feel like they're in partnership. i really believe that when you are blessed with the opportunities that this country gives you, that you have an obligation to give back. i really believe in public service. i could be in the private sector and make a lot of money, but i believe that i have a duty to try to make things better for other people and to pay back to a country that has given me so much.

please tell me somebody didn't just drop th there? ...it's like a foot away from the trash can. man, i'm like this close to throwing it away myself. i don't blame you. i mean who would... announcer: don't just take a stand, act. the call to order. >> roll call. approval of minutes for the august 15, 2011 meeting.

item three, public comment on executive session. any public comment? seeing none -- a move that we adjourn to executive session. all in favor? i. executive session, existing litigation matters. performance evaluation and performance upper all in favor? aye. >> please be a is the ringing of electronic devices are prohibited at this meeting. please be a vice the chair may order the removal of any person responsible for the ringing, or use of the cell phone, pager or other similar electronic device.

please be advised that a member of the public has up to three minutes to make pertinent public comment on each agenda item on this support commission -- unless the support commission adopts a shorter time on any item. >> good afternoon. it is great to hear so many of our partners here today. thank you all for coming clear yet i have two items on my executive director report. one is the annual coastal california clean of take, which is this saturday, september 17. that is terrific. as you know, we are the lucky recipients of a number of the ports properties, which consist of mission creep, pier 54, warm water cove, pier 94 wetlands, and parents at the end park. -- and heron headland port.

we have a number of our never counsels that are all organizing volunteers to help us clear -- clean the close along the southern waterfront that we control and in the waterfront here in san francisco bay. we're really looking forward to that. volunteers could come to want cotter -- warm water cove from 9:00 until noon on saturday. we look forward to seeing as many of you there that would like to enjoy the weather and it could exercise and help the bay. the second item is to report on pier 70 20th street historic building request for information, and the next up, which is to issue a request for proposal. we're making progress on the peers of the project, which we

have defined to you and many staff agendas. after reviewing this ponces -- responses to interest some of the report is moving to our request for proposal stage. the 20th street buildings are six buildings at pier 70 in need of rehabilitation. in february we began talking about having individual entities partner with the port to rehabilitate these great building set on the street, and now it captivated over 100 people half -- and now we up calculated over 100 people have toured these buildings. beginning september 23, 2011, we will close the process. anyone having responded to the process will request to summit

in the proposal process. we are looking forward to the creative ideas we seen so far and coming back to talk to about what great things the future holds for these fantastic buildings. of all holds true to plan, we hope to be back in the winter to talk about the request for proposal. not your head enthusiastically. thank you. that concludes my report. -- knod your head enthusiastically. in items on the consent age. item eight a, request authorization to award construction contract #2744r, roadhouse to heating, ventilation and air-conditioning

central plant upgrade project to evra construction come in an amount not to exceed 453,000 and also offer a stop to increase the contract item by 10% through contract not addition or a change order, for total amount of 498,300 in the event of unanticipated contingencies. item eigh8b, andand 8c, request approval of the school year 2011-2012 executive director salary. >> so moved. >> second. >> any public comment on this item? all in favor -- >> aye.

resolutions have been approved. item nin9a, request approval of the port's new maritime industry preservation policy. >> good afternoon, commissioners. i am with the port maritime division, and i am here to present an update on the ports maritime industry preservation policy and ask you to ratify the resolution you have in front of you today. the new policy, as you are aware, was instigated by commissionercommissioner katzcrn january. peter daly, the maritime director, presented to you in april a draft policy that inc.

the draft policy, and courts that is now presented to you and update to the draft, which incorporates the comments you provide to the port staff in april, as well as comments we have received from the port maritime advisory committee who were briefed on the draft policy at the meeting in may. we have also have other meetings with poor maritime stakeholders and incorporated their comments as well into the draft in front of you. the staff report package includes the proposed draft policy, along with the port maps that show port priority use areas. i know you have black and white copies. if you look like a color copy, i have brought some of those with me. there is also propose changes to the initial draft and not packet as well. -- in that package as well. there is also a letter of

support from offshore union. as the plan states, courtly and should continue to be reserved to meet the current and future needs of cargo fishing -- cargo shipping, fishing, passenger cruise ships, ship repair, very and excursion boats, recreational boating, and other water-dependent activities. it was out of concern for the protection of the maritime industries that san francisco called for the waterfront plan, the official policy document of the san francisco port commission. the purpose of the draft, a maritime preservation policy, is to support the goal by provide informal, more specific policy direction for prioritizing maritime activities and to foster financial and other strategies to support current and long-term protection of valuable in limited maritime deepwater and facilities that

support maritime commerce. it is aimed at protecting the water-dependent uses of the porch. water-dependent activities are defined in the waterfront plan as those that require access to water in order to function. the port of san francisco is one of the most perverse and vital records of the nation. the diversity quite unique. there are a few other places the world host lire of shipping, industries, a passenger and recreational and maritime activities that we have here at the port of san francisco. san francisco is a primary commercial port on the west coast for more than 100 years. the port commission has formally recognized san francisco's rich maritime heritage in the national register of historic

district, which preserves the waterfront iconic years and historic buildings. the port has reinvented itself in the past decade. while the ports days as the dominant cargo port in the days of mega-container ships and 500-acre container terminals -- we have given way to that activity. we leave california with a number of passengers being transported across our docks either by excursion or cruise ship. we owned the largest commercial tried loading dock dedicated to ship repair and are home to a number of the region's harbor services, including the san francisco bar private, a tug and barge and they built the maritime. -- and delta maritime.

the new draft policy includes seven points. note that three of the points have been revised from the original draft. 0.2 has been amended to remove the requirement the vessels leave at least once per week, and instead states they must be deemed sir worthy -- seaworthy. also 0.3 add wording on seeking alternative sources of financing for needed improvements, including linkages to non-maritime generating rigid revenue-generating development. 0.5 contemplated the creation of an industry preservation fund. this has been changed in favor

of the goal of 50% of operating revenue being dedicated to maritime improvements. seven points of the policy as follows. 1, anchorage developments, and or rehabilitation airport assets. 2, protect the ports remaining active deep water births to be seaworthy come able to the birth of their own power, approved by the american bureau of shipping and certified by the u.s. coast guard. the u.s. company go, which is iconic and historical attraction is exempted from this policy, given the status as the previously-existing port tenant.

3, promote port developments/rehabilitation projects that in corporate physical improvements to maritime deep water birthing facilities, including needed repair equipment requirements and/or equipment -- incorporate new facilities to support maritime activities. the port will seek future development up or property that includes proportional, equitable investment by parties to enhance and protect maritime facilities and uses at development sites at the maritime access. the port will also seek further development opportunities on sea wall lots or other property without water access that include a proportion equitable contribution for new maritime preservation projects, a facility selected by the port at its sole discretion. for, discourage a location of non-water dependence commercial

uses/facilities, other than parks, on sites with waterfront access. five, maintain adequate water depth of current deepwater berths to accommodate current and future port maritime activities by using best efforts to prioritize funding at minimum levels of dredging in the ports capital plan. such an internal goal of the% of the port's annual operating capital expenditures, excluding bonds in grant proceeds will be expended on dredging, a friend repair, short side power and utility upgrades, fisherman's wharf and harbour improvements, pier repair, rail infrastructure, cargo warehouse repair and deck repairs. achievement of this goal is subject to compliance of maintenance of operating reserves. current exclusive negotiating

agreement as well as in the financial covenants imposed by outstanding bond obligations and grant awards. additionally, from time to time, this bolt may be re due to financial conditions that result in operations. the school will also be subject to budgetary approval by the port commission, vader, and board of supervisors -- this goal will also be subject to budgetary approval by the port commission, mayor, and the board of supervisors. seven, prioritize water- dependent uses and not allow limits to sanded rigid standard operating periods for purpose of accommodating adjacent non- maritime uses, accept an otherwise identified in the land use plan.

this preservation policy initiated the recommendation of commissioner crawley, is meant to give guide in the importance of maintaining the -- held for maritime access for current and future maritime activity in accordance with the ports and city's long-time held maritime history and the ports perpetual maritime mission. i will close my comments in reading from a book, as did peter daly when he was it here in april. it is called port city. it is from the former corte commissioner and longtime labor leader. in the book he states, "the tragedy for maritime use of the port is you can prevail over particular issues hundreds of times, but you only get to lose once, and then what you fought for is gone forever." with that i conclude my comments. i asked you to vote to ratify the resolution in front of you,

ratify the maritime preservation policy. i am open to any comments or questions you might have. >> so moved. >> second. >> you referred to it, and i am not sure what the definition is. in the memo we have the% of annual revenue to be allocated towards -- you mentioned in your presentation 50% of operating revenues, and 0.6 you just said annual operating capital. these could be interpreted as different financial conditions, so i am trying to clarify exactly 50 percent of what? >> the third. 50 percent of the annual operating budget -- capital budget. >that is distinct from the 10- year operating plan. commissioner woo ho: that is

that 50% of the 10-year operating plan? >> we are and 201112 budget. if in 2009, then the annual operating budget would be $7 million. that is how it would fit. the way that the port commission typically manages its policies is they are policies that you can grant waivers for. for example it there was a particular reason that the court staff felt that an alternative

use should be done, then we would have to seek a waiver to your own policy. then there are caveat particularly in the item you saw with respect. other policies, i e the fact that the mayor set the budget and the board of supervisors ratifies it. >> i am not to do it clear on the language that was added 2.3. - to point 3. what is the intent of that? the intent is it the port has a priority that they would like a maritime asset they would like to develop that that not identified funding and there is an opportunity to develop another site, it could be

adjacent, non-adjacent, the goal would be to encourage in the negotiation of that development agreement, the funding to help pay for the development of port maritime asset for the upgrading of the assets as part of the lease or development deal with the port. >> thank you. we do have public comment. dennis dessinger. i'm messing tha hat up. >> thank you. thank you for having me today. i need to put on my glasses here. a couple of notes i have. i'm director of business development for san francisco should live here at pier 70. i am here to support the policy. we see the policy of

strengthening the of the city of the port to serve maritime industry for commercial recreational, and also to keep the cargo flowing across the docks. keeping the infrastructure intact, available for commercial recreational distances keeps it available for jobs. we also feel it maintains an experienced work force. case in point, the shipyard right now we employ 150 to 250 skilled men and women some 10 different unions. with the ports help, we recently completed dredging the approaches to the shipyard. this has allowed us to bid on a larger package, and will allow us to have bigger ships going forward here did prior to dredging we could get ships in, but only at high tide. even with commercially-viable bids, some of the owners would not accept the ships coming into

the yard. we lost business. we have to downsize the manning , losing economic work to the area. i am actually happy to reflect today, as of an hour ago, the military sealift command awarded as a significant package. >> yay! >> they did this after all missing the dredge survey last week that we completed -- and they did this only after seeing the dredged survey last week that we completed. this will bring in a large number of subcontractors and local vendors. with that, i want to thank the port stop and commissioners for developing the sentences the waterfront into the economic engine that it is, and we see this policy will solidified the ports success in the future. thank you. >> lee criston. >> good afternoon,

commissioners. i am a member of the ports maritime commerce advisor in committee. even though i am retired now, i have been a customer of the port for over 20 years. first as an executor of the shipping line, and lately as the regional manager. it is welcoming to see the port staff has drafted a proposition for a long-term policy, for preservation of the deep water board, as well as thick the future maritime uses, which will continue to provide many import opportunities for the residents of san francisco and the bay area. the port of san francisco has a

unique position in the bay area, because it is the only port that has facilities for passenger and [inaudible] . also, we have deeper water. and we can accommodate them. it is really a form we protect those stocks for future uses. it is very important for the shipping committee to note there is a policy in place to protect those. i am also happy to say there is wording in this document. with that, i want to say that i will ask the port commissioner to ratify the policy, which i strongly support. thank you very much. >> marina secretano.

>> madam president, commissioners, i am renas a cretonne marina secretano, and o commend your hard work on this document. i want to appreciate prioritizing the maritime uses over some of our viewing quarter issues that we have experienced. i think that with creation of the tour of bicycle companies were you rent a bike here and go across the bridge and take a ferry back, we've seen a tremendous increase in the number of passengers. i can only say that our industry is growing continually. we have about 400 people that

are making a living on the series, and we understand in the spring there will be a new one coming in. the fact that the project -- the port is prioritizing maritime is a breath of fresh air. i am not trying to be critical, but we have been through different port directors, currently not our -- certainly not our current director, and we know there is a balance between the infrastructure, but i am still complaining that pier 54, which has a lot of needs and has been yellow tag and red hat, and i do not know what state is in today, but that could have been the maintenance facility for the water emergency transportation authority, which has a stream of funding. i am not saying they're rich, but they have a stream of funding. that project has gone over, and i am not saying we couldn't stop it, but i felt like