-- i think should be addressed today or in the future. the first is i would like to have some specific information regarding how many payouts and how much money the city anticipates to pay out in the next two years to settle major lawsuits against such units like the muni, department of public health, and so on. also i would like to have a specific breakdown on how many city employees, especially appointed administrators, have a base salary of $100,000 or more and whether that number has been going up or down recently. another item, i think it is very good that this committee has kept a close eye on the department of public health which is the biggest user of general fund money. hopefully, that audit this year is going to be very interesting.

also, i think it would be prudent to have public discussion and hearings in regard to the 49ers' leaving. i have a feeling they are on their way out. we might be ready to discuss the pros and cons. since the president is not willing to discuss it, san francisco should discuss the impact on the poor of $5 a gallon of gas. supervisor chu: are there other items who wished -- members whos wish to speak? >> i was curious to know if the mayor as a housing trust is included in the budget and what is the story on the finances their backs thank you. supervisor chu: thank you. are there other members of the public who wish to comment on item number three? seeing none, public comment is

closed. i do not believe the housing trust or any of those items are necessarily included at this moment. i believe that is something that is in discussion. given there are no questions, can we entertain a motion to continue to the call the chair? we have a motion to continue. we will do that without objection. thank you. items 4 and 5. >> resolution adopting california environmental quality act findings, a statement of overriding considerations, and a mitigating monitoring and reporting program for the 34th america's cup events and approving the project, waving termination rights but the city and a the compost and the new agreement, approving the development and disposition agreement between the city, through its port commission and the america's cup event authority which also amends the host agreement, approving a

memorandum of agreement regarding the city and the event authorities respective obligations for certain litigation measures in the mmrp and other activities. number five, resolution of intention to establish infrastructure financing district no. 2 for the city and county of san francisco at the port. >> we continued these items. we had a long and fruitful conversation around the areas that are concerning to us. when winter the budget analyst report and their recommendations. -- we went through the budget and analysis report -- budget analyst report and their recommendations. we have the staff from the port, and we have from our city

attorney. just so folks know who is here. we do have a number of supervisors who are here with us today. we have president david chiu and the supervisor from district two, supervisor mark farrell. we have a limit of five members who can be here at any one time, we may see people come and go in terms of supervisors to allow for other members to my want to participate in that meeting to be here. in terms of public comment, we will have public comment today but just know that if we do hear this at a committee, at the board there will be an opportunity to speak there. i wanted to make sure people know that. to-hope we will be able to address the outstanding issues and colleagues, we have many of those issues that are outstanding. what i would propose in terms of how we do this is we will open the item up for any members of

the board who would like to share in the opening comments. after that i would like to invite monique up from the port to speak about the financial situation. i would like to speak to the fund-raising issues and concerns we had with ecod -- ecoc. i would like to review the economic items on a point by point basis. we have raised issues with regards to workforce issues. i would like to address that issue. and any other items the committee feels that are not included in that, please feel free to bring these up. why don't we go toward opening comments. i cannot tell who that is, that might be supervisor chiu.

supervisor chiu: thank you. there have been an awful lot of meetings over presidents with day weekend. i know this has not been easy. this is the legislative process and what we need to go to to get to an agreement that will reflect what we believe and hope will be the wonderful potential of the america's cup. i am looking forward to a presentation on where the language is. i appreciate progress that has been made. i will call out one issue around pier 29. i appreciate the fact that is off the table and i want to thank the event authority and others for that. because we have gotten a lot of this language over the last few hours my colleagues and i are reviewing it. we will have a number of questions and i want to state at the outset just so folks know,

the questions i will have will focus on the 1% sales issue, exactly what we're talking about by the cap we know is in this agreement. questions around fund-raising and in particular come around the condition of the certainty bond. other colleagues have other issues. i want to say i do think we have made good progress. through the course of the conversation we will have more questions. i hope folks understand the questions are meant in the spirit of trying to finalize and hone in on what the remaining issues are that we need to tackle. if we can resolve this today, that would be great and i hope we can do that and i look forward to that conversation. supervisor farrell: links to my colleague for having me on the committee today. i'm here not as a member of the committee but a large part of the america's cup is going to

affect district to -- two. i have been active on the america's cup organizing committee so want to lend that perspective in terms of what we have been doing, to my colleagues and intimately involved in the financial aspects of this deal. i want to make sure i'm here to lend a voice to these proceedings. i only have 30 minutes to be here due to other conflicts but look forward to the discussion. supervisor chu: thank you. let's go to the presentations. we will start off with the court. -- the port. >> thanks to you for your guidelines. i would like to thank all of you because you have worked just as hard as has the mayor. this has been a true citywide

effort. in the times we've been what -- talking with you the america's cup has continued to move forward. there has been a plethora of attention on it worldwide and that attention is very steadily and consistently turning towards san francisco. we're excited about that. we look forward to bringing the events here just shy of six months. i attended the hearing last week i did not get the opportunity to talk to you. i am pleased to do so today. i wanted to take a step back and reiterate the big picture of what is happening at the port and why this event and the development transaction are so critical for us. first, it is in maritime of them. it has been a long time since the port of san francisco has had so much maritime attention focused on it, on the integrity of its portfolio. we're grateful for the opportunity to have that. along with that we have had an

opportunity route to work closely with all of you. i would like to say that the board of supervisors and this finance committee is probably the most engaged with the porch in the 43 years we have been under city governments -- governance. it is critical we not lose sight of the investments that are made. they are maritime investments. these are significant investments that have been beyond the financial reach of the porch. it is still very much a partnership with our maritime partners and tenants. the arbour services that are occurring for our partners, the dockworker looking forward to having with our partners, the ferry services and our partners at the masters pilots and our partners in the cruise ship industry. the attention we're receiving for the cruise industry with respect to the america's cup is

beyond what we had anticipated. we're grateful for that. equally grateful as the attention we're getting from the u.s. coast guard. the increased assets that are being designated to the san francisco bay as well as the opportunity to host their historical kotter, the coast guard eagle. these are the great maritime aspects were looking forward to celebrating. -- we are looking forward to celebrating. the development transaction is equally important to the port of san francisco. we came back in governance to the city of san francisco 43 years ago. we came back within a tremendous amount of deferred maintenance. in 1969, it was assumed the poor would develop its properties. the city issued the debt to facilitate that. that is finally repaid in the last half decade.

we have been continuing to move forward. in 1990, it became clear the city and the port needed a more strategic plan for how it went forward in fixing in maintaining our portfolio. the portfolio is astounding. it is 7 + miles of sea wall which protects some of the city's best wealth in several of the district. it is 39 peers and 80 some structures, almost entirely over water. that creates challenges in and of itself. since our 1997 -- time coming back to the city, we have only been able to fix nine out of 39 peers. we have a large portfolio that is still in need. we are face with an opportunity through the use of the america's cup and the investment that will come for the event and follow thereafter to cross a number of pairs off our list at once. in 2006 the port adopted the

capital plan that current year numbers and 20 $13 is $2.20 billion of need for those remaining 30 appears -- piers and 30 substructurews. -- substructures. this allowed to focus attention on pier 26 and pier 28 and 30 and 32, all of which side -- reside in the central waterfront area which is a key area of the waterfront land use plan. while i know the america's cup is fairly new to our city, it is -- has been a year and half have been talking about this. since 1990 and since 1969, we have been talking about fixing those peers -- piers especially in the central waterfront trade we have huge investments in the

embarcadero road way. in the water side and a landslide of the embark -- embarcadero. we have invested in the ferry building with private daughters -- dollars. we have invested in a ball park. in addition it gives us another source of funding to address that $2.20 billion in need. that is the big picture of where the development can go in the event can help us a lot in the long term to create as i said we would call horizontal development to help us with our maritime resources and allow them to be reused after the event has passed for other purposes and that is the mission of the port of san francisco. that is to promote public access and recreation. it seems like there are loose ends to tie up for this hearing.

i wanted to urge you to consider the big picture and the benefits of the board and support us in this effort. thank you. supervisor campos: thank you. but go to the fund-raising component. -- let's go to the fund-raising component. >> thank you. i will ask terry mcclellan to give the substance but i want to frame the issue. if you will pardon the analogy, we're building the ship as we are sailing in. this has never been done before. there has never been an event that has required the coordination, federal, state, and local of the bay area. we have learned a lot. stephen berkley would agree that when we were negotiating with using a model that was based on the wojciech contract which was

the most recent one. in hindsight it was not the right model. we were putting a round peg in a square hole. we're looking back a year later and say what kind of modifications do we need to make on a number friends? having said all that, we committed as the america's cup organizing committee to use our best efforts to raise this $32 million that is estimated the tax payers would expand to host this event. as one of the key indicators was and relates to other issues involved in the america's cup but 37 days after ceqa certification we would be in a position to demonstrate that roughly one-third in this case, $12 million have been raised. that was always an indication of what was the willingness in the private sector to support this. i am happy to report to you as i did last week that we have raised $12 million.

we have raised $12.50 million. have we have the luxury to write this, we would have said, does that mean cash in the bank seven days after? does that mean it is in the city coffers? i simply have to advise you that in gaining philanthropic front -- funds and private sector funds, we have pledges for this amount and it will be made available as the city needs to cover its cost. in this case we have been devised by the city that between $9,000,000.90 $0.5 million will be needed by june 30. you will have the amount, $9.50 million to pay the bills that would be spent by the taxpayers to pay for this. i admit many people have interpreted this document in many ways. i stand before you can tell you that as a private fundraiser,

not compensated for this, it is a challenge but a real joy. they want to see it come here. we have not gone beyond the committee. that is seven a distinct and distinguished people that have supported us from a philanthropic sandpiper we have had an -- made an arrangement to modify our grants to local corporations fall within the event authority's perfume to solicit sponsor urgent and funding. in exchange we sold that. that represents the money that we're going to provide. i do not think i can elaborate any further on that. i'm happy to answer any questions at the appropriate time. thank you.

thank you. >> and want to turn my attention to the feedback we got and let you know we have been working with the mairs project team on an amodeo. i shared a copy with your office earlier today. in this off in draft form but our endeavor to give greater certainty and clarification to itself what is that force and how we can have better aligned expectations moving forward. the fund-raising is dynamic. it has never been done before but we're encouraged by the support we have received and our endeavor is to understand what the cash flow needs are of the city and every day and week in the philanthropic marketplace, raising funds to meet those needs and meet our ultimate goal. we are here to get feedback on that the draft and hope it will be final.

is not part is notd -- it is not part of the dda. i wanted to touch on -- it is not in your packet. i will give you one. president chiu: thank you. we we know how much work and how difficult. i want to state that at the outset and let you know the questions i have had nothing to do or are in no reflection of the intensity and the energy with which you have pursued fundraising. i finally got a chance to look at the sponsorship agreement.

is the events -- the advance based on real commitments or is that in advance of what they anticipate the commitments to be? >> it is in advance. it's as an advance on our commission. we have sold the rights to local markets and the funds will be raised going forward from january 1, 2012 and they are advancing us the first 10%. president chiu: we are getting money ahead of time based on what we think will happen. >> where helping them across a number of efforts. we have taken them to over 90 companies now and encouraged by the momentum especially with companies that are headquartered here and the interests. those companies are starting to reflect and show.

president chiu: the committee shall provide an irascible fund letter of credit in such form and by as should be acceptable to the authority and its discretion. when i read the draft mou, it did not seem to address this point. for many of us, we want to make sure this money will come in and we had assumed there would be some financial instrument to help insure for that. could you give us the status of that issue? >> i have been working closely with the mairs project team on finding the right size for the bonds solution. some of the guarantees the bond was intended to cover including insuring the event authority reached its ultimate goal of funds they were anticipating raising from corporate sponsors who discovered there is not a tool to do that.

there is no financial instrument. over six months we have been working with the event authority on finding what is the right instrument to provide that assurance. we're in an ongoing conversations and have a couple of models. i will ask mike martin to give you his perspective on that. there are other things that need to be guaranteed. general liability insurance and we're carrying the right now as one of the expenses that would be covered and paid. it is designed to be purchased and that is a $50 million policy. that is $500,000. that has been rolled into the number that the city is expected to expand by june 30. it is closer to 9.8. we're in a position to buy that insurance and we will continue to work with the city and the event authority on what else needs to be in place for the other guarantees. president chiu: that is good

news. i did not see language that suggested that such and a premier would be put into place as part of this. >> i am happy to work on adding that. what you have is a reflection of the great work that mike and i were working on over the weekend trying to get ready for today. we will take that direction and find a way to incorporate it. i appreciate the feedback. supervisor chu: just to clarify the question about $8 million, that was a percentage, that agreement as a percentage of the amount that is raised, correct? >> the percentage of the event authority's revenue. supervisor chu: if it is is that we receive revenues that exceed its percentage share, is not really $8 million, we will continue to receive that amount of money. >> if the event authority is successful and raise beyond what that percentage commission represents, that keeps us alive

and motivated to insure they do exceed that. we would then receive additional funds above and beyond the aid. supervisor chu: if it is the case for the event authority does not raise what is needed, the $8 million is still hours, there is no refunding. >> absolutely. it is not refundable. it is how we will meet our additional obligations. supervisor chu: thank you. supervisor avalos: thank you for your hard and tried worker and heavy lifting. it is one of those things that was important to me when i first approved the host and the new agreement that would have a fund-raising mechanism that would help offset our general fund and put into the america's cup. and i did not see the memo you had written about -- that came

in today or yesterday. i think it would be great if i got a copy. there are a lot of things that have come in from different sources so it is hard to sort through everything. that summarizes the challenge i see. i see we are getting a lot of information at the last minute. i had a briefing yesterday there has been movement from. i have not had a chance to see how the smoke has cleared on the document to see what i will be voting on today. i feel uncomfortable approving anything given my experience i had a couple of -- a year-and-a- half ago approving something and seeing things change after the fact. it is important that and i will propose this with the committee, we can decide later on today. we can hear everything today. perhaps recess this meeting and come back another day so we can

sort through all the information and then make as best we can an informed decision about going forward. there could be moving parts that come afterwards. i feel that we owe it to ourselves in making a key decision here that we have as much information as we can and i have had a chance to review. then what we had last week. we were getting some pits of what happened. it is great to see. i am very squeamish about hearing, use our best efforts and endeavour, those are words that would never suffice for the city having to pay for any project or funding. we have to bring up the money or not or does not happen. that is what i think is before us. i wanted to put that out.

it might be best if we hear everything but i would like to propose that we do have a recess for a couple of days or if we have to be for tuesday's board meeting to come back and finalize what we're seeing in terms of the real details that are before us. supervisor chu: thank you. i think it is legitimate in terms of the volume of information we have received and the last minute changes. we also received an mou not that long ago. we have not had a chance to review it to provide the feedback we're looking for. i believe we will be will to do that between now and tuesday. the one caution i would have with recessing is whether our time constraints are met. i certainly hear what you're saying about the documents. >> the mayor's office may want to address that if you are so inclined. >> good afternoon. a wide to remind you you are

sitting at the committee of the whole on tuesday. you have another opportunity to review this. there will be public comment and you are sitting as a committee. this is not the final time the proposal is for you. it is not being moved as part of the file. this is your first opportunity to see it and the first opportunity to talk about it. we want to get the feedback from you so we can incorporate those changes by next tuesday. and have them ready for you. supervisor chu: thank you. supervisor kim would like to ask some questions. i would also ask mike martin to come to speak to the expense side. supervisor kim: i understand the mou is not part of the file. my vote on moving the dda out of committee is contingent on of committee is contingent on finding and mou that is to our