recent [inaudible] can't actually see much outside of the bus. i voted against the billboard contract at the plan department building at mission. i don't support all adds on public property, but i'm not against it. i think that in this situaon this ntra for the

airport. so i make my own decisions, but with that said, i also know that mr. martin has done an extraordinary job over decades in keeping the airport on track, keeping it financially strong. while there's always controversy, the lack of drama at the airport because it is so well run is pretty extraordinary. and i know why, in terms of whether we second guess mr. martin and the airport administration's business judge judgment, i don't know why the airport

administration would have /eupbl acceptabletive to leave money on the table. so i see both side of this argument in terms of the financial merits of the contract, but i do believe that mr. mar tin are making a legitimate decision. we would see less square footages. grant eded in terms of a continuance when it was pointed out to me earlier today that there was new information, i cometed committed that i

would keep an open mind. i don't think it rises to the level of supporting a continuance. i think it's appropriate for us to vote on this today and i will be supporting the contract. >> supervisor kim. >> i am glad we're spending a lot of time differentiate ing ing between the person and the issue. when things come from the airport they're often highly recommended. i had a couple of questions. looking at some of the big jumps in revenue, one of the biggest jumps was when we opened

terminal two in 2011, but despite that growth, there had been a steady level of growth from year one all the way to year 12. and so i'm curious to what some of your projection, are and what you thought would have been the highest growth over the past eight years. i imagine there's still a level that we expect to see grow in that arena. >> i'm glad you asked me that question. we reached a peek passenger level in 1999 and then we started falling. we had the first dot come crash in 9-1-1, bankruptcy, we dropped from 41 million to [inaudible] in 2002. i knew in 2001 and

'02 we could only go up. i would have said our /trepbld trend has to be up. we had slow growth 2002 to 2007 and then when virgin america started things really took off. we became the competitive hot spot and or traffic started booming. in 2010, '11 we were one of the fastest growing airports in the u.s.. >> how many passengers are we serving currently? >> 44 million.

>> i heard in might be plans for either terminal three or one. is that something we're considering? >> we're doing further improvements throughout terminal 3. i think that the big growth in revenue there in the year the [inaudible] opened was more because of our strong passenger growth. >> the capacity of that was increased there. >> i think the renovation probably made a difference, but the growth in passengers probably made the most

difference in the ability to sell advertising. i couldn't have predicted virgin america, but i knew in 2001 my low cost carrier market share was about 4 percent, nationally it was about 20 percent. so i knew it was way lower than it should be and i knew it could only improve over too many. >> i think that's my questions that we could generate in terms of advertising. i believe if we smoothed out an eight year period, whether we would get around 80 million or more than

80 million, it we would have had a lower mag submitted if we had introduced or coupled it with percentage of gross revenue so i'm not sure if the actual outcome would have been relevant. i think i have a larger broad

>> we're not going to add any

gates. if we do work in boarding area b and badly /tphaodz to be replaced so we're going to replace boarding area b. so what we really want to see is growth on the international side. we can get a lot more passengers per flight in an international flight. and we want to see very limited growth on the domestic side, with most of the domestic growth occurring in san jose. we want to keep people off the freeways to have to get a good fair for domestic flights. >> i wanted to address an issue that even though economic

situation might be improving in the city or region, it doesn't translate into growth at the airport. the airport is at capacity so for me i am supportive of the contract and the decision that the department head has made in terms of [inaudible] general fund -- 15 percent of the revenues. regardless of whether what we're operating on,

listen to the arguments from mr. martin and so i was able to have a meeting with him this week -- was it this week? and to ask questions, many of the questions that my colleagues have been asking today, i asked him in the meeting and i was -- i realized this is not an issue whether we should have an airport advertisement lease, this is not a question of who's a better contract or vendor in

this. and it was really about is this going to generate the most revenue for us or not. we get a percentage of it in our general fund and the fact that the number of ads that will be reduced by significantly above 30, 35 percent, really just the questions about cluttering. so after listening to both people that i respect a lot and realizing that when i crunched the numbers in my head in terms of what's the max and so to the, that it may be a possibility that having a percentage you may earn a little bit more revenues on this. at the same time, this is gambling. you can also be reduced to -- if something

happens in the economy and so forth, but i think we're not talking about being that far off, whether it goes up and down. and in this case i -- after hearing the arguments by mr. martin, i am inclined to support the contract and i will not be supporting a continuance. >> supervisor cohen. >> thank you very much. like many members you heard speak today, i too waffled back and forth on this item and john martin, i've always enjoyed working with you and your staff. i have to say the deliberation on this item -- i

deliberated for a while. i didn't understand why this contract is being treated so differently than other contractings and you've answered those questions. thank you. but in my conversations with the airport staff, i've also decided to support this item, largely because we need a different advertising structure. additionally, as i mentioned before, i believe that mr. martin -- that if we were to require both a ten million dollar minimum annual guarantee and percentage of revenue, that we will receive the [inaudible] that we did and the /pwaeuls base minimum will be less. i'm happy to see there's so much discussion about this and that we are committed to ensuring that we are not leaving any

money only table or supervisor avalos might argue that we are leaving money on the table, but we are getting money off. >> thank you. i won't continue to belabor the point, but i want to make sure i associate myself with supervisor mar and wiener in regards to mr. martin who has been doing his job for 18 years. i had concerns when this was first presented to me, especially because i didn't understand why are we doing things differently and meetly my eyes were looking at companies and not the airport. and the airport put this out this way to do something different and when i asked why

and other airports don't do it that way and he said, we set the trends, we don't follow them. and i think that's what san francisco does. i want to not necessarily do i agree with the department heads, but i respect the work of mr. martin enough to look to him to his judgment on how this decision was made and provide him with the support necessary to move this forward. so i won't be supporting the continuance, but i will be supporting this in moving this forward. i think we may want to take a gamble on percentage versus a guaranteed amount. i want to make sure that we are exercising good judgment in supporting a department head and his

knowledge and his institutional knowledge in terms of analyzing and taking apart a contract. i plan to support this and i hope we're able to move this forward today. >> supervisor avalos. >> thank you. colleagues, i'll be withdrawing my motion, in the hospital necessarily because there's opposition from the board, but i do feel that will the line of questions i had with the budget analyst was questioning whether we had sufficient data to do analysis. i dope -- don't believe that we do so i'll be withdrawing my motion. first of all, i want

to acknowledge this was not an easy decision for many of us and i think both sides on this matter advocating -- affirming the decision of

>> and so it makes me question how good of a deal the city's getting ting when you're also

getting such positive pushing from the contractor as well. >> that's why i was glad that we received three bids and we tried to structure the lease to maximize the number of bids. in 2001 we only received a bid from clear channel and the fact that clear channel did 1.5 million more than jc so they did receive 30 percent, we receive 70 percent. i would n't call that profit because they've got cost and i have no idea what their actual profit is but bottom-line, we had a very aggressive bid. obviously clear channel is taking a big risk especially if we have a recession they are at great

risk, and we will be very well protected. >> the potential upside for them is what set of circumstances. >> the upside would be if the economic growth continues and they realize more sales per passenger than what they're getting today. that's a [inaudible]. i don't see a possibility of traffic growing. i think their best scenario is steady growth, the eight years, very strong economy eight years straight. i've been at the airport 32 years, i have not scene this scenario before. we're very much at a peak right now, not much higher than we

can go in our performance. >> any additional discussion. >> let's take the roll call on this item. >> chew i, cohen i, farrell i, kim i, mar i, tang i, wiener i, yee i, avalos no, breed i, campos no. there are nine i's and two no's. >> resolution is adopted. ladies and gentlemen, why don't we go to our 330 special order. madam clerk. >> we will now honor local small businesses that have been selected by the board op supervisors. >> fabric of our community.

today's ceremony will serve for the 85 thousand small and start up businesses in san francisco and i look forward to joining my colleagues in recognizing each one of these businesses. i want to give an opportunity to the small business commission to give a few

opening remarks an reck /tphaoeutz reck recognize its vice president. >> i would like to thank all the members of the board of supervisors for recognizing these outsiding small businesses today. each supervisor has worked carefully with the you have truly got above and beyond less than 100 employees constitute each of these -- since the office

opened in may of 2008 it has seen a steady increase of clients served we are up 26 percent compared to the same time last year. the office of small business is the go to place for direct services to clients for one-on-one [inaudible] and permitting requirements. and technical of other services. many of our offices refer small business decisions to the office of small business, especially [inaudible] cantonese, /phapbld /reupb and business owners. in

addition to providing direct assistance to small business, the small business commission has heard and advised you on over 33 pieces of legislation in the past year. of these, over 90 percent were recommended for approval. when modifications were recommended, many of you took our feedback and incorporated them. we work hard to [inaudible] needs of the city. we want to sincerely thank the board of super /sraoeutz so ares for all your collaboration for making san francisco a better place for business to thrive. i would like to thank the departments that we have worked with for our matters, including public utilities commission and

others. thank you. >> every time we do a ceremony like to make a presentation, sometimes alphabetically. what'd like to do today is use our seating arrangement as a way to go through the presentation, starting with supervisor tang. >> i'd like to call up our