2016-2017 >> we have the airport slated first do you have your team here we can put you back further. >> good afternoon director martin is in a meeting with the mayor so if it's okay to call the port first he'll be here momentaryly. >> you're up. >> good afternoon. thank you for having the hearing i'm representing the port of san francisco and joined by our chief financial officer given we were here 2 or 3 weeks ago we're going to keep this is to numbers. so i wanted to start with the two year budgets bottom line which is that we are aiming all

our expenditures inform address our high priorities and instantaneously we've talked about those and we're working very hard to contain our limited exhibit no. 2 comprehend to visit in our capital needs and we have a policy i mentioned last time the port adapted the designation to capital that requires to set aside 20 percent of our praigs revenues for capital needs and as currently you structured our budget proposal falls short of this and i'd like to mention that the budget analyst has recommended cuts for into years and we're in agreement with the cuts and my thanks to the hard work and line by line scrutiny and we would

ask the committees permission to consider reinvesting both the surplus funds into capital expenditures so we can meet our timelines. so quickly the key priorities to maintain a financial future it's driven by the boarder economy it's important to preserve is industrial and economic uses at the port and preserve the space for production distribution repair with the eastern neighborhood nonprofits they're popped by nonprofits and, of course, continue to redevelop and rehab and reuse our historic facilities which we have begun with you we have a very, very long ways to go. of really the great import to the city is, of course, the

estimates for rising sea level and how the port can respond to that since the eastern shoreline is within the ports boundary. capital needs remains very large we have, of course, identified this year about $1.6 billion in capital needs and identified the $600 million that is about a shortfall of $10 billion and it requires the port staff and port commission to consider the trade off between expenses and capital needs and try to balance accordingly so we'reizing that closely i've already mentioned. that's the high-level supervisors if it's okay with you i thought i'd ask meg 80 an so walk through the numbers

>> thank you. >> as on overview the budget is increasing and important to note of that growth 7.6 million is driven by operating revenues we've split between the designation of futuristic capital. if you're looking at or you've found the slide of the presentation the operating expense has monique explained we're going to accommodate the known growth and the strategic priorities like staffing and other projects. the designation of future capital is trying to meet the capital policy but the other significant part of our growth is the new project the

$14.2 million the port entered into the agreements with developers those expenses are offset by the payment its not new to the port but allows us to make the portside expenses in those projects >> a quick question does that include the money to be reallocated based on the heather's cuts. >> this is brown where the cuts are allocated to. >> so this will grow. >> yes. in the second year by a anytime of $5 million and however only 1.3 million of that increase is for additional prevail growth the rest into our capital we're trying to prioritize the capital investment and then this slide

shows the trends over the last, you know, this is looking at a snapshot of revenue trends we're trying to you can see the fiscal year 2014-2015 is slightly lower than the other years that's really the 2014-2015 go budget bums up trying to capture our snapshot of revenues to allocate any of the designation to future capital and the real items driving our growth open the pie chart over the two year window is the rents and parking and crews and commercial industrial rent and parking are based on trends as well as the benefit of being able to reuse the venues that were previously taken over by the america's cup. we're happy to say the driver is

the opening of our crews terminal on peer 27 this reflects the passenger facility charge we're helping to have that parking revenue we're going to be able to generate as a result of the site >> supervisor breed. >> thank you for bringing up parking. i was wondering if the port has taken measures for signage and lights for the ability of individuals to see the parking meets at night there are charges related to parking in the area in the evening >> i'll be able to answer that but i'll turnover to other port staff. >> because if there's a cost savings it's reallocates to another location i want to advocate so far support ♪

particular area >> are you talking about the waterfront or the area of the meters. >> the waterfront. >> that's about 7 miles of parking meters so some 8 years ago the port piloted a program with meters on behalf of the city ultimately you know the city choose not to move forward those meters they were impossible to read we've been slowly swapping them out this project is funded and moving through so we shouldn't have any issues with the lighting and from the city itself but i'll investigate so its accurate information. >> i, of course, had a personal issue i know of individual that are older who don't have the handicap stickers for parking but they were parking in the

evening and said they couldn't read it and realize they had to pay the meter. >> one thing that's happening with the decals a lot of people will park in the ferry building area before 7 o'clock and sits in the space that signals that the meter they're parking illegal it's not okay. so we've worked with sfmta as well. >> the clear signage in the evening time particularly with the parking meters they go to 10 o'clock at night. >> supervisor mar. i'm reilly appreciating the financials but can i ask you're looking at preserving space for

nonprofit and there's a point also have adapting to rising sea level and i know that's a cost to the city but if you get talked about the key priorities >> yes. what see happening in san francisco and in the bay area the demand for warehouse space it above the space particularly at the port where it's proven to be good homes for providers and nonprofits for cheaper rents so with the added pressures of people needing chair space in san francisco we want to make sure that didn't displace some of the other needs only nonprofit but the

distribution repair for the whole city i don't want to sound like this is an issue yet but we're mindful in making sure that our property didn't force nonprofits to have to move away. the sea level rise and the seawall itself the seawall stretches 4 and a half miles from fisherman's wharf to the ball park in mission bay this was built over 15 years ago but each renovation project we try to enhance the seawall in particular the area from howard street to washington street and the ferry building area protects a lot of private assets particularly the downtown but the public the muni and the bart tube and the sewer and water systems there are so it's a high

priority we're investigating the caliber of the seawall to withstand the elements and there are 4 departments mr. sharp in a unique study in mission bay and creek to see the nukes that can come up for flooding on the ground that is rolled into the creek. you'll hear more about it in the coming years with you but the budget provides the funds for the studies >> i know that rising sea level add to our budget significantly but i want to say only that pdr space i'm hoping that mission rock and the area allows companies like small businesses

as well i'm happy to say that are last year supervisor farrell and the economy tried to prioritize the elements in the - i want to see if you have responses on how the port handled social economic. >> we are mriltd a couple of projects to provide the retail slash restaurant space at 33 and a half we're about to issue a question the issue with the port the cost of entry are high because of the infrastructure costs if you come into put a new restaurant our converting a warehouse to bring it up to code so there's been 16 restaurants and most of them are on the

higher end, if you will, they're still separate we know the i don't have have a house medium or low end we have an opportunity to use some of the bond precedes to upgrade a facility in peer 43 and not look at the private sectors e sector we're putting that out as a pilot start up retail restaurant we're leaving it up to the proposers to see what they want to propose but partnering up maybe with some companies they have an opportunity to come syndrome the property if that workouts we'll have other proipdz to put our investments rather than the investment of

the developer the two lots you mentioned those are very much being planned in terms of the actualized but the port commission says there a has to think opportunity for the local enterprises and little mission rock, llc on lot 337 yesterday, i got permission from the port concussion to work on those types of things merging slough and, of course, keeping some of the smaller boat yards or smaller repair shops and things in our southern waterfront is something we're trying to do as well. >> thank you.

>> so then to quickly go over our expenditure trends our budget is growing over the years and the pie charts indicated the growth over o those two year period is related to salary and friendly benefits it includes 8 hundred thousands of for possession it is adjusting to citywide costs we're having work order growth it's growing so significantly by that approximately, $1 million and it passes on the costs we actually recover not setting them out and dock and use the short shore utility we have management costs

for example, peer 29 fire helps to drive that increase and the other extension weighing we're going were trying to create surplus revenue to receivers it for capital. regarding the staffing changes one the key priorities was to improve the efficiently and effectiveness of operations this issue is in our maintenance division one idea for improvement was to create a day and night shift for the crews to clean up the waterfront and put the traffic on the embarcadero we're trying to accommodate additional clear up requirements. the port is changing as well so adjusting to the complex environment and trying to build promote staff to cover the budget and debt mettle and capital planning.

protecting the revenues a new property manager is trying to bring the protocol up to closer to market trends to double the standard rate with an additional staffer so we see this as a highly valuable position and asset manager to help driving our at large strategies and give ideas for developing the property and the temporary salaries are meant to move the projects up in the waterfront like the giants and the pier 70 work and another important item is the ic strategic plan we have the funding to accommodate the requirements up to the point of the transitionedal services that is currently being planned.

and then additionally for our capital budget over the 12 years we've got 8 point plus million dollars allocated in the southern port wide areas of the waterfront. we'd like this number to grow someday if we want to maintain the waterfront and repair and replacement requirements they'll be closing to $23 million a year. and then additionally the budget includes the reallocation of funds $2.3 million of our participation we were award and approved by the board we were able to have the savings bringing some work in house and have the staff do it the supervisors approved last year

in our budget as well as ac/dc requirements and much of the work did address other b cd requirements on the line up and are required as part of the planning for the america's cup. finally i'm aware that another item on the agenda oh, sorry >> just real quick. mr. clerk call item 5 and item 10 then please. 5 to 10 >> 5 and 10. >> item 5 is the encouraging that the controllers that approved can be performed by a private contractor by the work of the city and county of san francisco for various surfaces and item 10 is the authorization of the san francisco to expend $3 million in grant fund if the

federal railroad administration ferry building of the lee track for a term of july 31st, 2016. >> to briefly touch upon the ports proposition we have two contract one for security and janitor the security contract we've spent $300,000 a year, however, we've used that and it could cost up to $6 million a year that is a savings of 9 hundred thousand it's a range between 5 and 9 hundred thousands of annual savings as detailed in the controllers report. we believe this result of contracting out the work there are 15 position city portions

that are forgone and for the jailbird contract 3 hundred thousdz thousand dollars a year and we've saved money and hired 6 cuss to tell employees. on that note fizzing >> colleagues, any questions for staff at this point. okay mr. rose to our report please. yes mr. chair and members of the committee on page 17 of our report rereport our recommended reductions for the port totals 735702 that are going on savings this is $60 million or 18 percent of the 2015- 2016 budget and it totals $600,000 plus all

ongoing savings my understanding the port concurs with the recommendations of the reduction are shown on packages 18 and 19 of our report we'll be happy to respond to questions >> colleagues, any questions for mr. rose at this point in time okay. i'm sorry please - okay. so colleagues, any other questions of staff or mr. rose >> so i'm sorry the controller's office should we move or propose those amendments or move on. >> monique from the controller's office you could move those items condition that the public hearing took place and you'll take final action at

the end of the precedes. >> okay with that colleagues have is a motion to - yes, a motion to accept the recommendations those are final upon the public comments. >> we'll take that without objection. thank you very much. and i want to talk about item 10 >> thank you megan waltzing the port of san francisco this item is to accept and extend a grant from the federal railroad association. so in summary in 2011, the port of san francisco was awarded a

$2.7 million grant from the federal railroad association from or to complete the tack t strange it came upon a match from the port we've budgeted 3 hundred and thirty millions in our capital budget in 2013-2014 and just for by way of a little bit of background it's the coke e connecting track that serves caltrain as well as any cargo freight that comes between the port and the rest of the peninsula. and the improvements to the track are really a requirement for the port to be able to expand on the cargo services. and really as a snapshot of the really the benefit of cargo to the port we budgeted approximately $5 million a year of revenue and we're trying to preserve this important piece of

our maritime element of our revenue in our budget. here's a snapshot of the street you see on the bottom reporter the long track is particularly and cuts over to third street bridge area and here's on image of our cargo facilities off the left is the heritage park and peers 96, 94 and 80 that is where we receive the ships for bulk and dry cargo that requires access to freight. i have a quick summary looeld leading up to the point we have a grant from the next step is board approval to move forward >> colleagues, any questions on this item item 10.

we don't have a budget analyst report >> actually, we put this report in the back of the ports bundle on page begins on page 20. of our report and on page 23 i'll note the matching funds references do 3 hundred and thirty thousand has been appropriated by board of supervisors in the ports 2013 budget we recommend you approve 2 this >> colleagues many questions at this point in time we're going to try to close out item there anyone who wishes to speak on the item? seeing none, public comment is closed. colleagues, can i have a motion to move to the full board >> we can do that without opposition. we're going to continue so members of the public we're going to after the airport

itself library and other go we're going to take the public comments so it wouldn't be conditional bending by the end of this meeting that will be final. thank you to the port. library okay library is up next >> thank you very much chairman farrell city librarian here it's my privilege to present this budget wept to talk about the key fy 2015- 2016 budget for the 2015- 2016 budget and the next budget is represents an increase

of 11 ftes from the current number of ftes at the 652 to 663 immediately other ftes for the following yes, sir. the key drivers are the emphasis on walking safety we want to toward the safe environment and the increases you see in the budget are driven by enhanced capacity the building of the proposals area we were e.r. we're looking at 3 additional custodians and officers. we're having the capacity to help our in house social workings and providing work order help for additional help in the area we are reviving in

technology whether web band we feel it's important for the library the roll it plays we have the corrections and enhancements we want to discuss the possibility of relocating the facilities requiring lease space for the operations that's built into the budget. let me move on to the key initiatives it begins with the expanded hours i can't help to say how proud we are in san francisco to have additional hours this month we've got 56 additional branch hours 19 of our branches are open 7 days a week. we're also looking at increasing hours at some of our key service points liking the library