifications for the drones. safety requirements, draining of the operators. notificationss to the public and to the city. we file a flight permit and let them know and the f.a.a. know when we're flying and what we're doing. there are prohibited zones along the city. there is privacy concerns, data security is also a major concern and compliance with all of these. some of the prohibited zones that are mentioned in the policy include five miles of an airport ors any f.a.a. no-fly zone which includes the giant's stadium when there is a game in process. drones may not ho*f every over line wires which maybe outside on the embarcadero unless authorized by the m.t.a. they are not authorized within 500 feet of historical landmarks without operation and especially considering historical landmarks defined by article 10 of the san francisco's planning code, which include the ferry building city hall and the ferry building which concerns for us. also in the maritime transportation security act, there are some properties that are subject for -- you cannot fly over because of maritime security. so, when the cruise ships are in and the ferry terminals. so the most important concern which was really, i believe, the driver for creating this policy, is the protection of personal identification. and there are definite methods to how you have to scrub personal information out of any video that is captured and then how we store that information is very important. there are strict guidelines and how we do that. that the city has come up with. we alsos have to destroy any raw data after one year. so as stated in the strategic objectives for policy, it builds resiliency by allowing an inspection process and contributes to the economic vitality of the port. and that concludes my presentation. we will return on february 13 for approval. if you have any questions -- >> thank you. >> there any public comment on this item? ok. public comment. everybody's quiet today. [laughter] public comment is closed. commissioners? commissioner katz? >> thank you very much. a couple of questions. on the training, so the port will designate specific employees allowed as our drone operators and will cover their training and actually have the skillset to do that. ok. one sort of semanticking question, i guess. most of the report refers to drones and there is a couple of times they're refered to as flying machines. why -- what is the difference between the troefrns drones through most of the policy and then occasionally to flying machines? i'm not exactly sure. i know that interestingly enough in the por code, it refers to drones, before the word drone became common, they referred to everything as a flying machine. it also includes hot air balloons and all kinds of contraptions and kites and -- >> it is a what i was getting at. it's broader and why some of it is more specific and and it is broader. is that the reason? >> yeah. >> ok. thanks. one thing that i think would be helpful would be in terms of permission to go within, you know t500 feet of historical landmarks because we have so many along the waterfront that we should be fairly clear as to who can grant that permission. right now it just says building owners s. that tenants? is that us? we should be clear as to who is and who is not authorized to give that level of permission for flight. i appreciate the acknowledgement of the data security. are we going to have the opportunity to ensure that the servers are not, in fact, capturing or maintaining the data that's collected? >> yes. i believe so. so, we're -- we will be looking at how we capture that here at the port. and then how we connect with coit as well on the data. >> if i may offer one clarification. commissioner katz was speaking about historic landmarks port-wide and we certainly do have an historic district and ironworks district. but this policy only pertains to those listed in chapter 10 of the planning code so we're really only talking about the ferry building. is that right? >> that's correct. and i checked that with mark pias at the port and he said they're specific to just the ones in that part of the code. >> thank you. >> thanks. >> that makes it a little bit easier. [laughter] ok. i guess just going into some of the specific concerns for privacy and anonymityization. this is a outside company that maintains the service. is that -- >> no. that is the main manufacturer of almost every drone out there. so, that part of the policy came in from the p.u.c. put out a memo when they stopped using the drones. you may have heard of that because they were worried about or concerned about that. so they added this language in there about how to address the issue of that brand of drone, if you are using that kind, how you can turn off the signal so that they cannot capture the my understanding. -- capture the information, is my understanding. and by turning off the g.p.s. signal, it is not able to do that. >> i guess that sort of answered my next question, which is what steps are we taking to turn off the ability for them to attain the information and i would assume that in our contracts with them that we will have some language in there and review their privacy policy pretty carefully. >> you purchase their drones, it is just the product and the contractor -- if we're doing it ourselves. our employeess are flying it, then it goes through our. activity. -- through our i.t. department. you can keep the nonraw data, the scrub data, you can keep that for marketing purposes longer than a year. but the raw data you have to destroy. but if you hire a contractor do do that, look and see what type of drone they're using. >> i guess i'm getting at more specifically that the policies of these companies leave a to be desired and i strongly recommend that someone take a concerted look at those policis to make sure that we're not inadvertently giving them access to the data. that is where i was going. the capabilities will be there. and i would just want to paul hardy that we have people with far greater technical skills than i reviewing the policies. i look forward to seeing some of our marketinger the. [laughter] thank you very much. >> commissioner? >> thank you. very interesting presentation. i just wanted to -- i think it sort of states but i want an explicit explanation for this policy. the essentials of this policy are the same across all domestics in the city. but we're just adopting it specifically for ourselves. >> yeah. >> ok. so, number one with, i guess i had a question on what are the height limits of where these drones can fly and just so i'm curious to know how that is governed. >> normally the height limit is 500 feet for the drones to be under 500 feet. >> under 500 feet. ok. and to keep it in a safe zone. one of concerns around here, there's coast guard helicopters that fly. for the f.a.a., when you back drone pilot, you learn more about those regulations and i myself am learning more as i go through this process. >> do we see these drones going underneath the piers to give inspection. >> they could be going underneath. >> they can go as far down as long as they're not touching the water. >> another question and i know i'll ask another one later. i know this is the policy of the city and public usage governed by the f.a.a.. but i'm wondering if the public is using a drone are the drones of the city and the port going to be marked in a specific way that anybody that sees it automatically can say, ah, that is a port of san francisco official drone and it is ok. or is there going to be some sort of system that you can identify as soon as you see it that it is an authorized drone other than somebody else, not that i'm using it if public usage of the drone, which i don't know what that policy is. but we can talk about that later. in other words, you can immediately identify that this is a port drone? >> it is definitely possible. the drone has to be in visual eyesight of the operator. so, it -- >> i would suggest we have a branding that is very specific so that anybody who sees it can see that it is port of the san francisco and it is official. >> yes. and with the operator standing there in a port uniform. very important. >> branding is an excellent idea. >> working and branding. i think one of the uses will be a lot for inspection. presumably we don't see too many for disaster and they will be marketing. what do we see the usage, the frequency of -- how often are we going to see drones on port property? >> for inspection purposes? i'd really have to ask more of engineering and maintenance that question. so i could see that would -- for us even relating it to disaster response. if you have data that shows preexisting conditions for that, i yearly and annually would be a great idea. we'd have to ask engineering and -- >> i can see people standing on embarcadero wanting to see these drones fly around. it could be an attraction. >> they fly around all the time. the public flies them all the time down here. >> i haven't seen them. [laughter] and you did naention there was all sorts of restricted and prohibited areas and do we have a signage plan to let the public know? in addition, we'll observe it. but they're governed by those same restrictions, right? are we having a signage plan to make sure that people know that you can't fly your drone here? >> i think it is something that i'd like to propose as a new topic. >> i think in general it is regulated by the f.a.a. correct? >> they still have to comply with our rules. >> that is something to look into how to communicate that with the public. >> yeah. should observe the same. >> yes. it is more dangerous for them to not know than it is for the port, i think. they could have accident or whatever. it is not our perview to understands the public policy, but the public policy for drones from the f.a.a. that different from what we're talking about here? >> the -- no. just so we know in parallel. >> i was trying to collect the information on all the different policis that are not f.a.a., the f.a.a. regulations. the f.a.a. regulations speak to height, flight plan, license being a pilot for an f.a.a. to fly a drone and other regulations include national parks, state parks and all the parks that do not allow drones flying in those areas and the ballparks that do not allow it. and collecting that information to get a better understanding, around maritime facilities so we can bring back and to educate everybody here for the commission and for port staff to understand better. it is a little bit of a grey area. there is not a lot of enforcement. there isn't a lot of backing to enforce it. what do you actually do besides you find someone fly ago drone over these areas besides saying you can't do that, please stop. because it can cause accidents. it is dangerous and there are all kinds of concerns that could happen. >> i think we can expect that the popularity in consumer usage of drones is only goinging to increase. i happen to have some friends who have model airplanes and a drone is a model airplane. >> right. >> i can see other people say oh, great. let's fly it around in the bay. we need to make the public aware as well, although they're governed by a different policy. thank you. commissioner adams? >> thank you. this is a good report. i'm very supportive of this. i recently saw a documentary on amazon and how they're going to be using drones to start delivering packages and stuff. and this is the future here. this will help. i'm glad that the city and glad that the port is adopting this policy. it is going to work out. it is going to help. and safety and a lot of other things that is going to help. i think it will help uss to strike a balance and we might as well use this new technology to make it easier and make the job safer and it is right here at our doorstep. i'm supportive, thank you. >> diana, thank you so much for this presentation. i think my fellow commissioners have gone through everything -- [laughter] and i'm happy that we have this pilot policy along with other city departments and look forward to what recommendations come out of it. thank you. >> thank you. >> item 13-a, informational presentation under proposed documents represented to the alcatraz site locate at piers 31, 33 on embarcadero-bay street. one for the national park service with a 30-year term with two 10-year options by use of the site and success of the ferry operators selected by m.p.s. including a formal lease with a ferry concessioner to be selected by m.p.s. for improve. ments and ferry services to alcatraz island for a term determined with m.p.s. ferry concession contract and two a lease with the golden gate national park conservancy for site improvements and to have site amenities includinging park station and cafe for a 30-year term with two 10-year options. >> thank you. thank you, amy. good afternoon, commissioners. jay edwards, senior property manager. first of all, congratulations to president brandon and looking forward to your leadership and support throughout your term and want to thank vice president adams for all your dedication and stewardship while you served as president. we've enjoyed your council and thank you so much. i'm also joined here today by rebecca, our assistant deputy director of real estate and as well as james hurly. and did want to take a moment here. we have our partners here in the audience and they will be speaking -- two of them will be speaking here shortly. but specifically i wanted to thank jessica carter who's right behind me. she is -- she is the chief of the business services. chief of the management division. excuse me. i think i have that right. and her partner who is not here and anne is the special assistant with the office's administration and management and administration of the park service and i want to thank rhoda sandler who's here, our deputy city attorney who's helped us to get these comes in her current part. suzanne carlson who is the solicitor for the u.s. department of interior and then we also have our partners. i did want to mention brian abaus will with the nation fall park service, greg moore the c.e.o. and president of the conservancy and then nicholas eleseans, the vice president and carrie farrobin, our deputy superintendent. she'll join us here on the podium. that is a lot of introductions. i also want to thank you for reading a 22-page-long staff report. probably not the easiest to get through. but we have a lot of information. we'll try to make this consolidated for you and i also wanted to thank elaine forbes for all of her help and dianne and mike because without that we couldn't have gotten here. all those introductions out of the way. i want to take you through a little bit of background and follow-up. i was here -- we were here, excuse me, we were here back in july of 2016. just other day. [laughter] presenting to you the term sheet which we had then requested your endorsement and there was a resolution in which you didn't, in fact, endorse the term sheet as well as the sole source agreement of findings, if you will, for both the ferry concessioner and the conservancy to act as partners here on the site. we subsequently went back in november of 2016 and received our board of supervisors approval for the same and it was adopted by our mayor ed lee and it was a beautiful presentation by the mayor today. honoured to be here. with that, i'll get into the presentation. we will go from here. this is a project location, that little star is -- so that is on your right. that is pier 31. on your left is pier 33 and the site consists of approximately 25,000 square feet of interior space in the sheds, in the two sheds and the bulkhead buildings as well as about 43,000 square feet of marginal wharf area that people presently associate with the alcatraz landing and then about 60,000 square feet of submerged land, which is used for vessel berthing, boarding and staginging. so, that is the project site. these are desired needs and outcomes and this all really started here because of an interesting -- really a problem that we're trying to solve and that was that historically this concession contract solicitation requires an officer to have an existing lease on port property to private the embarcadaion site for alcatraz island visitors. this approach resulted in really some challenges including during the contract transition, it limited the amount of investment. it also made this a really limited competition and in addition it was -- had the potential possibility of bringing it off port property. so, with that, we've decided to really address these outcomes here. you can see what these are. this is a long-term business partnership with the port and national park service and this secures the alcatraz embarcation site for all of these fantastic reasons. and it is really a lot of public benefit here. and we're excited about that. we've got improved visitor orientation experience. a significant investment in the site coming into 30-plus million will be invested in this. and historic preservation of these wonderful, historic bulkheads and sheds and it is enhanced competition for the ferry concession contract i know is important to our park service partners and there is tremendous economic benefits to all parties. we'll talk about that a little bit today and then it also is really revitalizing a very active and busy part of the waterfront. so, we're excited for that. so this slide recommends -- i recommends why the report was 22 paints, but represents the partnership agreement in its really fundamental stage and that partnership agreement is really summed up, i believe, in this sentence if you will. it is a partnership agreement between the port and m.p.s. that designates the site as a long-term, sole visitor context station and ferry embarkation for public access to alcatraz island. that is really a key, sole long-term visitor contact. the general agreement also outlines independent and joint obligations of both the port and national park service. as you can see, that is the general agreement that starts there and through that agreement we have, as you can follow this, a concession nairs leaf and the park service will have the ferry concession contract that's their obligation and then they have a partnership agreement with the national park conservancy which is here today and they will talk a little bit about their role. hopefully that gives a good overview of where we are today and with that, i'm going to turn it over to our deputy superintendent. >> great. thank you very much, joy. i feel very fortunate because i get to come in toward the end of all this long, labourous discussions and creativity at work. i wanted to mention i also bring the regrets from our new general superintendent who has just started -- i think this is week number seven on the job and she got called back to washington for a department of interior work session for the planning of the next 100 years. i can't wait to learn what she learns. but she sends her regrets and she looks to ward to working with you all in the future. i wanted to acknowledge -- i'm looking at elaine -- because i know your team has been working closely with our team on embracing the vision, identifying the vision and figuring out how to make it ham and it's taken a lot of work. a lot of blood, sweat and tears and i want to thank and acknowledge one. this will be a landmark. it is going to be new and improved gateway to alcatraz, which we we're thrilled about. very pleased with solidify finally the business terms for this long-term arrangement which is really important and i think brings benefits for all stakeholders and most importantly our visitors who come here. i want to acknowledge the recent accomplishments that have been reached which ing colludes the neepa compliance pathway, it is wrappinging up with a record of decision about to be signed if it hasn't already been signed today. so that is our neepa process. the nhpa approvals have been secured. and we we've engaged closely with the city on the ceqa compliance pathway. i know that is on track for completion in the near term. we've also engaged on the schematic design. really drilling down to understand how the site will function in the future and working closely with the bcdc on the comments and design view boards on really embracing kind of what this waterfront site means and how to embolden the historic preservation and create this gateway site. we finalized the business term sheet. we have the draft general agreement almost ready to be signed and we know that we're near completion on these important lease agreements. so, i want to thank everyone who's helped work on that. i wanded to articulate a little bit of the overall goals for the project and for the site. for the cycle we want to have a seamless experience for visitors. those going to alcatraz island and also those who may be coming along and along the embarcadero and seeing the port and getting views out the the bay. we want to recognize there are all types of visitors and create a welcoming place for all. we will feature key interimive story tas tie into the port and history of alcatraz and provide exhibits, programmes and services to enhance the visitor experience. with regards to the site and operational activities that go on there per the draft agreements which have laid out kind of the specific terms, there will be specific investment made in facilities there and return of economic benefits to not only the park service and the port, but really the surrounding waterfront businesses and communities over time. with regards to site operating roles, jay did a fine job of presenting that rather complicated arrangement that we have. it's quite a dinner party, i guess you'd say with all thes invited parties. just to highlight that the port will fulfill its typical roles as the property manager. the park service will be on board to provide that unifying role for the site, to help prothoet that seamless visitor experience across the between those two operating partners with the conservancy and concessioner and play an important role with the interimive exhibits and themes that are going on. we have a long-term collaboration with the golden gate national parks conservancy. they have successfully delivered experiences elsewhere within the park which gleg highlight shortly and the park service really has a long and well-established programme process for establishing concessions operations within our national parks. and we're really poised to release the concession perspective in mid january as our target. and anticipate a four-months solicitation period and evaluate the proposals later this summer. there is a whole series of internal reviews and approvals that we have to go through to get to a contract effective day of may 2019. sounds like a long time off. as you probably know, it really isn't when you go through all the steps. the concessioner will run the ferry and manage all the associated services and be making investments in the fight. and the conservancy will manage the intendserive welcome centre, retail and cafe, which you'll hear about shortly. this is a very effective diagram to really lay out the big concept for the future site. clearly acknowledging that the open space is important to maintaining the views out to the waterfront. that it will be open to all who are coming and then on the sides, we'll have the embarcation dedicated function and then on the right side, the disembarkation and it is a nice site diagram. this is just to share, you don't have to read those -- that small prom. but this is really to implicate that we've really refined the programme and the functions for drilling down and make sure these things are going to work and they do fit within the site and within the facilities. with regards to the site assignments, the takeaway message here, again, don't try to strain your eyes and read that. the green is the area in which will be managed by the parks conservancy and the blue is managed by the concessioner, so it illustrates the overall foot print. i want to thank you for your help and helping us be creative if a win-win solution. we're genuinely excited about what the future holds. this gateway to alcatraz will be centred on the waterfront historic district and as you heard earlier it's all about historic preservation. and with tax credits and other projects that we do. the site will again provide a seamless, innovative experience for visitors with access to the water's edge and views of bay that we're happy to be able to share. at this point, i'd like to introduce greg moore who is going to speak to the concert var si's role and participation and -- there you are and process and a colleague of mine for many years and with the park service. thank you, greg. >> first, congratulationss to president brandon and vice president adams. great to be here today. i'd like to begin by not only thanking the port commission, but executive director elaine forbes and her incredible port staff for advancing this vision for revitalizedway to alcatraz island. the experience, the talent, the goodwill and perseverance of the port staff has been so instrumental to working out a rather complicated but important and visionary project so our hats are off to the commission board and the staff for hanging in there with all of this. in this partnership, the conservancy has two primary roles which relate to our experiences as a nonprofit partner to the national park service. the first role is to plan and deliver a new alcatraz welcome centre. this centre will provide information, interpretation and park and san francisco-related products to alcatraz and port of san francisco visitors. the second role is to plan and deliver a seamless visitor experience by offering food at the alcatraz cafe at the embarkation. we're fortunate that the port has really wonderful historic buildings to house both these visitors serving functions. pier 33 is a grand and welcoming space with the right size. eventually the right lighting and public access to serve as a new alcatraz intendserive welcome centre, similar to many other facilities within the golden gate national parks. we feel gratified to fulfill this vision. the conservancy facilities and staff serve about seven million visitors per year. these facilities were designed and built with our partners, similar facility which is include the golden gate bridge welcome centre, the lands centre t cal traz museum store and just recnlly in the past -- in february of 2017, we opened a visitor centre. we provide locally sourced food to park visitors at three locations. and we will bring this experience to the renovation and operation of pier 31 as a new alcatraz cafe. [sneezing] excuse me. here you can see the incredible space that that building provides for that function as well. the improvements for the plan will provide a gateway consistent with the vision and goals of various partners in this effort. after many years of planning, discussion, and negotiation, i am happy to call the alcatraz embarkation a winning partnership between the port and the park. thank you. >> thank you. we wanted to now take you through this important work that is going to be done to improve the pier 31 1/2 marginal wharf, which you've just seen as a really key component of the visitor experience there. we want to ensure that the public is well-served. and it is functional for the term of this agreement. we're launching into this repair project for pier 31 1/2 wharf. it is a separate project taking on through our funds generated here through the port capital funds. roughly $5.7 million is the anticipated cost for the repairs and this will be happening here. and the potential bid is completed and the work completed in may of 2019. and there will be no disruption to the ferry operation or visitor experience at the site. so we'll provide a quick overview of these agreements that we mentioned here. as i said, the general agreement is the overriding agreement ourselves and the park service. this is for a 50-year term. it is a 30-year firm term with two 10-year options and there will be a ferry concession lease that is going to be attached to the concession contract that is going out for come pettive bid and that will be the police that will secure the ferry operator to operate the ferry service to the island and will be co-terminus with the initial concession drt. -- contract. and there will be a lease with the golden gate national conservancy. and that is the 30-year term and that will have two extension options as well. >> the general agreement, this is the national park service obligations. obviously they have to go out and sewly sit and then secure an award for ferry concession contract. when that is done, the ferry concession lease will be approved by the port. we've done a lot of prework on the lease. we think it is in very good shape. and the improvements will be completed no later than five years after the effective date of the initial ferry concession contract. there is a firm date on getting these improvements done and we'll see those in that timeframe. in addition, we're having a new really very exciting potential service and that is an interpretive park concession. so, we're excited to expand our maritime activities here at the port and that is one of our missions. as we said tm.p..is solely responsible for selecting and contracting the operator and they have a whole federal process to do that. marginal wharf repair will be our obligation and then maintenance and repair obligations for the substructure and superstructures that surround these facilities and these are multitenant facilitieses that will be in the pier 31 and pier 33 shed. so, we'll take on that normal maintenance and obligations. and we have joint obligations and we spend a lot of time on this and it is important to not have nonbinding dispute resolutions. that is an avenue available to us. there are termination rights. these are prudent in light of the sea level rise and catastrophic events by either party. we have the conditions that render the site unusable. those are hopefully will never happen, but those are available. and the closure of alcatraz island for a year or more, we are hoping that again doesn't happen. but we ahead about all these different events that could happen and what would be the corresponding action by either the port, the m.p.s. or ferry concession. there's been a lot of thought going into this. conceivably really every possible scenario that could happen. and then what? and one of things that allow us to do is continue on with the ferry concessionfaire should there be an opportunity to do so at a later date. tease are the business terms that we have negotiated. these are exactly what was negotiated in the term sheet. there are no differencess in this. it's a tremendous opportunity for the port to participate in the future upside with our percentage rents and we have a base rent that increases annually and there is a -- out of the potentially $25 million that the ferry concessioner will be investing, we have agreed to $2.5 million of rent credits over a four-year period. they all have to be completed, though, before any rent credits are going to be authorized. we feel very comfortable with this and this is a term sheet that you endorsed and the board endorsed as well. we're into the ferry concession, termination provision and this is a piece we really had to think about carefully. what would happen if there was under that general agreement the ferry concession contract was terminated. how would we handle this? and here you have a tenant that's going to invest a tremendous amount of money into port assets. what's fair? what's reasonable. you know, what do we do as an organization with all of our tenants? and so we've come up with these three alternative tas we think do take care of a party that is going to make an investment and us as organization that needs to continue to run ferry concession services and we have ways to handle that. it is thinking ahead. being fair and being proactive. they think we're into the conservancy lease and this is one deviation from the term sheet with the two 10-year options to extend. and there was a lot of reasons that we all collectively felt this would be beneficial to not only us but to our partners here at the park service as well as the public and that is consistency of the visitor experience and what that means and how the visitors are really being treated when they come on to this site. it was highly important that the conservancy is one of the lead partners here with the park service, continuing to be involved in the site should that be extend. it is fot always extended if the general agreement is extended. they have to do everything we require our other tenants to do. put money back into the site. show us a plan. make sure that it is feasible, financial. -- financable. it's all the things that people would be required to do. we talked about here before. so they're held accountable for that it is up to our discretion. we think that that means it is a good partnership. the reinvesting in the site and we'll get returns on that and the public will see the benefit. we have a base rent. a fair market base rent that is sss ka lated. -- that is escalated. there are going to be rent credits again all per the term sheet and they will be investing in $5 million here to our property to a beautiful visitor contact station as well as with interimive retail as well as this cafe that you saw these really great renderings. you know, it seems all to be fair, we're partners. we're making this investment. they're making this investment. there are some rent ceds available to them. we do continue on our repair obligations as we talked about earlier. those are normal and things that we typically take on. it is a little more spelled out than we -- than in a typical agreement only because we don't want to have issues and problems as we address it. these are detailed agreements that we spend a lot of time on we thought through very carefully. we believe. and then of course the sea wall project, we have been really engaging up front about the importance to the port of this project and what that means and so we do reserve our rights to access it and do what we need to do. the sea level rise, you know, this is a problem we're all going to be dealing with down the road, we believe, and so there are mitigation measures in here that can help us protect for that. and then i do want to point out that both these leases have all the city requirements, all the city requirements that are -- we impose on all of our tenants. none are being waived. they're all in this lease, in both leases and we are really glad to see that and i think our partners are as well. and this is on our standard form lease that we typically use for visitors serving retail operations. so, again, really no deviations from our normal course of business. so, we're very happy that our partners could see the benefit of doing that as well. with that, i'll turn it over to jamie early to take you through the next slide. >> thank you, jay. good afternoon, commissioners. i actually just have a few slides. three to be exact. to finish up here. just a little bit more about environmental review and regulatory review of this project. as was mentioned earlier, this project having a federal sponsor and involvinging federal funds is subject to both the national environmental protection act as well as the california environmental quality act. so, again, as was mentioned, the environmental impact statement was released a year ago. and was very close to getting a record decision on that. and under ceqa, very recently on december 6, the city planning department published a preliminary mitigated negative declaration. that's the ceqa document for this project and that kicked off a 30-day public review period that ended on january 5. i will mention just briefly that an appeal was filed and so i understand that city planning will be scheduling a hearing with the planning commission for later this month on that. and then, of course, any project of this significance and this is a significant project that involves both in water construction and landside construction, rehabilitation of historic resources, etc.. so, it is going to involve a number of permits, bcdc, the army corps, regional water quality control board. in particular. and then just to finish off a couple of slides on sort of next steps to schedule going forward. so this slide talks about the business agreements that you've heard about today. i'm not going to go through all of the bullet points here. the first -- i'll go through a few. the first one indicates that the park service is prepared to release their prospectus. that is what they call their bid package. for new ferry concession operator middle of this month. i think maybe as soon as late next week. potentially. and then -- and then kind of skipping down to the last bullet on this slide, you know, they're planning to get -- to receive responses to that prospectus in may and that will begin about a year-long period of, you know, evaluation, award notification and transition. so, they're looking at april 2019 to have all that done. going back up on the page a little bit. in the middle of the page, importantly highlighted in red for you, we do plan to come back at the very next port commission meeting scheduled for february 13 for approval of the transaction comes that jay just walked you through. there is possibly that depending on what happens with the ceqa appeal that that could get pushed back. but we're optimistic. and then after that, that will -- then we'll need to go to the board. take these through the board. that is obviously a multistep process and -- but according to our schedule, we think we'll get through that process by the end of march. >> and then just finally on the construction schedule, this -- you know, basically this is going to be a phased construction of a couple of major phases and i think one of big reasons for that is the fact that the will remain operational throughout construction. and that is very important, obviously. so the first construction activities will start next fall. and that will be, again, phase one. the conservancy will take on that and they'll spend eight, nine months on that phase. later on, when the ferry concessioner is in place, they have their own construction project. so the schedule shows them basically starting in october of 2019. and again it's a phased