under the current lease between the port and bae, bae has the obligation to maintain the drydocks andthey are operating in and maintaining it under the lease. we feel that this project falls within that rubric. additionally, we are under a very tight timeframe to get the work done and believe that bae, with its own workers and through this subcontract that they would have with eden, could deliver the project in time with the way that eir envisions. supervisor avalos: i imagine that the local ordinance come out when it comes to constructing the facility, the power generation would apply for residence working on the project? >> you know, i will have to consult with the city attorney on not one and see how we have treated that in the context of this ordinance. if i could after the presentation, i will take a break and talk to the city attorney about that issue supervisor avalos: the other issue -- about that issue. supervisor avalos: the other issue is around the maintenance and power generation at the facility. what other opportunities are there? >> on the construction site, bae is prop

sang-moon bae for par at 18 after he ran by his third a bit. so the four guys are in and there's not a lot of playoff success there when you look at the records. jim furyk has been involved in the most playoffs, but he's won three. the rest of the guys, obviously sang-moon bae, this is his first playoff. garrigus is 0 for 2 and luke donald is 0 for 2. any feelings as you look at this four-man playoff? >> well, i would think if robert garrigus or sang-moon bae can get the ball in the fairway at 18, i think they will have an advantage because they'll be playing a much shorter second shot up that hill. we saw garrigus hit a mammoth drive in regulation. the second shot was from about 120 yards, he was able to put a wedge in close and make a birdie. if it goes beyond 18 and it gets to the snake pit and 16, it could get interesting. >> this four-man playoff could have been bigger. it could have been six guys. as you take a look at some of the guys that missed the playoff, scott piercy posted a 62 more than four hours ago, but in the end that 12-under

sang-moon bae for par at 18 after he ran by his third a bit. so the four guys are in and there's not a lot of playoff success there when you look at the records. jim furyk has been involved in the most playoffs, but he's won three. the rest of the guys, obviously sang-moon bae, this is his first playoff. garrigus is 0 for 2 and luke donald is 0 for 2. any feelings as you look at this four-man playoff? >> well, i would think if robert garrigus or sang-moon bae can get the ball in the fairway at 18, i think they will have an advantage because they'll be playing a much shorter second shot up that hill. we saw garrigus hit a mammoth drive in regulation. the second shot was from about 120 yards, he was able to put a wedge in close and make a birdie. if it goes beyond 18 and it gets to the snake pit and 16, it could get interesting. >> this four-man playoff could have been bigger. it could have been six guys. as you take a look at some of the guys that missed the playoff, scott piercy posted a 62 more than four hours ago, but in the end that 12-under

under the proposal, bae will build the system. experience to help design the spec transformers that will need to be installed. bae will participate as well with some of their own staff. the cost of the system will not exceed $5.7 million. that would include $600,000 to remove transformers that are the ports responsibility under the bae lease that we have right now. and those transformers are well beyond thostheir useful life ana half to be handled in a very carefully during the disposal process. the port would fund the project. we will be coming back to the board of supervisors with a proposal to issue debt to fund the project, probably in late april. and we would, through the bae lease amendment, apply and equipment charge of four cents per kilowatt hour to pay off the cost of the equipment. that will not pay off the cost of the equipment within the remaining term of the bae lease. that is set to expire in 2017. we would have to construe the budget analyst recommendation carry over to a new lease for operating the shipyard. the p

the port contracted, in essence, with bae to do this work. bae performed admirably. got it in and got it done days before the first ship came in and connected, which was matthew perry. the matthew perry is still in dry dock there. it's been -- didn't get my update in terms of power usage, but it's been hundreds of thousands of kilowatt hours, the equivalent of a couple hundred household use of electricity. it's been a massive amount of power. this came about, in part -- in large part, due to the fact we had previously constructed shore side power at pier 27. and i wanted to just touch on that for a moment because with the exception of commissioner brandon, this port commission hasn't been here during that project. that started way back in 2006 when we applied for our grant, which came through from the air district in 2007. we subsequently applied for and received additional grant funding which resulted in a project with a budget of 5.2 million, where we had $4.2 million in grant funding. so, we got a $5 million project for $1 million out of pocket. we got that done o

>> here is an update on the bae. everything great, what's going on at bae which is a combination of policies and investments led by bae supported and participated in heavily by the port. they all just culminated, whether it's a banner year, we wanted to share that with all of you. and jay is going to make that presentation supported by jerry of our maritime division. and [speaker not understood]. so, congratulations to all of you. >> we'll make the presentation if we can contend with unfamiliar technology. i'm not -- i don't know -- yeah. >> [inaudible]. >> it's not that. >> [speaker not understood]. >> second. >> i haven't used this touch pad before. i'm jay ock in the maritime department. maritime regulatory and environmental affairs manager. this that capability i manage the port's dredging program and quality air program. i'm here to talk about the programs how they work at the shipyard and how they work together to promote not only environmental enhancements, particularly air quality enhancements here at the por

the port has really worked to maintain this relationship with bae. we think they are a good operator. should they decide not to renew with the port, we would go out to a competitive process. supervisor campos: thank you. president chiu: can we take a roll-call vote on this item? supervisor elsbernd: aye. supervisor farrell: aye. supervisor kim: aye. supervisor mar: aye. supervisor olague: aye. supervisor weiner: aye. supervisor avalos: aye. supervisor campos: aye. president chiu: aye. supervisor chu: aye. supervisor cohen: aye. >> there are 11 ayes. president chiu: the ordinance is passed on first reading. >> item 3, approving the bond proceeds issued to finance various projects at the north beach branch library. president chiu: same house, col. >> item 4, appropriate in approximately $6 million of the fund balance and general obligation bond proceeds interest earnings to the public library in fiscal year 2011-12. president chiu: same house, same call. >> item 5, resolution designating those agencies qualified to participate in the 2012 a joint fund-

we spoke with a general manager of bae systems. they were open and receptive to investigating it.bae, in fact, shared with us the facts and they liked the idea of the location being moved because they like the idea of a hand uninhibited access to their park where there is a lot of security, access issues. they thought the boat repair facility, which is not as intense as theirs but is compatible with ship repair and open space, would be a nice, transitional use. >> approximately how much do you think that would cost? >> i would love to get back to you on that. [laughter] >> if it is advantageous to bae, is there a chance they would help from that aspect of it? >> i would let them discuss it. noaa the complexities of their sight, the cost to maintain the structures that they have, it is something that we want to look at in terms of the long-term operations of that leasehold. depending on what the costs are, it might be something where we need to work with the operator to also determine what their long term plans are for the existing boat repair yard. if there is a need to relocate i

that's who owned bae systems at the moment. so you're changing the whole rationale of why you'd want to own the combined density. >> when you start to make those changes, then they're not necessarily sure that they want bae in their portfolio for those reasons, because they're looking to rotate them to other companies who can provide that certainty. >> one of the interesting athings is they said they want to diversify themselves. you don't want to company to do it for you. so they were saying we might like defense today. might not like it tomorrow. we don't want the company to change its strategy. >> clock is ticking. >> when push comes to shove, if we get the extension today, which is maybe the most likely thing, off in a couple weeks. do you think we'll have a deal agreed or not? what's your instinct? >> instinct says no at the moment. everything we're reading at the moment, from germany, from france, from what the uk government said, from some of the conservative mps have said, and especially what's going on in the u.s., we

meanwhile shares lower on bae as reaction from the street piles up. analysts at barclays have taken a dim view on both stocks recommending investors to take profit in bae. analysts say the spirit disagrees saying talks highlight the cheap valuation of the stock. some saying talks will dilute their attractiveness. companies would keep separate share listings in london and paris. >> a combination of the two would create a giant to rival boeing, but the ceo says he's not threatened about the possibility of a deal. >> the merger is not a done deal, it still requires approval from the ads board as well as the green light from antitrust authorities in france, germany, the uk and the bae largest customer, the united states. so where do we go from here? katherine boyle joins us, she's been writing about this online. a very good morning to you. let's talk about the impediments to something getting done. which is the biggest one in your opinion? >> well, i don't think you're going to see much political interference actually because i've heard from sources that

bae windows 7% and eads lost a lot more than 10%. strategically, the experts say it makes good sense in the market these days, but investors fear through the merger process they could lose financially. besides that, the big topic of the day was the u.s. central bank, the fed. the problem is the news of whether it would buy bonds in order to support the ailing u.s. economy in the labour market their was not out until the end of european trading, so there was a lot of reticence to do anything. the fed will be the topic of the day on friday. >> time to check out the closing numbers -- >> the blue-chip dax in germany was down on the day. a similar story for the eurostoxx 50. the dow jones has rallied by nearly 2% on the news. >> and the german foreign minister has welcomed the victory of pro-european parties in general elections in the netherlands. >> he says the result will help stabilize the euro. the vote strengthen the european union and called the election a setback for nationalist and populist forces. the politicians in the netherl

bae does not want to ruin that relationship. at the end of the day, the deal was always going to be problematic, given the sensitive nature of the industry. listen to this. >> defense manufacturers tend to be seen, even if the companies are privatized, as national assets. therefore governments are loath to agree to external ownership of companies that deal in defense. that's true for the u.k. government, the friend, the german, or the u.s. government, with which bae has very strong contacts. >> the deadline, 1600 gmt today for the british and european companies to decide. they either go with it or pull the plug. >> need to watch that one. >> thanks very much. british prime minister david cameron is a dire warning on the talent is faced by the u.k. in turbulent economic times. in his keynote speech in birmingham he reaffirmed his determination to stick to his plan of deficit-reduction. he says britain can no longer assume it will remain a major industrial nation. >> and as we showed determination and imagination, britain may not

it cited concerns the merger could backen bae's position in the united states. over the weekend, phillip hammond said it could veto any planned merger. hammond said the uk will block the deal if the french or german governments have too much of a controlling stake in the new firm. joining us for more is patricia in frankfurt. significant really, more likely to get done or more likely not? >> at the moment it seems that the stumbling blocks are more than we can do this attitude. that's for sure. what i find is the view from the go. and invesco. of course the whole merger deal is being shepherded towards getting through the regulatory environment, including also what the u.s. has to say once it is presented the shareholder participation especially by the governments from france and from germany. so they are being advised, eads is being advised, bae is being advised on you who it could be presented to the bigger shareholders and also the governments involved. so at the moment i think the talk is very hot. another two days for the first deadline the 10th of october

bae would pay an equipment charge of 4 cents per kilowatt hour used by the system. that cost would be passed through to the vessel owners that are taking advantage of ship repair services. that is the major source of payment. the p.u.c. was veryby 2017 to c5 million as a project to rebate. we envisioned that the m s cents per kilowatt hour will continue until all project costs are advertised. to the extent that that lease term as iranian and there is a need to continue paying back this project, then a sense would continue. the san francisco public utilities commission and would install utility-grade meter to measure the actual act. electricity use so we can pass around that force and charge. working met elaine, we estimate that the capital outlay for the project would be approximately six planform million dollars. that covers the capital cost, and debt service reserve, and a p the long-term debt solution is some months off. mayor lee and supervisor: have introduced a supplemental appropriation ordinance that the board of supervisors that would reappropriate some mon

i would like to speak from personal experience dealing with bae systems. i feel this is a good company. most people do not know about the project on the world, but i have to give them credit for past work in iraq. i also went to one of their facilities near mohave, california. they do act as a good neighbor there and elsewhere, so obviously, approving this project could only help the citizens of san francisco. so i think having them here is better than encouraging the company to send more workers back to michigan. thank you. supervisor chu: thank you. next speaker? given no other speakers, we will close public comment. do we have a motion to send this item forward? we have a motion by supervisor kim to send the item forward with recommendations. we can do that without objection. thank you. item seven please. >> should i read seven and eight together? supervisor chu: yes, please. >> items 7, ordinance adopted environmental findings with respect to the north beach branch library and approving the expenditure of bond proceeds of lease revenue bonds previously

to some extent chasing exports is business as usual for bae systems. but we have increased in three areas, middle east, latin, and far east. we've been looking at the brazilian naval market. middle east is still the center of expenditure and investment on defense equipment and we're seeing the far east, asia very interesting to us. that's across the defense piece and growingly on the security sector as well. northeast asia, our focus there particularly at the moment is things like f-16 upgrades, offering capability improvements to people like korea, i think that also has great promise for b a systems in the future. >> what are some of the other product sets that you guys are lacking at? knew typhoon is really important product for us. we're in discussions with oman. malaysia has a competition that's going to kick off very shortly. uae, a lot of other companies we're chasing. we're also seeing the saudi arabians committing to a new program. >> restarting manufacturing. >> that gives us a good base there to chase other export around the world. a lot of p

a good portion of that is union labor that's employed directly by bae. they also have subcontractors come in for specialized work. the white numbers on the columns represent the number of union workers showing up every day for each one of these jobs. so, we're looking at anywhere from 130 to 300 workers showing up every day because she's ships have come into the dry dock for work. and, so, basically we've invested, we've partnered with bae and both invested and we've created more jobs, more good union jobs here at the port of san francisco coming out of our maritime business. we've also increased port revenues through that. and equally importantly, we've cleaned up the ports there in the process. so, it's been a win all the way around, a three-way win. and with that, i'll take questions. >> [inaudible]. >> just a couple very quick, james wright. this is unique. working with the port of san francisco, i've been here five years now. i can't believe that. i've been here five years now. and working with the port of san francisco, the relationship that the sh

bae systems has a strong presence in the american market, whereas eads has never been as successful. for that reason, this could have been a missed opporunity. >> i would like to draw in our political correspondent. simon, there was suggestion the deal collapsed because of german objections. what was it the germans were not happy about? >> it seems that germany, like france, was unwilling to give up state influence over this important defense company, which is what bae systems wanted them to do in order to secure more access to that all-important american defense market. i think germany was also worried it might be left out of important developments in military technology. the german authorities think that germany's interests are best served if this franco- german company retains control of the whole chain from research through to production. there's also a report that germans had suggested moving the headquarters of the merged company to munich, which would have annoyed the other two companies. >> was that all that was blocking the deal from going ahead? >> in the and, you have to s

bae would pay an equipment charge of 4 cents per kilowatt hour used by

bae would pay an equipment charge of 4 cents per kilowatt hour used by the system. that cost would be passed through to the vessel owners that are taking advantage of ship repair services. that is the major source of payment. the p.u.c. was veryby 2017 to c5 million as a project to rebate. we envisioned that the m s cents per kilowatt hour will continue until all project costs are advertised. to the extent that that lease term as iranian and there is a need to continue paying back this project,

bae would pay an equipment charge of 4 cents per kilowatt hour used by the system. that cost would be passed through to the vessel owners that are taking advantage of that are taking advantage of ship repair services

the caltrans dam and the bae tunnel. the cow thecal res -- the cal res dam, we have completed 14 of the 16 additional borrowings that are required to further analyze these new geologic features that were discovered at the project site. the contractor has been very helpful in giving us sick access to those locations where the design engineers wanted us to drill new borings. but the analysis of the data that we are generating, as well as the design modifications that are needed to mitigate the potential slope and stability should be available by mid september. and then it will likely take a full two months to negotiate a change of this magnitude. only in late november or december will we know for sure the exact cost and schedule impact of that change. in the meantime, we are continuing on that contract work and making progress on a number of activities that are not on the critical path. obviously, we are very anxious to start excavation began on that slope of the abutment. and i'm working very closely with the design team

the first is related to bae. next wednesday, it will enter the port.ll be in dry dock for 55 days, employing over 200 shipyard workers and will generate between 80,100 thousand hours of labor. that is the equivalent of 38-48 jobs for a full year. with options to the value for repair will be 14.5 million, and that will generate additional rent to the port cough. the primary mission is to provide fuel, ammunition and dry and refrigerated storage to support needy at sea. this is the first ship of its class to undergo regular maintenance. there will board -- there will be more coming out for bid this year. the port dry dock is the only one on the west coast large enough to accommodate the size of the vessel. notably the collaboration effort with bae in the port to share the 1.5 million in dredging the base makes way for this. the central basin public waterway adjacent to the shipyard was previously not deep enough to allow ship access to the port dry dock. the dry dock investment, plus dredging has opened up new business for the ports and city of san franc

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bae opposes the use of the name airbus arguing it won't go over well with americans. what's in a name? it's tricky if you stick all the initials together. let us know what you think the alternative might be. >>> still to come, investors are still sweet on apple. orders have blown through expectations. bob... oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. ow save 50% on banners. [ male announcer ] introducing a reason to look twice. the entirely new lexus es and the first-ever es hybrid. this is the pursuit of perfection. >>> mitt romney doesn't back down following controversial comments secretly caught on tape. >>> and beijing has t