>> we need the infrastructure we need to compete. a lot of people don't have the funding so we need those funding for those piers. the port and the city and

everybody loses money. we spent a lot of time in washington, d.c. and it's really important we adequate some money for our our ports. i'm concerned about the port of san francisco >> thank you for that. absolutely. we have had some success primarily to leader pelosi especially for the illinois street bridge. in the capital plan report there's an entire section where we've identified opportunity and as you know it's been stalled but we can certainly always use for hope advocating for that and to that end we are advocating very hard.

to your point also not being able to get on with the maritime. oftentimes it's the peapron. whether it's a public works project we are building those and we know there's demand. to that end i want to deliver the point that pier 17 was rebuilt and now the south side of 15 so those will be coming

online >> obviously we're trying to figure out the next step. it sound we've got some new issues and i would ask that it's going to be sort of your new forecast. do you think when you come back next time are you going to have the rate of the issues of financing are we going to find

ourselves with double financing issues >> i think we've got everything studied and we've got a rapid - we've got a very good handle on our port out lines including the yellow and red tags. the red tags could collapse we're going to increase our inspections. we would retag them and move on them to get the full facilities assessed. we're going to go back and look at those every 6 months or so

and is if there's any imminent collapsing that could happen. i think we'll keep our fingers on the pulse and we'll work through the problems. >> thank you a lot of work ahead. >> and now elena is going to explain why we have net income to revisit. >> item 12 a presentation and appropriation to the fiscal year 2013 and fourteen operating capital budget.

good afternoon. good afternoon and director gave me a good troduction. we see improvements and the report that shows the critical need. i'll be talking about the current plan to address the critical needs and daily we'll go into the 10 year project. i'm here today with megan brown and john our fiscal office is here we love finance days to start last year you approved a budget so the budget for next

year is fixed. this is the first time we're on a two year budget circle and we need no improvements there. up to 5 percent of our total appropriations without triggering a full budget review from the commission. we'd like to see a real two year fixed budget so the commissioners can focus on others policies on the budget year. we're recommending that there are changes in salary for our position that are driven by infringe and to support capital projects. those changes do meet all our

operating reserve and our policy goal which is 20 percent of revenues and we're monitoring our budget for the america's cup. and this budget trends don't require new studies there. so the total change we're requesting is $4.3 million and the first part 1 hundred and 50 thousand is to respond to additions we already have. we would like to fund the cruise project and it's really a place holder appropriation. but this will allow is to have the budget in plays routing

without requiring a supplemental. and we need for capital for a project. how we're funding this is from the stronger revenue projects from next encounter and the rest is fund balance 3.3 million and that's the good projection for the current year. so as you will recall you approved a new policy to help us focus on the capital replacement budget and this is what the report is responding to. it should equal 20 percent of our capital budget and we need

it for next year. this helps us for growth assessment and it helps us also to reduce our credit risk for carrying such a large unfunded allocation. and i'll say when we crafted this poly have no idea how hard it would be to meet. our first budget adaptation last year, we only got to a low percent of our budget but i'm happy to report that this allocation does reach the capital gain we need. you'll hear from daily there's

1 when port staff revoked the availability of additional funding we underwent our review of the projects the red and yellow tag facility. and we put it through our scoring criteria and we allocated the money to those projects. you'll see the criteria it has points for our various needs whether it's addressing codes or attacking people to the water front, protecting nature resources and it has a pay back

period of 10 years or less, whether there's matching fund etc., and we'll see whether this will help us fund future projects so the scoring can we a very helpful in expanding our future capital resources. ultimately following our scoring review we added money to address critical needs. pier industry - structure the port ada is to support our exist

doors this year's 1.8 million being at to our pier 39. you will recall we borrow rotted fund from the off and on and we promised to find a source to replenish this source and we found that. i just mentioned we found out a way to propose a strategy that will fund a second pile crews of 7 f t e rather than contracting out of work for our most urgent pier projects. we had the maintenance division

that is going to repair the work we thought about contracting that out. the reason for the reduction in price is our staff can use the equipment and we avoid overhead and profit. there's an additional cost - our maintenance division can respond rather than generate other orders. we would like to complete pier 19 north apron in years 3 without the second pile crews it wouldn't be complete in the two year time.

if the port were instead to contract out just for j 9 by the end of 2014 or 15 we'd have to subcontract it out. we're estimating that the close of the fiscal year 2016 we'll be done. so in terms of next steps you can see that those budget changes are relatively modest but they do meet our strategic objective. should you recommended those changes they'll be back to you for approval at the meeting and we'll go through the mayor's

office. we'll bring back a report in the solemn to let you know what has taken place >> okay. any public comment? go ahead >> i started this group and i'm very much interested in some such things where we had 6 hundred and 50 believes over 2 thousand unit and we had to envision a plan we got in people like george lukus and now you

have disney and in some years starting in 1996 to 13 we had to be self-sufficient. if you don't have a vision or leadership and good leaders know the way if we don't have this we fall back. if we had good plans we could have easily put them forth to the federal government and had good results. people who come from germany or from fran and they walk and see our piers there's nothing much

to see. their beautiful and i'm very proud because i represent the first people but there's nothing much to see when i see things falling into the bay. so we need to reach to google -- we need to reach to those companies and willie brown. he had his press conference and, is this and that and the other if they really love our city they could sponsor a pier. it's really sad we have so many billionaires in our city and it's unfair when you walk on our

piers and you can see some artwork but we need help. i have a blog and i don't want to name some people but, you know, we have leadership but if the leadership doesn't have a vision you don't have shovel ready programs. if something comes and you're starting from scratch that takes time >> thank you. any comments from the commissioners? okay. thank you. we don't have to do anything this time >> and 10 year capital plan fiscal plan 2013 and up to 2023.

>> good afternoon, commissioners i'm with the special projects group. i'm joined here by brad special projects manager and elaine who contributed quite a bit to this project. i think i'll go about one slide deep and two. and get some of the questions you posed during the last few presentations. on the next steps and what we're

going to do about your piers that are falling down or have been load restricted. the port put in plays a few years ago the scheme that was in the presentation and i added in mine too but it is also described in the capital plan itself. and we went through that process as a way to not only make more transparent and more subjective by also, because it was a good way to restate of the ports values what we care about. what we spend our money on reflected what we care about.

it took a long time. and so there are some elements of this - and i should say since we've used it we're talking about at risk facilities that is true again. as some of the piers are, you know, classified as what we decide to say they're at risk and in danger of becoming red tagged it means we can't operate them. so the financial scoring criteria then will grab that idea if the pier is flipped from red tag to yellow tag that will cause it to score higher. so this does work into our

priorities. and commissioner adams you say you have reference to the federal funding. for each of the piers that become red tagged or yellow tagged for example pier and a half the approach to that is two tier and we're deferring that project and hopefully, a larger project will capture that. now we're spending money to extend the pier.

so really we take them only a case by case basis. but in terms of next steps what really what happened is this all factored into the priortion of the budget and those projects got budgeted. we spent a lot of time on and we've proved it works. so i'll go back to the presentation and then came back to some of the other questions along the way. so what is the 10 year capital plan? i thought i'd go back one step. it is a strategic planning document it has a 10 year tenure

at the port. it is a vessel for calculated need which is demonstrated by the model software and it doesn't have any other exception expect in this document. it also catalogs our satellite for the state funding i'll have a breakdown of the funding 95 in a minute. it also shows what we would like to add. this is a horrible picture of how much money we're talking about. this is how much the plan is saying we need.

our conditional costs i'll come back to in great detail. so our strategyic priorities. what are we talking about in a 10 year window? first and foremost the sea wall. the port in the terminal requirement of the major permit was we find new open spaces and create new open water basis and that's a long process. we having had a notice of a violation and we were to demonstrate we were committed as

a organization. we just talked about this strategy strategyic part of the plan. and this is what we're going to get back after the america's cup. so this illustrates how we capitalize on the length of the plan. we've got ideas about how to move there. the city's capital planning committee has indicated they were willing and interested to have a more holistic approach and we're looking forward to that. and the