order. roll call, commissioner woo ho. >> present. >> commissioner brandon? >> here. >> commissioner willie adams? >> >> comment on executive session? no one is here. item 4, executive session. >> so moved. >> second. >> executive session [kwr-efrpbs/] legal counsel regarding existing litigat should we reconvene in open session? >> open session. >> please be advised that the [r-epg/]ing of cell phones, pagers an similar

sound-producing electronic devices are prohibited at this meeting and please be advised the chair may order the removal of anyone roresponsible for the ringing of or use of a cell phone, pager or other similar sound-producing electronic device. please be advised that a member of public has up to 3 minute tosses make pertinent public comments on each agenda item unless the port commission adopts a shorter period on any item. item 7a, executive director's report. >> good afternoon, commissioners and members of public ander port staff, i would like to start today by welcoming our newest commission. it gives me great honor to introduce to you all of you willie adams, our commissioner here at the end it, appointed by mayor lee and con firmed by the board of supervisors to fulfill the term vacated by commissioner lazarus and looks like many of your friends are locked out the room at the moment. how about that for a welcome?

[ laughter ], commissioner adams, as i mentioned as joined us most recently serving with the san francisco film commission as a commissioner since 2009. he is the elected international secretary and treasurer of the international and longshore and warehouse union, which is headquartered here in san francisco. he was first elected to that position in 2003. he grew up in kansas city, missouri and then spent, i think many -- it is fair to say your formative years in tacoma, washington, very much involved in the port operations there. he worked on the docks as a long shoreman for 24 years and then elected into higher and higher office to serve the international longshore and warehouse unions issues. so in his job as secretary/treasurer, commission adams as responsibility for the organization's finances. he oversees the union's political action work. he represents the union at international functions. and as such he has represented

them with work in south africa, spain, cuba, et cetera. and he served on the board of directors of transafrica, where he works closely with board chairman danny glover and harry bell fonte. i would like to say that commissioner adams is not new to us at the port and volunteered time to serve with us most recently on the mayor's blue-ribbon panel and so it's a great honor and benefit for all of us at the port to welcome you here today commissioner adams. thank you very much. >> thank you. >> thank you for volunteering. so as we all know today is september 11th, which is patriot day and national day of service and remembrance and it's a day to high honor the individuals who lost their

lives in september 11th of 2011. the flags are at half mast by order of mayor lee and in accordance with mayor obama and so i would like to ask that we adjourn today's meeting in honor of those who lost their lives on september 11th. earlier this month, but actually late last month we finally had the first regatta of the america's cup series through august 22-26 and it was an honor to have all the teams based here at in san francisco. it's quite an amazing operation. the needs of the athletes and heart monitors that they wear

and doctors that travel with them and food and diets they are on is stunning and graze to have what we believe is an amazing event going forward. so i wanted to invite michael martin, the mayor's project manager for the america's cup to say a few words how the regatta went and pitch you on attending the regatta next month. mike. >> i will certainly take that last part first and pitch anyone on coming to the regatta last month. it was a very exciting time for having worked on it for the last 20 months or so. to see it actually happen on the water was exciting and i have to say i was really as a city employee, i was sort of impressed and proud by the teamwork that went into it. starting with the port and all the work that went on along the waterfront and muni moving people around the city and getting things up and going at

marina green. this is a real solid training run in terms of how the city services fit together. we have gotten good feedback on different things ranging from pedestrian congestion to traffic congestion to better announcements, so people understand what is going on the water, best use of the video screens, which is ironic after controversy around the other screens. so we'll use thats a learning experience. we have meetings together to really use august as a preclude to october. as you know october is going to overlap with fleet week. so this is becoming, i this, in a lot of ways our test case for a really big day and i think we need to know in a lot of ways, especially with the part, how the embarcadero is going to work with all the people trying to get to the waterfront and how it works with the different events and timing of fleet week events. we have a lot to learn, but we were frankly excited how many people came out to learn what

america's cup was all about. so i just want to say thank you. we'll actually be coming back to you with a couple -- an agenda item at a future meeting to approve some of the security arrangements in the lease disposition agreement signed with the event authority. we had a really productive negotiation with them after you approved that document the first time. we got a much more targeted set of security, but it has to be reapproved and come back to you with those coming forward. a lot of things to happen next few months, but hopefully all of them building to next year's crescendo of next year's america's cup event. >> mike, could you give us a time tally of how many people were present and watching and any sense of the television broadcast how many people that reached as well? >> sure. so we didn't do any detailed counts as the city. we did some targeted counts in

certain locations, primarily in places that we didn't expect people to congregate, just so see what that spillover would be, like criss field. they counted between 35,000 and 40,000 visitor on that last day, sunday racing, supersunday and 150,000 over the course of the work that includes the practice days. so that is six days. so that is i think what we were looking at as projection for midweek next year. fleet week will obviously expect to be hundreds of thousands of people and that will be an entirely different experience for all of us. in terms of the tv, i understand that the viewership was 5-10% lower in newport, but i think part of that had to do with when it was. i think newport, the weekend before the 4th of july as

opposed to the last weekend of summer, i think there is some push-pull there. but our hope is that the spectacle of fleet week sort -- there is going to be a broadcast on the sunday of the october event, too. so our hope is that becomes another picture postcard to the rest of the country and the world to visit next year with the bigger boats. >> thank you. i just wanted to add that the week of now the second world series america's cup world series fleet week and south beach parade today major league baseball announced their schedule and the first game are and with the giants in first place will be home that week, as well as the 49ers. so we have every opportunity to show the world how terrific we are

and everyone has an excuse to be at the waterfront. next i would like to mention that next saturday september 15th is the annual california coastal clean-up day that happens here at the waterfront from 9-12. we'll clean up at six waterfront parks -- naming parks. as with past years, the port maintenance division will supply event equipment and will be hauling away receivables and trash collected and typically the amount of trash and recyclables is quite extensive. so we're looking forward to having a number of volunteers and our friends to lead the way and we hope it's a gorgeous, beautiful day to enjoy the waterfront, so look forward to seeing everybody there. next i wanted to report on the

pier 30-32 seawall lot 30 citizens' advisory committee. you granted us authority to create a citizens' advisory committee for piers 30-32 seawall proposed project and i wanted to report that the community advisory committee was appointed, cac, with 16 members from the neighborhoods and from the city at-large with six alternatives. and we have already convened two meetings. the cac has drafted a mission statement and is reviewing that per the commission's request. to have them adopt it at their next meeting. they have met twice. of the first time on august 23rd and the second time on september 6th and most recently this past friday they did a walking tour of the south beach area right before the friday night's giant's game. the [ka*-ubg/] heard an overon the waterfront plan, the public

trust issues and other land use regulations and at the second meeting was more targeted towards transportation. so there as a presentation by the city -- the city's assessment of how to incorporate the information on existing and planned transportation and as transportation needs continue to grow in this sector of the city, how the city plans to address that? and then there are two more meetings that are calendared. the next is a week from today, tuesday, september 18th at pier 1 in our bayside conference rooms and at that meeting september 18th, the city port team will present information on city urban design principles for the piers 30-32 seawall and surrounding areas and warriors design team, including their architects and acomwill talk about their ideas and efforts to come up with an

inspirational design and fitting concept and come back again and there will be an actual presentation by the warriors design team of the site and concepts for the project. and then that will come forward to the port commission at its earliest convenience. so we're very excited about that. additionally, the city port team thought it might be a good idea to have two workshops. one singularly focused on transportation impacts and another on neighborhood impacts and we asked members to sign up for whatever workshop this interested in and we're coordinating that list and potential schedule for those workshops. so you will probably be hearing more of that. then my last item is another community process. this time for the development of seawall lot 337, also known as mission rock. we would like to hold a public workshop on the land use proposal for that property.

it was originally scheduled, but it turns out there is a problem with that date. so we'll be looking for a new date later in september and then the point will be to reach out to the community to get their thoughts on the development ideas for seawall lot 337 and that concludes my report. oh, i do have one other thing. if you are the proud owner of this iphone and can put in the pass word, you might want to see me. it was found outside -- otherwise, it's mine. [ laughter ] >> it's yours, really? >> yes. >> what is the password? [ laughter ] thank you. >> is there any public comment on the executive director's report? okay. thank you. >> items on the consent calendar, item 8a requests approval lease no. 1-15169 with

auto desk, inc. a delaware corporation for office space and shed space for a term of 66 months. item 8b requests authorization to accept and extend $1.3 million in prop k grant funds from the san francisco county transportation authority for the demolition and removal of pier 1/2. >> so moved. >> second. >> >> all in favor? public comment? hearing none, all in favor? >> aye. >> aye. >> item 9a requests authorization to issue a request for proposals for a cruise terminal passenger operations parking and special events management agreement at the pier 27 james r. herman cruise terminal located at

lombard street and embarcadero. >> good afternoon, commissioners, john dahl, planning and development department. this is to select a management entity for passenger terminal cruise operations, special events and parking at the new james r herman cruise terminal. as you know construction is underway. phase 1 construction will be completed by march, 2013. and will be the first special event there will be for the america's cup. when the america's cup event is over, we will proceed with phase 2 construction, and hope to complete that by mid-2014. at that point, the pier 27 will be the port's primary cruise terminal. currently metro cruise services is the cruise terminal operator and its management agreement is

scheduled to expire april 30th, 2015 or sooner if the port commences cruise operations at pier 27. again in mid-2014. under the current management agreement, the operator manages piers 35 as the primary terminal, as well as backup terminals, backup berths at pier 27 and secondary berths. port staff believes that a solicitation process is necessary because we will be designating pier 27 as the new primary cruise terminal for the port. but also because it has a dual purpose. and that dual purpose is that we intend to use this facility as a year-round facility when there are cruiseships it will be a cruise terminal. when there are not cruise ships

we want to use the facility for what we call "special events." and those special events are listed in the staff report and range from other maritime events, tall ships, fleet week, as well as non-martitime events. accordingly, the other reason to engage in the solicitation process is not only to select a cruise terminal management firm, but to select an entity possibly as a joint venture to manage these special events. staff believes it is necessary to have one firm or a joint venture firm to manage cruise events, special events, as well as parking. staff believes that pier 27 is a cruise terminal first and

assembly space second finally port staff intends the rfp process will solicit parties and coordinate parking and traffic operations when the cruise terminal is used for cruise events other maritime events and conference and special events. at other times when the terminal is not booked entity would be requested to manage daily parking in support of other neighborhood waterfront activities. so the port staff requests to issue an rfp to manage the cruise terminal special events and parking and enable the terminal to be used on a year-round base and generate ongoing revenue. if approved we hope to issue the rfp later this month and receive responses in approximately 10 or so weeks and evaluate those responses and hope to negotiate with the

highest-ranked respondent and bring back a management agreement for your consideration sometime early spring 2013. and a bit on the evaluation criteria noted in exhibit b, we first expect respondent to detail their past experience and they must -- and i wrote 20 years' of cruise terminal operations at a major port in north america. we would like to amend that to ten years per the request of our maritime port director. maritime director. having five years operating parking in a comparable-sized facilitiment respondents meeting these requirements will be ranked in their responses outlined in exhibit b, including management structure and capacity to form --

capacity to perform, financial capacity detailed management experience and four, relevant special event and parking experience. again, ranking based on this criteria, the port would invite the highest-ranked firm to negotiate a management agreement. if negotiations fail, the port could invite the second -ranked firm to negotiate such an agreement. we expect the initial term of any management contract to be ten years, although this could be extended. depending on negotiations and exercise at the port's discretion. this management contract will spell out maintenance responsibilitis and include a payment structure to the port. typically this would be an annual fixed fee, plus a percentage of receipts owing to special events and parking. in con [khrao-urbgs/] port staff recommends that the port commission authorize and direct staff to issue an rfp to operate the cruise terminal, special events and parking at the james r herman cruise

terminal. a final note, the port maritime staff has had and will have meetings with local organized labor to gain their input on operational considerations. that is all i have for today. thank you. if there are any questions, i'm here. >> so moved. >> second. >> public comment? >> i wanted to say i have a letter from patrick campbell, the secretary treasurer of a meeting that should have taken place -- i don't know if doreen and kim have got a copy, but i have a copy of this letter and i would like to hear from patrick kim and whether these concerns have been met. i believe patrick kim is here

is that correct? >> yes, he is. >> good afternoon, madame president and members of the commission. i will address that, willie. my name is patrick kim. we have nearly 200 members. we do the security at the cruise terminal. so first off i would like to thank the maritime staff with meeting with locals over the summer to review the design and operations, plans for the new james r herman terminal. during the meetings, with the locals, the staff -- our locals had concerns with the way the old terminal was run, pier 27 and we repeatedly told that to the staff. one of the concerns was in the

use non-union security officers. and so they would direct passengers vehicles and actually longshoremen. so it was a big concern for us. the staff gave us verbal assurances this wouldn't happen when the new james r. herman terminal opened. nothing against peter, but we wanted something in writing. so i'm glad to report that we were afforded a letter and srn the port's assurances that our recommendations will be put into the rfp. i would like to forward this letter. >> we have it. our locals are looking forward to future meetings with the port staff, maritime staff about the james r. herman

terminal and personally i would like to thank peter daly and john for their effort in meeting with us and assuring us. and i'm looking forward to reading the rfp when it does come out. >> thank you. >> thank you, peter. thank you, john. >> thank you. we just have to ask if there is any further public comment and then you can make your comments, commissioner adams. any further public comment? hearing none, questions from commissioners? >> this is for peter and patrick, in the future i would like these issues to be dealt with before we get here and for you to work closely together. i would like it more as a seamless operation and i'm not picking one side over the other, but i'm saying that you have to make an effort so this is dealt with before it gets here. thank you. >> i was wondering why we're putting this rfp out so early, if it's not going to take

effect until 2014? >> it takes time. and also, there is a passenger terminal portion of it. that takes time. if we do pick a new operator, amount of time for it to transfer over. also, with the special events operator, if it's a joint time to hash out exactly what the program will be. so i think we will want to work with and identify who the team is going to be and work with them i think i laid out a schedule, which 4 have in front of me, but it's going to take some time to go through the selection process. i think we would try to get back to you sometime during spring of 2013. we still have a lot of work to do, even when we have a management team in place. so that again, the goal is that

when phase 2 construction is completed, and pier 27 is ready for cruise operations, we have a seamless transition. if it's going to be that way from the old terminal operator to the new terminal operator. >> okay. thank you. i have a question as it relates to the cruiseship itself and since we're going to have deal with the federal government in terms of immigration and customs. is the management company that is chosen, you know, working with them on how that is going to operate? or is that something that we separately talk to immigration and customs service? how is that going to be set up in the terminal? >> i will let peter answer that one. >> okay. >> hi commissioners. peter daly, maritime director at the port. good question, homeland security and customs and border

protection obviously in the last decade have taken on greater significance at our ocean terminals. they have certain federal requirements in terms of physical offices, lockers, a number of different things in terms of the hardware of the terminal. and those meetings are continuing as we go forward with u.s. customs in washington, d.c. and here in san francisco. in terms of operation of the terminal itself, it's a partnership between the terminal management company, the port and u.s. customs and border protection. the three of us will work closely to facilitate clean transactions trouthe terminal to make sure it's an efficient and modern terminal. pier 35 as limitations physically and the new terminal will afford us a lot more space

and passenger comfort and hopefully speed up the passengers-customs procedures. it's an ongoing process and they have a certain say on the physical requirements of the facility and sometime it's hard to pin them down, but we're working hard to make sure it's the best terminal possible. >> right. i wonder is there a financial arrangement we have with the federal government for customs and immigration? >> yes, we have to pay. [ laughter ] >> okay. >> unfortunately, they provide a great service and we have a good working relationship with the -- they call them the port director of customs in san francisco. we provide the facility. they provide the manpower and we work in concert with the terminal operator and cruise terminal operators. >> thank you. are we prepared? the motion has been seconded. all in favor