Leasing so we can bring in that revenue to be more successful instead of having to do with negotiating the best use. I think we can do it that way. We have not done a popup request for anything youd this is leasing new trails for us. We can certainly think about, i think your point is a good one. One of the limitations at the site is, you cannot do a special event for more than six months. What we are imagining is, there is some chain of users think you would hope to find a way to select among them. You might wind up in an rfq. We will think about that, try to come back with a better recommendation. I definitely hear what youre saying, we better be working with people and keeping the lights on overtime. Thank you. [reading items] [laughter] i missed the last meeting so i wanted to make sure i had a lot of fun this time. Thank you for bearing with me. Mike martin, real estate development. Here before you to talk about the proposed ownership restructuring lease extension into frankies java house. This was an item we brought you on february 12. I will go into more detail how this is an interesting policy question for us on our recommendation to you is predicated on thinking hard about something that isnt easily put into a policy bucket of how we would do things. At that time, the commission directed us to go negotiate a lease. We have done that with the proposed new tenant entity, they have completed their ceqa so now we are prepared to come back to you to continue with backgrounds, java house is a restaurant located at peer 40 and a half. As south beach harbor. The current lease runs through 2023, it calls for a bunch of Infrastructure Improvements to utilities and other things totaling three in a 46,000 dollars that has not been completed. They are delinquent in that obligation. The tenant, or actually the purchaser came to us with a proposal that was effectively purchasing the tenant, and then bringing in that new capital to work out these defaults, and then to improve the operation by developing outdoor seating that would improve the Revenue Generation and also changing the format of the restaurant to more focused on dinner and also bar sales. In february we had those representatives to talk about their business plan. In the time since then we have done a Third Party Analysis of the business terms. Maybe for more background to start out, right now, java house, as you can see here is only paying their minimum base rent. Their performance has not been good. We very much want to improve that. The restructuring proposal is shown here on this slide. His partner is also operating a winery up in sonoma. The lease would be amended to provide a 10 year extension that was conditioned that would be condition, and not available until they completed the Capital Improvements that are both required under the current lease about also improving the outdoor seating. We are back up to where we should have been already and also improving the alteration. In that location, with patrons and others would be valuable. The new financial terms, immediately upon executing this amendment. The base rent would increase to 4000 dollars a month. Including this sale. As i mentioned, since february 12, which stated value validated and saw the upside. To determine how it fares to fair market terms. Weve negotiated a 50,000 dollar payment to the port. There is a monthly penalty for not completing the Capital Improvements. Basically this 51,000 represents a portion of the time that the maritime improvements were completed. This would come off the top of the sales proceeds. Thats in addition to the cell preservation. Base rent will be adjusted to adjust actual rent paid, if they earn the extension. Also our consultants validated, even though as i mentioned earlier, the cost of these improvements have gone up to 737,000 dollars from what was previously estimated in the 500,000 dollar range. 10 years was still the appropriate time. We have not increased the extension term even though that information has changed. Here is what we project as though rent revenues with the help of our thirdparty consultant. As you can see, compared to terminating the lease and putting out a new operation, the present value improved by 45 percent based on our proposed transaction and similar timeframe. We see a lot of financial benefit. This graph shows graphically what we are talking about. The light blue and blue lines are percentage rent and base rent respectively for the lease amendment that we are proposing. As you can see, performance goes up from here. That is compared to the pink and red lines. That would show a dive and minimum rent and percentage rent as we terminate the lease and i wind up in a growth of goodwill for new operation. Eventually the new operation does sort of replicate what were doing here but with several years in between that shows where the port gets its benefit. We saw arguments setting a bad precedent by moving ahead with a tenant who is in default on a capital obligation. We heard the commission note that it would allow market to compete for the opportunity although we also reported on the challenges which did not wind up with the proposals. The argument for approving it, the improved Business Model i think benefits the ports bottom line. I think we are protected because both the previously required improvements on the new ones must be in place before the new term is triggered. The money that is paid out with terms of participation, as well as the rent metrics increase right away. We avoid the downtime and start of time as an operations get started. Therefore, we recommend approving this transaction realizing their arguments against. We feel like on the balance, the benefits of the part on the structure of the work out and the thinking behind this effort makes a lot of sense to us refreshing this location, especially as we are looking in the neighborhood to do other things on pier 38 and 40. We think this would be a good operation to add to that mix. With that i am concluding my presentation and will answer any questions. Thank you. So moved. Any Public Comment on this item . Public comment is closed it commissioner gilman . For the presentation i like the provision that the extension is not triggered until all of the Capital Improvements are done. I think that is a good tool for us to use other negotiations with other folks dealing with and i like the penalty. I am generally supportive of moving the item forward her to have no other questions. Commissioner woo ho . I have no questions. I am supportive. I am also. Thank you, mike. All lives matter one favor. Resolution 1926 has been approved. [reading items] hello commissioner brandon, commissioners, Joel Williamson senior project management with the ports real estate department. Glad to be before you this afternoon with an update on the mission rock project. If youll indulge me i want to go through history before we get to the meat of the presentation. First of all, i would like to share a timeline of how the project has evolved. Going back 11 years to 2008. We started before then with outreach, this is when the project started taking shape back in 2008, if you can believe it . A lot of activities since then with state legislation, ballot measures, every session of some note. Anyway to get us to today. We are glad to be here today with an update on the project. Some project highlights to refresh your memory, you will see project size at full buildout of approximately two point eight gross square feet. With the breakdown of residential, over 1,000,000 square feet with those units being affordable. Approximately 1,000,000 square feet of office space as well. Groundfloor retail on some upper level retail as well. Pier 48, subject to a separate lease, currently being used for parking and special events, eventually to be used for more industrial purposes. Overall, a project that we cannot wait to get started on with 28 acres, 11 buildings at the end of the day, three parks and pier 48 to be rehabilitated. For some context, today the parking lot, as it exists with the narrowband, fronting on china base. A foldable full buildout, over four phases, you will see the project, new neighborhood at the waterfront, very exciting place. To refresh your recollection of the funding structure for the project, this chart starts at the bottom of the page and Shows Developers import equity combined with important land value. In the opportunity to invest ift funds into the project to fund the predevelopment costs, which have stopped or nearly stop because we are now in the Development Part of the project, and on the phase cost as well. Any port return, part capital returned at 10 percent, the developer returns 218 percent. Above that we have excess land that we get to share. We are very interested in sharing those revenues and we have builtin some strategies to mac maximize the revenue sharing potential for the project. Doing our best to limit developer capital with public financing. Efficient use of tax exempt that an important capital. We were before you last year, and he had a very busy day last january of 2018 approving projects on transaction documents. Obviously the lease, the master lease, and on the next page you also recommended we take the ift over to the board, and approve a 10 year lease for pier 48. We appreciate all of those actions you have taken to get us to this point. Since that time we have been busy securing other approvals for the project to get a fully entitled. We went to the commission i received their approval, state Land Commission as well. And in the fall of 2018 the mayor signed the transaction document subsequent to board approval. Other big developments since approvals. The giants, as you here shortly have added a Development Partner. The major submittals to the Public Works Department in San Francisco including a tentative map application. Several contracting milestones have been achieved including hiring a general contractor. Hiring architects for the first four buildings in phase 1. Hiring a Landscape Architect and doing all of this, and exceeding a Workforce Development plan of 10 percent for preconstruction contract expenditures. Of significance, and the reason we are here today is to share with you phase 1. We have received a giant phase 1 submittal. Staff has reviewed that and found it to be complete. We will continue to review for compliance with all of the terms of the dda report back to you in a few month with an update on that, including your chance to review and approve hopefully the phase budget. Phase 1 submittal in a nutshell, you can see some of the accomplishments on the items we hope to achieve in phase 1 including the rental residential unit. A good chunk of those are affordable, 202 of the Office Square footage and retail square footage, the workforce plan goals that are listed here. Of course, the construction of an expanded market over five acres area there have been a few changes since phase 1, since the project was approved yet just to highlight those for you. Phase 1, show on the right here, as proposed today includes parcels a, b, g, and f. No longer includes parcel k. We believe it is a benefit to the project by swapping out parcel f. Which will allow the construction of additional residential units. It is significantly larger and a cohesive neighborhood at the intersection of a share public way and exposition streets. The other significant change since approvals is a ground improvement approach. Not to bore you with those engineering details but we are now pursuing a ground improvement approach using lightweight cellular concrete. You may recall, at project approvals we were proposing tile supported streets which proved to be inefficient for this site and overly expensive. We believe there is a better approach. With that i would like to have the microphone over on the podium over to jack wherefrom the giant walk you through other elements of phase 1. Think you phil, thank you commissioners. Im really excited to be here on the verge of breaking ground on this project are good its been a 12 year odyssey as a commissioner brenda knows. She shared at the Port Commission back in 2007 to look at this development opportunity, much like youre starting to look at pier 30 and 32. Its been a long odyssey. We had a recession, we had an election, we had legislation we have project approval and entitlement last year. And now we are in the implementation stage. Im really excited to be here looking at the groundbreaking before the end of this year. I would like to think and all of the members of the staff that have been working hard with us over the last many years to get to this point. We have worked really hard with all of these different city agencies on different technical aspects of this project they are challenging given where it is, along the water with sealevel rise and connections of utilities in mission bay and so forth. We have made great progress together, as a team. The project is indicated as a four phase project. First up is phase 1. In phase 1 we had several goals we want to deliver a substantial amount of market rate and Affordable Housing we want to establish a place that holds together in the phase itself. Compelling to the residents and visitors, and workers that will be on site. We want to create a worldclass Waterfront Park that will be talked about throughout not only the city but the country. We want to deliver a project that is financially successful for both of us on the port. The project components as it still indicated our building sites, two of which are residential which contain both market rate and affordable units, commercial office in blocks b and g. Chinabased park and then a whole long list of Infrastructure Improvement establishing streets and utilities stabilizing the shoreline and District Energy and Sustainability Systems on site. Residential units are in the two buildings, both of jonah 40 feet tall. We have swapped parcel k for parcel f to maximize the housing in the first phase. It contains approximately five and 50 residential units and 202 affordable units. The commercial offices are in two buildings and actually building parcel b is actually eight stories, and parcel b is 13 stories tall. This shows the views and the site that are spectacular. Which will expand over five acres. But also the ends of the streets that are pedestrian only and shoreline improvement in creating an environment not only with office and housing but parks for people. Restaurant and retail environments that will benefit the community, mission bay and also complement the ballpark itself. Site improvements as i indicated with streets and utilities. This site is also well served by public transit. It will have sufficient parking as we build down phases of the project and we will manage Transportation Demand in coordinated and systematic way. I wanted to introduce to you carl shannon. He is the principal with the west coast, and we brought dish inspire and with our partner to help them amend the project and fulfill a vision that we have created over the last 12 years. It is a great pleasure to be here, you know, this team has been working together for more than a decade, just thrilled to be now able to work with support, the giants and really appreciate the vote of confidence from the giants to be here. Our job is to try to make this actually come to reality. It is fortunate that there was a lot of vision here on this project and conceiving of a mixeduse project that would include both office and residential. I think a lot of you know that Construction Costs have been escalating rapidly in San Francisco. We have seen Construction Costs and inflating more than one percent a month, more than 12 percent a year. The ability to have a commercial project and a residential project here means that we are able to bring the entire project forward and see, you know, up to 1200 units of housing, 40 percent of which will be affordable come out of this mix used project in a way that would not be viable if this warehousing only project. So, thrilled to see that happen. The need for collaboration in the Public Private partnership remains as strong as ever here. Look forward to working with staff and you in the weeks and months ahead. We hope to be back here in august with a formal submission on the phase 1 budget, as they indicated the appraisals should come in next week. This is looking at the schedule from a high level standpoint, we submitted to phase 1 budget back in march and april. The appraisals had been working on the fair market evaluation process that should be complete next week. We would hope to be back here in august allowing for an execution in september, which is soon as the baseball season is over we would really like to be under construction beginning the Horizontal Development on site and be in a position to begin vertical construction early in the new year. With that, i will turn it back to phil. Thank you. Commissioners, the next steps are outlined on this slide. As mentioned earlier we are continuing our review to ensure compliance and we hope to complete that process in the next few weeks. We are also reaching out to our consultants and reviewing the phase budget, we will plan to bring that back to you, i should say in august for your consideration. We will also be outreaching to the community to make sure they are abreast of the project development schedule. In the fall, we hope to have a part design to bring to you with informational presentation so you can see how the part design is coming along. That completes our presentation. We are available if you have any questions. Thank you. Is there any Public Comments on this item . Seeing none. Public comment is closed. Commissioner woo ho . Thank you. I think at this point i would have to say, its great to see the progress because i think commissioner brandon i, when i first came on this, i think we always heard about mission rock. I know we had a Great Partnership with a giant and its been a slow process on many levels and theres been a lot of discussion in terms of how to structure this project theres been a lot of hard work and how to value the land and how the deal would go. Its really great to see that this is coming to fruition. I cannot wait for the groundbreaking to say this is actually started. I think many people have worked on this over time. I dont really have specific comments at this time on the phase 1. I think weve had discussions in the past in terms of the amount of residential, the affordable, at this point i think it is now execution. I appreciate the details that you have provided us. I am not sure i have any more detail. Thank you. Commissioner makras . Thank you for the presentation. I have one question. If you would go to slide 11 where youre talking about [inaudible] at the end of it, are you giving the streets to the city, or are you retaking ownership . We are working with public works specifically at puc as well all of the project streets as city streets. The exceptions would be as jackie alluded to, you can kind of see on the slide between parcels a and g, and g and k there are little stubs that enter into the park. Those are going to be what we call park extensions at the port. There may be some risk ramifications in there. And issues when it comes to the road. Are you going to bring that forward to us, is it a dpw position . We have been working with the director of public works and their staff on the streets and what is required for dpw to accept these streets as city infrastructure. Just to be clear. We will continue to own the property. When they are accepted as city streets they become the burden and responsibility of dpw. We can update you when we come back on how that is going. [inaudible] i Like Technology but sometimes i can go sideways. I just want to do it with our eyes open. Understood. We will definitely keep track and that as you mentioned we are in the weeds and many of those issues right now. Commissioner gilman . Thank you so much for the presentation. Im excited to see it move forward. Im really excited that you frontloaded the Affordable Housing. I want to commend the giants for doing that particularly with the fact that this carries a lot of middle income housing. As we see every day more and more, we need housing targeting. I really appreciate it, i am too excited to be at the groundbreaking. Thank you. This is a very comprehensive update for us. I havent seen you all year, jack. What i like, like commissioner gilman, i like the component of the housing and i know that was a hard negotiation, but its the right thing to do. I appreciate the job creation that it is going to create. They always said an overnight success can be 20 years. After 12 years you are finally getting there but you have done it right. I think this is something that will continue to move forward and im really glad you have taken the time to put all of the pieces together and involved a community. I always say that, because its so important for you in any way i am supportive as we keep coming back to the commission. Discontinue like i said. To the staff we are working hard, this has been a slow process trying to get every thing right. Commissioner woo ho, i am the third tenure commissioner, thank you. [laughter] okay. Bill, jack, and carl, thank you for this presentation. This is so exciting thinking, by the end of the year we may actually have a shovel in the ground in this Wonderful Community that is being developed is just extremely exciting. I also think it is keep America Great again one phase 1 that you are building more than proposed previously. I think it is great that theres going to be more housing commercial, and the park. In phase 1 than previously. What phase is pier 48 to in that is a very good question commissioner. As i mentioned earlier, pier 48 is subject to a separate 10 year lease with a ballpark company, our current tenant. That lease allows the port to bring forward a Development Proposal for pier 48. It at least allows us to Work Together with the giants on the proposal if it is of mutual interest. We do not have longterm yet use yet for pier 48. The project approval document will be voted in when we find it. The best i can answer you, for the next 10 years we have used so we are looking for longerterm use. What a reactively doing to find that use . We included this in one of our outreach efforts on historic here in this location. We dont have that data in front of me, i know we received some responses in that package of responders. I believe the giants are also looking at other uses for the site as they develop their phases to see if there is a complementary use. Pier 48 is the only existing thing on the site and it has character. Its important to us, we very much want to be part of it pier 48 element. We are carrying pier 48 in a letter phase of project. It is quite important to the project because as we begin construction of phase 1 and especially as we begin construction of phase 2, before the garage is completed, pier 48 is an important valve where we can use pier 48 as interim parking resources. Once the garage is built in phase 2, then we can look at pier 48 with respect to longterm use. We are starting to think about that now, actually the longterm use for pier 48 would come online after the garage is completed at the end of phase 2. Thank you. I see that you guys are exceeding your Workforce Development plans for preconstruction contract expenditures. It would be great to know how you are doing that. This has been a long process and i know a lot of money has been spent, but we have not seen anything on how that money has been spent. Can you tell us a little bit about that . I think what i should do is get you the detailed report that we file with the Contract Monitoring Division on our preconstruction. We have had workshops, we invited the community to talk about all of the different preconstruction aspects that we are looking for help on and we signed a bunch of people up to be part of our teams that are both business enterprises. We are right now hovering around 1415 percent in exceeding the goal of 10 percent for the preconstruction work. We will be doing workshops with respect to the horizontal construction of vertical construction as those projects move forward we will have an open house here in august to talk about all of the opportunities in the horizontal construction. We will do the same before we launch into the vertical construction as well. I would be happy to provide you additional information. That would be great to see that report. I know i have asked our staff to include it in our quarterly presentation and so far we have not seen anything. Thank you. One last thing, when youre doing your Community Outreach i would ask that anything happening in at southern corridor to be brought to the central advisory committee, because it affects the total corridor. It would be great if you could add slack to your list. We will do that, for sure. Thank you everyone. [reading items] commissioners thank you for your time today, i am jonathan rahman, the project manager for the port. The project is for the construction of a Ferry Landing at mission bay ontario france while boulevard and sixteenth street. This is the request for authorization to have pre authorized services. This is recently mentioned at the mission bay Ferry LandingInformation Update presented to the Port Commission last month on june 11. Our objectives for this presentation is to provide Background Information on the delivery method. The rationale for using this method as well as to get the Port Commission authorization to start the bid process. I will provide a brief background since we discussed this last month. The new Ferry Landing would be located across the street from the chase center. The location is also centrally located to ucsf, mission rock, San Franciscos Sciences Community and over 8,000,000 square feet of new office, commercial, retail and housing. We would operate the Ferry Service and the design is now complete and documents are being prepared. As highlighted in the june 11 presentation, the project will support the Strategic Plan for the still ability and economic vitality. In particular the port is proactively working with Transportation Agency partners to ensure integrated traffic plan along the waterfront in a timely manner. The purpose of this presentation is to request authorization to advertise for Preconstruction Services. And also informed the Port Commission, the construction manager delivery method as well as the rationale for using the third. Early contractor involvement for commitment on price and schedule based on design and required constraints. We will discuss this process in more detail further into the presentation. The Preconstruction Services will be approximately 750,000 dollars and will be paid with unallocated funds remaining from the already secured planning and engineering funding for the project. This is approximately two percent of the estimated Construction Cost of 37,400,000 dollars. PreConstruction Services out way the relatively moderate expenses for expenditure. The project delivery method will obtain costly schedule commitments and is recommended for a project with our complexity which we will discuss shortly. Well established in the Construction Industry as well as recommended and allowed by the San Francisco administrative code for this project budget size. Used by San Francisco airport, San Francisco public works and was used by the Port Commission for the James R Herman cruise terminal in 2012. Consisting of two phases. Using awards Preconstruction Services from a qualified Construction Company and they are paid for their work. The contractor acts as a consultant for distractibility and can identify risks based on the contractors established means and methods. This process also allows the port to be an active participant during the process and make informed decisions on Design Options based on the contractors expertise. They then solicit competitive bids for each of the trades and develops a guaranteed maximum price. If the port agrees that the contractor has submitted a fair sorry [inaudible] they authorize award of a contract amendment for construction. The Port Commission is not obligated to award construction. Port staff is recommending project construction to start by june one, 2020 meet restraints. The port must spend the funding by august 2020 or it will be forfeited which will then require port identification of a new Funding Source for this gap. Also regulatory and water work windows require piledriving and dredging between june one and november 30. If the pile installation and dredging cannot be completed by november 30, may be exposed to another year of delay as well as cost escalation 12one point,200,000 dollars. The early involvement will help us get schedule commitments for and water work windows on funding spend requirements. The early involvement will help us get cost maintenance based on our design and should be reducing costly change orders. The early involvement will help us with planning all of our technical and construction complexities such as dredging, as well as specialty procurement. The challenges, the process takes more time. Therefore we are encouraging your authorization now to meet a construction start of a june one, 2020. As artie mentioned the port staff believes the modest fee of 7050,000 dollars would justify the benefits. As an additional benefit, the contractor can directly negotiate up to seven point five percent of the guaranteed maximum price with any subcontractor for the San Francisco administrative code. Lets summarize the process. The Port Commission authorizes to advertise for request for qualification and request for proposals for Preconstruction Services. Port staff will solicit a combined best value procurement. Port staff reviews the proposals, conducts interviews and recommends a candidate. Port staff will then return to the Port Commission to request award of Preconstruction Services contract. They will then review the designed documentation, collaborate with port staff develop trade packages and then bid the packages. They will then create a guaranteed maximum price. Port f will then return to the Port Commission to request an amendment in the contract for the Construction Services if we believe the gmp meets our needs. The Port Commission will not have an obligation to award the construction. This is a summary of the use of fund. The 750,000 dollars Preconstruction Services would come from the unallocated funds and the already secured entitlement and engineering budget. Contract contingency as well as escalation have been included. We do not have contingency for sale prices or tariffs in the overall budget. Part that has secured the following funding as artie mentioned the funds need to be spent by august 2020. Appeals to rmc are still pending but we are continuing to work with partners to secure funding to meet our schedule. Port staff will be returning to the Port Commission later this fall for consideration and approval for actions regarding the unsecured funding. These are the major milestones. Port staff will be working with the Port Commission on upcoming considerations and actions for the construction contract as well as funding process on metropolitan transportation commission. It should be noted that the major constraint for piledriving and dredging in any given year. A significant delay of construction starts after june one may not allow us to drive enough sacrificing another year and exposing us to cost escalation as mentioned to be around 121,900,000 dollars. Make us forfeit 8,400,000 dollars of fund required to be spent by august 2020. In addition lending there stair float they will neither float returned by early 2020 early 2022 thereby not having Ferry Service in the area. Good afternoon i was asked to brief the commission on the slide. As part of the overall the project envisions a subcontract requirement of a percent. This is the overall participation across the 38,000,000 dollars worth of work that is envisioned on the project. What you see in front of you is basically the rough breakdown of the scopes of work from which we were able to derive the eight percent. We recommend the eight percent subcontracting requirement that includes both the preconstruction and construction phases area due to requirements of both the overwater and specialty fabrications related to the peer float as well as the dredging and which basically comprises of almost 30,000,000 dollars of the entire project. That explains why the participation requirement is at the level that we had set it out. We do see significant opportunities and Preconstruction Services as well as the short site can direction. As noted before, the process breaks down the projects by trade package by which it would through its cost estimating phases would provide support and cmd with a proposed breakdown of how it would try to meet the lb e requirement. In partnership with the ports, as well as the Master Builder would identify those trades in which there is a large amount of available to do the works thereby focusing the Master Builders efforts on targeting and getting more participation out of each of those trades. In addition to that, as mentioned before, there is some provisions up to seven point five percent whereby we can access some of that to assist the Master Builder and targeting and getting exclusively obes four distinct portions of work. That is basically the end of my portion of the presentation. I will toss it back to jonathan to get to your question. For the next steps, port baffle returned to the Port Commission for authorization for authorization im sorry, for the next step port steps will return to the authorization for preconstructive services if you authorize us to start advertising today. We will also come back and continue to secure all environmental permits which is expected in october and returned to the Port Commission for actions regarding Funding Sources and early fall. This concludes my presentation. Commissioners, thank you for your time. Are there any questions . Thank you very much. Is there any Public Comments on this item . Seeing none. Public comment is closed. Commissioner gilman . Jonathan thank you for the presentation. I was a little confused, i just want to make sure im understanding your presentation correctly. Eight percent seemed a little low compared to other projects we do. But i think i heard you say, i need you to confirm im understanding you correctly. Its harder to get lb e participation because those firms do not have the crafts or the trade we need to build it, is that is what you are trying to articulate . Yes. The slides confuse me. I apologize. We do look at the needs of what the department is trying to create. What we have at this time do not do that. A lot of that is specialized read to answer your question, that is correct. I am glad we can get the a percent on a specialized project. Thank you so much. That concludes my questions. Thank you for this report. I know this is obviously something we have endorsed and something that is very near and dear to my heart. I just want to know under the approach that we are using which was explained at the last commission meeting. In terms of the actual cost you are seeing 47,000,000, how much of that is firm at this point given you are going to bring some of the end thats going to advise us some more . We are also not sure whether we have all of the funding in place right i understand that. So, i just want to anticipate that we dont get any surprises down the line, and this approach involves the contractor with us up front on this on the estimate cost etc. This approach helps us to avoid surprises. We will be getting their involvement early, and often with a build type situation. We dont have that type of feedback in terms of how to build because we are limited on discussions we can have with the Actual Contractors so we dont give anybody a specific advantage. Having this rpi Selection Phase allows us to get somebody qualified and have them sit in front of us with all of the drawings i go through and avoid any of the surprises that we have. Ill rephrase my question a little bit. I will appoint in timeline lies will be then say this number is pretty firm . Let me just grab, we would have the guaranteed maximum price if we were in schedule, real briefly, we would be getting we would be awarding the preconstruction phase is in the october timeframe. With the contracting issues we would start the actual Preconstruction Services in december. We would have four months in that timeframe. We would know by the end of this year, because obviously that effect since we hope to find funding we have to know whether we are on solid ground to get this project done on the timeline that is proposed . That is correct. If there is any indication that things were not lining up to make it cancel the preconstruction contract. To give the commission a little more comfort we had a contingency here in this budget, 25 percent contingency, and we have had a topside cost estimator. Although we will have a maximum firm price which is what we can really rely on, we do feel comfortable with this budget estimate that we are around the figure. Because of the large contingent fee plus having a very good cost estimator on this team. I guess, obviously, because of the chase center and everybody else that is fair lending support, a lot of eyes on this project to make sure it is done properly, on time and with whatever cost estimates we expect. Absolutely. Our biggest concern is a delay. We really do need to get our funding in hand and deliver this project on the schedule we planned because there is an escalation factor in this budget, if we flip time that will be a problem. That 12 Percent Commission is a little bit of what i was concerned with, we built some of that into this cost. I would be absolutely delighted to see this project completed in the timeline. Absolutely. Commissioner makras . I support it. Thank you for the presentation. Thank you so much for this presentation. I just want to be clear that today we are voting on the seven and 50,000 dollars construction, and all of the rest of this is just for information. As far as funding you will come back to us later . That is correct. My only question is, in the staff report the lb e goal was 12 percent for preconstruction and six percent for construction. Im just wondering how we got to eight percent from their . The original sub contracting requirement that lists the two separate goals was something that needed to be modified because under code, they have over one lb requirement not to. That is why it is in a percent goal. Within that, however, after working with the port and relooking at the project, we felt there are significant opportunities that could be left at the preconstruction phase. That is why you have an overall eight percent. Okay. How do we know that . How do we know eight percent is different than 12 percent on six percent. I dont understand. Is it the same or are we losing funds . All lives matter, you are gaining more. In the aggregate, because the original summation is i believe is 12 percent for the 750. However, after relooking at how the contract, the scope was broken down we felt that we could get more up to about 20 percent. If you were to look at just the 750 alone. For this part of the contract, the 750,000 we are looking at 20 percent . We believe you can get significantly more. The overall requirement is a percent. That is what the Master Builder what would we be looking for when we get this proposal back . 20 percent or eight percent . So, the Master Builder, as part of the process have an lp e commitment letter. No contract, if you recall, youre just hiring the Master Builder alone. There would be no subs or anybody underneath him at that point. They would be signing what we would call a commitment requirement in terms where they would attest that they understand the requirement is a percent, at the end of the contract they would be held responsible for meeting that. However, in the interim, once you approve and award the Master Builder, a contract, we would immediately work with them on trying to get as much lp participation at the front end as possible with the use of that preconstruction contract. [inaudible] eight percent overall for whatever the total cost is paid right now that state is 5,000,000 dollars. At the 720 that we are breathing today. That percentage of lb e might be up to 20. Its only going to be eight of the whole project. But in the bill the beginning, 25 money percent of the 750,000 will be lb e . Yes. That is primarily impacted because of that impact you have, and all of the other specialty work. Okay. So the total eligible for lb e is 2,800,000 . [laughter] it is not plus. Let me get we are starting with seven or 60,000 dollars contract so 20 percent is 150. Does that help . Yeah. [laughter] three point eight five, that is what we are getting for the contract. Okay. We have construction, and thats about 4,000,000 that could be