independent system operator, to propose and develop options that would further enhance reliability in the city. and the proposal that pg&e will talk about today is to connect the 230 kv line from the embarcadero substation in downtown to the petros substation. -- potrero substation. the idea is that if there were a major earthquake in the city, that in some way it disconnected the existing 115 lines that serve thedede substation, that there would be seismically-sound redundant transmission lines serving downtown so that the lights will not go out. this is a major transition project. these do not occur that frequently in the city.

they are a highly regulated type of project. pg&e has indicated that they are starting the process to apply, formally applied to their regulators to kick off this process, and one of the routes they are evaluating is a long port property. i think i have covered the proposed route on port property. now i would like to invite robert donovan, the senior planner of land and environmental management, to provide a project description overview. he is here with the principal project manager representing pg&e. thank you, robert. >> good afternoon. thanks for having us today. it was mentioned that we discussed this with brad

recently, the project we are proposing, and it is to serve downtown san francisco. the map shows the route. there are three alternatives we're currently proposing. the blue route the goes to the bay is the route that would be on port property. so i guess that is the one you're most interested in. the reason behind the project is that the embarcadero substation is now served by two cables. this third cable installation would provide a lot more flexibility for city projects, and then in case of outages like earthquakes, as you mentioned. the project, as proposed, would start at potrero station in the south and then go into the bay, go down about two city blocks. and then along 23rd street, into

the bay. along -- adjacent to where there is already electric cable right now. it would go along the bay for about five to 10 feet below the bay mud. then it would pop back up on spear street and then over to the embarcadero substation. coming weeks. a wildlaá:x& t

lease, cementing our application to the cpuc. the cpuc ultimately has sold jurisdiction on the routing of this project and that they will get the economic and engineering feasibility of the different routes. they will have the ultimate choice. one of them will be the port. they will be interested in what the lease costs are in terms of that lease as well. >> and robert is available to answer any questions that the commission may have when we're done with the presentation. i just wanted to close and said that robert minturn the california public utilities commission, the lead agency --

robert mentioned the california public utilities commission. they do an environmental review on the various alternatives to analyze in environmental impacts of each. as he showed you, two of the routes are upland routes and would involve installing a transmission line under city streets, so there would be quite a bit of construction activity among those routes. probably your construction impacts associated with the submarine alternative. robert also mentioned the transbay cable project. we have done a transmission line along a submerged route. port commission approved a project like that in 2007 that later the board of supervisors considered. and if the commission so direct support staff, we do not have a resolution in front of you today -- this is just an information night. but if directed, we would enter into negotiations with pg&e over potential terms of agreements. and then participate in the cpuc

and other regulatory process is to make sure the port and the city are well-represented. that concludes our presentation. thank you. we are available to answer questions. >> thank you. any public comment? comments? >> when do you plan on coming back to the commission? >> i think that might be driven by the cpuc application process. i think we would think it only appropriate that if pg&e submits an application contemplating this project, that we come back seeking your authorization to enter a term sheet negotiation and some sort of companion cost reimbursement agreement to cover the city costs associated with negotiating an agreement like that. they could be as early as in september. >> and it does pg&e have a

preferred alternative? >> the summary right now looks like the preferred alternative for us, yeah. for the reasons he discussed, the impact. we have done most of the ceqa analysis right now. to us, it looks like it will have the least amount of impact. seismically, it seems like a good route as well. it is looking like our preferred route. >> thank you. >> i think we discussed this in closed session. we understand the project. overall, i think the commission is supportive of continuing in this direction for you to seek replication. it is true that you come back to us, we're open to discussing this further wou. >> 9d, informational update on status report infrastructure report and other report -- poured obligations under the agreement in preparation for the

34th america's cup event in 2012 and 2013. >> good afternoon, commissioners but i am with the port special projects group, presenting on behalf of a number of my colleagues that are here who contribute to the staff report accompanying this presentation. keeping things at a fairly high level, the first and most substantial milestone that we met in the last few weeks is completion of phase one, the 2012 america's cup event for pier 30, 32. that work was completed on august 1. america's cup management

mobilized to that site shortly thereafter. in the last week, the teams have shown up. they're setting up and assembling their ac45's. there will be 11 of them, so it should make for a very exciting fleet racing. next door, pier 36 removal is also officially complete. insofar as the america's cup events and, there's some small detailed work that remains to be finished, but that does not affect the racing at all. brandon street wharf. construction has started. there are over 50 parts that have been driven. the project is on time and on budget. we fully acknowledged that the least disposition agreement

being almost done is something that i think i have said a couple of times now, and i can say this to all parties have expressed in strenuous terms of the one to have this done by 5:00 p.m. today. with any luck, it could be out of date by the end of this commission hearing. tenant repairs have proceeded nicely. the office space at pier 23 has been completed such that the america's cup, in conjunction with various elements of the city, have opened up the one- stop shop. this is a new development and not in the second update for the america's cup. staffing that office is 311, the chamber of commerce, sf travel, the port, and oewd. it is designed to beat a central point of information

distribution, both for the public and for the teams coming here to race. traffic started off light, but it is steadily growing. meaningful work is being done there. right before this hearing, i made a hearing with a team to work out their visa issues. the port is represented by myself personally from time to time. it seems to be a success. on the finance side of things, as was reported in the executive director of's report, we were lucky enough to get an award of $1.3 million for prop k funds for removal of the pier. there is a slight delayanother p date that was not mentioned, we

added parklets before the event. they are just what they sound like, miniature parks. they provide seating space, perhaps restrooms, trash, recycling facilities. visitors to the embarcadero will have a place to stop and rest. lastly, ongoing good news -- what can i say? it continues to be great. the 27th cruise terminal which continues to be on time and on budget. so, with that -- myself and others that are available for any questions you may have on the details. thank you.

commissioner ho: is there any public comment on the presentation of the americas cup? >> i think it is wonderful to see things moving so smoothly. thank you, monique and everyone. this is wonderful. thank you. >> i will take a self indulgence moment and welcome commissioner adams and the stench of. -- in abstentia. >> what is happening on the 30, 32? i thought the teams were going to the marina? >> the focus of the racing is going down to marina green. the team is based though we're really there is the workshops

for each individual team. >> ok. >> i thought that was altogether. >> yes, during the race days next week, they will be available for public viewing, etc. >> the media center itself, which was originally going to be a pier 23, consisting of containers they build together, sort of modularized, so they can keep as much of it in one place as they can -- >> i think that makes sense. i think it is could you give us this update. i think it is exciting to know that we are starting off on the

preparations for the final 2013, that we are on time and on budget and a hope the public appreciates this in terms of what we can see over the next two weeks. i think there are developments that are very exciting. again, i want to compliment staff for getting us to this juncture. it has not been easy. thank you. >> i look forward to next time around changing the format of this. may be providing report -- may be providing an after-action report, but reporting on how well things did. >> yes, we can talk about the flow of traffic and people and etc, etc. i think it could be a great learning experience going forward. >> i want to take this opportunity to reiterate what will be coming next week, to urge people to get out and see what is going to be happening on the bay. >> thank you.

>> item 10a, informational presentation regarding the new structure for south beach harbor berthing rates and parking management. >> hi, commissioners. deputy director daly. i wanted to stretch the borders of this item. i just spoke with jim maloney. the team is bringing a ship in, being delivered from europe. the 72-foot catamaran is being dropped -- i hope not drop, placed into the water. [laughter] we had a train. it is just great to see economic development coming out of the races. we are excited about that.

more specifically, i am here to talk to you about the second informational item about the ports of south beach harbor, the redevelopment agency to san francisco. as you know, the redevelopment agency know, the redevelopment agency went away on july 1st.

we are truly excited about the opportunity to keep south beach harbor and to maintain that. it is one of the best, if not the best harbors in southern california that is the good news. the tough news is we have some real financial challenges ahead of us. we are still learning day-to- day. we have had more interest in the last few weeks then we have ever had. but we have operational books calling for the fiscal year

2012-2013 budget would propose further reductions and expenses. the harbor anticipates a deficit of $90,000 this coming year. that isnn ++ are one fte short of where we were prior to the takeover. they are making improvements to south beach pier 40. this money is not budgeted at

this point. there is capital improvement funding taking place. the harbor is about 25 years old. it has about a 50-year life span which means it will increase long-term capital needs. at the last meeting, commissioners talked about the light speed transmission to engage with the community to discuss a number of issues regarding budgeting, parking issues, capital planning. we have had a series of meetings with advocates for south beach harbor. we have met with representatives of the south beach yacht club. there have been a number of individual voters and a stakeholders. we will be planning another town hall meeting for the newsletter that will go out. over these last couple of months, we have saw balance in

this financial problem that we have. there were a lot of questions about the methodology. there was an overall concern about the park been a beautiful place. we wanted to make sure it was maintained and would continue to be operated in a professional manner. as i mentioned, we had another stakeholder meeting in the next couple of weeks, and we hoped to come back with concrete suggestions regarding these fundamental issues. regarding the financial issues, it is important to realize the challenges. the construction of the harbor was about $24 billion of revenue bonds. there was approximately $13 million left on the balance.

in accordance with the bond venture, the port has set up south beach harbor requiring met with the harbor revenue. the small craft harbour construction loan states that the redevelopment agency shall review berthing charges in the general area supporting the same boating public. in the financial analysis section of the loan, page 13, titled "ability of users to pay ," it ensures the ability of

users to pay. there was originally $24 million worth of bonds. the bonds -- while these funds remain outstanding, they are collected with the heart go set -- with the harbor so the annual revenue is 24 times the aggregate revenue of the bonds filing -- falling due within that year. failure to do so could result in a technical default of the bonds. so, these are big, serious challenges. right now, with the deficit, our financial staff is working hard to analyze the financial data we have received over the last

couple of months. we were alarms about the -- we were alarmed about the operating deficit. we were alarmed about the operating ratios. we were alarmed about the bcdc obligations. we have cut expenses vary significantly. we have looked at the revenue side of the equation. nobody likes to get their rent raised. i understand that. we did hire a company to do with -- to do it, a professional survey certified in california. unfortunately -- actually, fortunately for him, he is not lie( because he has a jurynot duty. but we have set up a meeting with representatives of the advocates for the south beach harbor review to go over the

rate methodology. the assignment was to research and verify rental rates, market trends and facilities with an analysis of the range of marina slips. and the conclusion of the survey agrees with what the redevelopment agency stated in 2010. i can reiterate it if necessary. rates were clearly below market. further analysis showed that the brits call for increases and reflected how much -- that the rates call for increases and reflected halt below market they are. but such rate increases will likely have to be phased in over time. we talked about a number of different proposals, trying to be clever and creative, to come up with a painless way to

increase revenue. and we looked at various options dealing with a two-tier parking system for residents. we have concerns about the legality with the state lands. we debated different areas. after mulling it over, we think that the san francisco marina, where the america's cup is going to be this coming weekend, the new harbor, it offers a new option for the poor to look forward -- look -- for the port to look to. there is a west and east marina. it is the only other publicly- managed marina in san francisco. the only other marina managed by the city is the treasure island, privatized by the city.

we think san francisco marina, while notv]v][$ exactly the sas south beach, offers the same amenities in terms of quality of service. there are other areas like sausalito. we understand the difficulty of observing our rate increase, a significant rate increase right away. that is why we are proposing a three-year staged approach with increases until the rate parity reaches san francisco marina. i must admitrlrlsr there is onef report you have been given. might cut and paste -- my cut and paste skills with lotus were not what i thought they were. i believe we have the updated data on our website.

this has been approved by the parks and rec commission. it has been approved by the board of supervisors. we will continue to have conversations with stakeholders on january 1. the last one is a 2015. the harbor is fully leased. we have a substantial waiting list going forward. other changes we have discussed -- reading the list right now, there is a one-time waiting list that is a $75 per year list. electrical usage. it is a tricky one. unlike most marinas, south beach marina does not have individual marinas for each slit.

you pay what you use. -- for each slip. you pay what you use. one way to listen to more creative minds than ours is to go to the boat users of the harbor. we recommend prioritizing implementation of meters into the harbor, at which time, the rates would be reduced by 54 cents per month to offset collection charges. and last, certainly not least, parking. to the boat owners and to the slip owners' credit, not that parking was there before the marina was ever even thought of. it is highly stressed