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 with any luck, it could be out of date by the end of this commission hearing.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 by the proximity to downtown, the ballpark, the community. you have boaters going to ball games or special events. they have limited ability to get to their boats. it is kind of a matter of the loaves and the fishes. there are 205 parking spots. is just a matter of supply and demand. i think everybody can concur,

not the use of the parking lot related to special parking, -- about the use of the parking lot as related to special parking. i have already got an e-mail from what we are going to do about a. it is a real issue. currently, each boater gets two parking passes. it is premature free-for-all down their. they have the ability to buy a second for $50 per annum. we think that will give more value. and it will be a step forward in managing the parking operations. on street parking, but that is a small lot. is pretty much free parking. we think it should be metered like the st.. it would raise some revenue for

us. we want to make sure there are spaces in the beirut area. we are suggesting a five-space loading zone. that would be modified. so, we have done a lot of work. we have a lot more work to do. we know it is a difficult item and i hate to be the one to suggest to people rates are going up. we continue to work with them going forward. we have had continued relationship with the stakeholders. our mind is open. we are looking for creativity. we have looked at a lot of different areas. we will continue to work with them going forward. i will be glad to answer questions. >> thank you, peter. we do have substantial public comment. i want to echo what peter has

said, that we to understand this is a difficult issue for stakeholders. but i think that is why we're having an informational session today to hear your comments and have more discussion. and i hope that you can accept that change is difficult. change probably does have to happen. we are just trying to figure out how to manage the change for everybody involved. with that in mind, we will hear comments from ken. i will mention the next name so you're ready to come up. jess rampos -- ramos. >> thank you for the opportunity to speak. in a recent member of the advocates for south beach harbor. i am on a fixed income. i understand you have the same problem with the finances here,

although on a much bigger scale. the need to be solved, but the solution does seem little severe. 43% increase is -- whew. a lot. the parking situation to me is equally severe. sailboats require a number of people to safely move them around. putting everybody in one car is an impractical kind of thing. solving the problem by squeezing everybody else so they have no way to get into the parking lot or get access, a $600 extra fee for that, that also seems excessive. are reasonable fee and adequate space come up -- a reasonable t

electricity. charging by the floods is coming to me, -- by the foot, to me, there has got to be a better way to pull that one of. there are boats that do not use electricity. some use quite a bit. but to charge by the links, there is no relationship between the use of electricity and the length of the slip or the boat. but i understand there has been a lot of discussion. probably they have less to do with the problems of people who were in it, and we seem to be the ones being asked to bear the

brunt of the solution to this problem. there has been what i consider a pretty feeble effort to reform. i have known about this, and i would like to see a lot more time for us to be able to address this. we have 700 members. i doubt that they know that this has been going on in south beach. so, that would be the bottom line for me. thank you. >> thank you. jess and after him, mike perody. >> good afternoon, commissioner. i am a longtime san franciscan who happens to be a partner at south beach harbor.

the rates for berths will make south beach harbor one of the most expensive marinas in the san francisco bay area. i understand you are considering charging for extras if they wish to park in the south beach harbor when they visit the marina. whatever your reasons may be for such sharp and drastic increases in fees, the result would be to force many middle income san franciscan boaters to sell their boats or try to find a berth in the east bay or the peninsula. as you know, it converted a blighted area into a desirable place to live and work. it was intended from the beginning to be a community

facility, and i would imagine it was primarily for the city's residents. it has been a tremendous success. the dramatic fee hike you are considering now is evidence of that success. unfortunately, the higher fees may compel many to leave the marina we built. this is not right. another example of what i consider unfair to san franciscans is the first-come, first-served assignment of berths. a san franciscan it may have to -- a sentences and may have to wait years. i understand only 50% of berth holders