for the selection of the team we are going to have a panel of port and non-port staff in project-related profession disprince. it will be overseen by the port contract administrator and monitored for 14-b compliance. we will be apaiding the submitals. 55% written. those that rise to the top will be invited for interviews. and then we will have 45% waiting on the interview process. and then the top teams scoring on the written again will be invited to interview. the highest ranked team successfully negotiated with fees that can meet and address the needs of the scope will be recommended for approval by the port commission. the schedule that we are looking at is if we receive approval today issuing the r.f.p. in early january, having it due in mid february, having preproposal meetings, and ideally coming back to the commission in late march for authorizations. >> thank you. so moved. >> second. >> is there any public comment on this item. wow, you did a great job, david. you have answered everyone's questions. thank you. all in favor. >> aye. >> resolution 109 has been approved. >> item 8-

the port has established others. for example, we have one covering the chevron refinery in richmond, california. since the early 1990's, the foreign-trade zones board has approved over 90 sites. we have now been approached by valero energy corp. to set up a sub-zone so they can take advantage of the foreign-trade zone benefits for that location. james is visiting from houston. he is working with valero and representing valero today. he can answer any questions that you might have pertaining to a resolution. the united states remains dependent on imports of petroleum products, primarily crude oil. foreign-trade zone status will allow them to improve net margins and put them in a better position to retain jobs and compete with imports of petroleum products. the status will also allow the valero refinery to be better positioned to take advantage of exporting products that are produced in that zone in the future. also, it will allow them to better compete with other refineries that are set up. valero currently has eight

jeffrey bower, port leasing manager. i am here to ask your approval for the item as read by the commission secretary, which is a seven-year lease with andre -- ahn sometime ago andre-boudin bakeries approached the pors -- the port, and port staff has analyzed that proposal and determined that they do meet the criteria outlined in the 1993 retail leasing policy. in these discussions we developed lease 814, which offers a seven-year lease. during the period of the term, there is a six-month construction period where no rent is charged. they must start construction by march 1st, 2011. the initial base rent is the greater of either $8,007 .53 or 9% of gross sales, whichever is greater. there is an annual adjustment of 3.5%. and they can make investment in the amount of $335,000. andre-boudin bakeries is required to provide all completion performance and guarantees. an element in the current lease are the public bathrooms in fisherman's wharf, which have been in discussion for a long time. they are the only public bathroom fa

first, we have a new port commissioner. we have two commissioners leading the port commission. one of them is here. one of them unfortunately is not. commissioner shakofsky cannot be with us today. she's in southern california at a conference. however, we do want to acknowledge her time on the port commission. she was appointed to the commission by the mayor in 2007. her term expired this past summer. stephanie was elected vice president of the port commission in 2009. for her job, she's executive director of creative lands recycling, which is a not-for- profit organization. stephanie has over a decade of experience working with government agencies, communities, and municipalities. at her tenure at port, has been instrumental, especially in land reuse, and was very concerned about the health and over well- being of the port and its tenants. we thank her for her service and send her our best wishes. at some point, we do have a plaque -- we will send it to her in the future. thank you, commissioner shakofsky. next, we have a commendation for commissioner fong, who is sitting in t

many of these venues are in productive use for the port. there is a variety of free and did uses, such as parking, that happened on these facilities -- a variety of preemptive uses. what does it mean for the court to vacate these areas? if you look at that, there is approximately 46 tenants in these facilities. they currently bring $5.2 million to report annually, and much of that is from participation, rent, and parking, and is variable. if you look at the overall time of the race, which is generally from the end of 2011 to when racing concludes somewhere in 2013, we bracket those costs from those facilities of a rent loss of about $13.3 million, so these are the facilities that would be in use. especially if you look at table two, you will see that south of mission creep, which is essentially the industrial area of the port, has some very significant events to report right now. we are really -- just to step back, we are a very interesting mix port. we do not have a lot of cargo, but we have a number of maritime uses, whether they are supp

-- and a port financially. as he said, if you think this year was successful, wait until you next year. we plan to make next year's fleet week even more remarkable than it was this year. we could not have done it without you, monique. you gave us so much support. it takes teamwork. that is such a hackneyed phrase, but we had it this year. it will be even better next year. to my fellow board members, thank you. to the larger maritime community, thank you. it will be even better next year. thank you. commissioner brandon: thank you. [applause] >> i also wanted to thank general myatt and the fleet week committee. we felt that we were real partners with fisherman's wharf. we saw the results on fisherman's wharf. we look forward to working with you next year. we just want to thank you for your leadership and the leadership of the committee. thank you. [applause] commissioner brandon: is there any other public comment? go ahead. >> thank you, monique, brad, and the entire team that worked on this america's cup bid. t

after the port commission hearing in july, port staff presented schemes a and b to various schoirled groups. as a result, a third concept emerged, what we are now calling scheme b-2. the genesis is that both schemes included a minimally sized baggage area. that was a design compromise to reduce the overall construction cost despite it's adverse impact on operational efficiencies. for this minimally-sized baggage area to function adequately, the lay-down process would have to be divided into various cycles, which would increase the amount of time it takes to process the baggage. although the minimally sized baggage area would reduce up-front construction costs, it would result in an increase in operational costs and would have a negative -- we felt -- a negative impact on the passenger experience. for this reason, port staff asked the design team to evaluate the cost and the design impacts of providing an optimally sized baggage area, which turns out to be about 33,000 square feet. that would be consistent with cruise industry standards. b-2 has that. it would be consistent with the d

thank you. >> is this the right thing for the port and the future of the port? >> i believe that it is and i would like to elaborate. some very good questions asked so far. when we brought you the term sheet, this was characterized largely according to put way the team is accustomed to doing business. the deal before you looks a lot like the deals and that the city is accustomed to doing. i feel like we are sitting on an opportunity not just to take several of our assets for which we currently have no plan and get them accelerated into an entity which is well capitalized, has the resources, to not only use those assets but also do this in the next couple of years. it is amazing to hear about fund raising for the ports. i think that 30 million is too low but we will call that his practice run. we are having a conversation about pork real estate. the waterfront property is unequivocal in this world. the people in the families who work in this buildings and those generations that have lost their lives delivering maritime businesses are now third generations restaur

existing port tenants. that is a large number of tenants. most of the tennis but not all or are under short-term leases. we would endeavor to do our best to try to identify other properties or to try to get those tenants in touch with commercial real estate brokers to find other similar property. >> what types of tenants are we talking about? >> most of these peers are warehouses. so, they are looked largely fenced in storage areas. there are some office tenants that have some longer-term leases with the port. >> to we have an estimate on how many jobs we are talking about? >> no, we don't have that number for you today but we would be happy to get that between now and the board of supervisors consideration. >> that would be great. i don't think it has really been discussed as a job loss that could have happened, this is as a result of the changes in the leases. i think that having the information would be very worthwhile. >> to 28 has been talked about for these many months. the ports staff will be going o

we have the port director. >> good morning, supervisors. you answered a lot of the question that i wanted to ask about rodney. one of them was, when i first got word that he would be nominated to the planning commission, i did not take it very well. the truth is, there are probably only two bodies where i would be willing to see my lovely boss. one is with all of you, and the other is with planning commission. i do want to point out, as much as i would have it differently, president fong's presidency at the port commission, it is only two more meetings, and then he will not be able to continue in that position regardless. i am ready to bear that. i want to speak to his character. we have seen a lot of commissioners over the years. he has to be one of the most dedicated and committed. his attendance is exemplary. more importantly, his dedication to the public process is fantastic. his help, the board has become far more transparent to the general public. he has given the public a great plot form for access, and frankly, dispute. we have lots

thank you for making time for us for a special meeting, and good morning to port staff.ood turnout of staff and tenants and members of the public. it is heartwarming to see all of you here. we have extra overflow chairs outside. this back i'll have to be cleared for the fire marshals, so i hope you will honor that. do not worry, when it is your turn to speak, there is time to speak. you can easily come to the podium, and we will make sure you can be heard. thank you for the fantastic turnout. sorry for the inconvenience. if i can ask the back row to set out side, that would be fantastic. i have a couple of non-agenda items to discuss which are equally meritorious and important to us, and the first is to congratulate the san francisco giants on their world series win. [applause] many of you have heard me say this before, but it bears repeating -- we have the most amazing october here at the port of san francisco. we started off with an incredible fleet week, and then we moved into our shoreside power inauguration, and then into the exploratory mortar breaking ceremony and

-- between the controller and the port to cover some of these costs. we have submitted a draft for review. we would hope to get that introduced to the board on monday and have it in your offices beforehand to review. essentially, the proposal would be that we would look at the rand the port would have received from the site if there were no america's cup. we would subtract any rent the port will be due from tenants that are relocated from the new sites -- supervisor mirkarimi: can you try to speak into the microphone? >> sorry about that. we would subtract from the rent that we would have received, any that we continue to receive from tenants who were relocated. and then we would subtract our increases in percentage rent. we do expect to see an increase in purchase a patient from restaurants at our retail sites and parking operators as a result from the america's cup, and that will be a transfer to the city funds. by preserving that revenue stream, we are confident that the market will understand that the court is still a good credit. we estimate that

the port process included three community meetings. one in june 2009, one in october 2009, and 1-april 2010. the first meeting was a review in the community of all the regulatory agencies that play a part in overseeing the operations at the darling facility. they included the us epa for oil said it -- oil storage. they included the quality district. the department of public health for hazardous materials issues. the san francisco puc, and each of those agencies spoke and presented the kinds of issues that they address when they provide that kind of environmental regulatory oversight. once that was done, some other community issues were raised. the most important one was some concerns about public health risks associated with exposure to odorous emissions from the plant. so we left and prepare for the second meeting with that in mind, that we came back and at the second meeting address fire safety and planning issues, address building permit process issues, and the port came back with a consultant who is a specialist in odor emissions,

ports-. they have been through this process and of with the ferry building, the ball park, and there is a desire to see some of the pier removed. we expect to negotiate those public improvements as part of the negotiation process. we have also required that a long-term lease it year would be subject to an administrative approval so that this is consistent with the public trust. we will insist and the normal process. there is a very specific plan on how we would see this. there has been a permit issued. we have a great new open space. this is a lot that is -- and his removed the trust use restrictions. we estimate the land value at 33 million. >> did the port commission feel like they were getting a fair value? >> under the proposed a host city agreement -- >> under the waterfront agreement. >> we view of the sea wall lot as one of the primary ways that the poor will get paid. -- the port will get paid. >> what will the dog you be? >> we estimate the lands of you at $33 million. we would come

>> the port is a very nontraditional port. when you think of most ports, they are cargo facilities. the port of santa cisco has limited cargo, but it is very diverse. -- the port of san francisco has limited cargo, but it is very diverse, fishing industry, tugboats, ship repair, cargo, and a couple of others. as we redevelop the waterfront, we are integrating all of those individual uses into new development. you mentioned one and a half, the boat dock. we are working on a terminal facility, pier 27, always looking to integrate those in. unfortunately, those all need money, so we have to look at revenue-generating sources. >> are you limit it to maritime uses? >> there are other uses. we are state land, not city property. the state land has a lot of uses. the office has to be maritime- related, unless it is an historic building. our facilities have to be for the people of the state of california. they have to enhance that visit there. they're not local surfing. we cannot do any residential on the waterfront and we cannot do any hotels over the waterfront. there is property on the em