the revised total budget to the port is estimated at $90.3 million. this does not include the event authorities obligation for demolition and to relocate shoreside power. separated into two phases, phase one is estimated at $58.2 million. the court will have funding for that amount, which we will describe momentarily. phase two costs are estimated at $32 million. at this point i would like to handed over to the port finance director to talk about funding sources. >> thank you. to reiterate what john has already described, $58.2 million, these sources " -- total 20.2 uses that meets the shortfall of $12 million. for phase one, the large majority of sources were at 87%. including sales from the water mark, land parcels at $20 million, revenue that we have issued in 2010 with interest earnings, planned future debt that we have been planning on since the last issuance of the construction phase of the project. also, we are proposing to repurchase the debt from the 2010 sale from the dock clearance project. we are also allocating our work order budget for th

special projects manager with the port. i want to introduce this item by introducing the senior planner with the bay conservation and development commission. we have been working with bcdc staff on this project for about nine months. i would say that we are at the midpoint in this project. i want to start my presentation by giving you some history. we're here to talk about the special area plan for the san francisco waterfront. most people are not aware, but the special area plan is really the companion document to the waterfront land use plan. without the special area plan, much of the great adoptive reuse we're seeing on the waterfront could not go forward. i do not know how well you can see this slide, but as you all know, the waterfront land use plan was adopted in 1997 unanimously by the port commission, and conforming amendments to the waterfront land use for the nets were adopted unanimously by the board of supervisors. but the special area plan lagged adoption of the waterfront land use plan and specifically the prob

the port lives and dies by the revenue it generates on the port property. >> how is the ferry building doing in terms of creating revenue? >> it has been phenomenally successful. we are fully leased. the active merchants are incredibly happy to be part of the vibrant community. >> this is one of the most see places in san francisco. anybody who comes here from out of town, you have to walk through the ferry building. >> there are a lot of visitors here. definitely a lot of locals, too, who feel strongly about the connection to the marketplace. >> you were mentioning that this is pierre -- pier 14. >> first, it was a brick water for the downtown ferry terminal, constructed in 2001. after that, we added public access on top of it and connected it to the land side. now is eight 637-foot-long public access pier to enjoy the day, watched the very activity. there is a little bit of art on top of it. there are swivel chairs on a it and there are little sea >> can you t about proposition a that may affect this waterfront parks -- that may affect the waterfront? >> of the voters approved propos

the last one has 60 goats grazing at the port. we read them out to anyone that would like them. -- rent them out to anyone that would like them. the study is a good start. but there needs to be vigorous pursuit of detail. i concur with the three areas that need to be drilled down on. one is barging and rail directly from the port. the other is the port of san francisco having a transfer complex and possibly an industrial park based at the port. the third is the issue of franchise fees and what that can mean to vital services in san francisco. there is a lot of work to be done. i draw your attention to something that may not have been mentioned but i think is emblematic of the whole structure itself. that is on page 7. it is interviews with doe staff. the last line in that paragraph is most emblematic of what is upside-down about our system. staff indicated having a long- term relationship with recology is an appropriate alternative to a competitive procurement process. i am not sure how you could reconcile that with a competitive p

the proposed criteria are specific to the port in the following ways. the port's draft better criteria would allow banners announcing any event, which is defined as an activity of general public interest to san francisco residents or visitors to the port of san francisco that takes place in the city or within port jurisdiction and can reasonably be expected to have an in-person attendance of 500 or more persons. for a single event or 1000 or more for a series of events. the criteria defined specific streets. in addition to the center median of the embarcadero road way and jefferson street. be executive director may approve banners on of the streets have become appropriate, such as a newly developed pier 70 area. the criteria described banners in three categories. just some examples on the graphics here that you can look at as i talk. a banner announcing an event to the port or its tenants, a public agency banner, which is announcing an event sponsored or supported by the city or its departments or other government agency, and that furthers the mission o

preparthat is why the pier 27 ce ship project is so critical to the port. we hope to keep your 35 open and we make an investment every day, but what we have done with priorities is tried to look at where they have the highest and best use. pier 9 is the best example of having maritime and commercial tenants. we would like to replicate that. we have a plan to do that at pier 19 or 23. we have bond proceeds we have borrowed to do planning for that. to enter your question a different way, we tend to think that there are eight years in the plan that we will not be able to rescue, instead we are trying to maximize investments in the ones that we can bring up revenue on as quickly as possible. supervisor chiu: for those that you can not? they are simply fellow? >> unique things do come up. you're 26 and 28 are both in and as you know, they are potential candidates for development and we are still hopeful that that could happen. in your district, pier 33 is one that we look that nell. it is functioning and actually quite full. of long-term horizon, it is difficult

on may 25, our goal is to review revised concept plans for the port blue green way open spaces. project cost, draft prioritization based on available funding. then on june 16, we will review concepts for the blue green way, linking cited for the error and furnishing standards. those will be important steps as we proceed along our planning process. we hope to have a document available by may 20 on our website at sf port.com. we hope that you can attend. i think you are going to attend, commissioner brandon? >> we will take a look. >> that concludes my report. >> thank you. >> is there any public comment on the executive director's report? >> consent calendar. 8a. request authorization to accept and expend $1,612,357 in 2007 supplemental infrastructure protection program port security grant program funds from the department of homeland security for security improvements at the port of san francisco. 8b. request authorization to accept and expend $7,783,556 in 2009 infrastructure protection program port security grant program funds from the department of homeland security for securi

one of the port's on armed security contractors employees have been selected by the second and scope police department to receive a medal of valor. they changed the ceremony to may 12. that is being given to patrol supervisor ryan jones, who i mentioned as one of our contractors working for cyprus security. you may remember seeing in the news, a man attacked eight older gentleman in the fisherman's wharf area, bringing him to the ground using somekarate expertise. it was ryan jones to help the attacker until the police could respond. so that the san francisco police department is recognizing him with a medal of valor for his efforts that day. we are passing out along and for staff will certainly attend the ceremony. we appreciate very much to be able to assist in the matter. may 22 mais national maritime day. it is initiated by congress every year. in honor of this year, the port of san francisco, in conjunction with the san francisco bay marine exchange and maritime association are holding an event in honor of national maritime day. that will be at 4:30 aon saturday. mayor edwin lee

>> upwards is engaged. -- the port is engaged. those conversations are already happening. as we go down the road, there may be others, but the board is engaged with those that are definitely known to be impacted. commissioner kasselman: what about those on the periphery of the construction? construction vehicles, things going on that would impact them? >> at this point, i do not know, and i do not know how far along in their planning process they are, but it sounds like it would be nice to bring forward the america's cup event authority as inappropriate person to provide the commission with a presentation on that. -- is an appropriate person. president o'brien: maybe it is already in the language there, but do we not talk about a dedicated resources -- resource? they were going to b.p. go to people -- going to be the go to people. >> i believe depth -- that -- did you want to address that is you have the resolution? >> on the second be resolved, we mentioned that the borders differences go provide dedicated resources, and there was concern about whether a dedicated point pe

thank you, members of the port commission. the last time i was speaking before the port commission, you were not here, so will come aboard. i want to review where we have been for your benefit and for members of the audience that are not as familiar with this project. i will then talk about the values we have in our design program, the process, and what the outlook is for going forward. i would also like to mention that karen is here today, she is our principal designer on the project. i am sure she is well known to most of you. for reference, this is a recent snapshot of mission bay in 2010. as you can see, in the northeast corner of mission bay is a sea wall lot 337 and appear 70. -- pier 70. this becomes the one side really in play for mission bay in the future and creates great opportunities for us, and that is why we're interested in proceeding. the project design is on the screen in front of you. it is the product of the rfq/rfp process. many meetings with park staff, commission, dozens of public meetings with different a

the port manages approximately 21 million square feet of actual building space. to give you some perspective about that, i believe the airport square footage is about 14 million square feet of buildings. they obviously have much more anchorage because of their runways. but that 21 million square feet is leased out to approximately 400 different tenants both on the commercial real estate and the maritime side. we have approximately 60 restaurants which operate on port property. the bulk of our revenues actually come from our real estate leases which are primarily retail restaurant and class b and c officers. there's very little of that and industrial and warehouse. as we look forward, though, for our five-year outlook, it is pretty much the same as looking back to the challenges of the last five years, which is that our revenues grow at a lower rate than our expenses grow. and so beginning as early as fiscal year 2013-2014 without action by the court, we see that we could start to run some deficits on our overall budget. and so we will continue to have that as our

>> it would be going to the port, which is then subject to board approval. phase 2 for the public plaza, that includes the bond. supervisor kim: net $9 million could find a potential water park. even if that bond failed, we would still have an $11 million shortfall. >> yes, that is correct. supervisor kim: you have just mentioned what we would propose to not develop, not construct if we were not able to fill the $11 billion gap. could you talk more about what that would look like for pier 27? >> the first thing we would do is look to defer some of the maritime improvement. so we would have a functioning cruise terminal that it may not include the mobile gang way, some of the other improvements and a passenger loading and offloading edition. so it would be a working cruise terminal, but not an exceptional one. that would be the first thing we would look to. to get us to the point where are now, to fund phase one, we reduced the size of the building. we used to have a shortfall of $21 million over all. we would look again to see if we can do some value engineer

the general project is a project that represents the heart and soul of the port. a project that represents one of the last major maritime industries in san francisco. a project that bolsters maritime commerce and employment. a project that supports the city's tourism industry, solidifying the achievements already made along the northern waterfront area. finally, a project that the port has been trying to build for the last 20 years. the port intends to develop a new primary terminal to replace the existing facility appear 35. -- at peter 35. a terminal at -- capable of handling a facility that is user-friendly, operationally efficient, and cost-effective. the existing pier 35 operation is not optimal because of its short births, narrow aprons, limited terminal capacity, high operating costs, and minimal passenger pick-up and drop-off areas. also, the substructure need further investment to continue to be operational. october, 1998, a staff report to the port commission stated that a new cruise terminal was required to efficiently meet the current needs of cruise li

the port of oakland is the fifth largest port in the country, occupying over 18 miles of the san francisco bay shoreline. 50,000 people make their living directly from port operations. i'm going to talk about the port later on in the show, how it's important to the economy. the city's vibrant music scene and restaurants that i mentioned. something the city of oakland is known for, its sports. very few cities have three professional sports teams like oakland does. the oakland as, the oakland raiders. we have a lot to talk about this morning. the train is passing through, making their way through. we have a band setting up out here. pop-like. so, we're going to get things rocking and rolling coming up in a bit as we are out here at jack london square. it's a lot of fun out here. of course, we are following the day's news as well. good morning, my friend. >> good morning, laura. we are following developing news overseas. a bomb threat from an irish republican group. police say the warning does not include a specific location or time. but, the threat comes a day before queen elizabeth ii is se

you mentioned the port's outstanding debt would increase by approximately 51%. one of the things that we are asked to consider is the debt load. is there any kind of basis for what is recommended for debt load, depending on the budget? >> as you know, the port is not a general fund department. when they issue debt, they have to have revenues which are sufficient to pay that debt. then they go through a variety of procedures before any kind of a bond issue can be issued, to make certain that that debt can be fully paid by port revenues. we also point out on page 10 of the report, the board has assured the rating agency that the port plans to keep their everett debt service coverage of total revenues and total average cost above two. so there is that requirement. the port currently estimates their annual debt service ratio is at least 3.32, such that there is room for additional debt. so that is one of the procedures they go through to make sure any new issuance of bonds can be fully paid by port revenues and still allow the port to operate with our other expenditu

that is the port staff initial proposal on the public benefits in vision that the site. we have a ways to go with stakeholders to get to the right formula. i would like to move on to the america's cup special area planned proposal. the area on the screen is the area between pier 14 and 22 and a half. it is the open water basin in the area planned. but the new agreement requires that the port provide this space for the purposes of large spectator vessels during the races. in to permit dredging in this area. it would need to be to a debt of about 12 feet. promising that long-term in that location from the event authority. the proposal for this special area plan would be related only to the special use of this location for the race. it would permit these large spectator wrote vessels in the park with docs installed on a temporary basis, moved after the race. i have to say to the commission that the feedback we have gotten on this proposal has not been great. the lincoln park area provides extraordinary views of the day. members of the public are going to want to see the day

i am excited about the ports commission. i think that this is the right timing for me in terms of my life. i have my experience from the private sector, and i think that this is the right use of my business and finance skills. this is one of the prime assets, and this is unique with seven and a half miles of border front. this is unique in its visibility. it is unique in its uses, with the commercial real-estate and open space. and unique in its different characteristics that reside along the northern waterfront. i am excited about the opportunity to showcase san francisco and the ability to contribute to the city and its reputation. we have that opportunity at hand right now. i understand the complexities and balancing the stakeholders' interested in the waterfront. generating a positive bottom line for the city during these difficult fiscal times, and also, figuring out how to generate more jobs. i look forward to understanding of these projects with a capital plan and how to move this forward in terms of timing and afforda

the port is paying the sheriff for the cruise ship terminal analysis. the america's cup budget will hopefully pay for the share related to the america's cup, assuming that there is a budget approved by the board of supervisors here it whether it ultimately is a single report -- i do not know that we know that yet. but in terms of -- there is something under ceqa called and adjacency will, and for that reason, it is being studied together. -- adjacency rule. >> i do not know how easily you can get back to your slide on the funding sources, but it did not quite match up with what we have in our report, and you went through it fast enough that i could not tell if it was just that it was based or we have a table 3 on page 9 of the report, and a quick passage through could not match. >> i thought that a stable four. >> it was tabled two. >> no, it was not. it was tabled four, i think, that he showed. >> i believe is table 3 and the fiscal feasibility report, which is page 9. >> right. te one that you said no one could read. that one. right, ok, that is right