and we hope that you will like us. thanks. >> thank you. is there any public comment? hearing none, commissioners? >> thank you both for those presentations. i think they were both great. anyone who knows me knows that i want to see the financials. they both look like great projects. thank you so much. >> i would echo what commissioner bradon said, they were both excellent presentations. there is no doubt that both teams are extreme the qualified to do the work on waterfront. i don't envy the panel but has to sit and go through a lot more detail in terms of some of the evaluation criteria. i think that today we don't

have the time to go through in-depth in terms of what your proposals are. your schemes and concept are wonderful. it's great to see the public access which is important. and activationof the restaurant area. filling in with the rest of the neighborhood is an important part of what we are asking for in the rfp. we also want to note that there is a long-term asset that will sustain and improve the quality of what we have on all the piers and moving it out in terms of the quality of the

buildings we have on the long-term sustainability but in the short term obviously giving us the revenue and sustainability that we can in the short run so i think that we want to understand how this and the scoring mechanism will play out for the port given that we have such enormous capital need requirements not just for this pier but for others so we need to figure out how the portfolio assets will generate the and benefit the port in the long run. >> i concur with my colleagues. it will be exciting to see the financials. i do appreciate too but i think we have two very dynamic and exciting teams and we're lucky to have the kind of caliber of teams before us. it's a testament to our staff getting out a good rfp to attract solid teams. it's a very exciting space. one of the things i i am

interested in hearing more about you seeing the difference between immediate activation and what that means for the port and a longer transition and how that flows and ties together. that is something we feel strongly about, the opportunity for us to generate revenue again looking at the long-term. we want to see a seamless transition over there. i'm excited that both teams have certainly taken a look at that and incorporated that; i look forward to hearing more of that and want to thank both teams for terrific presentation. >> i want to add one thing, because someone was have seen how on pier 39, autodesk has you some of the space, interesting and and nine with the shed and the concept, and

what they're doing in their workshop, is a great synergy not only for what they are trying to accomplish. we are trying to figure out how to use of space fits in with i think what we are trying to produce an environment for the waterfront obviously one of the presenters did mention in terms of what was previously there which was very exciting, digest was in the right environment and not safe in terms of the tech activity. in terms of how and the content and how the space would be used, in line with what we're trying to create, the mayor and the city, the waterfront is going to be important in the long run as well. thank you very much. sorry mr. murphy. >> it's a great project i appreciate the presentation by

both parties. i'm supposed to get it to -- a tour out there next week. i would like to say that the reason that the pier is closed down, obviously some violations and all of that. that will be all addressed during this endeavor i hope? >> with money from the port left over. >> okay. good luck to whoever gets this. all right, thank you. >> more on that commissioner thank you for that. >> given the time we'll take a quick five minute break. could i have a motion?

>> i move to recess. >> second. >> all those in favor? aye. (recess) >> motion to reconvene. >> second. >> item 11b, authorization to commence pier -- with metro cruise services llc (reading from the agenda) >> good afternoon john -- from planning and development. i'm here to do a presentation with p- daley. there was a correction in the staff report that came to my attention on page 25.

fourth paragraph. mentions additional -- that metro would offer. text reads one full-time -- it's local 10, maintenance mechanic. and -- should be -- maintenance gearman. is your read one full-time iow local 10 maintenance gearman and one full time iow local 10 foreman.

the solicitation was a solicitation for professional services pursuant to chapter 21 of the city's administrative code. staff received two proposals. a panel was convened to review and score these proposals; the evaluation panel consisted of current or employee responsible for cruise logistics; and former port employee responsible financial analysis; former event manager for the san francisco giants and marine world.

and currently a commissioner for the board of permit appeals. the panel was selected because of their combined experience and cruise operations, maritime finance and special events management. the evaluation scoring process was conducted by the port's contract manager, andres acevedo with the help of a contracting consultant, mr. reyes, who work with the city comptrollers office -- representative from the contract management division also attended to ensure the fairness of the proceedings. the evaluation panel score the written proposals and then interviews of each of the respondents. based on the scoring, the panel selected metro is the highest rank proposal wiht a score of 179.6 points out of a possible 200. ports america was givne 127.2

points. the provided exhibit d in the staff report which brings it down to a specific details and the panel's average score for each evaluation criteria. in every single evaluation category metro outscored ports america. every panel member scored metro as being the highest-ranked respondent. there was no unity in terms of metro versus ports america. the poor staff supports the evaluation panel's writing because metro has a better defined business plan for a cruise operations; will partner with hartman studios (sounds like) for special events and they have extensive experience in san francisco. further, metro provided a

financial report that is realistic and provides a profit-sharing component. the port receives $180,000 a year of the operation and with metro assuming management of the pier's operations -- the number of cruise calls and parking, revenue will be approximately 1 million a year. the estimated port revenue would be 4-5 million a year for the initial five years. since the evaluation panel is now complete, for staff recommends that the port commission approve recommendation to begin negotiating a management agreement with metro. there are a number of business terms that must be identified and negotiated.

at this point of like to turn it over to pier daly (sounds like) to address these next steps in the business terms. as part of the business term negotiating process. thank you. >> thank you john. commissioners, peter daly. i commend you for your attention span on this long meeting today. i'm going to give the next steps of the cruise terminal. back in september of 2012 and we started this effort when we asked for permission for permission to issue an rfp for cruise terminal operator and management company. in october of 2012, we actually issued the rfp and in february of this year, 2013, receive two proposals. pursuant to the city's demonstrated code, in april of

this year -- here we are now in june to ask permission to begin negotiations. it has taken us nine months to get to this point. in november, the port will get the session of pier 37 back from america's cup event authority; it has been difficult for myself and my staff to drive by and not being able to play with our new toy; we are looking forward to phase 2 to get the facility up and operating. we are not going to have a lot of time for phase 2. we are going to have to hit the ground running when we get back from america's cup. phase 2 is projected to cost approximately -- million

dollars clean installation of insight apparatus for passenger processing including customs and border protection in all their facilities, the port' s first-ever mechanized gangway, moving into the 21st century. we have a lot to do with a short period of time. on top of that 2014 will be the busiest cruise season with 76 calls- first time we have reached the passenger count of that magnitude. it is critical to get it up and operating, and critical to have a management team in place so when the america's cup event

ends they can be involved and the management company can be involved in the implementation of phase 2 construction and they can begin marketing. the port has received numerous inquiries for the space, is a high-profile space. when the americas cup is completed it will have an even higher profile. today, staff is asking for authorization to start negotiations with metro cruise; we still have a great deal of work to do before we ask the port commission for approval of a management agreement, hopefully later on this year. if the port commission authorizes staff to commence negotiations with metro cruises, the staff is committed

to bring -- for guidance. we are committed to engaging the premier for consultant -- to for assistance to provide negotiation support with the goal of making pier 27 operation efficient and to maximize revenue. with our consultants help will come back to the commission in september with an informational presentation on possible business models and pricing strategies and compare our facility to ports in the west coast. we will look at the elasticity pricing and a range of other issues. we want to maximize revenues by attracting as many cruise calls as we can, and the parking opportunities that pier 27, and

potentially pier 35 my provide for us. the goal of the rfp timing continues to complete negotiations of the management agreement to come back to the port commission for final approval of the deal by fall, 2013. that gives up or just a few months negotiate agreements and get going with phase 2. in the event that metro cannot resolve the prerequisite terms, (indiscernible) -- we have an exciting and daunting task. it is ardently the largest investment import maritime and for structure in the port's 150-year history. we were thinking of what it could've been as monumental as

this and we can't. like i said before we have the highest number of cruise passengers ever to transit in the port's history next year. this is a facility that provides great opportunities for special events. went to get a management team in place soon to begin marketing and booking reservations. we are convinced that this will be a waterfront marquee location for conferences, weddings, corporate parties and the like which would generate new revenue to the port. finally by september, 2014, who want to celebrate the opening of the cruise terminal to the world.

to do this we require your request to begin negotiations with metro cruise, as a highest-ranked respondent to the port's rfp. it will come back to the port commission this fall hopefully with the complete a deal for your edification. thank you, and byron and i am numbers of our team are here to answer questions that you might have. >> motion to approve. >> second. >> any public comment? we do. ed ferris. (sounds like) >> good afternoon commissioners. good afternoon executive director moyer. my name is ed ferris -- local 10 -- is an important

decision that will impact the success of the cruise industry here, and will be for many years to come. they should not be made quickly or without careful consideration. whatever terminal operators you choose let's make business decisions that promote labor peace instead of labor unrest. labor unrest can quickly and significantly diminish the quality vacation experience for cruise ship passengers. for some passengers this is their first experience with san francisco and it needs to be a pleasant and enjoyable one. i'm concerned about labor unrest in the future. we would respectfully request that you hold off on this

authorization of the management agreement negotiation to begin for at least a month and allow us to continue to have forthright discussions and try to work out some of the details of our dispute. we certainly would like to be able to make a decision by formally endorsing the terminal operator, it is an important decision we don't want our labor force which is a direct stakeholder in this port do not have our interests met. thank you very much. >> mike --- >> hello madam chair and commissioners. at the last meeting you heard how we have had labor dispute with metro over the years, especially since 2008. we have sat down with metro

recently and try to resolve this year some of those issues. it has to do with our jurisdiction and our jobs, american jobs, and keeping those jobs here for the locals. we are a partner with the port of san francisco and the citizens of the city. i was born and raised in the city. meeting with metro over the last few weeks -- they have assured me that they will continue talks going forward. some of the things that we have discussed and have agreed upon is getting back on these ships and doing what we do best, load and unload passengers and provisions and cargo. that is our main argument.

last year we had a big blowout with metro. it got resolved with them stating that it won't happen again. the issues have to do with jobs. you know the ilw - we are not going to allow anybody to take our jobs on these ships. so moving forward, with the discussion, i think that the teams that picked metro pick the right stevedor company, they were by far the better choice than mtc or marine terminals. the issues with labor unrest have to be resolved. i was assured that will continue to meet going forward.

going forth, being the president of local 10, this commission has to go forward and get business done because we are on a timeline but we will be at the meetings with metro to make sure none of these issues that are taking place that have to do with jobs and our jobs, an american good jobs, and to relate to it with metro -- and we are -- we are communicating quite well on forth. i have to say that metro was the better choice of the two; i was surprised that you only had two stevedor companies bidding on this because san francisco in our opinion is the best place to come and visit in the country. metro is the best choice going forward but we want to make sure going forward that we don't have any more labor issues with them. thank you very much.

>> kathryn hooper (sounds like) >> madam chair, executive director and staff, commissioners. i am a consultant -- i think i can speak on behalf of many of the other cruise companies that have come here. two great choices and i think that clearly the panel that reviewed the two candidates pick the right person. for me they are local.that means a lot. support agent does a lot of the non-girly stuff,

like setting up the -- every port operates in a different way. having local expertise of the country that already has credentials and his work through some of the things that mike and his colleagues have brought up is important. representing the cruise line one of the struggles these days is the cost of everything about bringing a ship to port. i am pleased that metro who has earned their stripes has been awarded the first step in next up is up to the port on the negotiations which you have already passed. the james herman cruise terminal as kimberly noticed, has been an ongoing wish.

phase 2 is important to the port for no other reason, and that is financial. we have to get the facility up and running, out of the time-to-market it to bring in the extra enterprise, and from the selfish part i've been praying for this port. i've been joking that i hope it happens before i end up in a wheelchair. looks like it will happen. to all the stakeholders and the executive director and your staff, kudos on behalf of everybody in this port and the city. thank you. >> thank you. is there any other public comment? hearing none, commissioners? >> first of all when i came onto this commission about nine

months ago, i had a conversation with director moore. she was concerned about the morale at the cruise terminal. we had a conversation. she was saying, what do you think was wrong? i stop to try to find out what the issues were. i myself have been down there twice, went down there is a commissioner and walked around. peter daley took me around. i wanted to see what was going on. and i think what it is is this -- metro, port of san francisco and ilw are all stakeholders. if there are tensions and problems we have to do it together because we have to grow this business. when i went down, mike -- from local 10 was there, that was the first time ever that the

ilw has traveled with the port of san francisco. i went to china with peter daily so that we could show a united front, labor, the port, management so that we could grow. we have an opportunity to do a lot of things. i personally think that i have not been involved in the negotiations, neither will i be because i'm the secretary-treasurer of international. if there is a problem people have to sit down and try to get things resolved because we have work to do. i made a commitment when i got into the commission. i would travel with metro, the port of san francisco, ilw, whoever to promote the sport and that is what i'm here to do. i saw a youtube video of a gentleman from metro screaming

at the top of his lungs. i think there is a protocol by which you have to carry yourself. one of the gentleman from metro made reference to my dead mother. i did not say anything. i encourage stephan and peter daley to resolve these issues. i wanted the whole deal, metro hands down, you were head and shoulders above ports of america. what is the problem with you and the ilw?