all those in favor? opposed? thank you. it took us less time to do a rate increase for wholesale customers than it did to talk about -- >> item 11 -- approve an increase of 2,000,005 under thousand dollars the previously approved contract cost contingency for constructing -- construction on the alameda side number 44 17 million to under $93,000. authorize the measure to approve measures to the contract. >> i believe this was covered. >> she did cover that and the report. >> if we have any questions. >> i would like to move this

item. >> second. >> moved and seconded. you did an excellent job. we have a motion and a second. your job is done. [laughter] and very well, i might add. do we have any public comment on this item? all those in favor? opposed? the motion carries. thank you. our next item is to go into closed session. madam secretary, if you'd call the items were closed session. >> item 12, public comment on matters to be discussed in closed session. commissioner moran: any public comment on matters to be discussed in closed session? >> there may be one speaker on

item 19. i'm not sure if that is the case. if you want to call back and hear his testimony, he would not have to stay until afterwards. commissioner moran: it is your choice. we do not want to act on to -- on the item until we have had closed session. you will stay? ok. proceed. >> item 13, motion on whether to assert attorney-client privilege regarding the matter is listed below is conference with legal counsel. commissioner moran: all those in favor? >> aye. commissioner moran: the motion carries. >> item 14, conference with a real property negotiator -- pursuant to california government code section 5495 6.8 and san francisco

administrative code section 67.8a2, property -- mountain view, brussels 189, 190, 191, and 19s -- >> can you wait until the store is closed? thanks. -- until this door is commissioner moran: the public utilities commission is back in open session. the commission took no action on any item in closed session. i have a motion as to whether to disclose? >> so move. move to not disclosed. >> second. commissioner moran: all those in favor? >> aye. commissioner moran: the motion

carries. madam secretary, item 19. >> item 19, authorizes the general manager to negotiate and execute a memorandum of understanding with the port of san francisco for the puc to continue providing clean, green municipal power at pier 70 and to provide the port $1.5 million if the new shoreside power system at pier 70 increases electric use by 65,625,000 kilowatt hours by 2017. commissioner moran: this was on the prior calendar. we continued it in order to have discussion of related matters in closed session. that has happened. does the commission have any questions? or would you like a presentation from staff? >>no. no. commissioner moran: ok, is there any public comment? thank you for your patience. >> good afternoon, commissioners.

i am year represented the environmental council, which is a coalition of more than 30 in terminations in the bay area. the purpose is to assure that the america's cup is a benefit for san francisco bay and its surrounding habitats, neighborhoods, and historic resources in both the short and long term. the council strongly in support of the pier 70 shoreside project, and we urge the commission to approve the mou. the new shoreside power installation for large ships docking at the shipyard for maintenance and repair will provide dramatic reductions in marine air emissions that will benefit air quality in san francisco and the bay area. project will help offset excess emissions from cruise ships being generated over the next two or three years while shoreside powers decommissioned at pierre's 27-29 due to the america's cup sailing event and construction of the new terminal. the pier 70 project will provide net air quality benefits long after the shore is reconnected.

the environment council supports the project because it addresses concerns that environmental, public health, and neighborhood groups raised about the increased air commission that will be generated by cruise ships that will not be able to hook up to shoreside power until early 2014. the original $5 million shoreside project was funded in part by the sfpuc. we urge you to support the mou and i urge immediate implementation of the project. i want to commend ports that for the excellent work they've done. thank you for keeping us informed as the project moves forward. commissioner moran: thank you very much. any other comment? do we have a motion? >> i move it. >> second. >> all those in favor? >> aye. commissioner moran: oppose? the motion carries. item 20, new business. do we have any new business?

seeing none, this meeting is adjourned. >> let's call the meeting to order. >> [roll call]

item to -- approval of minutes for the april 4, 2012 meeting. >> so moved. it all in favor. >> item 3, public comment on executive session. no one here. item number four, executive session. so moved. >> conference with legal counsel and real property negotiator. >> i move that we disclose the commission unanimously approved the settlement of the existing litigation matter described in four4a on the terms described ie settlement agreement filed secretary the commission. >> second.

>> all in favor? reconvene in open session. >> please be advised the use of cellphone, pagers, and at similar sound producing devices are prohibited at this meeting. please be advise the chair may remove anyone from the move -- from the room responsible for using similar sound producing devices. be advised and member of the public has three minutes to make permanent public comments on each agenda item unless the port commissioner adopts a shorter time on any item. the executive director's report. >> good afternoon. welcome to the port commission meeting today. i have a few items to report on. first is a novel one and a very exciting one. i'm sure many of you have read in the paper about the unique

attributes of a certain high- school principal at mission high who has gone out of his way to uniquely encourages students to improve their test scores every year, which is probably you music to the ears of many parents. this year, he boldly decided if they improve their test scores, he would figure out how to get for them a dinner dance crews on the san francisco bay. they met this challenge salon and left him with the challenge of raising the funds to accommodate this dance crews on the day. today, we are pleased to have the principle with us, the man i'm talking about. he has been joined by a number of view who joined the port of san francisco to contribute to the fund-raising for this amazing event and before he

comes to the podium, i would like to mention who those are -- horn blowers dining and yachts, or the cruise will take place this coming saturday afternoon, the shoat -- san francisco ship repair, san francisco waterfront partners and the san francisco giants. they're joining with the port of san francisco to make this happen. we're pleased and proud to enhance the lives of students in san francisco in any way we can and we appreciate the work. if i may, if you could come to the microphone please. >> thank you very much, commissioners for allowing me to speak for a minute. and the principle of missionize school, the very proud principle of michigan school. i've been there for 11 years, starting as an english teacher that moved through the council or department chair and i've been the principal for the last four years.

i think it is the single most the first school in san francisco. every community you can't imagine is represented and that's our range of incredible, pitiful students from every walk of life. but we have had some challenges, particularly around test scores. three years ago, along with other things we're doing around community building in getting kids focused on college, we haven't 85% rate of getting students except to college. three years ago, the challenge was if your test scores go up, i will get a mission high-school tattoo. low and behold when we got the results, had to turn to my wife and say which arm? she is over here and mission is over here. i won't show you, but i think there is an article. the next year, we said if your scores go up, we will find a

famous chefs to cook a meal for the school. scores went up by 70 points, which was huge. we contacted charleston, -- charles than and some others and they came and cooked a meal for the entire school last year on the field. it's always a cycle. at the end of last year, the challenge was if scores go up, we would find a boat for a boat dance. there is a second place and third-place. second was i would each 25 worms if i couldn't find a boat and we would have a fair on the field. scores went up and we've had almost 100 points in three years, which is by far the highest in the city. i thought we would never find a boat, so i was truly about to

eat worms. lo and behold, monique, peter, and brad came through and the horn blow or and they heard about the story and i talked to my community coordinator and within days, people were jumping in to say we want to support this effort. i want to thank the port, peter, brad, monique, the giants, the horn blow or, metro cruises, the san francisco shipyard and the water from partners because they've come together to support the kids and i have to tell you i left, kids or a look tralee running down the stairwell because we are distributing the tickets and they are so beside themselves with excitement. we are going to go on the water? it's a beaut. we're going on the water. i promise you. if you want to wave at us as we take off at 5:30, please feel

free and come and visit mission high school and i will show you around and show you are beautiful campus, are museum, and our beautiful students. thank you very much. [applause] >> i would like to echo the thanks to peter and all of you who are here today who contributed. it is a great thing. when you are here friday night, keep a lookout for the coral princess who will be here as one of our cruise ships. going back to lead bit in history with respect foreign trade zone, we have had a foreign trade zone at the port of san francisco since 1934, which is a very long time. we were the third foreign trade zone ever found in the country and we have been operating the foreign trade zone ever since. some years ago, the port of san francisco took over the operations of the foreign trade some.

we are holding a seminar on june 7, next door at pier 1, from 9:00 that will help folks understand the foreign trade zone and how that might work for them. it will provide attendees with the understanding of the program, how they can compete in the global market, and give them an application process and show them the cost benefits of participating in the foreign trade zone. for those of the who don't know, the foreign trade zone was established by congress in 1934. goods coming in our duty free until they leave the foreign trade zone. you can actually have them land on property -- there are thousands of them across the country. first at ports and expanding to airports. we are hopeful that organizations ranging from import export companies, brokers, distributors, it sector will come and join is on june 7

for a half-day seminar. next, i would like to announce we are proposing to hold a special port commission meeting on may 16, next wednesday, at city hall in room 263. the purpose of the meeting is to hear the various documents that would form the project known as 351 washington. the holding -- the hearing is dependent on whatever may happen during the appeal hearing the night before at the board of supervisors. but we will be holding a special meeting on may 16 and hopefully moving forward on a project we have been pursuing for a very long time. next, it's very exciting -- we grappled for a while as what to do with the amazing grain silos that grace our waterfront east

of third street. after all lot of very thoughtful ideas, we have landed on an idea to showcase them with public art. they have seismic challenges which make it hard to get on them and pay them, but with electronic art, this is a way to enhance and beautify those silos. through the arts commission, there's a request for qualifications that has just been published as of this past friday. the request for qualification seeks an artist for the public art project at the port. the qualification of requests are due july 9, followed by a more formal proposal process with the artist selected in november and hope of having a new art in place by the fall of 2013. funding is coming from the ports southern waterfront beautification fund.

this is our first beautification project of such magnitude. we are excited about it. i think to david has spearheaded this and it's something happening in great city around the world and our very own city hall was lit up almost a year ago for one of the big trade shows. more exciting news -- you may have noticed a plethora of cruise ships, including the celebrity century. we will have nine cruise ships in port in the next week. several are princess cruise ships that will be primarily at pierre's 35 and pier 27 is out of use right now. but we're still managing to service the cruise industry so we are proud and excited of that. in addition to having ships up and down the waterfront, we will have the golden princess in dry dock beginning thursday, may 10

for a 10-day retrofit and that it will sail back to pier 35 where it will reload. on mother's day, we have a triple header of princess ships. the star princess will be at pier 35 south with approximately 2600 passengers. the island princess with another 2600 passengers and a fourth ship in dry dock. we think that's a record for the port to have for princess ships at once. the only other reports that possibly have had that experience might be for lauderdale or one of the caribbean ports. this is a big coup for us that we are very excited. we will and with the disney wonder which will be making her first cruise call of the year at pier 35 south one week from wednesday. it will be a very busy week and the maritime staff will be on

call working constantly. as a result of the ships being in, there will be street rerouting from 6:00 until 2:00 to facilitate getting the passengers and supplies on and off. we are proud and my kudos to all the maritime staff for its great achievement. i hope you saw the announcement that for the first time ever, princess cruises has decided to home port a ship beginning one year from now in san francisco for a full year. that is terrific for us. we did not ascribe to the "if you build it, they will come close "but it's exciting to know the new terminal has attracted such attention and will have a home ship here in 2013. i hope you quickly booked your cruises. it will go to alaska, hawaii or

the coast. that is my great news on the cruise calls. lastly, i want to mention we have the annual budget hearing at the board of supervisors. we will have our budget hearing two weeks from tomorrow on may 23 and there will be a second hearing if necessary on may 31. we invite everyone to come and support the efforts of the port. this is a difficult budget year for everyone and we are no exception to that. thank you very much. that concludes my report. >> any public comment on the executive director's report? >> item 8a, to accept and expend for the metropolitan transportation commission, real- time grant program funds for security improvements at the port of san francisco. a request for authorization to

reward construction contract for pier 33 and a half improvement project not to exceed $2,835,000. an authorization for a contract contingency fund for 10% of the contract amount for a total authorization not to exceed $3,118,500. their request for authorization to request a contract modification, round house to heating ventilation central plant upgrade project. to extend the original contract duration by an additional six or seven days and increase the original contract amounts for an additional scope of work. a request for approval of first amendment negotiation agreement for san francisco water from partners to a delaware limited

liability company in connection with the development of seawall located on the embarcadero adjacent to the washington park to extend the term to of over 31st 2012. >> so moved. >> second. >> any public comment? all in favor? resolutions have passed. >> informational presentation under revised proposal for the lease and development of seawall at 337 pier 48 adjacent to at&t park. >> a good afternoon, commissioners. on the project manager for the seawall at 337 development projects. it is my pleasure to begin this presentation describing the revised proposal for the sea

wall lot 337. in september of 2010, the court entered into an exclusive negotiation agreement for the next use development of the lot and pier 48 with seawall lot 337 associates which includes the san francisco giants as a partner. there is a two phase approach. phase one allocates up to 30 months for the parties reach agreement on a party plan and financial terms culminating in a term sheet approval by the board and the port. phase two allocates three years to complete the entitlement and permitting process, resulting in a disposition agreement and construction of the project. the giants have completed 5 of 12 or 42% of the phase one benchmarks with a remaining seven benchmark scheduled to be met over the next seven months. pursuant to this, on march 15 of this year, the giants' submitted

a revised proposal describing an excuse program that balance is residential, office, retail, exhibition, and parking uses distributed over a network of 10 new city blocks. all was in a sea wall lot 337, the parking lot adjacent to at&t park. the combination of uses will evolve as the project moves forward to meet market demand and reflect community and regulatory concerns. port staff is working closely with the giants to review and critique the revised proposal. our combined efforts this spring and summer will produce a comprehensive term sheet for port commission review and approval this year. recognizing the key role of community input to date, staff and the giants will continue the outreach to the waterfront advisory group, the mission bay citizens advisory committee, and

appropriate regulatory agencies. i would like to introduce jack baer from the giants to provide an overview of the proposal. we will be available afterwards should you have any questions. >> thank you. i'm going to see if i can get the slide presentation to work. good afternoon, members of the port commission. i'm the senior vice president of the san francisco giants and i'm the point person on this project for the giants. there are some colleagues of mine i would like to introduce to you today. the project is being done as a joint venture with the san

francisco giants and john is with us who works with the joint venture. fran worked for the boston red sox improving fenway park and the area around fenway park. many of the know karen, she is one of the preeminent land-use planners and architects in the bay area and has done projects around the united states and the world and we're happy to have her on our team. today, we find ourselves in a very exciting spot. we survived the economic downturn, the real estate market in san francisco is recovering, and we are ready to move full speed ahead. over the past year, we have conducted extensive due diligence on the site conditions at sea wall lot 337 and pier 38.

technical, environmental, structural, marine engineering and others. our proposal is no longer conceptual in nature but firmly rooted in reality. we are fully engaged with port staff and working diligently on almost a daily basis on the project. you will find us several times a week working with phil, jonathan stern, and many others as we tackle all the issues posed by such a complicated and exciting development project. we're also working with the mayor's office of economic development, housing, the planning department and many other city agencies because the project of this magnitude involves a lot of coordination. our collective goal is to reach agreement on a term sheet for the consideration by the end of this calen