the loyal audience has allowed michelle to take more chances with the monthly lineup. established authors bring in an older audience. younker authors bring in their friends from the community who might be bringing in an older author. >> raider has provided a stage for more than 400 writers. it ranges from fiction to academics stories to academic stories this service the underground of queer fell, history, or culture. >> and there are so many different literary circles in san francisco. i have been programming this reading series for nine years. and i still have a huge list on my computer of people i need to carry into this. >> the supportive audience has allowed michele to try new experiment this year, the radar

book club. a deep explorationer of a single work. after the talk, she bounces on stage to jump-start the q&a. less charlie rose and more carson daly. >> san francisco is consistently ranked as one of the most literate cities in the united states. multiple reading events are happening every night of the year, competing against a big names like city arts and lectures. radar was voted the winner of these san francisco contest. after two decades of working for free, michelle is able to make radar her full-time job. >> i am a right to myself, but i feel like my work in this world is eagerly to bring writers

together and to produce literary events. if i was only doing my own work, i would not be happy. it is, like throwing a party or a dinner party. i can match that person with that person. it is really fun for me. it is nerve wracking during the actual readings. i hope everyone is good. i hope the audience likes them. i hope everybody shows up. but everything works out. at the end of the reading, everyone is happy. ♪ ♪ [horns honking] announcer: the first step to getting into college is finding someone who can help. for the next steps, go to knowhow2.org.

chair chu: the, and welcome to the regular meeting of the san francisco budget and finance committee. my name is carmen chu, and i am

the chair. joining us today include supervisor avalos and supervisor kim will be coming later. our clerk today is victor young. we also have people from sfgtv. could you please read? clerk young: -- chair chu: item number one. clerk young: i number one, a permit of a north feasting wall sign. >> when the city required the building, it also assumed all of the existing leases and permits on the building, which included

a lease with cbs outdoor. they then sold the space for uses such as the one i have on the overhead now. that continued until that particular lease expired naturally on march 31, 2011. knowing that that expiration was coming forward, and knowing the regulations relative to advertising on city property, the city issued a request for proposals from outdoors signage companies in the spring of 2011. this request specifically excluded advertising for alcohol or tobacco products, in any way, shape, or form, either direct or indirect. following that process, we had five potential bidders interested in this light.

negotiations with the highest bidder failed to produce a permit and a fashion that the city was comfortable with. we then went to the number two bitter, and that is what is before you today. total outdoor, west coast media actually tendered the proposal in the spring of 2011. the terms of the permit is an initial term that sticks out to the end of 2016, with the and 35-year options. those options are at mutual agreement. as i mentioned, they are we vocable. there are some writes about the city retains to terminate, and those have to be fairly extreme in nature. the payment stream is a little bit complicated. there is a base minimum guarantee of $63,000 per year. there is an initial bonus payment of $30,000 made during

the initial execution of the permit, amortized over an initial term, and then there is a percentage, 35% of any net over $180,000 per year that they might receive from advertisers, and then there is a tiered system we created, where in the course of negotiations, we learned that the elimination rights to the board were not documented to the degree that we thought they were, and in consultation with the planning department to see that the board does not have the right to be a eliminated, said there is no light at night. that $63,000 number i gave you is, perchance, the permittees should secure in the future the right to light to the board, the rate automatically bombs up -- bumps up over $100,000 per year,

so we can capture that additional revenue we are not sure we will see that, but we wanted to condition this based on that. lastly, i should note that the prior agreement was very rich for the landlord. it generated $250,000 per year. when we looked at the actuals, we had the auditing right. we learned in the last two years that we were frankly losing money on this board location. that market has not recovered, particularly for static signage, such as these, without the human nation's rights. -- the illumination rights. these are more reflective of the industry and the difficulty of securing high-paying tenants on these boards. so that is the essence of what is before you. this is revenue and helps offset

the expenses of the buildings. this goes into a special fund that funds our operations within the civic center, specific emission quarter buildings that are managed by real estate, and this is like any other rent paying tenant. those funds go back into the building operation and management. chair chu: thank you. just in terms of a question for me, in terms of the rfp that you said went out in the spring, you said there would be no alcohol or tobacco. is that in the current contracts? >> the expired contract? no, that was not the case. chair chu: that could explain some of the differential. >> it could, it could, but i am not sure. chair chu: and the first bidder use that went into negotiations with the city but are not in the

contract that you brought before us. can you explain that a bit more? >> sure. the concept of the minimum annual guarantee, we did not see eye to eye on what that meant, and when we analyzed the terms and conditions of what they put before us, it created so many potentials for a reduction as the landlord, we did not feel edmund minimum. it meant a potential, and when we looked at the actual minimum numbers that would be reasonable return, their ranking fell frankly to the bottom of those that submitted proposals. chair chu: thank you for the explanation. why do we not go to the budget analyst's report? >> madam chair, members of the committee, on page 5 of the report, we point out that the proposed permit would generate $93,000 in the first year. that is the minimum guarantee

of 63,000 plus the 30,001-time bonus, and over the initial term, the permit would generate a minimum annual guaranteed of about $324,000, and as mr. updike has indicated, there is a difference between the proposed annual guaranteed versus the prior minimum guarantee that cbs outdoor paint. it is about 73% or more less. the fact that cbs outdoor was one of the bidders, and they bid less than the proposed permit the, the total outdoor, i think that is a further indication that they simply could not cut it with that $240,000 minimum annual guaranteed. we recommend that you approve the resolution. chair chu: thank you, mr. rose. why do we not open this up for

members of the, you wish to speak on this item number one? >> good afternoon, supervisors. my name is douglas, and i have lived in san francisco for 60 years. i thought this was a very interesting resolution, and the thought that occurred to me is that maybe since it is located on mission street, in a heavily divorce neighborhood, maybe the city might get even more use of that space by using it for public service announcements that would benefit the different groups living in that area. it could be used to advertise different programs the city is trying to help people with and can also be used for sfpd, or whenever they would need the space for, and i think it would enable a lot of nonprofit organizations to put up

information there without going in paying for such space, so maybe if this space is not that a lucrative, since the top bidder did not really want it again, then maybe it might be more useful and more beneficial to the different communities along mission street to use some for our public service announcements and in this way, in a certain sense, it would not cost the city that much to advertise what it deems necessary to advertise, and it would also give the non-profit organizations a chance to say something to help the community along mission street. thank you. chair chu: thank you. next speaker. >> ♪ would you not fix it, budget, fix it night and day proved that is the only way

the magic and the music gets to you, then just enjoy the money fix it of the wall fix a of a wall fix it like crazy and that is the only way back tonight let the magic in the budget music get to you and just enjoy it if you -- in joint, fixing up wall fixing the wall ♪ chair chu: thank you. are there any members of the public wish to speak on item number one? cnn, the item is closed. colleagues, do we have a recommendation to send it forward? ok, we have got a motion and a second. we will do that without objection. i believe that supervisor david

chiu wanted to be here for item number two, so let us get over that one and go to item number three. clerk young: appropriating $5,448,350, consisting of the fund balance and america's cup event font -- even authorities reimbursement, for the port commission for the development of a mixed use cruise terminal at pier 27. chair chu: thank you. with a report, we have elaine forms. >> good afternoon. elaine forbes, support staff. this is to have money for the budget, but the reason for this item is to address the timing of the cash. there are three sources in the supplemental. the first is in the amount of

three-point for under 48 million. -- $3.448 million. we need the funds appropriated earlier. the second source, the 2010 port revenue bonds. we have $1.10 million from the pier 35 project. this project is delayed. we are taking funds and reallocating this to the pier 35 project. there are bonds of 700,000. this is from a roof project that came in under budget, and we want to capture that source for the project. the final source is shoreside power. as you know, be the authority is

reimbursing for moving them. the supplemental would recommend both the source and the use of that funding. i will note, as you are aware, the dda has a change, and it is coming back to the board of supervisors at the end of this month, and whether this continues to be a source of repayment from the event of 40 or whether they in turn was this cost into our budget is under discussion, so i would leave it to the committee about to handle this item on the 2 million you could reserve, and until the dda has approved. i could come back. you could sever this from the supplemental. it is really the committee's preference how to resolve this,

but the other portion of the supplemental, the over $5 million, we do need to move forward because we need the cash for the project, and there is a delay on ordnances, etc., so we would prefer that. the rest of the funds. we would like to think a budget analyst for their report, and we support the recommendation to come back to you with a full report on the phase two funding and the debt financing and how we will resolve that before we issue what makes up the balance of the sources in this project, and i am here with my budget person to answer any questions. thank you. >> -- chair chu: thank you. just to clarify, the thing that has changed is the appropriation, 7.2. there is no longer a source of the additional $2 million that was supposed to come from the reim