Er conference with Legal Counsel regarding existing litigation matter, and conference with Legal Counsel and Real Property negotiator. Executive session. Seconds. Er all in favor, say aye. Er oppose . Ed madam secretary . Pledge of allegiance. pledge of allegiance . I pledge allegiance to the flag of the United States of america and to the republic for which it stands one nation under god, indivisible, with liberty and justice for all. Please be advised the the use of cell phones and Electronic Devices are prohibited at this meeting, please be advised the chair may remove the order of the person any person of the ridging of, pager or sound electronic device, please remember that a member of the public have up to three minutes unless the Committee Adopts the shooter period. Is there any public items on any items not listed on the agenda . Going once, going twice, Public Comment is closed. Next item . 9a, executive directors report. Good afternoon, president adams, vicepresident brandon, im elaine, the port director, today i have one item to report. Tomorrow, this port of San Francisco is hosting a contracts opportunity open house which will be at pier 1 from 8 00 to 10 00 a. M. , this event is to let business and trades know about upcoming Contract Opportunities with the port and with our development partners. The ports project managers will be on hand to explain upcoming contracts in areas of construction, engineering architecture, real estate development, environment and communication services. This is an excellent networking event to establish partnerships and to learn more about navigating the citys bidding process, we will have the contracts Monitoring Division on hand. The event will feature 9 tables with representation from port communication, engineering, environmental, real estate x the citys contract Monitoring Division and well have partners for the city and the San Francisco giants. Each solicitation, upcoming solicitation will have a fact sheet that will include the synopsis of the scope of work, the schedule of the rfp, the lbe goal and is the port staff contact. Upcoming contracts have a big dollar value, we have crane cove park construction valued at 20 Million Dollars t sea wall Resiliency Program valued at 30 Million Dollars, and of course for city development, 200 million in Infrastructure Improvements, Mission Rock Phase 1, 100 million in improvements, the sea wall resiliency project communications consultant, 1. 7 million and other as need contracts. Last year we distributed 44 million in contracts and this year, we expect 50 million in contracts. Last year, if you dont include dredging, 65 of all contract dollars went to lbe businesses and we hope to do just as well this year, so please come tomorrow from 10 a. M. , from 810 a. M. To pa er 1 if this is an area of interest to you, i would like to thank willie adams and Kimberly Brandon for jienbacker joining us tomorrow and the commissions support. Thank you, that concludes my report. Is there any Public Comment on 9a, executive directors report . Seeing none, Public Comment is closed. Item 9b, Port Commissioners report. Anyone have anything to say . Commissioner brandon . I would like to thank director forbes and the staff for hosting the Contract Opportunities open house. I heard there was a huge response and i think its a great way to get out the word of what opportunities are available at the port, so thank you. I also thank you and i want to report to my fellow commissioners and to the public and to director forbes what ive been up to since the last meeting, after our last Port Commission meet, i went up to sacramento on the 15th and 16th for the california maritime leadership symposium at the citizen hotel, we talked about transportation, real estate, that wednesday night, had dinner with senator pro tem odonnell and state senator mendoza, the four most cities in the world with the most congestion and they rank like this, los angeles is number one in the world with congestion, moscow is number 2, new york city is number 3 and San Francisco is number 4. And on the 16th as the conference concluded, we went to a Port Commission meeting and had lunch, [inaudible] was also there with me from the port and brandon [inaudible] from maritime, and we talked about money and transportation, theres close to a billion dollars in transportation projects that stand at the state level that we have to go after as we all know that jerry brown only has two more years, but the state senate and si amiably, theyre working on long after Governor Brown is going on, so we have to look forward to going after those dollars. The afternoon of the 16th after that, i flew up to see a lts, i had a meeting with elected officers friday the 17th and went to olympia washington to have a meeting with governor jay hence lee, governor jay and kate brown have met several times with mayor ed lee, they are also a sanctuary city, they had to deal with sea level rising, ive known the gofrn nor for many years and he sends his best to mayor lee, he said hed like to stop by the port and say hi to attorney general bob ferguson, he took on the trump m irns ration on the travel ban, he went up to the Federal District cart up to Washington State and came to the 9th District Court and was victorious, he is still prepared if he has to go to the Supreme Court to defend that travel down up in Washington State, ive known bob for a long time, i think he has a great career in politics if he should chooses. And i flew back to San Francisco on tuesday the 21, i had a special guest here, United States senator angus king of main, hes an independent, he and Susan Collins are the two u. S. Senators for maine, senator king was a two term governor, he joined elaine and byron and myself and naublt and the Labor Council for breakfast, he worked with senator fine tien stein in the u. S. Senate and myself and byron took the senator out to a tour of the bay, he was impressed with what the port is doing here, he works closely with the port in maine and is supportive of some of the issues we have, i think elaine gave a good explain nation of what were trying to do on sea level rise, hes an environmentalist, i look forward to visiting with senator king in washington dc, that night after the meet, i flew to cape town, south africa, my god daughter got married there on saturday but i landed friday morning, i met with the port of cape town, the port of cape town is a lot like our port, i met with the top officials, hopefully one day we can inform of a sister city and a city port with the port of cape town, they are now just starting to get into ferries, theyre trying to build their cruise business, they roughly within their port get about 26 million visitors a year and they would like sometime to come out and see how we do. Theyre very impressed that what we have out here that you can walk down the pier down here and you can go to the explore y um, you can go on the cruise ship, we have the park, and no waterfront is tied into the port at one time, it was, they have since sold their port off to dubai world and theyre investing more money in containers, l and g and other products, the water taxis and ferries and infrastructure really they really seem to like that. I got in this morning after a 40 hour flight from cape town and made it here today for my Port Commission meeting and then i talked to my lobbyist today on the phone on the way and in front of President Trump right now is a wish list for governors, right now there seems to be at the top of the list that Governor Brown wants his high speed rail for california, not much for ports but the two states na are really pushing for ports are virginia and south carolina, senator lindbacker Lindsay Graham and senator scott are pushing for ports and south carolina, so i wanted to give my commissioners and everybody an update what ive been doing as the president , its been pretty full on and im glad to be here. Thank you. I got tired just listening to your report. Thank you for everything youve done. Item from the consent calendar, item 10a, request approval of travel for a San FranciscoPort Commissioner to travel with port staff to fort lauderdale, florida for the sea trade cruise global conference on march 1417, 2017, item 10b, request approval to issue a request for qualifications soliciting as needed public relations, communication, media s ftses and related professional services. So moved. Seconds. Any Public Comment on 10a, resolution 1709 or resolution 1710, is there any Public Comment . Seeing none, Public Comment is closed. Colleagues, all in favor of resolution 1709 and 1710, say aye. Aye. Opposed . Resolution passed unanimously, 1709, 1710, next item, please. Item 11a, information presentation regarding the proposed lease renewal with golden gate scenic steam Ship Corporation located at piers 43. 5 in fishermans waf. Good afternoon, jay edwards, Senior Property manager division, im joined with demeet ri o moral, hes our m irns creative analyst and also well have joe bigord, the vicepresident of residents for the red and bhiet fleet presenting some background challenges from their existing site as well as their proposed improvements they hope to make at pier 43. 5 and at fishermans hater f, so as amy read, this is the First Step Towards a long term lease with red and white fleet at their current site, pier 43. 5 and theyre currently on a month to month month lease and they have been spending a lot of energy and effort developing plans, hiring consultants, going through all the steps necessary to really get their project to a point where they can come up and make this presentation to you today and seeking your input and guidance on how we move forward. So, the goal of these improvements is to secure the long term lease and theyre going to make approximately 4. 6 Million Dollars of improvements into water and shore side floats, ramps, a new ticket pavilion and joe is going to describe that in more detail, and in exchange for that, they are requesting a long term lease that we enter into and that with a couple of goals in mind, they would like to this project, they believer and we believe will enhance the Business Efficiency of the operations, it will provide improved aesthetics and circulation of the site and it will also hopefully increase the capacity in ridership and that has been growing rapidly here for red and white fleet, theyve almost doubled the ridership in the last six years i believe, and now its currently up to approximately 500 thousand passengers that are going out enjoying these excursion cruises, the bay and has really been a very well received they bought new vessels, theyre investing in environmentally good stewardship in terms of some of the new vessels, joe is going to talk about that as well and all of these improvement ares going to flow back to the port in termser of increased percentage rent to us as were paid on the gross sales and really help keep this long term tenant, theyve been at this site for many, many years and it will keep their future here tat port of San Francisco and thats our goal too. As you see, ive also included the maritime excursion lease renewal policy which adopted in 2010, and that policy was developed specifically to help retain our maritime excursion operators and just to theres a lot in that policy, ill give you a couple of highlights here on why we think this pertains and the relationship to red and bhiets project in this policy, so there are numerous conditions and obligations and in terms of the conditions, the improvements cant be amortized within an existing term, thats one of the conditions and theyre on a month to month lease, so clearly that couldnt happen. The use is to remain relatively consistent, this is primarily a maritime birth, this is what they do, this is their specialty and thats what their intent is to continue on with. They have must be a tenant of Good Standing which they are, the improvements will be done at the tenants expense which thats what red and bhiet is proposing and that the lease renewal must be reviewed and approved by the Port Commission and the board of supervisors as necessary. And then in terms of the obligations on the tenant, they must be an excursion operator, so they are, they must be the lease will be at market rent and thats what were going to take on in our next step is negotiating the term sheet. The port will see participation rent on all sales. The tenant will disclose Gross Revenue and the port will have audit rights. The port will participate in proceeds from the sale, transfer or assignment of the lease. The tenant will comply with all ceqa provisions, and then finally the port has a right to renew not to renew the lease if we have proposed projects that would be in conflict with this and this site as you may recall at one point was being considered by the National Parks service for the alcatraz embark kaition landing and we have now through a number of efforts refocused and are moving forward on pier 31 and a half, so this site is free to move forward with this long term lease and with that background, ill have joe come up and provide his project overview. Good afternoon and thank you for the opportunity to address you with some information on our project. Im going to start with a little background on the red and white fleet, i manl that many of you are familiar with who we are but im not sure you all know that our roots go back to 1892 when thomas crowly first rode out, his grandson, thomas usher purchased the company in 1997 and throughout that time, its been a San Francisco family owned and operated company and we continue to be that today. Were in the sightseeing business as jay mentioned, i believe you see a slide that shows some of our history in the upper left corner, this is our original ticket booth, pier at pier 43. 5 where we are today, you see the cost of bay cruise with one dollars, were charging a little more today, it gives you context of our site and the ticket booth, you could see that ticket booth did evolve, but stayed the same from sometime in the 1950s to the 1960s when the picture in the lower right hand corner shows the francis can and an older stage and the ticket booth with the iconic red and white fleet signage there which we plan to continue. Today we have a ticket booth located there, you can see how it came in about 1980 on a forklift, it has three windows, this is the same ticket booth with operate today, weve seen considerable bro et and ridership and revenue and were really stretching our abilities to continue to offer an efficient and good service with the current infrastruck xhur so we like to incorporate Infrastructure Improvements with our lease renewal. A little bit about who we are, were in the business of selling memories, our product is really of the experience, our passengers have on board are boats and they get to take pictures of the garden gate bridge and lots of scenery but what they always remember and what they tell us they enjoy most is our employees. We value our employees greatly, thats who we are, and you can see the diversity of our staff. We promote people from within, up there is a picture of one of our ticket agents who is now a captain of our fleet, were unionized with ibu and our ticket agents are unionized, all of our employees get 100 of their Health Care Premium paid for by the company which is quite generous in todays climb massachusetts climate, we employ veteran and is were committed to our folks, they are who we are, thats what we sell. We also are committed to the environment and have been throughout our tenure as operators in the bay, were making our living off the bay, we want to make sure that is a safe place. In the report, theres many of the initiatives that we have done throughout the years, and this slide shows a new vessel that we signed to have billed just a few weeks ago, it will be delivered in may of 2018, this is very forwardleaning in its technology, it will be the first vessel this size in the United States to be lithium ion plugin hydrogen excuse me, this one is not hydrogen, this is more of a plugin prius type hybrid vessel and some of the vendors there are shown oup there. This will be built in bellingham washington, a u. S. Builder with u. S. Parts, and were expecting to see a 20 fuel efficiency with this. Theres other this is phase 1, wed like the get our fleet starting with this vessel to full e