in 2011, the port and cbc finalized the remaining lease terms. in october of that year, the lease was approved. again, this is a lease for five years, and interim lease. the base rent extensions in the high season, $45,000 during a slow season. subject to an annual rate increase of 3%. the lease reflects standard parking lot basis. that is after deducting parking tax. this lease is unique for the port in that it allows for $638,000 in substantiated, annual extraordinary costs directly associated with operating a lot for events at at&t part. these costs are allocated to security and will be provided to patrons that need it as an easy way to get to the ballpark. temporary bathroom facilities and associated labor costs during the event. extraordinary costs are based on the 2011 total and are projected to grow at a fixed% each year. the existing lease authorizes special events that are permissible under use of a lot 337 in a new lease permit tenants to use pier 48 a and c for special bands. this would allow the port to coordinate and insure maximum u

the static nature of the port's own capital funds. this table here has the data that make up the slide that you just saw before. it is a simplistic way of looking at it graphically. that red diagonal line is where we want to go. as this table expands, we want to add new sources of funding to expand where we are getting funds, not only grow the funds that we have. hopefully, next year we will be adding transferable development rights. that is the larger context. changes to this year's plan. we had a consensus at the staff level -- the way we had previously been display numbers in the report in the 1000's -- conservatively might give a false sense of specificity with the kind of estimates we are doing. it was to present things in keeping with the america's cup planning the we have been doing. that was a change that had been long coming. the plan context part of the port itself, we will maintain that. that adds a lot of value. this is what happened to our overall estimate for the year. largely driven by the 3.5% cost escalation at the cap

and those projects are the port 's obligations under the lease disposition agreements. there is a large project piers 30-32, an estimated $8 million project that i will describe in more detail. the lba provides two options. supervisor chu: sfg is requesting you put your presentation on slide mode. thank you. sorry for the disruption. >> ok, so the lease disposition agreement provides two options for the work to get executed, one, that the port would execute a contract with a general contractor to perform the work and two, that they could accept assignments of a contract entered by the evened the authority to build these piers 30-32 improvements. by way of background, the event authority was planning for the better part of the last year to do a large project, it the $5 million project. it had gone through a competitive selection process for local contractors. to perform that work. following procedures that the city had proposed as part of the disposition and development agreement. essentially, looking at a field of qualified bidders, knowing that field based on qualifica

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 puc has agreed to contribute $1.5 million to the project, which is on par to their contribution with the pure 27 project. we really appreciate puc's partnership in this project. puc's role on an ongoing basis will be to monitor the actual electricity usage from the shoreside power facility and report back to the port and to the bae. we estimate -- these estimates are based on taxable debt of $6.3 million capital outlay, based on the project cost of $5.7 million. we have a debt servic

the port. we had a very similar amendment to the least in the past to make improvements to the port at the dry dock facility. actually, princess cruise lines was looking for a place where they can dry dock their post and a lack -- larger sized cruise ships and we have made improvements to the dry dock to be able to handle those larger vessels. and that has been the casebae -- been the case. bae services those, but the dry dock owns those. chairperson chu: can you explain why they have decided to go forward with a contractor? >> it is a two-fold decision. the port does not have expertise in implementing these types of shoreside power projects. the shipyards and the requirements of the ships in the dry dock are something that the port knows a lot more than the bae does. they're getting all the time, whether it be vessel owners, or private owners. under the current lease between the port and bae, bae has the obligation to maintain the drydocks and they are operating in and maintaining it under the

is that on the port side? >> the north side is on the port side. that is the sunnier side of the street. >> how does this affect the streetcar tracks. an? >> it is planned on three of the blocks. it is not part of the first phase of approval. the graphic is not very strong on that. on the blocks from paul wolff to taylor street, the street car would continue to travel down the street and a dedicated travel way that would not be accessible to bicycle or vehicles. there would be a curve that transit -- separate the transit way for bicycles and vehicles and sidewalks. the blocks down towards that, the east end would not get as much benefit from a why didn't sidewalk because they would have this dedicated way. there is a block from taylor to jones street, which would region it goes in and out just a bit. that does not quite show it. and i will show the other one. and again, it stays in a dedicated travel way and eliminates the conflict that often occurs now where bicycles go over the rail tracks and there are a lot of slick and falls as wheels get caugh

eileen malley will be the new general counsel at the ports. you can do -- see she is very athletic, so she should be able to keep up with us. i should probably do more than that. she is the deputy city attorney on the administration of the city attorney dennis herrera. most recently assigned to the treasure island development authority. we are really happy to have here -- heard here today. she has some experience working with us on prior projects and has a breadth of knowledge and experience on the real-estate side. how about that for your resume on the fly? >> that concludes executive director's report. >> public comment. >> good afternoon. susan reynolds, deputy director of real estate. we are going to miss you, robert. you want to thank you for all of your help. i know we have had a lot of struggles, but that is how we proceed, and we have made a lot of progress in the last couple of years of your guidance. thank you very much. you will not be able to shake us because we will be getting some of those redevelopment leases back. we look over t

the ports reports staff must determine if it is a tenant in good standing, which they are. we would evaluate the most economic and suitable tenant for the site. we will review an audited financial statement and a business plan. i am happy to answer any questions. >> is there any public comment? lynn spaulding? >> hello. i work with san francisco travel association. i would like to share some facts with you in regards to teatro zinzanni. they have been the premier live performance attraction in the heart of san francisco tours in district, the waterfront. they have brought over 800,000 guests to the nebraska waterfront since opening in 2000. -- to the waterfront since opening in 2000. they have been critical to the economic vitality. they have transformed an unimproved parking area into an internationally renowned tourist and cultural destination. additionally, guests have spent millions of dollars at neighboring businesses as a result of their proximity to the renowned attraction. benefiting businesses, including numerous parking lot, hotels, restaurants, clothing, and souve

we are in the process right now of negotiating six amendments to the bae port these based on the letter of intent and already have port commission authorization to enter that lease -- the bae port lease. with that, and available to answer any questions. i also want to ask hugh to come up, if the board is a mineral, to answer any questions. >> i apologize for my entire. i was working in the shipyard this morning, and brad asked me to discuss the shore power upgrade at pier 70. i have to say, there is the environmental impact of the shore power upgrades, and as you have seen, we will be taking a lot of carbon and everything else out of the atmosphere where we do not have to run generators in order to power this new class of ships. what i do not know that fred touched on is the fact that we will be employing a lot more people because we will be able to bring in ships that we were not able to provide electricity to power up. just two weeks ago, we won a contract -- two and a half weeks ago, we won a contract on the united states naval ship alan shepard. that contract will run about $14 mill

the port commission does not have that legal authority just by virtue of the lda. that is one time pressure. the other is just the need to perform the work. the real driver here is piers 30-32. the minimum estimate for the time to complete the 30-32 improvements is about three months. walking through the timeline of the ordinance, if the board of supervisors has a first read on the ordinance, april 3, and then a second read april 10, the mayor could sign the ordinance as early as april 10. there is a 30-day window before the ordinance would become effective, bringing the dates to may 10. that is just a few days after we expect the issuance of a major permit for the piers 30-30 to work. we are still working with the regional water control board to make sure they can permit within that timeframe. and that is about the time when we expect to -- i think april 27 is the current due date for the final construction drawings. that would allow informally us to bid the work for 30-32 and potentially start the work around may 10. accounting for three months from may 10 -- tha

the port of oakland is the only port that exports more than we import. i have been trying to talk ed and jerry brown into doing joint export offices in china. we as a state need to have probably a dozen offices in china, and go into the interior. i think that is what we need to do in the region. we need to talk about how we are going to share resources in that way. the coliseum city also would be an amazing opportunity. those of you who are going to ask questions about sports teams -- all three could fit there. i am holding out hope may be for victory park for the a's. oakland remains the center, transportation wise. you are looking at the rail service to sacramento, the most heavily used in the state. or you are looking at the fact that -- where the heart of the bart system. with our good transit system throughout the case -- throughout the bay. with the airport expanding more and more flights internationally, oakland will continue to be a transportation hub. we will be working hard on federal and state investment. these are the main strategic areas we

within the mission bay area, the port -- i would like you to consider the amendments to the port harbor traffic code to a line with the existing transportation code that will allow for the installation of parking meters on port streets within mission bay along china basin street, mission bay, north and south, 16 street once it is constructed, and illinois st. all within mission bay. in addition, we would like to eliminate the two hour time restrictions. and allow the staff to have the discretion on where certain time limits might be placed, for instance in front of regional- serving parks. and some of the commercial businesses, port commercial businesses within mission bay. the cost of the amendments would be $244,000 within the instafor the installation of pag meters. we received about $31,000 a month and projected revenue, so we anticipate with a three-month ramp up for installing the meters and getting the program under way that the return would be after about 16 months for the port. i do want to point out revenue is not the primary reason we are installing these. it is more for park

that is the update i have a. ports that are available to answer any questions, as well as mark martin. president whoo ho: thank you. public comment. we have andrea taber. >> i guess i am here as the living proof of what the investment in the america's cup would mean for our city. i am a small business owner, minority business owner operating in the printing and paper space. i have been in dialogue with the america's cup for over five months now talking about how we can bring sustainable material to all of their marketing material, and all of the sign it. moving forward with this plan would allow me to grow my business, bringing on additional resources, bringing on additional economic development through to our first city. i urge you to concur with what they are asking you to decide on. thank you. president whoo ho: norman appeapierce. >> norman pierce. i am a long-term san francisco resident and ownboat ownder. ier. i am in support of the effort to make this event happened in san francisco. we had a heck of, but just a

marginalized and the focus on ports will be lost. thank you. >> chairman, ranking member price, members of the committee, on behalf of the national fusion center association, thank you for inviting me. a lot has changed since i was here as the assistant administrator of the grant program's director. the administration's intent to streamline the grant programs based on risk and measure the impact is the right way to go given funding reduction that's have occurred. but there are a lot of unanswered questions. re-authorization of the preparedness grant programs, the president's proposals should be considered under the current construct of law. we would do a disservice to the progress made by creating a new patchwork program without authorization. after nearly five years, congress should reauthorize as soon as possible or make it clear to the department that the current construct of law should be followed. congress should also continue to insure that dhs measure the i infect the programs have on preparedness. until they fully implement a

so it was very important to separate the ports and focusing on the ports. i think bundling them together is saying that ports are not important. i don't agree. 93% of all the country comes in by water. the last thing i would say is, you know, we go back and forth about cost shares. and, again, i think it's important for the port or the organization to have skin in the game. but people still seem to not appreciate the fact that if any -- if the gentleman down at this end of the table or the fire department gets equipment, we have to maintain this forever. so we more than meet our requirement to ponying up the skin in the game. particularly with i.t. projects. if we do a -- our camera system maintenance is a million dollars a year. so i have significant skin in the game. so i'm not sure what a 25% cost share proves. i think that there should be a uniform cost share waiver because some years there is a cost share and some years there is not. i think there shouldn't be a cost share. but i think one of the most important things we can do immediately is there nee

under the term -- that is a port obligation to this force the transformers. we would come up with the initial sources of capital to pay for the work. 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,

under the term -- that is a port obligation to this force the transformers. we would come up with the initial sources of capital to pay for the work. bae would pay an equipment charge of 4 cents per kilowatt hour used by

i want to extend the thanks of the port to mr. martin. he has done an amazing job leading this project effort. i want to thank the event of 40 and raise management, as well. before i get into my presentation, i want to talk about the major change here, which is switching from a development model to a capital project delivery model. we did put a lot of time in putting this together, and i think the port staff has found that that had a set of development opportunities that would create great improvements in the south beach area of a waterfront consistent with the waterfront plan. that said, we do understand that it was a very expensive investment. there was a great risk involved in that, and the development discussion had started to overshadow what should have been the proper focus, which was the event. and i want to say that i think it is a testament to the strong planning effort that happened over the past year that with the event authority and race management and city staff, we were able to come up with a revised plan which involves less

under the term -- that is a port obligation to this force the transformers. we would come up with the initial sources of capital to pay for the work. 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