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any announcements? >> yes mr. chair documents to be included. submitted to the clerk will appear on the may 12th. board of supervisor's agenda unless otherwise stated. >> thank you please call item number 1. >> for exclusive use in west

cargo video 632 on plot nine with annest maded 6.4 million to 31 -year options to extend. >> ks very much. >> first i would like to apoll scombriez for the confusion on these items last week thank you for continuing so i could be here today. the idem before you seeks your approval with a new 3 three-year lease for 50 thousand 3 hundred 19 square foot in the cargo building as well as related buildings on

plot nine for cargo services for operating sayss for sfo the proposed lease has three options to extend payable to the airport of 7.5 million $7.5 million of the entire lease term they approvaled a new agreement. in october of 2014 for 36 thousand and 12 square foot mense subsequently requested for the extended square faith of 50 thousand 3 hundred square feet before i today the budget annual lis recommends correction of the lease and the resolution we submit has a rent total that is not accurate if you should

approval this item today i will submit an amended resolution to the clerk with the reflected corrected term amount for 5 million 7 hundred 40 thousand 80 $5,740,080 for the term of the lease i will be happy to answer questions you may have. >> thanks i want to get your report by the way. >> mr. chairman super visor tang on page 3 of our report we report this resolution 7 hundred 5 million 86

$705,000,086 in rent for 15 thousand 9 square feet that is the over the 6 six-year lease term ending on april 30th , 2021, that table that on page 2 of our report as mrs. widener has stated we are recommending a correction be made for the amount of the rent we state that on page 5 of the report rerecommend that you proposed the resolution for the correctable rent to the airport of lease term ending april 30 , 2021. is 7 million 6 million 8 rather than 7 million 4037 we recommend you approve this

amendment add read. >> okay thank you anyone wish a gammopathy on item 1? seek no public comments close. supervisor tang? >> so i think this lease agreement makes sense and they're in agreement with the budget. so i make a motion to accept -- so take harvey's amendments and approve the resolution with a possible recommendation to the full board. >> we can take that without objection madame clerk call item 2.

>> between the body shop and the city for the boarding area acting body and airport condition following murder of the ing board approval. >> thannings welcome back mrs. wang. >> cathy widener with the san francisco airport seeks approval for the early termination with the lease with the body shop retro active to march first 2015 located in terminal three boreding area has has seen a 24% decrease in as pass engers boarding area e

in january of 2014 the body shop requested early termination of their lease which is set to expire in 2013 because of declining saleses and proposed payment of 196 $196 which is the equivalent of the lease's minimum guarantee rent amount the airports lease of the body shop carries the formula you see with our concession leases cricks is the minimum annual percentage rent

based on gross revenue whichever is bigger in this case the body shop paid on a rent basis their percentage never exceeded their guaranteed minimum amount of rent. the projected loss in revenues to the airport for this early termination is estimated approximately 71 $71,000 cricks is the difference between the rent 2 hundred 69 thousand and the termination fee proposed of 198 thousand. however airport

does not anticipate overall loss in revenue as we have lined up a replacement ten innocent that will come to you in the form of modification to the current lease of the hudson group you will see that in the couple weeks the budget analysis dots recommend approval i will go to questions . >> thank you why don't we go to your repo what really relats to

this ledgelation is the feed in program that's an offering we will set a price for purchase of power for renewable resources that are generated locally we will take any offers from the marketplace we will do that under a standard form contract that we intend to dlvl. those have been dlvled

already for our sister community choice segregation programs clean energy sanoma clean power. very successful way to tell the market what we're interested in terms of local regional construction. i included here the schedule and key milestones just for reference. let's talk then about what the proposed ledge sleazeive reforms currently the sfpuc has board supervisor vised approval to contract for power up to 5 five years using

a standardwe know that to the end tent we use standard form contracts for the products we're seeking to serve our customers with that will be the most cost effective way to bring power supply to our cca rent payers that's what we're

striving to do here. the proposal before you delegates the authority for pc to enter into contracts -- it should say 25 years 1 of my changes did

not get made there sorry 25 years in duration and ten million in it's another stand and form contract used within electric trig authorization to use standard contracts the electrical institute contract and other standard form contracts in order to have things like lit fit program i talked about earlier it also includes wavers section 3

authorizes the puc to use the pro forma standard contract up to 25 years and specifies those agreements individually cannot exceed 125 million dollars $125 million over the life of the contract or an aggregate all of them cannot exceed 5 million $5 million again those contracts the authorizations come with wavers. the additional limitation is we are only

allowed to use that authority when we are procuring renewable and green how gas free energy that is located within california. with that i'm happy to take any questions you may have? >> supervisor? >> thank you very much i understand the puc already uses some of these perform contracts i wanted to see if you could explain to us if we were not to approve this order yens what

would that mean for the puc and cc a. >> we only make contracts up to five years in duration which is sufficient for the services we offer today. under the cca program we would like to build a portfolio of supply so a mix of contracts that allow us us to have varying duration that will help mitigate the risk of when the contract the portfolio

supply when those expire we will not have them expiring at once and have a bad situation in the market we want varying duration so we're in the market at different times providing changes to our supply portfolio so we want to have some of the supply be greater than 5 five years duration we don't have authority to sign contracts greater than 5 five years

duration today. without going through the full board commission and board review process. >> so why are we nervous about going through that process? what we want to make sure we do is present to the marketplace and attractive opportunity for the marketplace to sell their power to us we want to make

sure that we are an authorized counterparty to make a commitment. we have a very short lead up time between now and when we will be serving customers even in the standard contracts there will be points that need to be negotiated and we need time for that. so we're looking at the most opt tom

opportunity for the cca program what we're lacking today is the ability to operate at a commercial speed and put it together as the most cost effective price point . >> thank you for that and the in term of the waver we're going to be including for example increase legislation by small micro lone businesses sweat free contracting you know those kinds of things those are

all ways you have included in some of your other standard contracts as well and there has been no issues with those. we do routine lie contract yulesing the western system contract pool standard form agreement today those kinds of wavers are in place for those contracts as soon as we start to add some of the standards to the contract proposals then our

counterparties are looking at terms they're not familiar with and they don't have authority to execute on they engage their atornnies sometimes they have to go to the board to get approval. we want to make sure we can set ourselves up to operate at a commercial speed at hit the launch target day in january with a cost effective supply. >> thank you very much. >> thanks very much. why don't we move to mr. rose's report and see if we have any

questions . >> mr. chairman and super survivor tang. on page 50 of the report we know the san francisco public utilities commission would enter into contract for renewable and greenhouse gas resources up to one 125 million which exceeds the board approval contracts exceeding te