12 dollars a passenger to 18 dollars a passenger to help pay for the terminal and the cruise lines, they dopet like it but understood. they see the facility and they get it. but wree competitive market. san diego charges 6 or 7 dollars for a passenger on and off the ships. the [inaudible] cost are high. we are is good labor and they do a good job, but the cost are high >> your question of revenue going forward, i think you make a very good point, which i want to come back to. if you look on the table of page 5 of the staff report, if you look at the revenue debt suchbs, historically the port managed the cruise business to cover expenses and break even covering expenses not capital investment so we are

doing that and then some as you can see. historically we would consider this a banner year. when the decision was made to proceed with this project initially, it was-we did not anticipate that we would be able to cover that service but as time evolved we became more and more convinced with the raising of the passenger facility fee and the ability to include parking and other revenue sources we can get there or close to there. historically speaking this was a banner year for us. it wasn't all the way there but going forward we have every opportunity to get there so thank you for making that point. >> thank you. >> with this wonderful revenues can we talk a little about the local business? >> absolutely. metro if you

recall or pcst put together a robust lbe outreach program and in your pact there are the listings of the companies that they have employed register lbe's they employed to date. part of their responsibility is to report to us. their progress as the year goes on and we'll continue to monitor it. >> okay, and i really appreciate the list but what type of business are they doing? >> the company-the largest one so far is the company that does all the janitorial for the entire location of the premises is a lbe. there are photographic companies that a lbe. i don't have my notes in front of me . marketing brand service and special event services

and niece there wruns hired directly by pcst. the managet of pcst said also what they don't get credit for is when the vendors come in for special events. they are not technically paid by pcst. there probably is large amount of lbe's employed by companies not directly involve would metro con tract wale. specialties event service janitorial, photography, market and brand are the 4 companies listed >> hopefully going forward we can list dollars or percentage of revenue and get a feeling what they are actually doing as a local business? >> absolutely >> the dredging cost and i think i heard the dredging cost is increase today all most double because of the

[inaudible] >> correct >> [inaudible] they couldn't meet the lbe goal because there was no upland or [inaudible] >> what is upland or contaminated soil-i get what you are saying- >> [inaudible] >> it wasn't trucking it was barge-trucking would be the will ask be opportunity and the mode to which they got rid of the [inaudible] didn't require trucks, it required barge >> how did they get the soil to the barge? >> they scoop it to the barge and-wetlands resteration. contaminated soil it is like lb [inaudible] so water front [inaudible] they get

contaminated soils in ocean containers and the truckers take them to railroad and they go to special sites. i believe that is the nuance you are referring to. >> it is a nuance. thank you. >> thank you >> good report peter. i'll really glad commissioner woo wanted-spoken with the commissionism i'm glad that san francisco's police department finest is there now. i ink the it is better for safety and things are running more flewed and i'm glad about that. i think you said something about a certain part of the dock. i believe safety-people walk around and have to be careful especially the ships and know [inaudible] with metro and his crew have to be careful because we don't

want anyone to get hurt at the terminal. it is a funny thing when things go good we hear about them and when we hear about them director [inaudible] gets all the abuse but had she gets all the nasty letters but that is okay. i think the thing just opened up and it takes time, but i go down quite often and encourage my xhrgzs to go down. i show up there all the time. i was down there recently with peter and [inaudible] i had [inaudible] from maritime ofa strilia and he said this is a burfl terminal. he said i tell you something, you would never ever other than san francisco get a cruise terminal named after a union leader. nothing like this would happen in australia. we walked with peter and gave a tour and there was a private event going on. i think that is good and slowly building the

business and appreciate what you are doing. i think it takes time but the name and recognition is catching on. people realize we vajewel here on the water front. i kind of give it my mind 5 years. the first couple years i give it a wash. i want to know where we will be at in 5 year squz thipg we are going to be amazed and astonished because if we have 27 million in san francisco think of where we will be in 5 years the way the sitee is growing and the people going in and out and how that terminal is catching on and just by peter entertaining a vise prenddant from carnville and he says this is the finest terminal in north america, that is good for a terminalinate open a year. that is a guy that knows the business and someone like that puts their stamp on it a guy like that knows what he is talking about. i have one other thing, kevin i

want you to come up. this is kevin wong terminal from metro and i'll make kevin get up here and take the mic and state his name. he wore a suit too . kevin would you give the commission-there were dealathize iow and metro had to work out but you worked through things and we learn as woe go along but can you tell the commission where we started and where we are at and where you see we are going and the progress? >> my name is kevin wong, the [inaudible] pier 27 and you know it is a good relation withship [inaudible] we work as a team and have a goal. we want to get the ships in on time and out on time and

with good comments from passengers and crew and anyone coming to the port. it is a lot of work with mr. adams and ilw leadership at the hall. we greatly appreciate it and are here because of them and want to make sure they keep coming. it is a great product we offer them with customer serve and performance goes a long way. thank you for your help and guideants for making that a success. >> one other thing kevin, is this kind of new and maybe i should [inaudible] having a cruise ship come in and stay for a week like sales force-is this saying our city has so much traffic that there is a shortage of hotel rooms in the city and show this may be the thing we may be seeing? i understand other cities across the country and i think commissioner

[inaudible] raise td one time, but i want to know is this a phenomena we may see where a big company says i know microsoft and bill gates use today do it inciateal, but is this something we may see more of because of the lack of hotel rooms in the city? this is a good problem to have but when to knee if we hay see more of this >> lookic from the marine side you place a vessel there for saerfb days you have the best view in the city. the nob nub on what pier 27 has that is 12 decks high. having pier 27 as far as a event venue and what it can offer the silicon vamy business sales force, hp, once they get out and hold a conference like this they will be-i feel comfortable

with them bringing more ships in for hotel useage and think it is a great thing. >> commissioner, it is a real shot in the arm, we need to be cognisant of torism in san francisco leading industry and we need to be working with the hotel counsel and sf travel and other local organizations to make sure ever adis on board. not everybody likes it because it is caump titian bit if it is done correctly everyone can benefit. if there are no hotels available we can take advantage of this opportunity >> i think i talked to director more that the san francisco labor counsel had a problem and i just talked with you this morning of that, they thought it was cutting down on the hotel room jz worried about the crew not being paid well, not being treated so you may

hear something. i talked to tim pullson and directed him to director more so just know that may be coming. one other things, what doee look like as far as having a port commission meeting? i think we need a port commission meeting at the new cruise terminal. i'm on board with that. >> 35 thousand dollars. no, i'm joking. >> okay commissioner woo take care of it >> i haight to tell you i talked to president [inaudible] and [inaudible] chris want today talk about what was going on down there but public comment is closed so sorry about that >> i try today call on you >> if i may i wanted to thank the port staff by name, elaine who is invaluable in putting these numbers together. marilyn

wong, the maritime administrative manager is a god sent. john davey, people don't realize how much work he has done to make this terminal a success. last but not least diniece turner who has seen the and mike nurny goes to all these meetings. he shakes hands and they know him by name and he is identified with san francisco so it is a team effort and we are have a lot of work to do but i want to call them out. >> i have a couple comment and think commissioner woo hoohas one more. >> now that i had a mbt to reflect on some of the answers that you have provided us from the various speakers and i look at the 5 year projection, so i guess elaine and i will think up on this one. it looks like

the key variable here if we want to get to a positive cash flow i look at the net revenue loss line rather than cash flow because that is how we record. the key variable is that event can go up and dredging can come down. we can then break even on cash and that should be the objective. i do notice the dredging cost over the next few years is flat so i don't know if that is realistic and the challenge is >> student figure how to get the dredging cost down, the event revenue up and hopefully have positive cash flow after debt service that is the win fl day >> elaine ford deputy director of finance and administration. as you stated you summarized it perfectly, the one thing i would add is the first

priority is keep cruise strong and going. as you know cruise is the revenue leader in this facilities. [inaudible] the economics align with our mission in the business because cruise brings more revenue and then special event and parking. the next after cruise is to use as many available days as possible that the terminal is not cruised for cruse ships to book special events and the projection see a 58 percent utilization rate and assume the operator can get there over time and it does take years to build both in getting those advanced bookings and also for our event operator to understand the conflict in the schedule because both have similar high event seasons. the projections show they managed to bring in higher utilization of special events starting next fiscal year and our numbers

for 15/16 conferm what you just heard. we don't assume any reduction in dredging. we showed how we think we can get dredging cost down but we haven't yet gone through the competitive process or done or due diligence bring it in house so don't have enough information today to bring down e numbers. we show what dredging will cost if we don't use our strategies to reduce the cost. marilyn and me worked hard on the numbers and didn't feel comfort showing a reduction in dredging- >> i understand that, in fact, i'm wuied if we continue the way we are the cost will go up the way we have been operating dredging so we do want to look at way tooz increase or decrease or make sure these numbers don't increase. i understand it is a rirfck that we have. where totally agree on the cruise ship

that is the first priority but it seems we had the most flexibility on the revenue. what i heard from our partners there is the eevent line may be bert than what you have projected? >> they are talking about our revenue and our revenue is 50 percent of that >> okay, well even that, he said a million and a half, i see 596 >> more room >> more room. i will always be pushing. i think the idea is we get to a break even on the bottom. if we cover the debt service we really made this proposition >> it would be a home run >> can i ask why the passenger fees are potentially going down rather than up? >> yes, i can. the passenger fees you are

referencing from the 20s 16, 17 to 17, 18, these raconservative numbers and the earlier ones represent the hotel ship we have for dream force, we have one this year and one next year and that is about a 250 thousand dollars up tick. we haven't gotten bookings for that in subsequent years so wean didn't count our chickens before they were hatched >> do we anticipate cruise cost will go up? >> absolutely. they are-it is a sick lickal business and impacted by macroeconomic events on the world stage. i think sustain gruth is what i have been telling people. as we hear from the people that visit the terminal the market we see in transit calls, people get off the ship and don't have to take a bus. they rin the middle of main street when they

come off the vessel. we are very up beat in terms of our projections >> thank you >> i want to remind my fellow commissioners we are into this project over wn00 million dollars so no time to have cold feet now. we have togo forward and see it through. we have tobe strong and support the staff. i understand commissioner woo hoohas to make money, hang on for the ride >> thank you. i have a few comments and possibly ways of looking at more money. first i want to thank met roand [inaudible] and we had hick ups but want to thank iow because without the work of iowu the theerns of our passengers coming through would not be as stellar as it sounds it has become so

appreciate everyone working on that and metro as well. i had 2 questions, one peter you mentioned when we had traffic problems that was primeally because of ride share companies or was it taxi's too? >> it was taxi and people dropping off at the cruise terminal and they were stuck in traffic and dintd want to turn right into it gta so they pulled into bike lane blocking the traffic getting the bags out of the car and once one person did that everyone did it so we went to one lane of traffic. we had curbs that are easy to do that and it is no where near as easy now and [inaudible] are vicious when you try to do that >> on that front you mengdsed sfpd, we have 7 officers out there when we have a cruise and my

understanding is iowu controls sort of from the side walk in and sfpd is the side walk to the street. a couple comments on cost savings. perhaps given the amount of revenue the cruise ships generate for the city and tax base, maybe we can look into having a little more help on those increased cost now for sfpd on that side of things and looking at perhaps more parking control officer rather than police officers my guess that is more expensive per day. those are [inaudible] >> police officers are 10 b so they are not dispatched by the police department, they are called up throathe overtime program >> so maybe there is a way we can look into changing some of the numbers >> yeah, we are trying that. it is interesting flux with what else may be going on in

the sate where parking patrol officererize dispatched. if there are events at the bal or else where it is harder to come to the parking patrol officers and it is worth the expense to have some coverage. it is a fine line and both departments are short staffed so we continue to explore it. did you lose that? >> many can you look at commissioner [inaudible] something happened to her mic. >> no buzzing, i think maybe that fixed it. it seems as i said regardless of if we use pco or sfpd perhaps the city may be more generous given that we are also covering the cost of the cruise ship terminal and so much is going to the city

>> are you a former member of the board of supervisors? [inaudible] >> i used to raid the [inaudible] >> exactly, we'll do our best commissioner. >> i had a couple questions, one with ford now having the facilities for 5 days i understand that meanatize is roughly 7 days there isn't a single cruise ship coming in the summer time? >> yes, it is good question. we have a during the-there are 2 buzzy seasons spring and fall mainly ships going up and down from alaska and now summer we have goldsen princess here which comes every 10 days. in july and august we see a ship every 10 days but septand october it is like a ship every day, and that is i wanted to know

how we manage to get those 5 days in there. and then there chs reference to the sales force hotel, so i'm not sure how they-it looks like you said they were charged passenger fees is that how we charge them and is that the highest revenue and are they also renting the space for their events too or how does it work? can we also charge for event space given they are probably using the-- >> the port has a special iletm in tariff that when you pay the 18 dollars for passenger you get 24 hours of-is it 24 hours? 48 hours for 18 dollars. every day after that is another 18 dollars so the number-mike has done an analysis-we have increased our fees significantly for the hotel

ship and he did a evaluation as to what our fees would be compare today the hotel tax as a comparison and >> to be clear they are paying dockage and passenger facility fee, they are not paying a rent? it is unger the tariff and federal shipping act they cannot be assessed local taxes? >> that gets ingress and egress to the terminal but special events to the terminal, 35 thousand dollars >> they are looking at special events else where that also happen to be on our property? >> another way of rephrasing the question is i know we charge them their passenger fee but is there a aupsh given it isn't the same type of requirement for customs that we could also conceivebly use as event

space and charge separately for the use of event space? >> by a different company or same company? >> by the same company >> yes, by all means, and it isn't like we are giving the facility >> they may to get off the ship. any special event they charge a surplus that we get 50 percent of >> it behooves sales force to rent out the facilities so they can role up the [inaudible] >> parkingiocan charge for, wifi, you can charge for a variety of things we get a piece of . >> one spinge question, i herds there is a little bit of reaction with respect to the cruise ships coming and using the shore power, have we heard feedback on that? how successful has that been and-

>> successful, the golden princesis which is home ported-generally the golden princess which is here 52 times a year is fully shore power plug in every time they come here. i think generally i don't want have the data but high success rate in terms of plugging in. any shape that is capeuble of plugging in he are reedy to go, >> in termoffs the cost with dredging, i know given there are so many discussions about how to address sea level rise it seems to me that perhaps there may be opportunities available for some of that dredging material. for example, i think it was hunters point or the ship yard said that surprisingly they hadn't really planned to address sea level rise in the

earlier iteration but because they put so much fill to cover the toxic site they addressed sea level rise by building up the site there. if it isn't that we have toxic site at pier saevl 0 or mission rock, but maybe there is opportunities for the dredging material to go to those sites to help them build up and be that much better prepared for rising sea level. >> that is a good question. our conceltant is looking like that. something like that happened in oakland [inaudible] they took the spoil and put it on the golf course and raise td about 50 feet. it is something we'll look at in our aungzs going forward >> thank you all very much and appreciate the report. it is my mic that is making

the--next item >> iletm 10, new business. >> did you want to-were you about to say anything? >> no i was going to invite you to say something. new business from the commissioners? >> and guess i did have one topic and we read in the newspaper about the giants havingnished with the board of supervisors and others regarding mission rock and i think that the commission should hear what that impacts >> we have that our new business list as well. >> whether it should be closed or open session. i leave it up to your discession dependent on the impact for us to understand >> exactly. seeing no

other-commissioner adam jz y would it be prept to send questions it you and peter daily about chevron? this item was held and coming up and i have questions about chevron >> yes, you can send them to-within thing we have to be clear on is rowel on that simply as a regulator but you can have a off line conversation on that more. i understand there was comment about it >> okay, thank you. >> i don't know there is much we can do, but happy to talk more >> okay, thank you >> i think you have a [inaudible] he said he does chb want to. is there any other public comment? >> i wid do it. >> director [inaudible] do you have comments >> yes,