>> motion's been approved. >> item six. [inaudibl [inaudible] [pledge of allegiance] >> item seven, announcements. please silence your electronic devices as well as for public comment. members of the public will have three minutes to make public comment on items on or -- not

listed on the agenda. i think item eight is public comment on items not on the agenda. >> is there any public comment on items not on the agenda? >> good evening, commissioners. my name is leo cassidy. we have a project at 680 illinois street, which is a restaurant, and we got it approved by the city and county of san francisco in 2016. and we were looking for an encroachment permit. we have a 15-foot sidewalk that we submitted to the port numerous times, to no avail. we're looking for your help today to give us some direction. the sidewalk is 15 feet wide. we're looking for 6 feet, and we want to have seating for the

restaurant on the outside. so that's the purpose for the meeting today. i'm one of the owners of the property, and james and joe are, as well. thank you so much. >> good afternoon, commissioners. my name is jonathan. also working with the group here. as leo mentioned, we've been working on this restaurant. we're quite excited it's at the final stage of completion. we're petitioning the city of san francisco of 5 feet of sidewalk for sidewalk dining in reference of the following points. the property manager who we've been in contact with has brought up construction as a potential issue with regards to approval of the said encroachment. we would like to bring up that it's in the final phases to be completed within a year. the main construction in this

area is due to the city -- the m.t.a., rather, having their mission bay loop project under construction. however, i have confirmed by e-mail just this morning that the said project's in fact to be completed this may and therefore, the majority of construction at this location should cease, and it should become a much more amenable section for sidewalk dining. a restaurant is proposed, however not feasible without the said sidewalk dining. therefore, it is critical that the port of san francisco approve this encroachment permit. the restaurant should be completed right around the same time frame as the completion of the park and therefore should coincide nicely with the termination of construction. there is very little retail connection between pier 70 and chase center at the moment. we are locate the ad 18th and illinois street and therefore

would create additional pedestrian activation in addition to the proposed park which should create a very nice synergy between the two uses. i would like to reference the port's strategy plan which states the following. the port's great diversity of uses draws more than 24 million people to the waterfront for many purposes. the richness and diversity of these experiences connected by generous public open spaces with stunning views of san francisco bay are what make the port a unique waterfront destination. therefore, i feel that this restaurant meets that goal. >> clerk: >> time. >> hi. thank you for hearing us, commissioners, today, we appreciate it. we've worked long and hard to get a restaurant going here, and i have from the planning department or the port, david

dupre in an e-mail in december said clearly, that i believe that the 15 feet that is built on the property line, i believe we could allow sidewalk dining. the restaurant will need a space to use the area for dining, which is what we're requesting. we don't want to lose this opportunity and we're concerned at this point because of the delays and the cost of the delays, the financial responsibility on the ownership of the restaurant is significant to the point that it may not happen, and it would be really a shame and a lost opportunity should this not happen especially across from what will become cranecopark in less than a year. even if we got permission to do outside restaurant seating, it's still going to coincide

with the time of the park and the restaurant across the street. all of these things take time, and we request that someone look into this just a little bit at the port allowing us to get that 5 feet or 6 feet of sidewalk dining. thank you very much. >> thank you. i know this is not on the agenda, and we cannot discuss it, but can we just direct -- >> absolutely. it sounds like they're requesting an administrative action, so we will look into it and report back how it's going. >> great. thank you. >> thank you. >> anymore public comment from items not on the agenda? seeing none, item nine, executive director's report. >> good afternoon, president branden, vice president adams.

the first item we have is commendation for peter daly on his retirement. he was our long time maritime director. he retired just last month after 31 years with the port. he worked under seven mayors and seven port directors, so he's seen a lot of change in the city and he's been absolutely vital to the portfolio we have today. he really ensured that fisherman's wharf will continue to be about the fishing community. when you go to fisherman's wharf, a lot of that don't associate that with peter daly, but it is part of his legacy. he wrote the first marketing cruise plan, and elevated cruising in san francisco to what it is today.

he was absolutely instrumental on the building of the james r. hermann cruise ship terminal at pier 27. he's been tasked with seeking new markets and opportunities in the southern waterfront. he worked to develop batching operations at pier 90-92 and the hansen bulk pier import terminal at pier 94, and he was a big part of the sustainable intermodal operations at the port yard. peter led the transitioning of our south beach harbors operation and staff to port management during a budget deficit and to a surplus. i had the opportunity to work with peter both as his colleague and his boss. among the things i admire about him are one, his commitment to business at the port, and the

commitment to the waterfront. two, his real understanding of what it takes to keep a working waterfront going. and three, his optimism and his kindness. peter believes in the potential of every single person he interacts with and he wants to see it through with every person. he led the port department with distinction such that every person will feel the experience of our working waterfront. peter, your work with will carry on. and of course peter's kindness. we will miss you. you've always had a kind comment to everyone having a bad day. i don't know where to send them day. peter is looking forward to sight seeing, traveling, and being a grandparent and enjoying life with his wonderful wife, jodi, who's here today. we wish you the best, peter, sincerely miss you, and you've

been a great part of our port community. congratulations on your retirement. [applause] >> is there any public comment on peter daly's retirement? >> port commissioners, elaine, peter, you -- you -- you were here when i first came to the port 15 years ago. you already had a long service with the port. you know, i've had a few moments in my career where i've really gotten the opportunity to work with you. and i just have to say your commitment to the core values of the port's mission, that maritime mission has been

unwaivering in everything you've done. there were times we'd look at pier 80, and the rest of us would wonder what's happening there? and you carried this torch. i think it's the force of your will that we have pacia at pier 80. two different plans for will america's cup -- for the america's cup, and one plan for the south. you had the vision for the cruise terminal at pier 27, and we got to work together to align those two things so that the america's cup really helped deliver that facility. that's another, you know, juewl on the waterfront. i have so much respect for your legacy on the waterfront and how you've dealt with everybody

at the port, how you've been a colleague, and you know, holding onto that vision. and so i just want to say i applaud you. [applause] >> hi, peter. i think brad really set the arc well, but having been here almost as long as you but not quite as long as you, i have an appreciation for the challenge that you've had to manage because the city has changed so much in the 31 years from where the port was, hidden behind a freeway, and able to kind of do its own thing and focus on its maritime business lines pretty much unfettered as compared to today, and the focus that it

takes to keep ten maritime and water dependent industries alive and strong, the public loves it. that's the mission that they recognize, even though they want these other things, too. but the hard work of orchestrating it and keeping it ai have been loo, i really appreciate all of your efforts and your heart. and i am so excited about what awaits you in this next chapter. while we're neighbors, i have a feeling i'm not going to see you too much because you're going to be traveling all over the world and spending it with grand babies.

[applause] >> byron rhett. i just wanted to mention i met peter 20 years ago, so when i was project manager for hunters point shipyard, i want to acknowledge his good judgment. i was trying to convince him have the port get involved in the cleanup and management cof the shipyard, and he said no. but in the last few years, i've worked with closely with peter, getting directly involved in the maritime division, and i've really enjoyed that relationship and learned so much about maritime operations at the port. i hope that even in retirement, he'll answer my phone calls and be able to support us as we move forward. thank you. [applause] >> commissioners, dan hodak

with the planning and fire department commission. figure it out now, solve it now, do it now. do you think you understand where i'm going with my interactions with peter? peter is a person of action. he's something that you take a problem to, he helps you work on it, you get direction on it to go forward, you solve it. it's been such a pleasure working with him on improvements on fisherman's wharf and particularly on the james r. hermann cruise terminal. i appreciate it. i've seen a lot happen under his direction. really appreciate it, peter, all you've done for the port. [applause] >> commissioner, i'm sorry, i'm not very often in front of the microphone, so i wrote something and say -- take this opportunity to say thank you to peter. what he done good job to me.

peter, i would like to take this opportunity to thank you. very supportive of me over the years. one day, you told me i hired you, i protect you, and i trust you. that trust, it really means a lot to me. i'm a chinese. i would like to use the chinese proverb. [speaking chinese language] [inaudible] >> -- a selecting silence.

over the years, through your support, you provided me very, very strong support in the maritime division, and where i can grow and i can learn and improve. and it's very sad that you're leaving us and very sad that you're retired. and you're going to be very missed. thank you for -- thank you. [applause] >> good afternoon. i'm kathrin with metro cruise services. pardon my not very good side here, but peter, i'd just like to thank you for being such a good friend to metro cruise services and so instrumental in our beautiful pier 27, and i hope that you come back and cruise out of our terminal so we get to see you again.

have a great retirement. thank you. [applause] >> president brandon, commissioners. jerry robel, director of maritime. so peter, i started being a part of peter's maritime department in the late '90's. prior to that, i had come to the port in 1993 and reported through the real estate division back when containers were king and the cruise business was sort of waning and the ship repair business was a conundrum. so i came in focused on the real estate side, looking at -- because ship repair was -- thought it was a ground lease, and cruise was out of

destination-retail more than a maritime thing. and then, there was some reorganization, and peter and i and jill and jeff were put together, and renee -- were put together as a marketing department, which is the first i really had an opportunity to work with peter and really understand and respect and value his creativity. peter always remarked to me that i was the lennon to his mccartney, and that we worked really well together when we collaborated. and i saw what he was saying, but many times, i thought well, everybody else might look at me as a stanley laurel to his oliver hardy. but still, we had fun, he was

creative. again, peter's legacy, he was at the helm of the maritime division for -- how many years? yeah, he's been with our port for 31 years, and a dedication to maritime, true dedication to maritime, and i think that was the spirit that buoyed the maritime division and gave us light in the darkest times. but peter's creativity that sparked me was i recall when the port was moving its offices from the ferry building to pier 1. peter was the first person i ever heard bring up the idea of well, we have to change all of the business package and all of the envelopes and all of the business cards, so why not change the logo. and that was the impetus of the

money that gave us the ability to hire a consultant and work as a time, four of us internally, dan hodak, myself, renee, and peter, and we came up with a logo that we still use to this day. it was a logo that broke the bo bondage, and it announced to the world that the port of san francisco was lovely, colorful, vibrant, and someplace you'd like to be. so peter, i'd like to thank you for putting up with me for so many years and also just being an inspiration and a true rock in the middle of a stormy sea. and i wish you well, and as mccartney would say, it's a long and winding road, yeah,

but lennon would say, it's not the end. [applause] >> commissioners, david bupret with planning and environment. i just want to take a moment to thank peter for his work. maybe some of the attributes that weren't mentioned was peter's great sense of human. no matter what, you'd stopping down in his office or be traveling with him, and he'd always keep things positive and in a very enjoyable way. so congratulations, peter, and enjoy retirement. >> my name is kathleen, and my organization was founded in 1849, and our legacy is that we put the telegraphs up on telegraph hill in order to communicate all the help's

rivals and -- ships' arrivals and departures since then. i've had the pleasure to work with peter for the last 31 years, and his professionalism and passion has fostered me professionally. i want to thank you, peter for all the things that you've brought to the table not only in support of the port of san francisco which we've heard has been unique and special, but also to the maritime industry as a whole. the port of san francisco is just one area of our larger bay region, and because of him, it's grown and been fostered by that. so thank you, peter, for all that you do. [applause] >> is there any other public comment? commissioner makras? >> congratulations on your retirement, and thank you for your service.

>> vice president adams? >> peter and jodi, i can say that you can't call a lot of people a friend, but peter daly is more than just a colleague here, he's a friend. peter is a true example of what a renaissance man here. when you think of 31 years at the port, seven mayors, six, seven port directors, he's been able to transform himself, and he's been able to change with the times. i've had the opportunity to travel to shanghai, and china, and the philippines. if you really want to learn the soul and core of a person, you see how they are with a family. i know how peter loves his wife, jodi, and his two sons.

i've been around peter. he balances his life, and peter lives that. he's very well respected throughout the maritime community, and people from all walks of life, they know peter. when we say we're going to lose peter, peter mentors young brandon and a lot of other people. as i said, frank sinatra said, i did it my way. peter is leaving on his own terms. i think everyone in this city owes peter a debt of gratitude. leadership is when you step up when everything goes wrong, and you see your way through it, and you're calm. peter has shown that. peter, i know you're going to enjoy your retirement, but i want to say personally as a friend, thank you so much for what you've done.

i know mike, your good friend, i know you guys went to the same school and your commitment to the community and san francisco is just overwhelming to me. you always put the port first, and in 31 years, it's always went fast. but now you and jodi deserve to go out and enjoy your life. thank you for having a vision and being bold and not afraid of change. peter, once again, this staff, port commission, we all owe you a debt of gratitude. you was a lightning rod between labor and the port, and you were comfortable at both sides of the table. you were able to bring labor and the port together. it's something that those people in washington, d.c. could learn something from.

thank you. [applause] >> my turn. peter, i have had an honor of knowing peter for over 21 years, and i just so admire his commitment and passion to maritime and to the port of san francisco. peter, jodi and i have travelled all over the world together. peter, our first trip was to mexico city and acapulco to sign the sister city agreement together, and the last trip was to valparaiso, chile. it was absolutely wonderful to spend time with you there. peter is so well respected by his peers, his colleagues, his employees. he is just such a wonderful advocate for the port of san francisco, and he is truly going to be missed. he has left so many legacies,

and i know that you probably tried to completely four or five different cruise terminals, but we actually did it, and it's beautiful, and we did it all by ourselves under your leadership. what a leg he see. so on behalf of this port commission, you have huge shoes to fill. the port director is going to have a road to climb to get to where you are as such a respected person in the maritime community. i do consider you and jodi friends, and i do hope you continue to come back and be a part of all that's happening on the waterfront because it started with you. so thank you so much. [applause] >> i think we have a plaque.

>> we'll take a picture. >> and then elaine will read t it. okay. it says in grateful appreciation for your leadership, loyalty and service, peter a. daly, maritime director, port of san francisco, august 1987 through january 2019. best wishes in your retirement -- what does that say? okay. [laughter] [inaudible] >> again. [laughter]

[inaudible] [applause] >> yeah. i'm amazed i knew that latin. but first of all, i want to thank the commissioners for the wonderful comments. commissioner makras, i haven't had had the chance to work with you, but good luck going forward. we've had some great times,

we've had representatives of the city and the port around the world. and i want to thank the commissioners. most of the people in this room are here because you're getting paid. you're not. you guys are giving something back to your opportunity for the time -- community for the time that you're volunteering your time. the port staff are so great and work so hard to better the port community and the city of san francisco. it's an amazing team to be a part of led by elaine who's just such a strong, wonderful boss. i'm going to miss you, elaine. i want to thank my wife, jodi, who's been so supportive of me over the years. since it's valentine's day, i love you, baby. i know you have a lot on your

agenda. i may stick around for the cannabis, but in closing, you know, i am proud of -- think about the cruise terminal that we all were part of. willie, you were on the first advisory committee back in the day with can stefano, kim, you were in on it. that we were able to pull it off, anything development wise is so difficult to do here, and now to see the success of our market share growing record levels of cruise ships on the waterfront. pier 80, i mean there are ships left and right down there with automobiles. since i'm not working with the port, i can say with teslas being imported to asia and europe with success. so in closing, i love all you

guys. thank you very much. fair winds and following seas. thank you. [applause] >> congratulations, peter. i would also like to introduce mr. randy quesada. randy, can you stand? randy is the new communications director replacing long-term employee renee martin. he comes to us with lots of experience. he worked for oewd and most recently for the department of homelessness before coming to the city to work in the communications role, he worked for ucsf. randy is a new yorker. he comes from washington heights, which he tells me it's so far east, it's not upper east side. we're very happy to have randy aboard. welcome, randy. [applause] >> continuing on the theme of great employees and contributions to the port, i

would like to announce our port team and employees of the year for 2018. they were honored in our eighth annual breakfast of champ i don't knows event. any employee can nominate, whether they're a insubordinate, peer, or supervisor of the individual. the employees of the year really represent port staff election. so the team of the year, they're actually in training today. they're not in the room, is the dive shot. mr. matt balbussa, ryan dunbar, drew mcewing and larry darington. so this team caught over 500 piles in zero visible using open blade underwater chain can y you -- chain saws, and they did

so without injuries. this project was estimated to take over a year to complete but was done in 30 days. this is the yslais creek pile removal and concrete removal project, and it's the largest project we've taken onto date. congratulations to the team. they're actually in a safety training today, but they're very deserving of the employee of the year award. in the training division, mr. joseph dominguez is the recipient. one example of his responsibilities is serving the pier 70 development area. in the executive division, we have kirsten suthey. she communicated the seawall to

our public stakeholders in new and very creative ways. the numbers she reached was just staggering, and she used easy words to communicate a complicated strategy to the community. thank you so much and congratulations on your win. in the maintenance division, the award went to tim felton. tim is our superintendent in the maintenance division, and he is known really department wide as a doer and problem solver. he is also very funny, but regardless of administrative hurdles, he gets everything done timely, and he's also very

dedicated to safety. he has an annual safety training that trains more than 100 employees, and he's helped delivered numerous safety projects. so congratulations to tim. also in the maintenance division is paul rodriguez, our laborer. he won the award because esease the hardest working laborer at the port, he does what he's asked, and he does it with a smile. so for all of our laborers at the port, they go unsung often, but really make a huge difference in the public's experience of our waterfront. in the maritime division, the award went to denise lum. she's another unsung hero until now. she keeps all the back of housework going for the maritime division. she serves as the captain for

combined charities, she did the transition to electronic time sheets, she serves as the secretary for the advisory committee, and she does all the administrative functions in administration and procurement, so congratulations to denise. in planning, the award went to kathrin purcell. she's very organized, extremely knowledgeable in environment, permitting and compliance. she owns her role and never drops the ball. so congratulations to her. and finally, on the real estate team, tina lee lam won the award. she is responsible for all insurance documents for our leases, and she's in between the keys and the compliance work. she makes sure that all the

paperwork is correct. she protects us from quite a bit of liability, and despite the stress, she does a great job and takes huge pride in her work. so if the port employees are in the room, if you could please stand -- i see a couple of folks. [applause] >> congratulations. and this saturday, february 16, pier 3031 will be the site of commissioning the u.s.s. tulsa. she is an independence class ship, i.c.s., and she will be assigned to squadron one in san diego after commissioning. tulsa is the 13 l.s.c. to be delivered to the navy. the commission has been commissioning shipped since 1875. in 1984, the navy started a tradition of commissioning

ships around coastal cities. the u.s.s. tulsa was named in 2015 after the second largest city in oklahoma. the former may of tulsa, the current mayor of tulsa will join our mayor for celebrations on saturday, the cruise will set sail on tuesday, and when you look at 3032, that is the tulsa. and finally, the department requests the meeting is closed in memory of peter mcgowan. mr. mcgowan was the driving force keeping the giants in the city when many teams were moving out to the suburbs, and his efforts preserved a huge hart of culture and identity in

the bay area. mr. mcgowan pursued his vision of creating a waterfront ballpark. port staff owe him a debt of gratitude. according to of avenstaff, he up the plan by privately financing the development, and in addition to championing the project, he also chose an excellent architectural team and devoted such attention to the ballpark that baseball fans love it, but the whole community is in love with the ballpark. in san francisco, this is an amazing achievement of its own, but we also recognize the gifts those efforts bestowed. the opening of the pac bell

park was an investment of itself. it's the first time that awakened people to the first time you could stroll down the waterfront and enjoy those views, and this has caught on. the ballpark was a major development in that vision, and i wish to conclude the meeting in his memory. that concludes my director's report. >> thank you. is there any comment on the director's report? seeing none -- >> clerk: item 9-b, port commissioner's report. >> commissioner makras? >> no report. >> i would just like to say that this morning, i had the opportunity to attend the city breakfast, and former commissioner rodney fong has been named c.e.o. of the san francisco chamber of commerce,

so i really would like to congratulate him. and then afterwards, there was -- commissioner makras and i attended the opening of brown sugar kitchen. everybody has to try it. it was so wonderful. the mayor came, and we did a ribbon cutting, and then, she served chicken and waffles, so it's great to have them here at the ferry building. thank you. >> clerk: okay. item 10-a, consent calendar. request approval for the port's five-year financial plan for fiscal year 2019 through 2020 -- or 2019 through 2020 through 2023-24. resolution 1904, as well as 10-b, request approval for the port's ten-year capital plan from fiscal year 2019 through

2020 and 2029 through 2035. >> is there any public on the consent calendar? seeing none, public comment is closed. all in favor? resolution has been approved. >> clerk: item 11-a, informational presentation on the weta's small watercraft feasibility study. >> david brandon, planning and environment. i'm here to introduce kevin connolly for the water emergency transit agency. i'm also joined by dominick marino from our maritime advisory. we sat on a technical committee providing guidance on weta's

small vessel study. since july, there's been significant process on both the mission bay ferry landing project where 100% design has been completed, and in the downtown ferry terminal where f and g are complete and are opened for operations as of february. weda is working on completing the plaza which should be significantly complete by the end of this year. with that, i'll turn it over to kevin. once he's done, both he, dominick and i are available for questions.

thank you. >> thank you. >> thank you, dave. it's a pleasure to be with you today. thank you for the invitation. i'm going to walk you through a little bit of a draft study conclusions that we've just completed, we presented to our board in january. we're going to do a two-step process with our board and present it next in march. in january, we were presenting it just as an information item. we appreciate your input, as well, so this is a great stop for us in our continuing partnership, as dave says. why did we enter into this? we entered into almost a year ago. our board chair appointed a committee of our bored of two members to work with staff and a consultant to look at some ideas about smaller vessels. we operate, as you know, larger ferry vessels. what we don't have are smaller vessels, and we've been

gravitating to larger and large he were boats to address the did he -- larger and larger boats to address the demand that we have. and infrastructure, how can we use our facilities that we are building today in a 24-hour type of system. and then finally, how can our smaller vessels, if we had smaller vessels, how can they work with the larger vessels to create a not-one-size-fits-all. so one thing that started the work is geography. we were looking at areas of low demand. like i said, we certainly have demand throughout the day. we have it late day, late night, but it's often not enough to fill up a

400-passenger boat. we look at real markets, but things like dredging become a significant obstacle that prevent us from doing something with our larger draft vessels. and in crowding, in terms of what we do today, we are leaving people behind. this afternoon, we will definitely leave people behind on our 5:15, our 5:20, our 5:30 trips. that's a daily occurrence. can our smaller boats be used to address that, on a band-aid solution. we have several projects that are in the works. we have a berkeley project, for example. could we introduce service to berkeley earlier than we normally would have using a small vessel that's a little bit more flexible. what is a small vessel?

it really ranges -- it can range from six passengers up to 140. it can be up to 100 tons. it can be anywhere from 35 to 65 feet, but we landed on a specific definition which is about 65 passengers. in the transit world, a 48 passenger boat is essentially a bus, except it costs ten times as much as a bus to operate. so what we did is said 75 passengers is the right size in terms of what we're trying to serve. it's more efficient than a 48, which is what's used by the private operators. we looked at our vessel service as a transit service in keeping with the current model. we also wanted to work within our existing network and infrastructure. so whenever we decided to operate with the small vessel had to be compatible with what we're building today out in the ferry building or in places

like, for example, richmond where we just opened a service. we don't think one model fits all here, and we could be looking at a potential turnkey type of vessel, which is what is difference than we operate today, where weda owns the vessel, and we provide the service. up on the top on the chart is sort of a comparison. on the left side is a conventional weda vessel. we average about 267 seats, versus a small vessel, which we assumed was 75. a small vessel is about half the cost of a larger vessel, and the cost per seat mile, in other words, the cost to move one seat per mile is less for a bigger vessel. but it really amounts to the demand, and we use one example

which is our harbor bay service, one of our lower end services. when you look at it there, and you do a head-do-head comparison, the larger vessels make sense, which it would cost about 10, 15 per passenger, than a smaller, which is 11.75. nevertheless, there is a break point where it says a smaller vessel is a better fit, and we have those fits all throughout our system. those led us to principles, and we had some capability with our existing facilities that i mentioned, that we took to have a fleet of these vessels -- look to have a fleet of these vessels. we also see that we can deliver these boats faster. our typical vessel takes over two years to deliver, from beginning to end. we see a small vessel as under

one year. maintaining ride quality's important to us. we don't see the small vessels as a viable option north of the golden gate any long distance. we want to have a public transit model. in other words, it has a fare, it has a clipper® card, it worked just like any other transit system out there. we look to enhance what we're doing already out there, because what we're doing is covering a significant level of the market. we want to provide some local service, so we're really trying to concentrate how we use these vessels on certain areas of demand. and then, there is the hud spare idea, when you look at a boat can be crewed and be ready

and be flexible. one of our biggest bug-a-boos is leaving a man behind, and this allows us to be more robust and flexible. there were ideas that we looked at. one is wenesbenicia to vallejo. oakland estuary service, this is east of our service area. again, there's great service there in terms of transit, and it would be a duplication of that. redwood city and places like antioch, martinez, these are long-distance travel markets, and we're not convinced that a small vessel handles that in terms of the ride quality that we expect and we think our passengers expect. so that narrowed us down to

some specific areas where we think small vessels are a great fit. and one is connecting san francisco to some of our existing facilities as far north as richmond, alameda, and oakland. we also have travel between places. for example, travel between oakland and south san francisco that we'd like to enhance more than we do today. a connecting service between the ferry and mission bay. boats would get on in the ferry building and be able to across the bay not just for events but for commute times. and treasure island, and we see treasure island based on the development table, which looks to be a slow ramp up to development maximum. small vessels are a nice fit because it can be added to the

service as the system grows there. and then, pilot projects, and this is the idea about testing markets and looking at new markets throughout the bay area. there's some things that we'd like to explore, but the cost of our infrastructure and the cost it takes to develop it limi limits what we can do. how that looks graphically is really a central focus on the bay area between the bay bridge and san francisco. san francisco waterfront locations were part of our study that we looked at. they may be longer lopg because we don't have the infrastructure yet. what this would cost is the

cost of a small boat, which would be about $3 million. we estimate about eight of them would compromise this system, which would be a total cost of $24 million. we would need somewhere to put them, and then finally operating wise, and an annual cost of about 13.5 million to operate these at a fairly robust level, and that could be introduced gradually as projects are ready for the system. so with that, our next steps, we are going to present some of these at the next board

meeting. we have a partnership with treasure island, or we hope we do. it's been moving around a lot, but we expect that with the -- that these would be a great fit for the treasure island service, and that leads us so some imp will -- to some implementation acts and costs. we're very high on the electric boats. they're lighter and smaller, and then, they can charge in a rapid way as opposed to larger boats, and to find some of those pilot projects that i mentioned for our board to kind of explore possibilities with new markets. so those are our next steps, and i can take any questions. >> thank you. >> thank you. >> david, is that it? is there any public comment on

this item in commissioner? commissioners, any questions? david? >> no questions. >> i think it's important just starting out. with the infrastructure in this city and the crowding, these smaller vessel, along with water taxis -- we have about eight to ten million people a year that use ferries and water taxis, and we need to take as many people on the roads as we can because it creates chaos on the embarcadero and around the city. i think we've got the third worst crowding in the world as far as infrastructure behind russia and l.a. and new york. what i like is those smaller vessels. they can accommodate than the big funs and are more -- ones and are more efficient and stuff like that. what do you see as far as how many we'll need, and as far as the city, we get about 30

million tourists to our great city a year. what do you think we're going to need to be sustainable? i think we have 30% of our people go to the giants game by ferry. what do you think we're going to need to stay ahead? sk >> yeah. i think that's a great question. i think our focus was on this effort was the next five years, so five years from now. we want to be really responsive and nimble to today's need. i think certainly, we can start with a fleet of eight vessels, and we have more needs than vessels there, and go from there, and i wouldn't be surprised to see us double that within those ten-year periods to get up to 20 vessels especially if they're responding to the market that you're talking about, san