you have them. >> alex? >> good afternoon, commissioners. i started with good morning. [laughter] long gone. my name is alex dmitri. i want to commend the port staff for drafting a policy that is so effective and simply put, the principal hierarchy of these materials, and is simply says we do reuse and recycle. the point is, reduce is in the top 10 of the hierarchy. what we're saying as far as materials management is that reduction of material has a single beneficial impact on the

environment, which you cannot reduce, reuse as much as possible, and only after you've done the reduction, then you recycle. again, i stressed the hierarchy, the top of the hierarchy is production. the measures are online and policy, to deal with plastic bags, plastic water bottles, plastic packaging, food service ware, balloons. these are all reduction measures and it will go a long way to promote source reduction restores emission -- resource emissions and conservation. there is something else i wanted to say. so, we basically supports the policy. we are available to answer questions if you have such and look forward to doing so in the future. thank you. >> thank you.

>> good afternoon, commissioners. i am very excited about the proposed policy. i am so pleased is before you. i am grateful to the staff who worked on at. these of the kinds of things we would like to see replicated throughout the city. it sets away and a president that i hope will be copied by other city departments -- it sets a away and a precedent that i hope will be copied by other city departments. and england's, when you look at the scientific data on how harmful that is. city supervisors started to consider it years ago, and it fell through the cracks. also, the banning of single use of plastic water bottles is so very important. miriam gordon was waiting here a

long time but was not able to speak, just could not stay, and she asked me to 2 per portion. she is the director of clean water action, and she says the clean water action supports item 10 b, eliminating waste and pollution at its source. i urge strongly to support this measure, and i would add one tweak. it might be that he would consider 15,000 people is an awful lot, and maybe we could make these rules and regulations apply to crowds that are somewhat smaller as well. overall, i am very pleased and i see that we have set this as a goal for smaller groups to do the same thing, and i am hopeful that the events of smaller size will also be open to doing it on a voluntary basis

once they see how easy it is. once again, i cannot say strongly enough how much i support @. >> thank you. michael davis? >> yes, hello. i am michael davis, president and ceo of pure water, a mission driven company that provides an alternative for bottled water. one of the wayne's -- one of the ways we've done that in the city and county of san francisco is to replace the bottled water systems. the save the city and county over $1 million do not, as well as helping to reduce bottle used.

i am looking forward to using the water bottles in the upcoming america's cup event. it is something that is very easy to do. at the monterey jazz festival recently, it was -- people get more hydrated when there is free money -- free water available than if they have to buy bottled water. is a positive impact on the health -- it is a positive impact on the help of the citizens, providing drinking water for people. so, thank you. >> thank you. is there any other public comment on this item? go ahead.

>> well, i was going to ask a question about the 15,000 and how was that derived? but then i did see about the bottled water and he did mention bottleless water. if you have smaller events, what does that look like in terms of bottleless water? paper cups and that that kind of thing? >> that is right. we used to call them drinking fountains. these are movable. they are water dispensers that can be used for an event. >> then you are talking about permanent water bottles that people can take home with them? >> says rick. >> the 15,000? was there science behind that? >> there was not science. there was consideration of the events that we have had.

there is no science to a. >> i want to point out, too, which had three days of 5000 people, so it could be a smaller set per day that would aggregate into 15,000. >> that is right. i should have clarified. is says 15,000 aggregate. >> are there issues concerning lowering it to a smaller number? >> we would definitely consider that. >> so, commissioner, if i may, since this policy and an info item, our practice would be to go into the community with our community advisory groups and talk to some of our programs. we would be happy to explore -- >> i was wondering why it

similar to the public comment we were doing something behind these evans that we have had, whether it is over three days or one day. it just seems like a high number. the and the question is how do people get water? -- then the question is how people get water? i am not suggesting that. i am just saying, because water is pretty important. >> before we come back with that action item, we will try to 0 in more. >> generally, i think it is a great policy. the question is how do you executed? >> thank you very much. >> you are not done. >> my question is about enforcement and penalties? what is being contemplated as an enforcement mechanism and will there be penalty is? >> and will there be penalties? >> failure to comply it is read

the requirements that any event sponsor was required to sign our real property agreement. failure to comply would constitute a breach of that. we can pursue all remedies that would be consistent of that kind of failure. >> can you do things like monitoring? from a staff perspective, can you go and check that they are adhering to them? >> we had not considered whether staff would do that or how we might to that. events are difficult to monitor. they may be something you would consider. >> we do have an application process. the bigger properties or you

have a file operations plan with us in the application of a license, we can certainly require them with hal you're going to do this. we do not have any current penalties. we would be happy to consider it. >> i just wanted to add -- susan reynolds, director of real estate -- in some of our larger events and we do get a security deposit. maybe we can look into the feasibility of retaining some of that security deposit if we see flagrant violations. or just not allowing them to come back. there are a lot of these events that come back to the waterfront year after year, races, susan g. common -- komen. under the threat of not being

able to do it again, that is another possibility. again, this is informational, and we will take any consideration back. i do want to thank rich and tom carter for doing a lot of research and footwork on this. we're looking forward to making this a really strong leadership role in our community. any additions or deletions, let us know. thank you. >> i want to also applaud all of you. this is something i am passionate about. one thought that occurred to me, how do we make it easy for people to comply? and if perhaps the department of the environment has compiled a list of alternatives and where

they can be sourced, so that you do get event coordinator is coming forward to where they can go to get a more sustainable product. we may have the environmentally- preferred purchasing plans year, coming up with -- purchasing plans here, coming up with alternatives. >> an alternative analysis was part of the considerations. you cannot prohibit things if you do not have the alternatives. we can strengthen that. >> i think maybe perhaps attaching a sheet where it some of the more common items could be sourced, so they have it right there? >> good idea. >> the san francisco public utilities commission is very engaged and has been doing this for quite a while. is not so much technology, but a new policy.

>> compliance. >> since i have stolen the mic, may i think my colleagues on the commission of the department of the environment. we did not do that without their help. >> absolutely. >> i had one comment. i will say, at the break time, i went to get something to drink and the water was sold in a permanent water bottle that was $7. that is compared to getting lemonade in a plastic bottle at $3. so, of course, and ended up buying the $3. i did not want to spend at $7 for water. you've got to think about in a sense -- i do not know if you are applying everything in

plastic. in that case, i chose the lower cost alternative. for my thirst. have to think through some of those things and offer other alternatives. if you make it a $7 water bottle, people get turned off by that. will have to look at what alternatives there are there for the public -- we have to look at what alternatives there are for the public. i immediately said, "i am not paying $7." >> release number -- lease number l-15004, with bauer's

intelligent transportation inc., for a one-year term and an initial six-month free rent. . t period. this includes interim use of shed and yard space and access to office space at pier 50 shed a and c with no rent. >> what an historic day. possibly the best news since the last speaker. [laughter] i am here to secure approval for one lease and two agreements for bauer's intelligent transportation. the lease is a one-year lease.

is comprised of approximately 68,000 -- it is comprised of approximately 68,000 feet of shelf space and about 50,000 feet of yard space. just a little brief background abauer's -- about bauer's and what they have now. then i will take you to the summary terms of the lease. so, bauer's transportation has been in business since 1999. they have transformed into quite a company now, and they do specialize primarily in corporate events, special events, working with the public agencies, and they are in many ways interested in getting cars off the street, reducing greenhouse gases. there is a lot of public

benefits they provide. bair very committed to assisting ability. they have invested quite a bit in technology. they've come up with interesting new technology, a solar system on their boss that allows them to power the airbus -- on their bus that allows them to power their bus. they are a leader in grain transportation. they have won several awards. they are an entrepreneurial success story. they started here at the ports with just a limousine service. have grown into a full-service transportation company with 75 vehicles. u.s. seen them probably oliver tom -- you have seen and

probably all over town. that is really what we're here to talk about. how they grow in the next 10 years. pier 27 is a very restricted site. we have all heard about this. just to give you an example of what is their. is shared -- it is shared. it has maritime operations. it has sf soccer. it is very restricted. they have made arrangements for the calls, and that is why they have crews around their. it does create operational conflicts, and they have not been able to expand the way they would like to. they did quite an extensive search, not only through san francisco, but the entire bay. they have focused on this area

as a business jurors for them, because it gives them an opportunity to consolidate their operations into one shed, which is the largest contiguous space that the port has. they have an opportunity for corporate identity. that is in shed a. right next to the at&t park that provides the kind of venue they are looking for. is a good -- is a good central location be banker 70 has could it access to the highway's. i think there are compelling business reasons from their perspective and a good number of business reasons from their perspective respecting this up

lease agreement. >in terms of the new lease agreement, what we're doing is we have come to terms on a new 10-year lease that we're negotiating with our assistant director moyer, the deputy assistant director, and great assistance from this woman standing here, and backed up by susan reynolds. this was a team effort. it was not in need one person going out and doing this. it was a cooperative effort. i would not say it was an easy effort. bauer's is anxious to get into the new facilities. that is why we have the law license agreements. they will be able to assist us in our needs.

so, i will walk you through. i will take you through the lease agreement, and then i can summarize the likeness agreements. in your staff report, there's a pretty comprehensive detailed proposal sheet that we put together, and outlines the term, the square footage, and the use. to use is going to be for the storage, for the maintenance, and for the dispatch to corporate headquarters. this is their site. they will have, in order to get in discussions with bauer's, one of the key things we have tried to do is ramp up to this threat

level. they have 36,000 square feet of shed space. there is no way to approximately double that. they have some yard space. they have 1500 square feet of office space. to go from that level to what we would call our parameter rent levels would be financially not sustainable for the organization. so, to a lot of listening in structuring, we have several proposals for you today. as you can see, it is a blended rent, so we've taken our rates for office space, a shed space, and yard space. that is $15,000 per month. as you can see in the 10-year term, it basically doubles.

there is the incremental increase in net. -- in its. typically we would go with a 2.5%, 3% increase annually. we of gone below the parameter rent initially. we add that on to the back end of the lease. overall it reflects a transaction of this size, but it allows them to gradually increase their rents and operations accordingly. the space they are moving into, the shed space, a, need to be completely renovated and it is going to be quite a project. they are taking a combination of what i call space that needed a good refurbishing and adding additional shed space. their combined space we would have used as it should space into of the space.

that is created quite a budget for them. they are going to finance all of this themselves. the store will provide rent credit. $515,000. day of estimated shed improvements will run almost $600,000. thier t.i. costs are in the $687,000 range, i believe. that is quite significant. >> i am not being so subtle. >> ok. [laughter] so, i guess that is my cue that all these -- i am sorry. >> no. go on. >> so, this bauer's relocation,

we are analyzing the eir, and we wanted to make sure that was known to the commission. to get back to the business terms quickly, the rent credits will be used in the initial term of the lease, at 8317, and that is after the renovation period. this is going to be a significant construction project and it will take at least -- at the estimate is at least that amount of time to construct the office space and the shed space is going to need bathrooms and a lot of work as well. consideration for these expenses to relocate, which they have waived for relocation under the lease, as you can see in my terms. these were accounted for initially in the structure, and

then as the lease it goes into its 18th month, then they would be paying their then-scheduled rents. -- rent. there will be -- the tenant will be responsible for the utility's. they have an operational plan they are trying to finalize. that is one of the reasons we are anxiously trying to get this put together. at this point, at the 10-year lease, not should we -- are there any questions on the 10- year lease? >> no, we will call that all at once. >> ok, i will keep going. so, we have come up with two license agreements for you that we -- they are basically the use

of 2900 square feet, which is adjacent to the building, to pure 15 -- to appear 15. -- to appear -- to pier 50. if they do stay longer, they will be paying the full parameter rent. the license will expire after year regardless. it is considered an interim move while they are building up their office space. the second license, the 15075, i believe, is the use and access of the shed c soace as well as the ability -- shed c space as

well as the ability to build out the shed a space. this will enable us to complete our hazardous materials removal that is going on at pier 27. they are trying to make this work for both policy -- parties. so, the current status is we are prepared. we spent quite a bit of time negotiating terms. frankly, if we have another day or two, i think we could have had it signed. is not signed quite yet the bank would just frankly ran out of time. we were working under a very compressed time frame. we have the objective of a signed lease and bought license agreements, so we are seeking your approval for both this

lease, 15004 and both the licenses. and with that, i will be happy to answer any questions. >> thank you. president brandon: public comment? >> jerry schwartz. >> good afternoon, madam president, fellow commissioners, director moyer, and what staff is remaining. [laughter] i am the chief director of bauer's. i think jay degree job of describing our business. i think he did a great job. we have been in business since 1997,