the first terms that were designs on the central waterfront was just not economically feasible. really, to everyone's advantage, even despite the very unorthodox kind of negotiating environment, because of the rapid time that we have had due to parameters that have been imposed upon us to come up with clear-cut answers, we now were able to see i think what was a smarter proposal so that the assumption of risks would be mitigated, and the liability for the city and its people would be significantly reduced. that was the extension of us shipping from the central waterfront bid proposal to the northern waterfront, which is before us today. i really want to say how

impressive in has been for the san francisco port authority, oewd, the mayor's office, members of the board of supervisors, mr. mark buell, and others who really have been demonstrating significant due diligence, which for holiday spirit reasons alone should earn us the right to secure the cup, but i think by us being able to illustrate very concretely why san francisco is the best place in this nation and abroad to host the cup, that is the deal before us. it is a great deal for san francisco as long as we are not shouldering the kind of excess of responsibility that we were quite concerned about before. great questions were being asked by a number of our colleagues here to keep the negotiations on track, and they really helped

contribute, i think, to the intellectual arsenal for us to make sure -- this is really unprecedented for something of this nature and size to come before san francisco. the city attorney's office has also been working around the clock in order to really be as agile as possible to doing something that no other city in the country or abroad has had to do, and that is negotiate in a transparent environment such as ours. italy and spain do not have to go through this. leaders of their government can advance the deal in more of a unilateral fashion. there is no other city in the united states that is really a contender or has been identified yet, and yet, we have been negotiating in the most transparent public way to be able to advance this dialogue and advance incredible proposal within a really somewhat

unorthodox, very restrictive kind of timeline. before us is that product that has come from an immense amount of contributions from a number of people and apartments that i identified. yesterday in the meeting that was continued, we agree that this should be advanced with recommendation, which is what is before us here. mr. president, thank you for helping with the orchestration from our end. i would then ask the city to come and speak to the newest deal before us. commissioner chiu: before that happens, let me call upon supervisor alioto-pier. commissioner alioto-pier: thank you. i would just like to start by thanking a few people. i am for sure going to forget some, but i have been attending

these american cup organizing committee meetings for i suppose now for a month or month and a half, and the amount of people who come, regular san franciscans who would like to see the america's cup come to san francisco and who are actively participating and trying to help us finance it and actually get it to san francisco -- i do not think we can thank them all enough. there is the city staff, carry mcclellan, jennifer mattes, brad benson, monique moyer. the port has been remarkable. i would say the former port commissioner, we have great assets at the port of san francisco, but they are slowly starting to fall into the water. as we have seen with pierre 30/32, it has the shelf life of another, i think, 10 years. without some kind of revitalization, we could lose this asset. it is the same as you go down

the port of sand and cisco. the america's cup gives us a great opportunity to rebuild that, to bring economic not just viability but a thriving economic community back to san francisco bay, so i would like to thank everyone who has been part of that. i would be remiss without thanking mark buell, who is heading the acoc, and also lucy, one of my constituents, a jewel to san francisco, who has been active on and all of the past america's cups and actually won it for the united states way back when, so i think it is important for us to recognize the people that are citizens of san francisco have done so much for the america's cup historically and who are going to hopefully be helping us bring it here to san francisco. it is a very exciting time, and actually look forward to what the next months bring.

thank you. commissioner campos: i simply want to just acknowledge all the work that has gone into this project. as someone who sat in on the finance and budget committee hearing that happened last week, i'm very proud of the work that has been done, and the fact that a lot of the questions were raised. i think this is a much stronger proposal in terms of protecting san francisco, and i will be proud to support it. commissioner chiu: with that, let me ask city staff if you could make a presentation on where we stand today? starting with mr. vincent from the port -- mr. benson. >> special projects manager.

the office of economic and workforce development. we are really grateful for the consideration by the budget and finance committee. all of the work of the budget analyst and the controller in terms of analyzing the work that we have put forward. the committee recommended the northern waterfront alternative after consulting with the team about their race needs. we noted in the committee hearing yesterday that we have not had a full opportunity to discuss the northern waterfront alternative with the team. we did have an opportunity to sit down with mr. stephen barkley representing the event authority yesterday after a budget and finance committee to

hear exactly what those concerns were and spend until about 7:00 last night going back and forth and trying to fashion a more certain terms of the agreement that will strengthen the city's bid. the port commission resolution approving the host city agreement really provided city staff authority to further negotiate as long as we do not increase the city's obligations or liabilities in consultation with the city attorney's office. we feel we have done that. i would like to spend just two minutes going over some of the proposed revisions to the agreement that we think makes it stronger. first in section 6.2 of the agreement, now permits the authorities investment in some of our historic peers in the northern waterfront with rent credits to repay that investment. section 7.3, consistent with the budget analyst recommendation provides for a term sheet approval of any long-

term development rights by the board of supervisors. we have entered the budget analyst's recommendations regarding fair market rents by an appraisal process. the board negotiated for participation read, which is something that we have been trying to get out of this agreement for some time. basically, some terms of balance the fundamental give/get that the authority invested in a waterfront, and they get long- term development rights to be paid back. we have provided a memo to each of your offices summarizing each of those terms. we have submitted a revised to the city agreement to the file. we are very excited about this bid and what it can do for the city's waterfront, and we are available to answer any questions you may have. commissioner chiu: any questions, colleagues? commissioner mirkarimi:

considering how far we have come, if in fact my prediction holds true that this will prevail, what then possibly is the next step if in fact the city family comes together and says this is the best deal? then what? >> what we have heard from the team is that they would like to enter a signed agreement by the end of this week. the protocol for the 34th america's cup provides that the cup holder will in consultation with the challenger of record choose the venue for the race by december 31, so we hope that when the city submits this bid formally that we will hear perhaps within the week as to whether or not san francisco will be selected. commissioner mirkarimi: and if

san francisco did not receive the bid in itself, that means other cities potentially would be submitted a bid but submitting it most likely after the december 31 timeline. is that correct? >> i cannot speak to whether or not that timeline would be extended. we did hear about some authority representatives travelling to newport and other locations to see if there were other viable competitors to san francisco, but we do not have a lot of information about those bids and discussions. commissioner mirkarimi: thank you. commissioner chiu: colleagues, additional questions? ok. are there other members from city staff that wish to make any presentations with regards to this? any further discussion, colleagues?

colleagues, before we vote, i want to really thank everyone who has taken part in this. whether we have sale or not, you know that to win a sailing race, every member of the crew has to work together -- the skipper and crew -- and i'm very grateful to all of you for the roles you have played. supervisor mirkarimi, supervisor alioto-pier, and others who have been supportive from the beginning, thank you. but also, supervisor daly, i want to thank you for injecting significant fiscal reality into the discussion. supervisor campos played a significant role in helping to ensure that the agreement is tight. i want to thank all of the members of the city family. every single one of you who are here spent countless hours in

recent weeks to pull this together. countless nights, countless phone calls. i also want to thank the representatives from the team that met with many of us and worked patiently with us to work through the complicated details. this is not a simple agreement, but it is a very thorough agreement. we will obviously need to in the future approve other leases and deals related to this, but i think where we are right now, this is truly, i believe, not just the best bid for the city, but the best bid internationally for the america's cup. the no. waterfront option, from everyone's perspective, i think, not only will result in a much better experience for spectators and for the race, but it is much better, i think, from a business perspective for the city as well as for the team. with that, i urge all of us to vote for that, and again, thank everyone for your efforts. commissioner mirkarimi: supervisor daly.

commissioner daly: i was not trying to get the last word from our board president, but a couple of other folks to thank. but in the process of thanking them, let me say this -- ultimately hear in these chambers -- ultimately here in these chambers, we are the quasi-official boosters of sand francisco, but when it comes down to what our real responsibility and obligations are, it is really to the people of this city and the resources that they entrust us with and a responsibility to make sure that government can run. i have talked often about how little impact even very powerful

politicians like the president of the united states have when it comes to dealing with the ups and downs of the economy. in these chambers, our power is really are on the periphery, affecting weather joblessness is up or down, who gets employment. who gets left out, that sort of thing, but when it comes to the city's treasury, when it comes to the annual budget process, and what we do with the people's money in our accounts, we have a great deal power. so i am happy that i can come aboard. i know that i have very exciting language when i opposed the previous term sheet. the reason why i amplified the language is because i knew that the city just could not afford that type of outlay of cash and

that loss on our books. regardless of how big of a booster any of us would want to be for san francisco and putting san francisco in the spotlight and doing a little bit too improve the regional economy, ultimately, our undying allegiance is to the city and county in terms of local government and the resources that are here. to that effect, let me thank the budget chair here on the board of supervisors. john avalos, who was a nay vote initially because it appeared that it was going to cost the city too much and also a very heartfelt thanks to the team of harvey rose and associates. specifically fred russo. thank you for your work on this. thank you for actually looking at the numbers and getting us

the information that we needed to make an informed decision. i think court staff was able to pick up on that and come forward with a proposal that not only works in terms of the city's treasury, but i think it also is going to work better for the port of san francisco and forwarding an effort that has been going on since i first arrived here to deliver a cruise ship terminal. it is more responsible in terms of the long-term use of our pork property. i think that if it's much better in the area that we have had supervisor campos do a lot of work and in the past three years in terms of making sure the process is fair -- i think that'd it's much better in the area that we have had supervisor campos do a lot of work in in

the past three years in terms of making sure the process is fair. with that said, we have one more amendment to propose. that is i need to borrow the cop on january 5 -- barbie -- borrow the cup on january 5. if that could be accommodated, i would appreciate that. commissioner chiu: colleagues, with that, if we could now move to a roll call vote. >> on item 53, alioto-pier aye. avalos aye. campos aye. chiu aye. chu aye. daly aye. dufty aye. elsbernd aye. mar aye. maxwell aye. mirkarimi aye.

there are 11 ayes. commissioner chiu: this resolution is adopted. [applause] colleagues, why don't we go back to item 19? >> item 19 is an ordinance amending the public works code relating to regulations of freestanding and fixed pedicel news racks -- pedestal news racks. commissioner chiu: can we take this item same house, same call, or do we need a roll-call vote? roll-call vote please. >> on item alioto-pier 19- aye. -- on item 19, alioto-pier aye. avalos aye. campos aye. chiu aye chu aye aye -- chiu aye. chu aye.

daly no. dufty aye elsbernd aye aye. there are 10 ayes and one no. item 20, ordinance of and in the planning and administrative close by amending the residential inclusion very affordable housing program, changing the name of the program to the affordable inclusion very affordable housing program and to require all project applicants to pay the affordable housing fee unless they are eligible for an alternative and making other amendments to the program. commissioner chiu: roll-call vote please. >> on item 20, alioto-pier aye. avalos aye. campos aye. chiu aye. chu aye. daly aye. dufty aye. elsbernd aye. mar aye. maxwell aye. mirkarimi aye.

there are 11 ayes commissioner chiu:chiu this portent -- there are 11 ayes. commissioner chiu: this ordinance is finally passed. item 21. >> i have an amendment as a whole that has been distributed by the court. language has been added to clarify that only projects of 50,000 gross square feet or more, including city projects, are subject to the child care feasibility study requirements, and on page 5, language has been added to clarify the responses of all projects subject to the requirements of the ordinance must consult with the department of children, youth, and their families in preparing the feasibility study, so i asked if this amendment as a whole could be adopted and if the matter would be before us for first reading. commissioner chiu: supervisor dufty has made a motion to amend.

without objection, the amendment is adopted. if we could take a roll-call vote on this ordinance on a first read as amended? >> alioto-pier aye. avalos aye. campos aye. chiu aye. chu aye. daly aye. dufty aye. elsbernd aye. mar aye. maxwell aye. mirkarimi aye. there are 11 ayes. commissioner chiu: this ordinance is passed on first reading as amended. >> item 22 is a resolution commending the presidential inclusion very affordable housing program. commissioner chiu: same house,

called? this resolution is finally passed. item 23. >> ordinance amending the san francisco environment code to require any person who produces a drug offered for sale in san francisco to produce a bit in approved drug storage program for the collection and disposal of unwanted drugs from residential sources. commissioner mirkarimi: i appreciate your indulgence over the last several weeks. i have reported back to you that instead of advancing the legislation at first for a vote, which we know we have the votes for at the time, we had decided to work alternatively with the mayor's office and the department of the environment to help us bring together representatives of the pharmaceutical industry. as i had reported to you, we have had some very constructive meetings, by a particular with one association known as pharma,

which represents a sizable consortium of pharmaceutical manufacturers, many that are based throughout the united states national and multinational. very strong lobbying arm. we have managed to get to a place where one of the representatives has offered upwards of about 100 or $110,000, based on the proposal that we have asked for in order to implement what we think would be an effective pilot, they have fallen considerably short, and when we asked retail operators like safeway or walgreen's, who are the principal players with regard to the largest orbit of players that sell pharmaceuticals, we need them at the table, and they just have

not been there, so i want to thank the mayor's office, the department of environment, the sentences the police apartment, the department of public works, and the puc for coming together for trying to craft what we think would be a strong alternative, but the pharmaceutical industry just has not really come together in a robust way, as we had hoped for. with that said, maybe they will think about it, but i'm not so sure that they will because based on their track record in other states where they have spent millions of dollars to defeat the state legislature to do the very thing that we are trying to do here today, we thought that our proposal is quite frankly extremely modest as it was and is, and would seem less threatening, but still, they are reacting with the same kind of ferocity as they have in state government to make sure that a simple take back drug disposal program where it is a

bucket with a lid and it is regulated would be administered, and to try to block us from doing that i think is just unconscionable. your support would be appreciated. commissioner chiu: thank you. any additional discussion? why don't we take a roll call vote on this item. >> alioto-pier no. avalos aye. campos aye. chiu aye. chu know. daly aye. dufty no. elsbernd no. mar aye maxwellaye aye -- mar aye. maxwell aye. mirkarimi aye. commissioner chiu: this ordinance passed on first reading. >> item 24 is an ordinance appropriate and approximately $2.4 million of visitation

valley infrastructure fee revenue and placing approximately $1.2 million on reserve. commissioner chiu: roll-call vote. >> alioto-pier aye. avalos aye. campos aye. chiu aye. chu aye daly aye aye chu aye aye -- chu aye. daly aye. dufty aye. elsbernd aye. mar aye. maxwell aye. mirkarimi aye. the next item authorizes the planning department to accept and expend a grant in the amount of $250,000 from the california department of transportation for the chinatown broadway streetscape improvement program designed plan and amending the budget to add for

the planning department. commissioner chiu: same house, same call? this ordinance is passed on first reading. >> item 26 is an ordinance authorizing the planning department to accept and expend a grant in the amount of $250,000 from the california department of transportation for the central corridor of growth strategy and design plan and amending the annual salary ordinance fiscal year 2010-2011 to add a limited duration planner in the department. commissioner chiu: same house, call? the ordinances passed on first reading. >> item 27 is a resolution authorizing the master lease of the windsor hotel at 238 ne street for the department of public health. commissioner chiu: the resolution is adopted. next item. >> item 28 is a resolution approving amendment no. 1 to domestic terminals food and beverage lease with laurie steiner international -- lori's

diner international. item 29 is a resolution approving and authorizing an agreement for purchase and sale of real estate to obtain two permanent, exclusive, subsurface easements from cargill inc. for the purpose of constructing the same -- san francisco public utilities commission water system improvement program. commissioner chiu: the resolution is adopted. >> item 30, authorizing the director of public works to execute an amendment to a professional construction management services agreement for the san francisco general hospital rebuild program. commissioner chiu: this resolution is adopted. >> item 31 is a resolution approving the two specialty store lease. >> colleagues, same house, same call? this item is approved. if you could c