reimbursed and by the hand of the project. and offering the project tax floor. and after the developer as recovered, if the initial investment and the 18 percent return on costs. regarding the non-port cost, there is a provision in the proposed first amendment that the port will not be responsible for any of those costs. and if the project were to now move forward for one reason or the other, up to that point where the project stops moving forward and the party will be responsible for reimbursing the port for those costs the other part that is amended is the performance schedule. and these are the time line for

completing the exclusive negotiation period fiveiers when considered in phase one when they were able to get the vinestment of the term sheets. the next phase is the major component of the major milestones to be addressed is a submission of the (inaudible) evaluation application summation and that entails the developer, to be able to provide a project description which is a key come poent nent of the application that they have to submit. currently it is projecting that, and it is on march ten, 2014. and in the next major

milestone, is the draft environmental report and that is going to be 15 from the submission of that. and of the super evaluation submission. this date, however, are subject to two provisions, one, the developer has a right, subject tofpaying an extension fee, to extend any of these dates for some reason. the second is... and (inaudible) usually these provisions to protect the developer, i guess that are things that are outside of their control like litigation or order disruptions that does not allow them to move forward.

we agree not to take me representations about the statements, actions and position, and in any medium, and in relation to ballot measures. and it related to the water front site without priority of the authorization of the content or the port to the director at the sole discretion. >> the next step is that you do approve the recommended first amendment to the ena. and negotiation will continue on the remaining items, on the term sheet. and we will continue to move forward to what we just mentioned and staff will be providing the update to the

commission to tell you, our progress on the project. and that concludes my presentation. but, (inaudible) is here to cover anything that i might have left out. and we recommend your approval. thank you. >> so moved. >> second. >> >> public comment? >> commissioners? >> any comments? or questions. >> i have some questions. >> i just want to clarify what you said and i think that i heard it but just to make sure, the port costs, the non-port costs over 3 and a half million is what would be paid at 18 percent return back to the developer? ; is that correct?. so the three and a half million is subject to the 18 percent or not? >> the 3.5 is subject to the 18 percent. >> okay.

so cash flow, you get paid $3 and a half million as you go but in the calculations down the road you have to calculate the 18 percent? >> that is correct. >> okay. and that is not subject to any particular time line? >> it is subject to the time line on when the cash flow will be coming into the developer. okay, if there are any delays in the project and the 3 and a half million has been spent, and the port is on the hook. >> and so there is cash flow calculations down the end to be paid, to repay the developer? >> yes. >> but, the port is not responsible for that repayment, if it is around from the attorney coming from the cash flow from the project. and the developer would be quickly and ad and the appropriate time. and once the project starts, and the cash flowing, >> so in another way, if there

is never a project, then it is the developer's risk. >> and if they are getting a large rate of return. and even if it is delayed, the interest started occurring on the date that the non-port costs were paid. >> that is correct and it is treated like any other predeveloper expense of the developer's team, that the architect and engineers and etc.s, that are developing the project right now and bringing it through sequa and those costs also earn an 18 percent return as of their expenditure date until the project can generate the proceeds to repay that expense. >> okay. >> but, the city's non-port costs are covered up front. >> okay. >> just a general question, how you will be developing the projects. >> and non-port costs.

>> so, in the... the city is not collecting this and not collecting this right now and there is that similarity with the wearer's agreement in 337, and the port is collecting in the negotiating fee. and i think that a portion of which can be deferred and is also recovering in the city costs. but, there are options to delay the reimbursement in the city costs in the 337 ena. >> and the correct. and so, there are slightly different approaches based on the different agreements. and, yes. okay. >> and now, at the moment, according to these costs and the costs according to a schedule in phase two. and if phase two should be there is nothing tying to say, but certainly we will have to go out five years instead of two years and the cost of both the port as well as the city

keep moving along, i understand that we talk about the excess but there is no sort of mar legal parallel to say that it is excess to a certain period and we have to say no asset for whatever reason, and things are delayed, that you know, that these would be operating expenses that just happened as part of the delay period and what i am trying to say, is how can you tie the timing of the schedule with the expenses that have been projected only out to a certain period and we have uncertainties still at this point to know exactly where this project is going to be and so how can we tie them close together? >> so, the one through good tracking of costs and planning and development have worked with finance and administration staff to come up with. with the actual project budgets with each of the development projects that will be before you in the front of your budget

consideration and coming up in february and i think that the city is going to have to stay on top of the expenditures relative to the budget and amounts. and i think that part of your question is going to, if it does not take two years, but it takes five years, what happens then? there are a couple of things that could happen. one, the ena the first amendment to the ena makes is clear that the port is not obligated to pay non-port costs above the cap that is in the ena and there is a provision to sit down with the developer and renegotiate the transaction cost budget and should we actually hit the cap and need to keep on spending city attorney dollars or dollars that we don't have a source in the port's operating budget. and there is also, the ability pursuant to the term sheet that you are endorsed. and at any time, that the port

wanted to step in, and pay early, some of praoet development sbenss, because there is a certain about accruing 18 percent returns, or to just start paying directly for costs on a going forward basis rather than face those 18 percent returns that the commission has that option at its discretion. >> okay, just my concern is that we object to the cost for a certain period of time. >> yes. >> and there is a time line that is just if these, do not mesh together that we somehow are taking care of. and that is my concern, because we don't know what is going to happen and there are a couple of things that could change this and in relation to that, what is the actual extension fee? that you mentioned that, and i don't know what the actual extension fee is? is that it is involved. >> there is 100 k. it is 100,000 extension fee. >> per what period of time?

>> 100,000 for six months. >> yeah. could we, take a look for that information and get back to you? that is not changing in this staff report kl is why we don't have a ready answer to that but we can get an answer to you before the end of the meeting. >> my last question. about measures considered forced... >> i don't think that the staff can answer that question, that will be a question that you know, in terms of the city attorney and i am sure that they will have to go through some level of consultation on that. and i don't know whether it meets the standard for a regulatory force measurer which is i think what your question is. but we can look into it and get an answer to you about that. okay, the different categories of the forced measure under the ena and different definitions of the forced measure but we

will look into it and get back to you. >> i just think that we should be clear since we are about to go into the agreement that we understand what this means and we don't have different interpretations later on, given some realitis that we are facing today. >> yes, and this... >> potential realities. >> yes. >> and so, i owe you an answer on the period of the extension, and it is 100,000 dollars and we think that there twoeer extensions and we need to confirm in the 6 month term of those extensions and get you an answer about whether the ballot measures impeding the project's time line, would qualify for a regulatory forced measure. >> okay. >> that answers my questions, thank you. >> okay, yes, i think that i can see it in the beginning of the same thing and i was going to maybe ask it in a different way or just trying to clarify. and in terms of the 18 percent

rate of return that is accruing, can you just go over again the incentives that keep the project moving forward, and given i am not sure whether we want to call it forced measure but rather than beating around the bush here, giving the potential ballot measure and we want to see and we don't want the project to be delayed while that may or may not move forward what happened with respect to the percentage that is made and does it continue to accrue? >> so, first of all, i think that i just want to say, that we have had a conversation with forest city, and i think that their intention is to move the project forward, you know, expeditionly and they have got a lot invested so far and they are committed to the project and i do want to say that. i think that in terms of the incentives that you are talking about, it might be good it remind the public about the general frame of this deal

structure. and so, in essence, the private partner is putting up private capitol to both entitle the project and edit through and get it through and get it approved through the port commission and the board of supervisors and also investing private capitol in infrastructure horizontal that the city will acquire from them. and in both cases, their private investment in the project earns an 18 percent preferred return and after that 18 percent prefeder return, any proceeds generated by the project in excess of that amount is split, 45 percent to forest city and 55 percent to the port and so, that essential deal structure alines our financial interest in the project and forest city is highly motivated, to move the project as quickly as possible because they are not in this project to earn an 18 percent return, that is sort of what

the market is looking for, for the risk capitol there, and in the project to make more than an 18 percent return to get their 45 percent split and that he have no financial incentive to wait or land bank in this deal. and i think that we, and that is why we have approved that the structure of the deal is so that we are both, and rewarded by moving quickly through the process. does that answer your questions? >> okay. >> a leading question as we sometimes say. >> yes. >> thank you. >> thank you. >> i don't have any questions. >> so, call the question. >> all in favor? >> aye. >> aye. >> opposed? >> abstaining? >> resolution, 10., i am sorry, 14-3. >> okay. >> item 8 b, informational

presentation on flaming lotus girl's temporary public art installation of pier 14 plaza between the agricultural building on pier 14 on the embarcadero adjacent to mission street. >> i am a planner with the port of san francisco and i am here today to present a temporary public art piece for the pier 14 plaza and we will up load a map for you and creaters of the art piece and so as depicted in the graphic that you should see, it is along the embarcadero between the agriculture building and pier 14. and there it is now. and at the foot of mission street, this plaza has had three previous public art pieces and the creators for this is the flaming lotus girl, they are a female driven, volunteer based art collaborativive based in san francisco and this will be

installed? this spring and it will be in place for no more than 12 months, for approval, the port staff is requiring a port license and encroachment for this art installation. these documents will require the flaming lotus girls to insure the art piece installation, and endemnify the port for any issues related to the art piece, the encroachment permit will sure that it complies with the americans with disability act and public art and display guidelines and now i will hand this to the flaming lotus girls to present their piece. >> no more mystery. >> i can just say that there are no action items on this item before you, and in the sense that all of the approvals

have been delegated to the staff but we thought that it was important that the commissions be the first to see the art that looks like that will be placed at pier 14. >> good afternoon commissioners and members of the staff. >> could you talk more in the mic. could you move it around. >> is that better? >> great. >> good afternoon, commissioners and members of the staff and also the public, may i wish you a happy new year and congratulations on the election presidents. >> thank you. >> i wanted to present to you today our soma and we would like to install this on the pier 14 plaza and i would like to talk about who the flaming lotus girls are, we are a female-led group who make large scale installation and based in san francisco and actually out in hunter's point in the bay view. we are all volunteers and we take anybody that comes in and e-mails our website, as long as they want to show up and participate, in our art. and we began in 2000 as a group

of 6 of those and we are comprised of hundreds of members all over the globe and we are, and we teach through passing knowledge from one to another. and we pass our knowledge and through the collaboration and classes and workshops and from, we really grateful benefit from having members from varied backgrounds with many skills that can be passed from the group to the rest of the group and beyond. >> and we are very, very excited to present with the possible installation on the pier 14 and it has been a great dream of the flaming lotus girls to install a piece in our home town and with your help we hope to make this a reality. >> and so, it is two neurons communicate ng space, the sculpture is we hope that it will give the public a way of exploring the between the sensory environment and the internal world. and soma offers and we believe that it captures all that the san francisco has to offer,

science, technology, and art. and we have successfully installed pieces worldwide and including europe, and chicago, and california, nevada, and in the bay area. it has been installed in los angeles, las vegas and here you can see two examples and the larger picture is in los angeles. the smaller picture is in san mateo. >> and this is our representation of how we feel it will look on the water front, a beautiful background to the bay bridge and we want to talk about the sculpture, it is 35 feet long made of stainless steel and we are going to have ultimate of the ground anchoring is designed by an, engineer and we have led effects and representing the two that go through the two neurons that we demonstrate and we are going to show you the collaboration and to create six

informal displays, describing in the brain and the role that the neurons play in sensing the world around us and if you excuse me i will introduce myself. i am actually carolie miller and i am the director at the gladstone institute and we have another group of people here that are from ucsf as well and this sculpture was designed by neuroscience tift and like i said our group is a mixture of the people from all different backgrounds and scientists and nurses and chefs, and we have a really good mix and we have and so we will be working in collaboration with ourself to create 6 informational displays that will be presented to the public, which will hopefully help explain both the sculptures as well as how this sculpture interacts and how your brain interacts with the world around you. and we will also make contact with the people from the bay

lights project that we want to make sure that we first do not take anything away from the project at all with our lights and also that we can do a collaboration with them as well and meeting with them with week. >> and our installation will be certified by a licensed structural engineer and we so far we think that we are going to have or need two ac circuits, driving the 85 led bulbs and we are changing all of the electronics on the sculpture to make sure that they are water front and tamper proof and it also goes the same for the components as well and we are going to use the bolts as well as the tact welding the bolts on there to prevent the people from disassembling the sculpture and we will be inspecting it and actually i commute on the ferry every day and so i will be riding my bike around it on my way two and

from work. we will have a response time of 24 to 48 hours and we intend on installing safety mesh to prevent climbing. >> i want to show you a few of the pieces and i will not go into them now, but i will explain them in you would like to but we have created multiple distributions around the world. >> i would like to thank the hundreds of girls that made it possible, and for supporting us originally with the grant for this piece, as well as multiple other pieces that we have created over the years and you for making our dreams come true, thank you. >> and i am open to any questions, we have michael here and especially involved with the project and we have girls in the back, as support. >> thank you very much. >> first, we want to designate public comment or if you have comments from your colleagues.

seeing none, commissioners? this looks like a great project and i can't wait until it is in place. >> it will be multicolored. >> welly. >> and it will be i guess at night it will be on for the full 24 hours until daylight and then what happens? >> we hope to have the informational displays as you come into the sculpture you will read around the displays and the last one is a benefit as a gift to us and for reading the rest of the informational displays and there will be a panel where you can control the sculpture and so the insensety and how it flashes and how the two communicate with one other as well as the different colors lighting up the sculpture. >> during the day it is not quite as impressive probably not. like a dusk kind of thing.

>> that is all of the questions that i have. >> thank you. >> and i also want to thank you and i am excited about it. and whether the flaming lotus girls have any commissioners that they count among their members. very excited. >> as a former premed student and recognizing the neurons but one thought that i did have in terms of thinking as the possible collaborations and given the basis in science behind this as well and it might be possible that the exporatorium might want to direct the people to come to it to come down and so you may want to pursue? ing with them because it is along the water front. >> yes. >> we are in communication with a couple and some people from there. who are actually friends of ours and we are going to help ultimates with the design of the informational panels and stuff so that will be a nice tie-in. >> great. >> it is a process question, because it is a public piece of art does it have to go through the arts commission or some

other approval process? >> so, no, and actually i need to correct another process issue and when we work in collaboration with the arts commission and really the responsibility is the ports and the port has already and the port commission has adopted a policy for the temporary art at this location. and we have it already with bcdc and another such thing and while we collaborate with the commissioner and the staff we don't need their approval. >> yeah. and another correct one is that in terms that you asked about whether the lights will be on all night. no they don't won't, as you know the bay lights are not on all night, as part of the good neighbor policies and our hope is that we will turn the flaming lotus girl as part of the good neighbor policy. >> so yeah, i misunderstood. >> and one other question that i had, in terms of and i am not sure whether we have a time

list. for installations on this site, or if there are a renewal option if that would be contemplated. >> the bcdc reg allows for a public art piece for no more than 24 months so we can have the rotating art for more than 24 months. >> per piece? >> yes. >> and then it is exempt from sequa, the installation is temperature or minor improvement to land. >> great. thank you. >> okay, thank you very much for your presentation, all of your work on this. looking forward to seeing it. >> okay, item 9 a, informational presentation on the port's climate action plan and efforts to track and reduce greenhouse gas emissions. >> we want to put in a plug for a missing colleague who is actually that he will report back in the next meeting for the efforts of looking at the

effects of climate change among other things down in antartica and he was not on the boat in the ice he was on a different one. i am >> i am here to talk about the climate change, we have a two-fold strategy, climate at dapttation is something that you have heard about and which is preparing to deal with the climate changes that are occurring. we have great work being done by our engineering staff and staff representing the port on the sf and we also have the twin strategy of the climate action which is the attempt to stabilize it by controlling and managing greenhouse gas emissions and a lot of the work that we have done here is supported by the staff and the department of the environment who have helped us tremendously and i would like to extend the

thanks to them. and you will be seeing reference of the greenhouse gas emissions and you will see ghg and that is what we are talking about there. and i just wanted to mention that as we go through this, you will see, two basic strategies, for managing the greenhouse gas emissions and that is conserving energy and developing cleaner energy. >> and this is a colored version of the chart that was in your staff report, and is it summarizes for fourth of the school years, the greenhouse gas emissions from port administrations. and i would call your attention to the lowest two bars, the blue and the red, represent electricity and natural gas and those are emissions generally associated with the stationary and engineering consumption or buildings. and they represent the primary, twr *f from the greenhouse gas emission and most cities and hear at the port.

and the remaining stacks, primarily are associated with transportation fuels and so you see the bulk are from the emission and they are associated primarily with the fuels for transportation and a little bit with propane which is the light red strip at the very top. and in addition i would draw your attention to the consequence of that big red stack, number two which is the set of emissions, and because of its size it is an important issue to try to get our hands around and the blue emissions is with the electrickcy and what you are seeing there, we have zero emissions and which is the reservoir in the past and they have had to supplement the energy source with what is offered referred to as the dirty energy and because they are greenhouse emissions