and to encourage fish migration. now in addition to the response to the concerns of the folks o d s entered a contract to serve the interests of the folks. i want to point out that the puc is not a party to that agreement nor is the puc a party to the conservation contract i mentioned. and phase 2 the o d s has agreed to chances to expend the lease so it will be co- termed with the schedule for the preference of certainty improvements such as a utility on the premises. and it will have an expansion to

the premises that will minimize the projects that are ongoing in the area. it will define the contribution and some issues around the concrete plant. now revisions f to s m p revisions are jury room review. the city retains very important rights to this process. that specifically the city has the right to approve the content of those revisions to make sure they go along with the lease. the city retains the right to add mitigations to the policy.

the city reserves the right to approve the revisions of s m p if the significant impacts can't be reduced. now because of the city development after a review of the sequa documents has determined that sixth environmental impacts can in fact be reduced to a less than significant level the puc recommendations that the sequa findings be approved. subject to the board of supervisors approval >> comments? >> welcome >> thank you good afternoon,

commissioners. jeff millers i'm speaking on and on today on for the center of biological reform. we've been working with the puc on o for 10 years on the aligns for the creek. we've been working with the other agencies since that 2008. those revisions from the lease are going to help the revenge of the creek and that is adjacent to the quarry. and this reduce flow into the quarry pit. i notice they've contributed to the investigation for the reerg

report. in addition this lease enables some restoration. this reduced the quarry by allowing the infrastructure to be put on the quarry. and in addition this contributes to the pg&e plan up to $2 million for critical fish passages and in the lower creek they're going to open the whole creek up to trout again. the puc has found a beneficial lease holder and tenant. we found them to be very easy to work with and i'm very interested in the environmental

improvements and i noticed the interests for them to work with the several communities to make sure the interests and concerns that the towns interests were meet. we wholeheartedly support those policies and there's some exciting things to happen for alameda creek. thank you >> mr. jim. >> good afternoon. i'm jim. i.e., represent the vice president pat is ill and not able to leave home at this

point. we want to add our support to this lease provision p we spent a tremendous amount of time with jim summers and we found which usually we're on the other side of the table but in this specific project we're extremely pleased with the kind of cooperation that we had. the kind of assistance and understanding the complex issues that the folks in the area had concerns about. we got a lot of straight information wherever we asked our questions. i think i can. for the general population that the community is pleased with the process. and we're extremely pleased with

the final outcome. there will be a community fund established and that will be funded by albert. there are making a generous donation to argue response project in the community. we are extremely supportive. and the chances that this lease revision will allow will mitigate many of the major concerns we had about the original proposal quarry. so we certainly urge you to support this provision and the community would like to thank you for your recent parking lot adventure. we're looking for some

improvement on our fire hydrants >> you're welcome on the parking lot i've heard comments in the folks. >> i'd like to make a motion but i want to make a comment what would you like first. >> the comment. >> i'm really very pleased by the last two speakers. this has a long, long history it goes back many, many years. i'm just thrilled by it all and happy we finally have reached a nice conclusion that the people are happy and we're happy that you're happy >> us folks forever. >> moved by commissioner came in and seconded?

>> all in favor? public matters to be discussed in closed session? >> we need a motion. >> i will move not to disclose. >> motiocare. >> is there a motion not to disclose. >> i move. >> motion carries. >> is there other new business? >> yes. >> so today mime memory was refreshed because of the presentation we had on the hispanics in synoil. i'm going to with that we be

given a report given the conversations we've had about the golf course. so i have some concerns about what's pending and what's going on i prefer to get a jump on it so if you be kind enough to agendaize that. it's because that's a potential litigation matter we'll calendar that with a closed section >> any other items? >> okay. because of that we'r

i'm nicole and lindsey, i like the fresh air. when we sign up, it's always so gratifying. we want to be here. so i'm very excite ied to be here today. >> your volunteerism is appreciated most definitely. >> last year we were able to do 6,000 hours volunteering.

without that we can't survive. volunteering is really important because we can't do this. it's important to understand and a concept of learning how to take care of this park. we have almost a 160 acres in the district 10 area. >> it's fun to come out here. >> we have a park. it's better to take some of the stuff off the fences so people can look at the park. >> the street, every time, our friends. >> i think everybody should

give back. we are very fortunate. we are successful with the company and it's time to give back. it's a great place for us. the weather is nice. no rain. beautiful san francisco. >> it's a great way to be able to have fun and give back and walk away with a great feeling. for more opportunities we have volunteering every single day of the week. get in touch with the parks and recreation center so come (clapping) >> are you a parents that's

unemployed and struggling to pay child support we have teamed up and positions ourself to offer an opportunity for permanent employment. for more information

>> good afternoon, everyone. welcome to the san francisco board of supervisors budget and finance committee meeting for wednesday, may 29th, 2013. my name is supervisor mark farrell. i will be chairing today's committee joined by committee members and supervisor john avalos, supervisor scott wiener and supervisor london breed. joined momentarily by chair supervisor eric mar. want to thank the members of sfgov-tv john ross and jeff as well as the clerk of the committee mr. victor young. mr. clerk, do we have any announcements? >> yes. please silence all foexctiontionv and electronic devices. completed speaker cards and copies of any documents to be com included as part of the file should be

submited to the clerk. items acted upon today will be on the june 14, board of supervisors agenda unless otherwise stated. >> thank you very much. mr. clerk, can you please call item number 1? >> item number 1, hearing to receive an update on the port budget for fy's 2013-2014 and 2014-2015. >> okay. so, we have a hearing, port budget update. we have the executive director of the port, ms. monique moyer, thank you very much for being here. >> thank you very much, mr. chair. for the record, monique moyer for the port of san francisco. i want to thank you for carving out time for all the items today. we hope to be succinct as you need us to be, [speaker not understood], but we appreciate the time. i also want to thank the campbell and the [speaker not understood] for the amazing amount of work she's doing for us, [speaker not understood] and the mayor's budget office. i think i said that backwards, budget analyst and budget

office respectively for all of their help. very quickly, we have -- are on the second year of our two-year budget and we just have a few items to make changes to which fall within the required 4%. and, so, i'll walk through those in just a second. to recap where we're headed as a port, we've strategic plan that i've identified, five priorities, for the record those are to preserve industrial and commercial maritime tenants and uses as we've been doing a lot of studies to determine that. we did provide some very unique economic benefits and utilizations by the fact we're on water and we'd like to be able to continue to do that under our port hat, if you will. we also are very keen on making sure we retain space for pdr space and nonprofits. pdr are production distribution repair. you may recall that the eastern neighborhoods plan relies heavily on port property to meet the city's needs. so, an example of that we have

aggregate plants on port property. the aggregate is shipped in from canada primarily, turned into concrete and used throughout san francisco. if our plants were to go away, they'd either have to find another home within the eastern neighborhoods or we'd be trucking in concrete from across the bay or down the peninsula. so, we find that some of those uses are critically important and we're highly populated by nonprofits who find the warehouse space to be important to them. the thing that most people know well about is our attempt to rehabilitate [speaker not understood] our infrastructure. there are 39 piers, we've been able to reha bill tate 11 of them in the last two decades. that is an ongoing process that will take us much more decades no doubt. more and more we're starting to focus on our seawall. we participated in a lot of studies regarding sea level rise. we are doing some projects anticipating sea level rise such as the brannan street wharf. we're also focused on our

seawall. with each of the redevelopments we've done we've been able to rehab the seawall in those sections. the seawall was built over 100 years ago and it was built in 42 segments. so, we see that as a major project going forward which will take us out probably the next two decades. and then lastly, financial stability is always an issue for the port. we've derived our revenues from the broader economic market and when the marketplace is up we go up. and when it's down, we go down. so, making sure that we have a diverse group of tenants that can maintain us through low times and high times is important since we don't receive any general fund of fundsing, and i'm sure none of us would like to see that happen. in keeping with the rest of the city, we've been doing a ten-year capital plan since 2006. i think we were one of the first departments to do that. our plan this year shows a need of 1.6 billion in deferred maintenance and a possible plan to finance for that deferred

maintenance of about a billion dollars which leaves us about half a billion dollars short. that billion dollars relies on a pretty good investment from the port itself, a little north of $100 million, as well as a pretty significant investment from our tenants and from proceeds of infrastructure financing district switches, different legislation that's been before you previously. we're also doing a five-year financial plan in keeping with the city's requirements and that has been very helpful to us in keeping us on track for our priorities such as building the new cruise terminal. it also showed us that our operating expenses are predicted to rise faster than our operating revenue. that's been the port's history for a long time now. that's always a challenge for us. and that doesn't leave us with very much money to do minor repairs and replacements which would even just keep us able to earn our revenue. so, this fiscal year, the fiscal year we're just concluding, the port commission

asked us to create a policy whereby they would like to see 20% of our operating revenues dedicate today capital improvements. and how we do that is by generating surplus between revenues and expenses. 20% is a pretty big number for us in addition to having a 15% operating reserve. and, so, we are stretching to do that. but looking forward that means that we will have to have some difficult policy decisions to make sure that expenses don't outstrip the ability to generate capital. so, we're just in the beginning throes of that policy. we're able to make it this year if you approve our budget adjustment and we're looking forward to seeing that the next couple of years. with respect to where we've been, operating revenues are starting to grow again at a positive flip, but then so are operating expenses. so, as i have mentioned, we are kind of keeping an eye on the delta between operating revenues and operating

expenses, we call surplus and that's what we have as investment for our capital needs the following fiscal year. again, very important for us to keep an eye on. in terms of how we receive our money, this primarily comes from commercial real estate leases. we have over 550 commercial real estate leases. most of them are with small businesses. a few exceptions are the san francisco giants and pier 39 and the ferry building. but most of them are with sole proprietors, so very small businesses. then we also get about 21% from our maritime activities. we are in every maritime market there is, except for the movement of containers. sometime ago we made a decision not to subsidize movement of containers and leave that to the port of oakland, but that keeps us in 11 different maritime operations. and then, of course, we rely on fund balance, i.e., surplus. in terms of expenditures, personnel is our highest cost followed by work orders, services we procure from other

city departments. and investment in capital and then, of course, administrative and debt service needs. so, we are proposing a fairly dee minute miss change to our budget by 4%. we are proposing to ~ amend our budget by $3.8 million. that represents some added surplus that we hadn't forecasted when we did the budget two years ago. 800,000 of that would be for payment of principal and interest on new debt that we'd like to issue to help pay for phase 2 of the cruise ship terminal, and some other revenue generating and property improvements. and then we like to take the surplus cash to be able to meet our 20% policy requirement, bringing our total investment in infrastructure to 16 million for next fiscal year. >> so, ms. moyer, how realistic do you think 20% is? >> i really think it's a stretch.

if you go back to this slide, you can see that a fair number of our expenses are fairly fixed. so, you have -- if you took personnel and debt service and potentially work orders which is personnel of other departments, those are pretty fixed rates. but debt service a fixed rate hopefully, but the others as we know salaries and benefits keep growing. so, that means that we have to either cutback in our administrative operations or we have to cut back in our capital. those are our only two line item. historically we've cutback in capital. but the problem is our properties are getting more and more challenged as we get more and more older. that's not very articulate of me. as they get older. and it's become a very big concern. making sure that we have good exiting or nonleaking roofs, one roof can wouldthv $3 million to repair. it's about an eighth of a mile long. that's -- one apron can cost $3 million to prepare. that's a good number.

these are big numbers we're talking about. in terms of our supplemental capital funding, the next slide here shows how the $3 million would break out. again, 800,000 towards debt service for a couple of different uses, and then just plain cash investments. i'm sorry. and primarily these are the amendments we would like to make. we have a capital line item called pier structures repair. we like to bring some of that down to create some surplus for us and then we'd like to invest a little bit more in our a-d-a transition plan so we can continue to try to bring our 100 plus year old facilities into more modern a-d-a. improvements, we're looking to repair portions of the pier 35 roof. pier 35 is our secondary cruise ship terminal beginning the following fiscal year. in this fiscal year it's actually our primary cruise ship terminal. and then that brings us to a

total of 14 million all in in investment and capital projects. so, you can see here are a couple of pictures of what we would like to do. the pier 35 cruise terminal roof, some substructure repairs over at pier wharf j-9 which is where the restaurant is and the harbor services. and then we have a number of pile projects including some mandatory projects through our permits through the cruise terminal and for the america's cup that were part of our negotiations with the bcdc, the bacon certification and development commission. and that concludes what i wanted to present. be happy to take any questions you have. and i neglected to say that we completely agree with the budget analyst and thank him for recommending approval of our modifications. >> all right, thank you. so, colleagues, we will hear those specific items and budget adjustments further on in this committee meeting. are there any questions for ms. moyer in terms of overall budget update?

okay, thank you, ms. moyer. appreciate it. thanks for your time. at this time we'll take public comment on item number 1 if anybody wants to publicly comment, please step forward. okay, seeing none, public comment is closed. [gavel] >> colleagues, we've had this hearing now. can i have a motion to table item number 1? motion to do so, can we do so without opposition? owe can i, so moved. [gavel] >> thank you. mr. clerk, can you please call items number 2 and 3ed to thetion? >> item number 2, ordinance appropriating amended estimated receipts and amended estimated expenditures of $3,$857,224 for the port of san francisco for the fiscal year ending june 30, 2014. ~ together item number 3, ordinance amending ordinance no. 165-12 (annual salary ordinance fy's 2012-2013 and 2013-2014) to reflect the addition of 7.0 positions (5.39 fte's) in class 9330 (3.85 fte's, pile worker), 9331 (0.77 fte's, piledriver engine operator), and 9332 (.77 fte's, piledriver supervisor i) in the port of san francisco in fy 2013-2014.

>> okay, thank you very much. these are the items that were alluded to earlier. who from the port wants to come up and talk on items 2 and 3? >> good afternoon, supervisors. aileen [speaker not understood]. as executive director moyer laid out our [speaker not understood] to do two things. to fund capital, to provide additional sources to capital and debt service for the phase 2 cruise ship terminal project. the addition of positions is to add a third pile driving crew. we have a backlog of deferred maintenance in some of our pier structures that are wood pile supported and we learned through the america's cup improvements that our own staff performs the work at a lower

cost than through doing -- than for contracting out for the work. and, so, i'd like to add this third crew, which would be a project funded capital funded crew to address our backlog and the crew would go away once our backlog is addressed and we think it's a good efficiency for the port and it will really help us to deal with structures like j-9, some apron repairs for public access, et cetera. so, as i said, it's a very small change to the budget to add new sources for capital which is our critical need at the port. >> okay, thank you very much. colleagues, any questions for ms. forbes? okay, thank you. we have a budget analyst report for items 2 and 3. mr. rose? >> yes, mr. chairman, members of the committee. on page 4 of our report, we point out that as shown on table 3, this request would increase the port's capital project appropriation by a little over $3 million,

specifically $3,0 57,524 to [speaker not understood]. and those projects are included in the port's capital plan. we concur with the port's request on both -- on the capital projects. the debt service that is being requested as well as the 7 off line or off budgeted amendments. we hope you would approve this ordinance. we would be happy to respond to questions. >> thank you, mr. rose. colleagues, any question? seeing none, we'll open this to public comment. if anybody wish toes comment on items 2 or 3 step forward. seeing none, public comment is closed. [gavel] >> kiloton, can i ask for a motion to a move these forward to [speaker not understood]? motion by supervisor avalos. can we do that without objection? [gavel] >> so moved. thank you very much. mr. clerk, can you please call -- we're going to do