balance on the advisory committee that eight or approximately half of the members should be residence or small business owners in the surrounding neighborhoods. that is a balance the the community the -- committee members would have specific expertise in transportation, housing, or other areas that are going to be beneficial to the project and that there be alternates to back up each segment of the cac. the cac is going to meet four times between now and the end of october to go over very specific topics, starting with an introductory meeting on august 23. that is expected to be held at the port and bayside conference rooms at 5:30 p.m., and the resolution would delegate to the port executive director. the director's power to appoint the cac. the csc will continue to me throughout the project, up until the board of supervisors adopted a lease or authorizes the port commission to do so.

i would like to take a moment to read the cac's proposed mission statement. the pier 30, 32 cac will provide staff and commissioners with questions and community concerns regarding the proposed project in well as evaluating comment on the city's plans and policies related to the project. the cac will assist by publicizing the project and so is the public comments from neighbors, community groups, and organizations. and with that, if you have any questions or concerns, brad and i are here to answer them. thank you. >> public comment. >> so moved. >> i do have a comment on your mission statement. >> yes. >> second. >> all right, one of the things i would like to add in terms of whether it is the mission statement or resolution is that you do adopt a written charter for the cac. and within the charter, that it

not only goes to publicizing the projects, solicit public comment from neighborhoods, groups, and organizations, but also provides some options and solutions to the issues that are raised through the cac. >> ok. >> so this also becomes a problem-solving vehicle for us as well as a vehicle for airing issues and concerns for the community. >> absolutely. we will get that to you. >> i would somehow like to add that into the resolution. i am not sure exactly how that will be ordered. >> ok. >> so moved. >> we can adopt as amended. >> council, isl advise? >> yes, i can provide language after public comment. >> ok, is there public comment? so prepared to come again, have a motion in favor with the amended motion.

>> you need to state the imminent. >> the port commission urges the cac to meet initially on august 23, 2012 to review the project generally once per month. develop criteria for attendance another by laws to encourage regular participation by cac members and to adopt a written charter that includes the process proposing cac solutions. >> move as amended. >> second. >> all in favor? resolution north 1262 is pas-- s passed. >> one of the great things about san francisco is the incredible talent we have across the city. the cac is an opportunity to rely on the expertise and the

input and the old adage about making sausage, but we often end up with good projects from the kernville input from the public. we are appreciative of those willing to give their time and service to the cac. >> and that this is such an exciting project. it is on the fast track. i look forward to the concerns and solutions that come out of the cac. >> i think my colleagues have said everything. >> thank you. >> 9c, informational presentation regarding potential license agreement for pg&e proposed embarcadero-potrero transmission project of pier 28.5 submerged bay lands and portions of the shoreline at 23rd street. >> commissioners, special projects manager. bear with me while i find the

powerpoint presentation for this project. excellent. i am here representing port staff member byron and the executive director. port staff was approached in the very recent past, within the last few weeks, by representatives of p. g. any, pacific gas and electric, regarding the reliability project to serve the downtown area of san francisco. that downtown area, if you recall, suffered some of blackouts in 1998. businesses win without power for a fairly extended time span --

businesses went without power. it cost the city to look at reliability issues for power serving downtown and the broader city. san francisco is on a peninsula. it is unusual in that respect. it is hard to maintain a transmission grid that is on the peninsula. pg&e has, since that time, implemented some reliability projects. a line that ended at the hunters point substation. and has continued to work with its regulators, among them the california public utilities commission and the california 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.