be increasing the capacity of hospital beds. we will almost triple the size of the trauma emergency center. why? because we love the people here, the residents. we have theç capacity to grow. we have great corporate partners, and all of them that are here today, and there are many more that are not, but they are part of the building of the hospital. i want to say to you, i look forward, with extreme in patients, to opening up those doors in 2015, the brand-new hospital. to get back to the theme of hearts and a final invitation that you have after today and after we sing these songs, i invite all of you next tuesday to join our protocol officer charlotte schultze, me, mayor

willie brown, frank jordan, and everyone else, to welcome tony bennett, and to sing along in our favorite song, 50 years old, where were you want to leave your heart, you can come to the rotunda at 12:00 noon and sing in whatever tone you wish. you will not be penalized. according to the mayoral decree that i will pass that morning. however you want to sing the song, as long as you come to the rotunda and do so within the confine its of that great place, where tony bennett will celebrate with us 50 wonderful years of you are always leaving your heart here, increasing its capacity. thank you very much. i invite you to be there next tuesday. thank you. [applause]

>> roll-call. [roll-call] item number two, approved the meeting minutes for the january 2012 meeting. >> so moved. >> second. >> any public comment? any public comment on the executive session -- on the minutes. >> item #4, executive ses

>> i move that we reconvene an open session. >> second. >> all in favor? i move that we not disclose anything discussed in executive session. >> second. >> all in favor? >> item 6a, b advise the use of self phones, pagers, and electronic devices are prohibited at this meeting. be advised the chair may you remove anyone in the room responsible for the ringing of a cell phone, pager, or other electronic device. be advised to member of the public has up to three minutes to make pertinent public comments on each agenda item unless the commission adopts a

shorter time on any item. the executive director's report. >> good afternoon, and happy valentine's day, commissioners. thank you for sharing your love with us and thank you to the public as joined us today and the plethora of ports staff here as well. we have a very robust agenda today and just have a few items to talk about in my executive directors report. the first one is to tell you about this great new book called "a negotiated landscape." i am about half way through it and it is quite interesting. to tell you a little bit about the book, it really picks up on the port as we came out of world war two, the global logistics supply chain changed mots to containerization from bulk cargo

which the port of san francisco was built for. the army and navy which occupied most of the ports properties left and the rebirth of the waterfront was upon us and it brings us all the way through until my tenure with the port, so it is a look at the factors that have driven development along the waterfront and the creation and import of the waterfront land use plan as a discussion point, but not necessarily a recipe for success or failure. some of the chapters are very well named, but it goes into what is called the absence of plans, the 1950's and 1960's. the pressures of the 1970's, which would be when fishermans wharf came into being the way we know it today, and questionable results, the 1970's and 1980's

and then the waterfront plan of the 1990's and the new millennium. a lot of the names that you will know as leadership in the city or of the port are featured in the book. the book itself is written by a man named jasper written who is a assistant professor at san francisco state university and is in the department of urban studies he was formally an employee of the san francisco planning department where he served as a lead it planner in the central waterfront plan, and his knowledge of the waterfront which was adopted in 2007. he is a current member of the central waterfront advisory committee. what ended up happening is he prepared his dissertation on the development of the port of san francisco from the 1950's to the present that worked at that time

and subsequently with a bunch of different parts staff to look at numerous proposals. prior attempts to build cruise ship terminals are in the book as an example. the world trade center was opposed the 30 story tower is featured in the book. this is a book that we hope to be able to help distribute on his behalf and the stores will be carrying it sent including the bookstores here in at the ferry billion building. -- here in the ferry building. very happy to be part of that, if we can. next on my report is a really interesting to evening of entertainment at the aquarium in the northern waterfront.

they are preventing the next friday night, friday, february 24th. they will be showing a variety of different shots, animations, and full-length feature films by both foreign and domestic film makers. there will be breathtaking footage of cruising journeys across the seven c's by adventure seekers and explorers of all ages. it sounds like a very fun event. i wish them great success and we're really happy to see something that is so focused on a sporting in the day. another thing to report on is the pier 45 improvement project,

we are calling it a resounding success and we are quite happy about this. this is the clean beaches and initiative which we have called the drainage improvement project which was grant funded with money from the american recovery and reinvestment act also known as the stimulus bill. we have recalled $1.5 million and we have used these to construct processed water and storm management improvement. this is to capture and treat the washed down water from the areas at the fish processing center. the project was completed, the construction projects were completed a short time ago but then we monitored what equality for one year in the vicinity of pier 45. they are very healthy levels of oxygen and the decline in

concentration of bacterial contaminants. we are pleased with the results of this project and our ability to have secure stimulus funding to do it. this is a big win for everyone. i will add one item to the report their parents had part project will begin construction as early as next week. you might recall that this is part of the greenway and received some funding from the 2008 general-obligation fund measure and those new park improvements will include contained dog run and a sensitive lighting, picnic and seating areas, as well as other amenities. construction will start next week and cause a little bit of inconvenience for park users but the result will be worth it. that concludes my report. thank you.

>> is there any public comment on the executive director's report? hearing none, we will move on. >> we are on item 8f, with your permission, will be taken off of the calendar. this is to provide the sub they construction project and authorization for the contract contingency fund of 10% to the contract amount for a total opposition not to exceed $1,467,000. authorization to advertise for competitive bids for a much as the power and modifications project.

and request authorization to award construction contracts, brannon street construction project. authorization for the contingency fund, 10% of the contract amount for an anticipated contingencies for a total authorization of up to $14,891,000. authorization to award the urban economics inc. to the economic and planning systems at, a contract as needed for economics related consulting services each an amount not to exceed $500,000.

approval of a resolution supporting the high-speed rail project and pledging to work with the california high speed rail authority and other regional governing entities to promptly implement this project. this will make it compatible with high-speed rail well- designed it to be compatible. request approval of the amended at least number, with intelligent transportation inc. for a 10-year lease and the process space in. in the horsemen of the executive director to the intelligent transportation inc. dated january 30th, 2012, which commits not to facilitate the exercise of its rights under section 4.2a before july 30th,

2015. >> so moved. >> second. >> any public comment? >> madame president, members of the board. speaking on behalf of the pilots. i just want to congratulate the staff and for lending the wharf and to this wonderful point of construction and we have been waiting for a long time for this. special kudos to dan who made this his passion.

we have had a very successful history of working with construction on another project and other projects and we would hope that they would contract with a good union employers. you have a tenant here at the port of san francisco. although that decision on which it tugboat company to use has yet to be made, we are looking for captain's that have an aptitude to operate the tugboat's on this job. we congratulate the port for bringing this project to this point. >> any questions or comments?

all in favor. >> resolutions 1206, 1207, 1208, 1209, 1210 have been approved. >> restricting the sale, use, and distribution of certain plastic bags, plastic water bottles, plastic food where. >> good afternoon, commissioners. this was a consent item and we found a mistake in the policy today. the resolution that you received

a restricted the sale of single use plastic bottles that contained carbonated water or soda is or sports drinks and intent was to have water only put to the exemption was those that had the soda and carbonated water. the national park service developed a similar ban in the grand canyon. with that, i will take any questions that you have. >> we're thrilled about the policy. thank you for that. we appreciate the question. this is more practical for people. i want to take this opportunity

to note that there are these reusable baggies that can be clipped to belt loops or whatever and it could include the port logo and make that available to people. it would be very easy for people to carry these new versions of renewable bottles. >> not to try to push the city further about why don't we to say the prohibition only applies to single use plastic bottles that are used for water? >> i think we might have had that. there was a request for clarification. >> i can see someone else figuring out some other beverage that somehow is excluded or

included or whatever. >> you were saying that you would take that correction. >> so moved. >> could you restate it for non carbonated water? >> know. this prohibition only applies to single use plastic bottles used for water. >> you will get into the issue of carbonated versus non carbonated water i would make a friendly amendment that it is bottles that used for non carbonated water. does that make sense? >> it does. not to be hasty or complicate it further but there are flavored waters out there as well.

>> what are we planning? >> are you planning and flavored water? >> the intent is that any bottle that can be replaced with sap what would be prohibited. >> should we accept that motion? >> non fled, non carbonated water. >> i am comfortable with that. >> this applies only to single use plastic bottles that are used for non carbonated or flavored water. >> is there second? >> i could. >> any discussion further? >> water is the primary hearing.

in terms of how this continues to develop because there are other plastic bottles, is there any further step in to how this could evolve? >> with respect to bottles, not at the moment because of the issues are around selling and profiting from other products that are readily available. you should have a reasonable alternative for water. you currently don't have a reasonable alternative for these other products. there has been some consideration and there are folks out there that would like to see an absolute ban regardless of size can tell -- regardless of size.

>> i would note that the commissioner from the environment, would you like to share any thoughts with us? >> i'm prepared to go to public comments of there are no speakers. >> >> good afternoon, commissioners. i am very pleased to support of this advanced policy. i was very excited to see in it and i am appreciative of all of the work of the staff and the department of the environment staff and i support of the amended version. we are looking at a policy that

applies to 15,000 or bigger. the potential for 5000 people, 5000 balloons released, 5000 single serve bottles being distributed. even if every one of those and it's up at the appropriate -- ends up in the appropriate bin, we still have the shipping, the manufacturer. we have all of these emissions to bring the water to the site. i don't want to delay this at all. i hope that it stays on your agenda very very soon and we will reduce the number from 5000 possibly down to zero for things

like balloons. we still need to deal with hydration but there are more and more companies. many event organizers have voluntarily provided water at their events. that is a direction that i hope that we can move in sooner rather than later. >> is to any other public comment? what shall we have a motion to approve the policy? the resolution has carried. >> item 9 a, informational presentation of the operating budget for fiscal years 2012-13.

>> good afternoon. i am joined by the budget manager as well as the financial analysts. our fiscal officer is also here. as is practiced, we start with the annual operating budget with the review. so, you are able to review the details, ask questions, provide input and when we return on the 28 for your final review and recommendation of the budget, many of you are familiar with the process but for the benefit of the public and for new members, how the process works, once you approve the budget, we

transmit this to the city's comptroller penn to the city comptroller balances the budget and it goes to the mayor's budget office for review and in about may, they transfer over to the board of supervisors. the board of supervisors has one to two hearings whereby they do additional changes to the budget and it is finally adopted in july and then we come back and report on any changes. this time, where you have had the two year budget, this is a true two-year budget. what you approve will stand. we have enjoyed to the two year budget process because it has allowed us to plan. we have also enjoyed the flexibility of coming back the next year and making changes. this is new for us so we will be

treating the budget presentation today, looking at a lot of changes from prior commission action because next year we will just come with a supplemental. that is to reflect changes above 5% from projected expenditures and revenues. it will be an incremental look and we will be using a supplemental appropriation for incremental changes. one of the reasons the city is going to the fix the budget cycle is because they want to turn the attention to the five- year plan. to the city and commissions will look at their financial plan and will make decisions to identify trends and resolutions, reverse negative trends and link the forecast to the budget >> to the business and operating parties in the organization. last year, we did participate and we created a financial plan

and we're planning to update that five-year look. while it is not an official year to update that forecast, it will be useful for you to see the trends that this first budget leads to four years 3, 4, 5. i would like to note that the disillusionment of the redevelopment agency, there might be budget changes that will be implemented and it will take place in the mayor's review of the budget presented to the board in may. i don't have a sense for you of what impact this will have to our budget but we will be coming back to report on any impact. if we could go to the other side. i want to step back to the five- year that we produce last year because there are several things that some policies underlined

the two-year budget that reflect what we have identified and that five-year trend. it just remind you that they showed operating deficits growing in year 3, 4, 5 and a decrease in contribution to our capital program. basically as a result of our revenues not growing as fast as our expenditures which is very similar to the overall citywide trend. in our forecast and throughout our organizations, we have a lot of constraints in our financials. we have diversity of revenue and business lines and that carried us through the recession and has really provided a relatively constant source of revenues for us. you also adopted under the leadership of the director, some very good financial policies and the rating agencies comment on these policies and we have seen results from that and that