>> thank you and week. i mentioned the team just to make the port commission feel secure we have a complete team reviewing our financial statement from our disclosure and bond council and co- bond council ship and harden the sdpoofz and our underwriters and steve serving as co- underwriter. so the commissioners are familiar with the plan for 2014 port revenue issuance in may of last year you saw and approved our financing plan that gave us access inform the plan and december of last year on the 12th you approved the issuance

of bonds and several few minutes ago documents including the second vegetation of trust and gave our executive director authority to enter into the contracts. on february 11th this year i was here to look at the financial statements for our 5 year financial projection that are included in the preliminary official statement. so today we're asking you to approve the preliminary statement and authorize the document to potential investors and to approve the certificate. the preliminary official statement is a document to really let investors know what could go wrong with the port of san francisco and explain our capital strategies and risk

factors it's required by the security and exchange commission it must be accurate and complete so we'll make it up to the date of publication. the continuing certificate is an agreement we make to provide key financial information annually. for the life of the bonds and you'll see in attachment two the form of the disclosure it includes the po s and which tables we'll be updating and event we must disclose it is similar to the revenue bond but the finishing will be familiar with our disclosure for those bonds. just to remind the commission of

the proposed use of fund. there's phase two of the cruise ship terminal 189.5 million and northern waterfront the powers is really for pier 31 and other improvements for leasing activities for 19.9 million so the projects are costs in about $707,000 and a reserve that will fund 1.7 so total anticipated use it $24 million. we have a large authorization pending sale to deal with market uncertainty. as the commission reviews the post offices in in addition to see a real estate maritime operation and projection our

regulatory environment and capital plan and development strategy you'll also see emerging the port credit we have strong coverage and very strong fiscal management policies you've embodied for you including your 15 percent reserve we've made progress in meeting our capital backlog and respects investment you'll see the strength of the economy and how it helps the position of our assets from the then to our revenue it's a picture of growth and diversity. and we as the commissioner adams just commented on the diversity of our portfolio and it enhances our water service our water

dependence the ballpark and explore tomorrow we can't imagine. being anywhere but on our port. this is a strength that highlighted in the preliminary official statement we're looking at 6.74 times in 2014 and in 2015 to 7.5 times coverage this is internal goal is never to fall below two times coverage this is on the revenue bonds the probation officers looked at this and the low is 2.77 times all of this to say we're not over leveraged nor do we plan to be over leveraged.

to our revenues i'm sure you're aware of in 2013 our operating revenue was 20 pillow plus and the chart on the right is the growth for the past 18 years the port revenues have increased due to management intrefrj and the inclusion of our assets and the green is other sources but it's remained relatively constant that's to say we're doing a job in remaining a share of both types of revenue. also throw in the preliminary official statement you'll see reflected our initiate that's

can enhanced our credit from the capital plan approval do again, the capital policy the close attention to selecting revenue generating projects in our bond program to securing external sources from the city ace the parks program and grants other appropriations and many not able projects. we have 19 risk factors that eave disclosed on page 17 to we took a great deal of time to make sure we're disclosing any risks we can think of our executive director had every member in the senior staff review the risks to document every possible risks i'm going

to highlight 3 they're the ones i think about. so one is the condition of the ports facilities that that is one you're very, very aware of your assets are over one hundred and a 50 yields we'll have high seismic risks it means we need to also be focused on repair of those facilities and we've lost revenue from our history it's a serious risk to the port we i may lose revenue producing risks. other restraints on revenues this is really leading the potential investor to understand we may not also have the ability to raise the revenues it's out of our control it's the

regulatory framework we operate under sunshine which sometimes restricts our ability to do that. while we're still subject to all the economic and competitive factors that other commercial and real estate businesses operate under they're not under the regulatory environment and we are and, of course, wealthier we obviously have two actively faults and we've experienced significant earthquakes. and in april of 2008 a working group produced a report and the probability of a earthquake is how attests probably we'll have an earthquake in the next few years. as for next steps we'll be meeting with the regulatory

agency to go over the rating a credit presentation and the allocations will be providing a rating for this bond issuance. we will be going to the board of supervisors for approval and the board of supervisors will also need to approve the plaintiff o f and the prices we'll show those and have a negotiated sale and they'll report back to the commission. i'm here to answer any questions you have >> so moved. >> is there a second. >> second. >> public comment? seeing none. commissioners. do you want to >> no, i'm okay with it she's

dot the i's and cross the t's it looks good to me. >> commissioner brandon. >> you did a good job with your presentation and the staff report was thorough i think i understand everything i noticed one that added to the financial schedule when we talked about this in december the capital planning approval. >> who is the capital planning committee. >> it is a group of okay. so it was established sometime ago through ordinance and it's a group of chapter 6 and other departments lead by the administrator naomi kohl and voices the board on items related to capital so it's voter approved so that the city ought to do planning capital the go

bonds schedule and the departments need to come together a ask questions complete cost of ownership, etc. before the items go to the board of supervisors. ii sit on 9 capital planning committee >> thank you. commissioner adams >> clearly due diligence has been done i want to say i'm hoping we can get some federal funds you've duplicate a great job but clearly we need federal funds out of the harbor funds or something like that. so thank you >> i'm sorry i just wanted it add i want to commend you on the

great diversity of the team. it's a great team >> and i also want to thank you and all your team for the incredible work the members of the public can't see the unbelievable pile of information. so i had one question it's not directly related per say but we're certainly not over legend or leveraged with the - in the fire chief how are we positions there the future bonds? >> in terms of bonding capacity our remaining bonding capacity after this issuance is $40 million maybe a little bit

higher but we're careful about new revenue bond because it will compete with our capital budget we find is project that will generate revenue to pay us back so what have capacity you know with the budget does that make sense. >> yes. >> well, thank you. can i have a motion all in favor, say i. opposed? so the two items carry. resolution number 14 dash 18 carries. item 12 a request the approval with the california terminals incorporated the developing vessel for pier 96 for a one year term with the options and

one extension for the revenue for $233,000 >> peter daily maritime director since 1998 we've been under character with the vessels through the maritime. you'll recognize them in you go to the at&t park and those are the two ships we're top of today. mar add maintains a fleeft of vessels that are for the need of the military for emergency equipment around the world. this national defense reserve fleet their ships are births

around the world and they keep the ships in a readiness position with a 96 hour evacuation. the terminals is part of the largest contractor for the shipped and dating back to 1998 the california has had a relationship with this company. we currently have 3 ships under contract at pier 50 and 96 that agreement with the federal government exteriors this are. having the ships in san francisco is important for a number of reason a their ships and kind of cool looking and b they're a major tenant of our public utilities commission and

they're about $175 million a year and those ships require ongoing ship maintenance and i see the gentleman in the back. which generates jobs and then as important mary ships have the capacity to support of the efforts in the anticipation of a national disaster. those ships having them on the waterfront if there's a energy they can provide water and power and tear housing and the mayor was using those ships in the new orleans after katrina. and in new york after sandy the ships were vital in recovery and it was after the earthquake in the 80s a few years back.

mary add puts the contracts out to bid and they put the 3 ships out forbid and the 3 ships the two at pier 50 the kate hudson and the third is the chesapeake at the pier 96 the coast would i do slittion and had power costs that are higher but unfortunately, we can't over better costs. it was a more competitive isolation and under the lease we're responsible for the capital from the wire to the electrical to the sewer and

dredging. at the end we worked there the california terminals we worked that reduced the revenues, however, in subsequent years it will provide more revenues. the port based on the approval here today and the contract going going forward the terms of the agreement are in the staff report it's one it's 10 one year periods that's reluctant yearly. i'm here and the contractor is here for questions you may have >> so moved. >> any public comment? seeing none. commissioners >> yeah. i have to speak to this i'm supportive of this. this is something that's good for us and also the maritime

administration this is one of the duties i know chip and i'll be there next week in his office i'm supportive this is something we should support and it's good to have him in our backyard it's producing revenue so i ask the commissioners to support this >> thank you peter. why does the rent decrease in the first year >> we calculated a rent package that is is for year one and two and begged them to take the 5 year term the rates will go up in the subsequent years we were faced with a 40 periods of time

differential compared to the ports in the northwest that are connoting we wanted to make sure we didn't lose the ships and knew we were going to be undercut up north. >> thank you. >> thank you. >> i had one question in terms of the the ability to either move any of those ships to a different location or can you talk about that. >> essentially the contractors were responsible for the dlenl and n this has happened in the past we've had the shipped and a no idea need to move them we will need to supply the contractor and merry add with a birth at the different location

as long as we need to have the home for the 10 year period. >> thank you. i think we're lucky it to have those ships based here and hopefully not have to use them >> commissioners? all in favor, say i. >> i. >> opposed seeing none, it carries. the pilot transportation improvement projects identified as part of the waterfront assessment for the san francisco aid. >> good afternoon commissioner president katz and members of the commission. i'm detaining just here to introduce you to this briefing from the san francisco municipal assessment.

last year there was a introductory briefing of a comprehensive assessment led by sfmta with the whole city family involved in doing intrarthd transportation planning between handling all the existing uses and the projected growth and using that to incorporate into perspire tiger's and identifying strategic transportation improvements for the waterfront area. so i really want to give credit to peter and albert who's led on the overall waterfront transportation area. today aaron miller will be talking about that as it gives me revises to pilot transportation prongs mta will be carrying out in the south

beach area. it grows from a number of transportation solutions strategies that have been identified and we wanted to test them. so she is focusing on one important element of that testing program. there's another transportation poise of the testing program that aaron will speak to that's been conducted by the transportation authority as well. thanks very much if you have any questions here aaron miller is. >> good afternoon, commissioners. commissioner president katz i'm aaron miller i'm the transportation project person. i'm here as diane said with my

colleague porter albert and diane and all the colleagues from the port i see here today. as diane mentioned i'll to start with the brief overview and reminder if you're not familiar with the planning efforts they've been underway for a year now it gives us context to those precise projects i'm going to be talking about. the planning area is extending along the bay area waterfront of the city from fort mason to exempting point in the planning analysis we're take into account all of the development that has been anticipated through 20040 and in addition to that, the development i'm sure our

familiar with are underway and those weren't initially anticipated in a lot of the planning and transportation planning so we're taking a step back. we see this as an opportunity to increase take a strategic planning development that will result in identification and elevation and prioritization to support the future of the transportation. i'm going to go over 4 steps of phase one of the waterfront. phase one began in late 2012. and we initiated the process by reviewing a multitude of policies. with that, we were able to focus on goals that remain relevant to transportation and able to honor the rich heritage of our city

without starting over again. we've host and participated in a large number of stakeholder meets to best understand transportation concerned and challenges from the experimental prospective from folks on the ground. we began to look at the pipeline if you're familiar with that in the city they look at the 20040 of what they're anticipating in terms of housing and rods and jobs so we created a transportation pipeline to go next to that. we wanted to ask are the transportation projects we know are com in time for the demonstrate we anticipate that's an important question and it's been largely effective in helping us to develop the strategies.

the strategies with the goals identified the stakeholders input and the understanding of what those future gaps exist we developed this long i think we have about one hundred and thirty if you've seen the draft assessment plan that was published last july you would be able to look at the list on the back of that plan. so that was the end of phase one and we're in phase two. phase one wrapped up at the end of last year and -- excuse-me.. so fast one was identification of goals and strategies and phase two as diane mentioned t is the solution dialysis stage so why are we doing the pilots a consistent message we have too

many transportation problems we canned wait until 2015 and 20040. so in luke this the strategies we started conceiving the two pieces one of our project manages couldn't eastbound here but they're looking at the corridor would i do transportation solutions that may come identity the strategies we take a look at the strategies in the midterm. so there are two pilots i'm going to be talking about the first one is the fold street circulation. i'm going to give a brief overview and let you talk and ask questions we're early in the

initiation of into both the pictures say a thousand words this is a snapshot looking at field street this is the south traffic approaching bryan street. and as you can see is there a - oh, you're looking at can i say that? well, i'm sorry i just wanted to point out the way the street is organized it's one lane northbound and one southbound on the southbound lane it's getting long as you can see the local traffic what i'm calng