and that the port will not be responsible. as far as the city goes, i am not -- i have no jurisdiction over that. so at least i am not concerned about the port's finances in this deal. >> and also, this is my final question, so the port has a lot of property. and you enter into a number of leases with large companies that could potentially afford what market-rate is, as well as smaller entitis that don't always have the ability to afford market-rate. what are your opinions on balancing and making sure that everyone who needs access to the properties that exist throughout the port, how do you balance the equity of it all? for example, i don't know the name of the group, but they are the ones that make all the floats, often times for many of the parades and they are not able to maybe afford what? >> and they still get discounted rates. even though they had to move because of america's cup, the location they moved to they are still getting discounted rents and so many different locations like delancy street and last week we had an

we are port tenants; we support what the port wants to do and appreciate what the port gives us. thank you. >> is there any other comment? commissioners any comment? >> -- inds (indiscernible)>> wanted to thank carol bock for her presentation; it was heartening to see the kind of work that we're doing and the stewardship of the port exhibits along our waterfront. i'm struck by the hard work that has gone in by so many people that are still around, people and faces continuously pop up. i want to thank the mission creek alliance; people like karin who seem to be at the forefront of every issue before us and david bellpray (sounds like) -- as you noted heron's head park -- having been there with my dog, i appreciate the dog park, he loved it. >> you are being gracious to say that it had all the support but there was some opposition. heron's head park has received several honors which should be attributed to carol and david and the whole thing that made a lot to make this happen. because of the port's alliance with parks and rec in the 2008 bond we were able to do mission creek and th

so the port has continued to fund the environmental occasion program here at heron's head. we have partnered with the department of recreation and parks, youth stewardship programs to deliver those environmental education program and this photo shows a group of students from mission high school learning about historic distribution of wetlands and natural areas in san francisco and how it has changed with urbanization within the last 150 years. these are other examples of environmental education programs thar rec and parks youth stewardship program has led, where students learn about water chemistry, treatment, native plants and their role in habitat value. just this last year, in 2012, rec parc and the port launch new environmental program called the greenagers, a group of young teenagers, 9th and 10th gradres, who live in district 10 and give them an opportunity to connect with like-minded peers and participated in the program over a period of nine months and doing community service project. they were based out of heron's head park. i went to the graduation early this year

>> with money from the port left over. >> okay. good luck to whoever gets this. all right, thank you. >> more on that commissioner thank you for that. >> given the time we'll take a quick five minute break. could i have a motion? >> i move to recess. >> second. >> all those in favor? aye. (recess) >> motion to reconvene. >> second. >> item 11b, authorization to commence pier -- with metro cruise services llc (reading from the agenda) >> good afternoon john -- from planning and development. i'm here to do a presentation with p- daley. there was a correction in the staff report that came to my attention on page 25. fourth paragraph. mentions additional -- that metro would offer. text reads one full-time -- it's local 10, maintenance mechanic. and -- should be -- maintenance gearman. is your read one full-time iow local 10 maintenance gearman and one full time iow local 10 foreman. the solicitation was a solicitation for professional services pursuant to chapter 21 of the city's administrative code. staff received two proposals. a panel was convened to review and sco

so, we have a hearing, port budget update. we have the executive director of the port, ms. monique moyer, thank you very much for being here. >> thank you very much, mr. chair. for the record, monique moyer for the port of san francisco. i want to thank you for carving out time for all the items today. we hope to be succinct as you need us to be, [speaker not understood], but we appreciate the time. i also want to thank the campbell and the [speaker not understood] for the amazing amount of work she's doing for us, [speaker not understood] and the mayor's budget office. i think i said that backwards, budget analyst and budget office respectively for all of their help. very quickly, we have -- are on the second year of our two-year budget and we just have a few items to make changes to which fall within the required 4%. and, so, i'll walk through those in just a second. to recap where we're headed as a port, we've strategic plan that i've identified, five priorities, for the record those are to preserve industrial and commercial maritime tenants and uses as we've been doing a

at the port have been a long time coming. it's been a long time for us to be able to raise the funds that we're being able to invest now and have programs under which they kc invested and dedicated and i'm proud to tell you that for the first time in over 50 years the port is actually investing its own money with the city's help. and that has come from the good stewardship of the port commission and in particular the financial acumen of commissioner brandon. she is very concerned about the vibrancy of the southern waterfront and the beautification policy where we set aside monies from the revenues from mariposa street south to beautify the neighborhood and we have accumulated enough money that you will start seeing some of those investments and others that are happening along the creek that are not the port, but really changing the face there. it took the city about three decades to get the northern waterfront in the way that it is today. and one big factor to that was the course the federal investment in the embarcadero roadw

the ilw? what did i say to port of america? i am disturbed by the fact that down in la that you got the bid and metro is doing the stevedoring. if you get the bid and have someone else do the work for you it shows you you don't have a handle on it. i would ask when you come back in september when the three parties come together, when you need to sit down and resolve the issues. negotiation is about give and take. you never get everything you want. i want to go out with metro and the port of san francisco and double the amount of cruise ships coming in; i want to work with metro and jim peters so that we can buld a state-of-the-art bulk facility. i want china to invest in our port and our city. thank you. >> thank you willie, and i appreciate the comments of the made. i want to add that i think we echo that we want these issues resolved. we want labor peace. we are here to make a decision on whether metro is a qualified bidder. we heard a lot of similar to say they are the qualified bidder; this is not the final contract. with su

the hill area that was shown in the yellow is port owned. and that was playing a role in the transaction that area in the white is owned by pgand e and we have designs on that property which i will talk a little bit about and then the water front site, it is approximately 28 acres and contains buildings that are plans of the rehabilitation as part of the historic district and that will be the focus of our discussion today. there you unique characteristics, higher construction costs than we are seeing at sea wall lot 337. and also more of a pioneering location. it is harder to imagine development happening at the site today. and it is going to take mission bay building out a little bit more, and dog patch becoming a little bit more mature, as a development site. and so we think that there are higher market risks and markets that are not quite as yesterday to move into pier 70 and infrastructure risks and as you look at the water front site itself in the context of pier 70, this is an overlay of the entire 70 acre lot where the park concepts ar

the ilw? what did i say to port of america? i am disturbed by the fact that down in la that you got the bid and metro is doing the stevedoring. if you get the bid and have someone else do the work for you it shows you you don't have a handle on it. i would ask when you come back in september when the three parties come together, when you need to sit dow

the ilw? what did i say to port of america? i am disturbed by the factt

the project will generate 100 million dollars of income to the port and the city. the size and significance do not always correlate. pier 24 brought 27,000 of industrial square feet, and it is now one of the most photographic exhibit spaces in north america. as represented by the past projects we understand the complexities of waterfront atonement. we commit and we deliver. we are working with an excellent team whose members have had extensive waterfront and historic rehabilitation experience. they are all here today. have made an exhaustive study of every aspect of this project. additionally is proven on past projects we are committed to exceeding the port's lbe goals. without i would like to go into the pier 38 rehabilitation concept. in conjunction with our historic architects -- we have thoroughly scoped and research the site to identify the areas of historic significance to ensure that our short and long-term development plans a privately preserve the historic fabric while exhaustingly analyzing the -- remedies. more and more the waterfront is a people place.

annual revenues of the port. the opportunity to solicit all opportunities except where impractical and feasible, under the city charter if i lease out an office, under the charter, i am supposed to bid that. and we the way that we, handle that is we come and get delegated authority, under the port's leasing policy. given the volume of leases that we do, this year, i believe up to date we have done about 66 leases. and this would just be impossible and impractical to bid those lease and it can't be done. such as a typical there are leases that we have to do bid obviously if it is a retail, or if it is outside of the leasing parameters we do competitively bid those agreement and again, just on a brief overview, our standard form agreements we have a boilerplate lease and we use that lease for all types of leasing and it can be a parameter deal with no port commission approval and a board of supervisor approval and we can take that lease and we can adapt it for a restaurant use or something different. we maintain abo

a lot of people come to the port. and it was pretty stunning, how many people that i spoke to on the sidewalk that really had not to the port. the number one comment that i got to the people even including former mayers was that they had no idea that we had near so many restaurants that was in the commercial and so that attracted people's attention. >> a lot of people come to the port and don't know that they are at the port. i always wanted to name it apt, park at the port but, i have not won that one yet. >> commissioners, one of the things that i did want to also let you know and i will make sure that you are all on the information with it, and a lot of the things that our community do like the cbd and the fisherman's wharf association and some of the groups in the southern water front and they do the out reach and like there is the police fishing program that is run by our fisherman's wharf fisherman in conjunction with the police department and last year, i did hook them up with a couple of the cbos in the bay vie

now to the port's ability to look forward as a proposal. right now we have 75.1 1 million in obligations and that's including the soon to be sold cops for 2013 with the proposal we'll have a debt portfolio of about $100 million and 99.4. ~ the city's -- the poc we're proposing will repay approximately 76% of the debt service. so, prior -- in april of 2012 before we started seeing a lot of economic improvement, the port's net revenues were estimated at $17.8 million for bonding capacity of 42.6 million. the recent five-year financial forecast which is showing improvement in the economy and some strength we've had in our operating budget show net revenues of 21.2. so, our bonding capacity is growing. after the proposal, the port's contribution not repaid by the pfc will bring down our capacity to 47.6 million which is still healthy for us and will maintain coverage ratios way in excess of our covenant requirement and in excess of our port policy. so we're looking at 2.9 for coverage. so, we're feeling very comfortable that we can afford this p

but the port operates as a trustee to the state, and the state has oversight on what the port is doingn the land. and have on occasion, look over our shoulder to make sure they kind of concur that the lands are being managed according to certain public trust principles which are basically water related gets first dibs on what gets to happen. >> there was a vote of the people, what was it, ten years ago or something, when we were talking about what should happen on san francisco's waterfront for development. and the citizens of san francisco voted to make sure that only maritime related uses occurred. >> that was proposition h. i was loaned from the planning department to the port to develop the port's waterfront land use plan. in terms of getting back to the question, shouldn't the low -- some of these low revenue uses locate here. this shrinking industrial base within the southeast section of the city is making it more difficult. there's more eyes looking to the port's property to absorb as much of that. and for certain things like a concrete batch plant and aggregate where you can ma

and the port itself is considered aid responsible agency as we are the landowner and so eventually the port commission will be asked to approve the eir as a function of moving forward with the project itself and as right now the eir, eis is going to be published in draft form this friday as soon as it is published we will make available a link for that on the website which is sfport.com and we are also co-hosting a public meeting on june 25th at 5:30 p.m. in the bay side conference rooms over at pier one for anybody that would like to come and begin the conversation on the draft eir. again, eis being published by weta this coming friday may the 31st. >> and another item that i have is to announce that sunday streets will again be at the port on june ninth from eleven a.m. to four p.m. this time they will take place from the bay to the bay view and close down the traffic lanes to create an expanded area that will run from at&t park to the new common third streets and that will give us an opportunity to show case the blue, green way as it exists today. and both third street and cargo way

the port isn't going to make money while we're paying for the infrastructure, but it will increase to $30 million by 2016. i want to close by recognizing that pier 70 has been a long term effort of a variety of port and city staff. it really takes a lot of staff commitment to develop a neighborhood like this and i like to thank monique, the director, jennifer mats is the mayor's water front director, kathleen dyhap manage the selection process and we've had great participation from our central water front advisory group, so in closing i want to just point to the next steps, we're going to be in a three entitlement phase for the project where we'll have a trust swap and we'll be back in front of you hopefully by late 2016 to seek your final approval of the project. thank you very much. >> thank you mr. benson. colleagues do we have any questions at this time. supervisor mar. >> can you just elaborate more on the negotiations with the building trades on a potential labor agreement and it sounds like there's some strong commitments for percentage of local hiring and it's going to be more

i want to recognize the port staff in their hard work and the mayor's office and port staff to work on all the projects. and this one exemifies so many purposes, i can't wait to see when anchorstein is here, this is a tourist attraction. this is a great beginning. it's not the end. we have so many more things coming, the exploretorium will be coming soon. and i am happy to facilitate what we expect over the next decade. this wonderful waterfront for san francisco, the citizens and the world. thank you. >> thank you, i appreciate your remarks. ladies and gentlemen, the moment has arrived. where we get to raise a glass. and for those of you who don't mind the chill, we will actually taste a bit and be inspired -- any who works for the port, that's a no no. larry says the giants too. but he will be on the down-low, so you have my blessing. if i may ask all to join us and make a toast to the future. >> don't count. one, two, three. very nice. very nice. >> need some help? >> cheers. >> we will be available for questions. thank you very much. >> the public wants to access particular informa

this is the story of our city. our portned our past as i think that we all know, the first 49ers came right here to this spot to build this city, during world war ii, our military ships were recommissioned, right here from our port. we know that our friends from labor as the mayor said, built our city, starting here with this water fort and this is the story of our city and we also know that the water front in the port defines who we are and it is amazing in 2013, if you just walk along the water front in my district, you will start at the fisherman's wharf street scape improvements and to the cruise ship terminal that we just cut the ribbon for and you walk down to the terminals and the ports where america's cup will entertain a million, international visitors within a few months. walk down a couple more blocks to piers 15, 17, where we are going to see a half a million kids come to go all the way down to what we know that will be the next site of the warrior's arena and down to the ballpark and the water phone and the por

our item is the pooer 70 work force which is the pooer 70 port site. our plans for the water front site are based on the pooer 70 master plan which was created if a three year really expensive community and state holder outreach process led by david bow pray who is here today. and byron receipt planning and director. the water front site proposal really builds on the main goals that came out of that planning process in the preferred master plan creating a new district, preserving historic resources and activities, creating water front spaces and attractive innovative users. that's a two year process that took place between 2007 and to 2010. the port issued an rsq and the city to enter into an agreement with the water front site. in 2011 and for the last two years the port and oewd has been working together to do analysis and come up with concept plans for this site and community outreach and the term sheet. if the board of supervisors endorses the term sheet we anticipate two to three years of review and development agreement, negotiations, and creating

we are happy to have the port planner dan to come up and say a few words. [ applause ] >> thank you. it's all about the fishing industry. fisherman's wharf is here because this industry has thrived for a hundred years and people want to see and understand it. every improvement the port commission has directed in fisherman's wharf have met the needs of the industry. whether it's dealing with the earthquake or the harbor or adding a police boat or new harbor master's office or hoist, it's about the fishing industry. every improvement must consider that and this is no exception. today we are celebrating a project that enables all of people in san francisco to come and enjoy the fishing industry. it's a treat that dares to say that you should be a pedestrian to do it. it puts the pedestrian first. it works with how that industry comes and service the wharf and how they move through it. it's about the fishing industry. there are many to thank in the city. this effort was led by the wharf, troy campbell and we thank all of you very much again. [ applause ] >> as mentioned leadership was the