includes an allowance for certain improvements to telecommunications infrastructure that are needed for the event. the next item is a reallocation of park and they mitigation responsibilities, and in the file is a memorandum of agreement as to these responsibilities. what we did is, in negotiating with the event authority, there relinquishment of the right of theirs to these piers, we would use an amount up to that amount for reimbursement and mitigating environmental impacts to the bay and parts plants, so we are continuing to be in discussions with that. the federal environmental review process goes on, but we hope this creates a nucleus for a very feasible project so our partners can move ahead and feel that they have the appropriate commitments. lastly, our cost projections for reduce costs for the 2012 schedule, that is due to a small

reduction in the number of racing dates as well as the overlap with fleet week. we feel we can share resources in terms of getting people around the waterfront in a way that may save america's cup costs. the economic projections did not include the 2012 events, so these reconfigurations actually do not decrease this sort of dynamics behind what those projections were meant to measure. obviously, the task is on us now to move ahead and deliver on those projections, but i want to make sure it to say that that is not a loss to the city and that the television exposure has been announced but nbc broadcasting as well as hopefully a great spectacle with fleet week and allowing it to be interlocked with the america's cup events. moving to a summary of the resolution amendments as a whole that i think will be introduced during this hearing, i just wanted to give an overview of the key changes. really, from the prior

arrangement, we had to do a number of things to recap where we are. i think one of the most prominent is the references to the agreement which called for the long term development rights to be changed to what is known as a lease disposition agreement. we have filed a version of this agreement. we have been able to negotiate. it basically focuses on the short-term leases for the event and obviously eliminates all of the long-term pieces related to the long-term peace. on a whole, they have new ceqa findings. it has been submitted to the clerk's file for this item. this also includes changes to certain uses at the event venues and other variance is under ceqa but did not create any new significant impacts or mitigation measures. one of these relates to the increase potential seating at any event stage act -- at piers 27 and 29, and we think it

creates a potential opportunity, and so we have added a whereas clause to the resolution for the city and the event authority to work together to establish a preconditions for that stage, including number of events, timing of events, and making them available to other organizations as we really try to integrate that part of the neighborhood planning for the events along the waterfront. the next is in the work force development plan. that has now been revised to reflect the incorporation of the city local hire policies for all construction, even for construction pollock -- projects that the event authority may pursue an be reimbursed for by the port. i think that is a step forward and really reflects the hard work of the board of supervisors as well as the staff for delivering on these jobs, even though it is a smaller permit construction footprint, and also, the mitigation measures

responsibility, primarily the change were balls around the park service mitigation that i mentioned earlier. the resolution in corporate commitments that were described at the last budget and finance committee meeting, which includes the intent to enter into an m,ou -- mou , consequently bases as well as demonstrating receipts of $12 million by the end of this fiscal year, so we are looking forward to that being a helpful planning tool and one that helps us very much to have the ongoing dialogue about the revenues and how they are really going to match up with event costs. the next item is a set of conditions to the delegation regarding the lease disposition agreement items on insurance, and then the security which is called for under the host and the new agreement. this stems from what really is an effort by the city to help

them in filling their obligation to post a security of up to $32 million, reflective of, basically, securing the america's cup event authority with the organizing committee performance under the host agreement. and this is a way that this general fund is protected, with the insurance and the other provisions and the bond. that should the only place that recovery is sought under the agreement that the general fund would not be otherwise expos. we are working with the acoc and the office to identify the options for this shirt or insurance project. -- product. we are moving quickly because we have now redefined the actual performance of the city and limited the construction projects, as compared to the previous model where others were developing those projects. we hope to have that in hand in the very near future. so with that in mind, the

agreement as a law creates the parameters which will be in place, and those parameters match the structure of the original host agreement and make sure that the general fund is protected. the last year, which may be hard to see but the subtitles, we adopted all the budget animalist's recommendations, and this includes budget reports quarterly back, and the fund- raising, the port infrastructure expenditures, as well as city operating expenditures. in addition, there would be a report back to the outcome of the sure did bond effort that i just described comment and then, in addition, reports back in the event that the fund-raising does not come in at the fall of $32 million, reporting back on potential changes to be the plan to reduce operating costs to make those match up with fundraising, so we are happy to embrace those as we move forward

with this consolidated event planning. so with that overview in mind, i am here to answer questions, but i wanted to turn it over to mr. bensen. >> brad benson, representing the port and port staff. i want to extend the thanks of the port to mr. martin. he has done an amazing job leading this project effort. i want to thank the event of 40 and raise management, as well. before i get into my presentation, i want to talk about the major change here, which is switching from a development model to a capital project delivery model. we did put a lot of time in putting this together, and i think the port staff has found that that had a set of

development opportunities that would create great improvements in the south beach area of a waterfront consistent with the waterfront plan. that said, we do understand that it was a very expensive investment. there was a great risk involved in that, and the development discussion had started to overshadow what should have been the proper focus, which was the event. and i want to say that i think it is a testament to the strong planning effort that happened over the past year that with the event authority and race management and city staff, we were able to come up with a revised plan which involves less investment but is going to support the same great racing activities along the waterfront, albeit in a slightly different configuration, support staff that started to think about what to do with piers 30-32, when it

was not going to be used for an industrial basis. now i would like to switch to the slide. and piers 30-31, i think as we have testified in the past, it has some load restrictions. you can drive a truck on it. it had limiting functionality for parking, which was revenue generating, but there was trouble getting out to the east bay's for secondary issues, and deports staff, they started to develop an approach where the capital project expenditures, we could create that access, and we realized that there was probably a further discussion to be had with the event authority and race management and engage them in a discussion about whether or not we could pursue a smaller set of improvements there so that this could remain the home of the industrial basis, 2013, and what you see on the screen

is the result of that effort. we think this is about an $8.50 million project at this point. it would involve improving about 90,000 square feet of the deck. building an h-20 roadway to the center depressed aisle. that was built in the 1920's and is a lot stronger than the rest. by building a driveway that connects to it, we think we can get buses out to that depressed area and returned functionality for a secondary. as part of this plan, we also propose to do marginal wharf repairs along the embarcadero, and we think that this collection of repairs will extend the life of the structure from the current estimate of 10 years to 20 to 30 years. so it is a good investment for

the porch, for the maritime use that it brings back to the piers. we think we will be able to have evens at this location, not just the america's cup. we used to have some. and it could support future development, as well, and we do look forward to the proposed hearing on the development issues at the port. i know the director is looking forward to that discussion, and we will be ready to talk about how this plan could facilitate a future development of this site. what could happen here for the america's cup par 5 team abases, over for the bases if there are more teams then that. that would be down and -- at pier 80. there would be some dredging along that side of the pier for the catamarans, albeit much reduced dredging from what was proposed, and it would face that

green quadrangle area, where they would be loaded onto the pier. pier 30, at the top of this light, the event authority is still looking at what could go at that site. there could be some hospitality uses. we need to talk about public access. but there is a lot of room to work with, and we think this would be a great home for the team industrial basis. this is a rather busy slide, and so i am going to summarize it at a high level. we had been relying on the of the authority to do sort of worked at 27, 29 -- to do work at piers 27 and 29. there also public access improvements to improve public access along the waterfront, and there are certain dredging expenses that we now propose to

undertake as public works projects, and i would just summarize a few of them at a high level. the 29 substructure need some more done to it. the water control board want to see storm water improvements to improve the quality of water flowing to the bay. there is a 29 and wall, a historic preservation feature, that the port would undertake, and we have to fully fund the relocation of the power company to make way for the construction activities. that is about $7 million worth of work. the bcdc costs are largely along the south apron and another area. there will be permanent dedicated access in this areas, which will be a legacy benefits which will improve the waterfront long after the america's cup, and removing pier

half and pier 64. these are old and need to be removed from the bay to improve the health of the bit, and finally, for the large spectator vessels and the catamarans, we are looking at a variety of dredging in four locations, although we expect that it will no longer be required to have dredging at pier 14 south. that would be a savings of over $300,000 compared to what you see on the slide. also, millions of dollars in capital projects. we have run through this scoring process using the standard criteria, and all of the projects got a score that merits funding without the america's cup, so we think these are good investments for the port to make. so as to the sources of funds, mike alluded to the fact that

there will not be long-term leases, support will not be getting rent on a long-term basis, and the result of that would increase the ports bonding capacity, so we would propose issuing new debt in addition to new debt this year of $15 million, reallocating some existing debt that has not been extended on other projects, and look at either a combination of poor operating funds and other projects to reprogram funding to these projects. we have got about a $967,000 current shortfall. we propose to make up that shortfall by reducing the dredging, as i talked about earlier, and refining these projects as they go through the design phase, and we think that is a design that we can easily do. so this slide gives you a little comparison about the

development and disposition agreement in front of you right now, so under the old agreement, the port would have gone without $3.90 million in current rent on a long-term basis. that all will be staying with the harbor fund now. using very conservative two-time debt service coverage, that would increase the bonnett capacity of the port from $65 million to $89 million, -- the bonding capacity. we were planning on issuing $24 million in 2012, primarily for the cruise terminal project. that would go up to approximately $40 million under the disposition agreement. and then we have another planned debt issuance of $27 million in 2014, and that would finished phase two at the crews terminal and other projects planned at that time, and that would remain

unchanged. finally, to our own program to bonding capacity, the amount of debt capacity remaining after we are taking into account all plans for the debt issuances, it was $40 million under the prior development and disposition agreement, increasing to $22 million under the revised disposition agreement, so the short story is that the court believes we can pay for this back into capital projects. we will be back to you to talk about how we deliver them under such a tight time frame. we are switching gears quickly from the development model to a public works projects delivery model, and we will be talking to the budget and finance committee tomorrow about the flexibility we need to deliver those projects, so i want to say that we can deliver this work for the city and for the event and are eager to do so.

i, too, and available for any questions if you have them. thank you very much. president chiu: colleagues, let me ask you have any questions to either mr. martin or mr. bemsen. supervisor campos? supervisor campos: i want to know if you can tell us why we are moving so quickly through this, and through the chair. >> mike martin, project director. really what we are looking at is the timeline that is continuing to shrink between now and when the events, . by putting forward these construction projects, we know that the pier 27 project has already begun, so we have got that step forward, but we have to get permits, amend them, and

then move ahead as mr. bentsen mentioned in time for the 2012 event. that is really the impetus. we appreciate the board being willing to take this up, and we are hopeful that you will support it. supervisor campos: thank you. president chiu: supervisor mar? supervisor mar: i appreciate all of the work to come up with the amended proposal, but can you talk about the work force development and the percentage of local hiring? can you go into more detail on the work force developed part? >> sure. there is a revised work force development plan that is in the file before you. it continues to reference potential permit construction work done by the event authority, and that is in the event that the city can establish a flexibility that mr. benson mention. the of the authority would step

in, and they would reimburse. based on this outcome, what was negotiate with the of the accord is that this is the city paying for the work under either approach, which supplied the local hire ordinance under each approach, so the current percentages apply no matter who does that work, just as they do now at the chris tillman project, so all the permanent and the structure improvements will be subject to the local hire ordnance. supervisor mar: bank. president chiu: any other questions, colleagues? supervisor avalos? supervisor avalos: an agreement with some of the trades, could you talk about that, please? >> we have got a changing free marketeer and a changing framework there. that is really a private discussion with the event of 40. obviously, there construction work is now limited under this approach, but they still let the other potential temporary work

and things that may happen, so i understand that those conversations continue. president chiu: any other questions, comments? ok, thank you, mr. martin, mr. bensen. let me ask if there are any members of the public wish to speak on the matters before the board. if you could, line up, and each member of the public will have up to two minutes, and we have our first speaker. but thank you very much, board of supervisors. just so you know, i am english but and a u.s. citizen. i, like all citizens who follow this, i am incredibly excited. the america's cup is the oldest trophy in sport. i am very much looking forward to san francisco hosting it. one of the important elements of this is the legacy it will have on san francisco and the

citizens of san francisco and the bay area. the america's cup used to be exclusive. now, it is inclusive. san francisco will enable the next generation of sailors and youngsters to enter when this is a constructive support for all. as an international citizen, i can tell you personally that the groundswell around the world about the america's cup finally being hosted in the best place for sailing, the san francisco bay, in the world, will be echoed. to conclude, i ask you, or i implore you as a small-business owner, the secret ingredient of every success story. faith. fade that the city will get more taxes, more revenues, more jobs, more prestige. this event is a great event for the city. thank you very much. president chiu: thank you ♪.

next speaker. >> good afternoon. a consulting company. i was impressed with the aforementioned presentation. i heard scaling back. i heard reallocation. i heard allocation, building, construction, and as a minority business owner, making sure that women under, minority and, disabled veterans all have an opportunity to bid and win some of these contracts. the young man just said it very eloquently that this is an inclusive opportunity, as much as san francisco is a very inclusive town. i came here 24 years ago from new york city, and i came here for a two-week vacation, and i never left, said that is important for me to know that we

are seriously going to take a look at this and make sure that minority owned firms, women- owned firms get the opportunity to bid and not be held outside the glass looking in. i appreciate your time. thank you very much. president chiu: thank you. next speaker. >> been added. my name is kendry. i was handed the reins of an association, and also, i'm speaking on behalf of the mission association. in 1951 when the yacht america arrived off the coast of britain. the royal yacht. in the audience was queen victoria. it came back to new york, and that is how the america's cup was born. it was not until 1983 when these young folks, let's from

australia, arrived with a yacht. they had a flag with the boxing kangaroo. it was radical to win the race. they went to australia, because they had the right to select where they had the race. the place was called fremantle. i was in fremantle in 1969. it was a backwater port where the ships would pull in, both cargo and passenger, to refuel and replenish supplies. i went back again after the race a few years ago with my daughter. let me tell you, that town, that city is a gorgeous city now. it has got beautiful shops, parks, bars, entertainment places, just everything. this was only because the america's cup was held there. i urge you to vote in support of this event. thank you very much. president chiu: thank you very

much. next speaker. >> david, founder and president of a business related service. i have had the business and privilege of touring oracle racing with a few of my disabled sailors, thanks to a presentation by mr. stephen barkley. i have also perform a lot of work with the united states air force at one of them strategic air force bases in the world. i have seen raptors and bombers up close, the president's air force one, and others. the oracle racing fleet rivals of them all. there is so much more to be said about this new frontier in sailing than what we are talking about. the america's cup is a new challenge for the minds of children and young adults. not only to think creatively but to engineer marvelously. i know that the board has had wide sweeping concerns about land deals and local hiring and

widespread economic impact, but it sounds to me that most of those issues have been resolved. as far as spreading economic impact across the various disadvantaged areas of the city away from the waterfront, that is what this event needs to focus on inclusion as opposed to just providing access to racing. inclusion will enable more people to reach the favorable pockets of the city and enjoy them outside of the race time. think about all of the street vendors, the prosperity, and all of this satellite activities that will arise from the america's cup. more importantly, i really want you to think back to june 19, 1999. rutherford new jersey, the stadium, home of the new york giants, but instead of a football game, women's soccer laid siege to the international spotlight.

that game showcased. knowing what ever have thought that women's soccer or any other sporting event would have the slightest chance of filling up such a large scale. president chiu: thank you very much. thank you. next speaker. >> that afternoon. gary. two observations about the america's cup. one, seawall lot 330. going back to 2010, red java house is going to be thrown out of the bus. among the thousands of people who go there for every baseball game, and i am one of them, it is going to be preserved, and i think it is commendable to the board that this happened. secondly, i also heard today in

the mes disposition that deawall lot 330 n is going out, as well it should have. i am glad to see that it is out, and you are to be commended on that. the sec and the general observation it pertains to the process of the america's cup from one person's point of view, mine. it seems to me that the board of supervisors and its budget analyst's and the spot on the analysis and figures deserves a lot of commendation, and i think that you have been a buffer against the frequent penchant for things emanating across the hall here. despite the enormous the efforts of people in this participation. the america's cup now, it seems to me, is affordable. it is a proper scale, and it should be enjoyable for all, and that the board deserves a lot of that the board deserves a lot of credit.