actual expenses will be by june 30, and we are told somewhere between a benign and -- between 9 and 9.5. we will have about when required. >> what is your understanding of when that will be? >> june 20. >> that is a commitment you are making, nine or 10 million and by june 30? >> absolutely. if my pledges do not work, we are in trouble. they are signed. >> i understand that. >> i am telling you, first of all, raising $40.5 million and this economy from philanthropists and selling our rights to sue corporations would be a tough haul, but we have gotten there, so if you hear

frustration, it is because i hear headlines we have 20 to go. that is in the agreement. we know that. will we get there? let's find out. we are on track to get there. >> one of my concerns about a pledge, i understand that is the language specifically put in. if we are able to fund raise, and the city games only $2 million in revenue. if we are not able to raise about, there is a cost to the city, so i understand there is a question. i do not feel comfortable approving this in two or three weeks unless i have a guarantee we will have $12 million cash in hand by june 30. goo>> maybe it is a line of cre.

i am happy to discuss ways of doing that. i hope we can find ways to accommodate. >> i appreciate your work, and i understand how difficult it is. >> there are two things are will leave. goonot one person we have askeds said no. if there is an enormous amount of prestige with the america's cup. i would ask this board to watch how the money comes through, because i want to be parsimonious about how we distribute that. will you ask a question, are you

sure that is the real number and get it down a little thebit? >> one other question. we have pledges. are there any restrictions? >> there are no conditions so far, and in some cases we talk about some of the benefits like making an environmentally sustainable event, so there are herriot's -- there are areas we need to deliver on, but there are no conditions that we have at this point. >> has anybody done anything like matching funds? >> we have talked to some people about doing that. that is a possibility.

>> you do not see the pledges expiring after a certain point? >> i do not. they are all written in a fashion but certainly anticipate delivery. >> i know it is difficult. i feel like i've put my boat on the line about assured we will have less impact, and the response was about raising money, and i know it has not been easy. >> are very much appreciate it. i think you want as much assurance as you can get on a series of fronts, but when we approved it a year ago there were no guarantees we would get to the first 12. there were simply the believe we would get to the first level, and so we will pay the bills the

city owes by june 30, so this is enormously optimistic. every time i want to take my staff out and popped a court with champagne i get a headline that we have a tough road to go and -- pop the cork of champagne, i get a headline that we have a tough row to go. i am enthused. >> before you do, i think we will go over and update with the numbers. i just wanted to know, based on the fund raising the has happened so far, how do you see the fund-raising efforts continuing? you believe things will change hamas attacks i am confident we are going to meet its -- you believe things will change? >> i am confident we are going to make it.

but it went to committee members, so i felt comfortable at that level. i have to believe. we are structuring and operating with the belief we will achieve that. i cannot guarantee it, but i can tell you we are working very hard and so far no one has said no. >> from what you are seeing, i imagine it will drum up some level of enthusiasm as well? plexuses -- this is below my pay grade, but larry ellison is spending an enormous amount of money with this idea of the fastest boats, latest technology, and this race has never been seen from the shore before, so we are breaking new ground, and there has never been an event but has required the coordination of the entire area.

we have been to washington. we have been to sacramento, so getting traction takes a while. when you see these boats going common-law -- when you see these boats go imagine a 13-story building going to the day, it is going to be one of the most extraordinary things but ever happen, so building but of will take awhile, so the fact we have been successful is very encouraging when we have the least amount, and mind you, the money we have raised has been in advance of the board or the authorities writing in debt if it is not written in it is not going to happen, that is encouraging, so if i have the board's approval they are going forward and we are all learning

with the real shape and form of this is going to be, and there is talk of whether it is bigger or smaller, we are learning about, too, but the more we get a scope of this to the easier it is going to be. >> thank you. >> the chairman took most of the good material, but let me try to go over some of what was laid out specifically. goothis was an effort to get greater clarity, and i want to thank them for taking a look at how we have been able to get to the milestone. i think this is the frame of where we have been operating under the last 10 months. goothe committee's fund-raising

targets are $12 million for year one. there is no where in the agreement that stipulates the schedule, and that has fostered the current environment we are in. we need to work with in having an understanding but sets forth some of the questions today. this is a question we have discussed with the comptroller as well in terms of what are the city expectations, how does this aligned with the methodology, so we believe we have met the milestone for several reasons. we believe the comptroller's report net rose a firm -- does the firm we have met the $12

million over three years. goin terms of an update, and the last two weeks we have secured an additional $500,000 pledge, of bringing the total to $12.5 million, and we have endeavored to a accelerate sons -- accelerate funds that would be available by going back to our lead donor when you're good -- the we donor. we have out that the full million be paid now in advance. she was out to do 500,000 now, $500,000 later, and $500,000 in the final year. we would be happy to work with the comptroller's office to further updates the report if necessary. a budget analyst report said the city's costs are approximately

$3.5 million, and it is anticipated there will be as much as $8 million to $10 million. the agreements in place to represent we will have cash on hand to meet those expenses, and i would find that the gift we have been able to accelerate helps us achieve that. we are precisely where we anticipated we need to be. get a road map on how to get to the 12 million and meet the city's expenses of the end of the year, but we also have $20 million to meet all of our obligations and a 20-month plan to do that. mark manson the approval process has been a bit of a challenge in

going -- mark mentioned the approval process has been a bit of a challenge. there are a handful of donors who have you, but i need to understand when you need my cash. in the philanthropy world, folks do not want your money to sit idle. and they want it spent wisely and effectively, so some folks have asked us to come back as resources were needed, and as we get over the approval process and over the uncertainty, we will be able to accelerate our plan, and when the events are here, we think it will also be a way for us to accelerate the interest, and i would just like to finish by adding that i think one of the ways that you can begin to understand what division is and the investment that is being made now is to go out to 80. we had an opportunity to meet speaker pelosi and mayor to be out there -- mayor lee out

there, in terms of the narrative, and i think it is a good demonstration of what they will be doing elsewhere, should this advance. supervisor avalos: what happened to pier 80? what is going there now. >> they are building a boat. they have changed the whole interior and exteriors. you would have to ask oracle racing, but i would say looking around, a good 50 to 75 people working there on a daily basis, designing the boats. supervisor avalos: i was there this morning, and i did not see anyone. i did not go inside the shed. i saw a boat. it looked incredible. i will try to not use a lot of

puns. >> this is an early demonstration of what i am hoping we can look forward to, and i am happy and open. chair chu: supervisor avalos? supervisor avalos: i actually took, i reacted to the description of the controllers memo on the fund-raising activity as an affirmation, and it talked about how the language is not -- there is an openness as to whether the goal has been reached or not, but it was not necessarily an affirmation, and i just want to make sure that we can have a more direct conversation about what we are trying to do here, because i do

not comment that much, but that to me mr. toward that came out really s sprint, and hopefully we can ask the controller that now. would you use that word and affirmation. it just makes me uncomfortable. >> ben rosen. we issued a memo about 10 days ago, and we find in that report is they had raised approximately $800,000 by the end of last calendar year. the city had neither invoice nor

had they paid the city and the cash to date, but they did have on hand of 22 documents and revenue-sharing agreements that told millions and payments to them. that payment schedule is over three years, not all receivable in the current fiscal year, and as you represent pledges, so they are not binding, but they do indicate a company's commitment to pay. i will leave it to this body and others to interpret the language which is in the agreement. from my layperson's perspective, it does lead was lacking here in claire née in what was intended. fundraising. cash receipts.

it ashley does not speak to the requirements to the city. we will leave it to you to make that determination. supervisor avalos: and i will say that as one of three on this board and one of the board of supervisors, this does not give us certainty, and that is what i was hoping to have at the time, but that is my bad. chair chu: did you want to speak to this? >> the ability to get a larger get out of your donor, their interest in giving you that if they are able to pay over seven -- several years as their

preference. it is sort of their own financial need, as well, so i offered to use the gifts we have are in receipt, and the pledges that we have are from members of the community, such as the late warren. mende schmidt, john gilmore jr., individuals who live here, work here, and that is the first of six, and there are 21 long. they want to see this succeed. they stand with us. i think they are good for their word and their commitment to us, and i would say the document memorializing this represents the receipts payable before june 30, and we are highly confident that their word is gold as well. so we ask you to continue on this journey with us.

supervisor kim: in terms of what we have in the bank at the moment, it looks like as of -- we are anticipating that by june 30, we will have $8 million that is nonrefundable from the event authority. correct? >> i would say it is in excess of that, because there is the organizational -- supervisor kim: there is also the get to set was committed to before june 30, and are there any other amounts that we expect >> yes, there are, and i need to get back to you on that. it is another couple hundred thousand. supervisor kim: so what is planned on being advanced, the pledge of $1 million, that we would have over $9 million as of june?

>> yes, i think 9.3, but i will confirm for you. supervisor kim: and this is how we expected to be for the fiscal year? >> yes, and i will get with them and see where they expected to be. supervisor kim: and i think you mentioned this earlier. if this event happens, that we will be able to see the $30 million come forward, and i know that our share of the group has agreed to fund raising, so i think there are a lot of folks invested to make sure this is a success. the question i have, from our perspective as a city, the less we are expected to pay, it is not so much are we going to get $30 million over the time we are spending the money, but is it going to match up with our cash flow. that is a big concern to us.

as you spoke about the mou, i am not sure this is a question for the comptroller's office, but i am interesting to see how our fundraising efforts in the next few years can match up with our cash flow. a thing that will be the next issue. can we raise $30 million? i am hopeful, but will it matched up with the cash flow as we needed to? >> i would like to defer in part to the mayor's office on what they think their expense calendar will be, to have my answer that question. i am fairly confident that just as we walk through the numbers, we have the funds available or will by june 30 to meet the expenses. if you look at the way the calendar has been put forward with the events happening in august, there will be direct expenses relative to that, and we will see active fund-raising

that comes from that as well that i would expect to match, and i think the second half of 2012 and the first half of 2013 should be relatively quiet on the expense side, and we would be ready to deliver the balance, and with that, i think i need to defer to mike on what i think that will be. thank you. >> supervisors, mike martin again. i would underscore what she just said. not reaching the money budgeted this year, that was on controller reserve, and we touched a maximum of i think $150,000. just so, i think this is accurate for the fiscal year. there will be a ramping up for the 2012 events, much smaller

profile spending, so there will be some there, and sort of war preparations for the 2013 to 2015 events, that begins after the start of the fiscal year. as you know, you have a two- year butting process. we have been in conversations about what the mou would look like, and in part, we were looked at -- we were looking at the pledges to date. we will be happy to share that with you as the dialogue goes forward so you can understand. chair chu: i think that would be good because we are looking at spending over time. we might say we are going to get $30 million, we are hopeful to get $20 million, but that is a very big cash flow issue for the city to contend with, so i am wondering if the comptroller's office did speak about some

ideas you are batting around in regards to an mou? >> we have talked to mr. martin about this. i think what would be ideal is a quarterly schedule that would speak not just to the cash but to the incumbrance needs because we have that. it speaks by quarter and through the events. as you know, we're working towards for the first time a two-year budget for the city and county of san francisco that will cover not just the coming fiscal year but the fiscal year thereafter for the timing of the event, and as you were mentioning, chair chu, we would match the incumbrances to make sure we do not have imbalances with the city is fronting cash with a hope for a later reimbursement, so ideally, that is the form it would take from my perspective with whenever

reports would be helpful to our office and the board of supervisors and to the mayor in terms of meeting these timelines on a more regular basis in the future. chair chu: thank you. so, mike, how far along are weight in the process? when can we expect to see what that would look like? >> we can share a draft with you ahead of the next meeting. chair chu: thank you. supervisor kim? supervisor kim: many of this was addressed by your comments, but a realistic schedule of what our costs are, so we have some understanding of the cash flows, as chair chu mentioned, would be very important to me with the dda in a couple of weeks as well as a dollar amount this fiscal year to the city. chair chu: thank you, supervisor

kim, and thank you to the chair of the committee and for your presentation. next, i want to turn it over i think to stephen berkley with the event authority. >> madam chair, supervisors. stephen barclay. i am the director of the authority. thank you for giving me the opportunity to speak. and i would just like to round out the discussion that we just had regarding funding for the america's cup organizing committee. the event authority has in writing committed to paying $8 million in cash by the end of june 2012, and that is what we will be doing.

supervisor avalos: could you pull the microphone a little closer? >> yes. bringing the event to san francisco, i suppose for us, the america's cup is really characterized by innovation, innovation in the boats, innovation with what we're trying to do with the pictures and trying to make it look like a sports, and bringing it to san francisco and putting it on the bay extends that theme. you have heard people talk about that it will be fantastic, because for the first time, people will be able to stand on their short, be at their own windows in their offices and watch the races, but one thing that i suppose is being missed is that the events will be televised live. the helicopters that will have the television cameras in them will be facing the city.

san francisco will be the backdrop for this race been broadcast live around the world. and that, in itself, is innovative, and i suggest fantastic for the city of san francisco, so we are really excited about the opportunity to bring even here in 2013. chair chu: we are interested to continue to hear what you have to say. >> thank you. there are three requirements to be set aside for the the authority to be comfortable committing the funds necessary to host the event and to upgrade the piers. we have been consistently saying these three things ever since and even prior to the agreement, but certainly close to the agreement being signed in december 2010, and those three things are the revenue being raised to support the event. that is going to be a major

determinant. the success or conclusion of the ceqa and other processes, and the third is long-term agreements that replicate the hosting of the new agreement that was signed in december 2010. with regard to the first of those, -- i will go back. with regard to the seacor, we have been, i suppose, we have learned a lot, shall i say, about the process and how robust it is. i am amazed at the amount of work that we have got through, and i am actually proud of the work that has been created. howry objective is to be a carbon neutral event. our objective is to be a zero waste event. those things are fantastic,