That however, stuck up pretty well against anybody around. Whatever success ive had at the port has been largely because of my team. So, i would like to take this opportunity to introduce them and think my team. Some of whom are here today and some could not make it. So, there are two sections of it support. The first is the Infrastructure Group that includes the network, the storage, desktops and help desk. Today, we have admin of a talented manager. Tenant, could you stand . When we talk about the data center of the airport that was really gauche and i think it turned out really well. We also arnold cindy i go. Hes the only member of my staff within it were longer than i have and these been 18 years. Arnold. We have week ryan, whos really are virtualization architect. And we also love our interns, Jonathan Ford and max stevens. When we depend upon daily. We love our interns here at the port. The other side of the house is the Business Applications group and the port is primarily an oracle shop. Not that hopeless during the americas cup negotiations. We have not with us today, hes having dental surgery, eric carter. The Business Applications manager who is just a gifted technologist good suzanne wong also not here is the lead analyst. She has been there several years through two the birth of two children. We have erics experience and team and we have two debbie please stand, thank you. And charla gauche on vacation. Catherine gauche is here. Catherine. Jenny wong and last but not least [inaudible] a parttime consultant who saved the day on more than one occasion. With that, like to offer a final thanks to monique, to my manager, alain forbes, to tina olson who hired me and my staff to my friends and colleagues for their help and friendship and fun along the way. I wish you well in the port continued success in the future. Thank you. [applause] all the best of luck to you and we hope youll come back and visit with such a gracious introduction to your team and your staff, im sure youll be welcomed back with open arms. Thank you. Next item item 9 be Poor Commissioners report. Commissioners. Willie commissioner adams. This is something that thats heavy on my chest. Several weeks ago we had a meeting down at the port in moniques office among me, kim brandon, david and brad was there. It was right after that meeting that i walked up the kidnapping young lady was killed. You know, i take gauche this is our waterfront, you know. It should be safe or everybody to walk up and down could i walked up and down that waterfront for 12 years, and i want to thank the San Francisco police department. They did great job good i want to thank monique for her leadership. I also want to send my prayers out to catherine steins family. Shes young lady cut down in her prime of her life. You remember several months ago we Airport Commission meeting talk about the Homeless People in the waterfront and that a lot of those people have Mental Health problems, and as i said before, people fail to realize when we shut down all the mental institutions and a lot of those people that on the street are are homeless and have mental problems. Its all of our problem. So, i would ask you, mdm. Pres. , the legal moment of silence for catherine stegall and her family. [moment of silence] thank you. Thank you, commissioner adams. I would like to make sure that we adjourn this meeting in the memory of catherine stegall. As commissioner adams said, just a young woman, just an extraordinary young woman. Im deeply sorry and send our condolences to her family. Commissioners. Thats it. That would commissioners report executive director moyer spoke about the success of the event with the San Francisco symphony on sunday, but i just want to echo my thanks to all our staff did i know they stepped in and really helped make that a tremendous success and looking around at the crowds that turned out, it was really such a joyous occasion. I actually thought the quiet crowd was quite young which was nice. Is this and he mentioned that as well but they were pleased that was a much younger crowd from where i was sitting, i think the average age romney was probably late 20s, which was wonderful to see data. Sure it had nothing to do with the nationals. Then people stayed afterwards. I dont know if you saw that the people having such a nice time on our part there that they get their blankets out and continue to pick and well into the afternoon. Was really a lovely lovely day. Shipped it and they filled our restaurants. So those that left though the restaurants on weight which really was wonderful. Thats it for me. Next item adam 10 in the presentation of fiscal year 20142015 projected operating revenue. Good afternoon, commission. Megan was from port finance. Im here today to give you an update on the fiscal year 20142015 operating revenue. Just to start off, i want to point out the fact that the port maintains an objective, a strategic objective, to plan in a momentous stable financial future. Part of the way that we achieve that objective is through preserving our funding streams. We really need to make sure those funds come in Strong Enough to cover growing operating expenses, as well as the our capital needs. Then, prioritizing. Theres also a critical aspect to ensure we are covering our capital needs. So, im here to share good news about our fiscal year 1415 revenue performance. Which looks promising for the ports ongoing effort to mirror a financial objective. So, back in 2013 i gave a presentation on a five year Financial Plan that identified the fact that we would come close to reaching 100 million in operating revenues by fiscal year 201718. At that time, the Port Commission took a leadership move and asked staff to prioritize gene that goal as soon as we could. I am happy to report this last fiscal year we are actually nearing one or 12 million in operating revenue. Well in advance of article. As of june 30 of 2014 poor sap identified a collection of a collection of about 111 Million Dollars in revenue. The projecting almost 112,000,000. Of that amount, 21. 5 is surplus or over and above our budget. This chart helps identify really whats driving that surplus. You can see the main portion in green, the 90. 3 is the original operating revenue budget. That 21. 5 billion is comprised of a first, 15. 3 million in collections from pg any worthy potrero transmission project. Parking is 1. 2 million over budget. You can really see that through the giants postseason play, wonderful weather, and general trends of high tourism in the area, usually driving our parking revenue. That goes for commercial and industrial rents as well. Between our base rent percentage rents, we are projecting about 5 million over budget. While i like to say that the weather is playing a really big part on that, i am actually really pleased to report that our Real Estate Division has actually generated 93 new leases in 201415. Thats really critical. For the effort to bring rents up to current parameter, or even to gauche even higher, thats really hoping support this increase in revenue. With strong Real Estate Market our staff has been able to negotiate Stronger Base rents, and i think thats part of what were seen in this high number. So, as you can tell, reaching 112 million was really driven a lot by that 15. 3 and onetime revenue, but im really happy to report going back to actually more recent five year Financial Plan we are projecting the ongoing trends. We are expecting to reach 100 million again in fiscal year 201516 and ill continue to escalate. So, as far spec steps are concerned court staff artie came to the commission back in february and received approval to move forward with a capital supplemental for 201516 using the pg e payment. Court staff then now intends to come back in september with an additional appropriation request and increase our capital spending. Likely using this additional surplus. So, the 6. 3 million. Thats really my report. I just want to share the good news suite also great positive trends in our revenues and id be happy to answer any questions. Thats great news. Thank you. Commissioners. Onsite. Public comment. Seeing none, Public Comment is close. Commissioners cox . Personal, i want to give you a big shout out. Congratulations. I think i was one of the ones that challenged the 100 million and obviously its great for you to hit that goal. Sometimes even though it is coming its a big help from pg e but sometimes you have to sort of look for the gauche and you for and somehow you figure out a way to get it. Im very pleased to see where going to hit it this year and we are able to sustain it on an operating basis for years beyond this year, which is great. So we look for to seeing next fiveyear budget at some point. I guess, when we do this report which relate to see if the commission in terms of how our revenues are developing from the different sources that we do have parking, commercial, and other operating sources, we would also be good to just sort of have a little understated power managing our expenses about the surplus and a foregoing both at the same rate. I think that helps us to understand what normally in the corporate world we call the jaws of victory over your revenue is going up faster than your expenses because obviously as you do more, the expenses also go up. Hopefully, were generating than that surplus which we know is so critical for the Capital Planning purposes. And i were able to allocate more and more to sustain all the major sort of Capital Projects that we know is a huge pipeline. Even with a 6. 3 that youll come back to us at the next commission meeting, thats just a little bite at the million six or seven that we have that everybody counts so thats great to see were able to generate that prone surplus and hopefully will see that Going Forward. Again, congratulations. I think its great to be with to get a report to make sure were heading in the right direction. Hopefully you set the next go, 159. By next year. Congratulations. I think this is wonderful that we had the Million Dollar mark and were projected to increase steadily every year. Thats absolutely wonderful. It is one question about south beach habit. Why is that negative . That was not entirely accurate. I found out after releasing this report that the number that i show on my table didnt reflect june revenue. So we came in over 3000 for South Beach Harbor. The revenues are still under budget by maybe 1000. Its really based upon the redevelopment payments were not intending to recover the entire amount. However, the project is still in balance. Were not exceeding our revenues are still in surplus of our expenditures. So, it appears or under budget in our revenues, but the overall performance of South Beach Harbor is positive. Great. Thank you. With that partly in terms of when the rent comes in . Is that that allocated different . Thats right. I was reporting as of june 30 and i projected all of the revenue lines, but didnt fully capture the projection for South Beach Harbor. Which is a timing issue the stars reflecting on those revenues came in. Id like to thank you very much. Its all very exciting and i will put in a bid for hitting the 150 million mark. No, congratulations to you and your time and everybody that made that happen. Including our real estate folks. So, thank you. Next item of item 11 regarding a proposed use of. 29 located at Chestnut Street and gauche and seven solicitation for proposals. Commissioners, im actually going to begin the presentation on this one. With the help of bargain rack. So, as you recall, we came to see the Poor Commission exactly a year ago at your july meeting last summer in 2014. On the heels of finishing up the Americas Cup Event looking forward to finishing up the construction of the cruise terminal building and freeing backup. 29. At that point in time, we had to cope managers of this project to envision something appeared 29. They were Jonathan Stearns from our planning and developing division and mark assistant committee dr. Of real estate. As you know, jonathan stern left the port last fall in a forthright mark has been out of their portion of the year on medical leave. We are very hopeful that he will be back among us by the end of this month. But, nonetheless, the project has been able to proceed somewhat in the one euro timeline. We have been able to refine our vision and further our seismic investigation, as well as refine our building and fire code review so that we can get closer to a defined proposal for the pier 29 okay. As you may recall, when we came a year ago, we had a vision for looking at the pier and reactivating it, if you will, in four phases with a vaulted beamed the first phase in part because it had been so successful as the yacht club during the Americas Cup Event and in part because of its unique positioning along the bucket arrow. At that point in time we had a vision for a primarily Retail Experience that we hope would be uniquely a San Francisco bay area flavor extent. We got a lot of feedback from our neighbors and tenants particularly in the northeast waterfront and over time we have worked to refine our vision, which id like to share with you here. So, it could give me the next slide. Okay. Just as a reminder, the important part of the pier 29 bulkhead is its location on the him. Its ability to support our Amazing Investment in both appeared 27 cruise terminal and in the cruise terminal plaza and capture and support the immense number of pedestrians who are to proceed along the waterfront in that location. So, right now its sitting as a somewhat empty shelf, if you will. Yet, as you just saw, we have a plethora of people were going by there either for planned events like the free symphony, or just on their way to visit alcatraz or Fishermans Wharf or something else. All they are seen as an empty storefront. We refined our vision quite a bit. Is there within keeping what is allowable under the waterfront Land Use Plan and the waterfront Land Use Plans is definition is wide open. Include maritime uses, open space, assembly and entertainment uses, some general office, using him use, retail and restaurants, recreational enterprises, also trade and promotion and community facilities. In the discussions that ensued with our neighbors and our tenants, we have a goal of trying to augment the uses are unique in the neighborhood and not cannibalize them or copy them, so we have refined our proposed use to focus more on the creation and sale of arts and crafts, maybe innovator open studios. Galleries, exhibitions and cultural space. A little bit less on the food and restaurant type of use since there is so much of that in the neighborhood already. So you can see here, these are some ideas where these are different art spaces open to the public. The art in some cases is being made on site, but is also either part educational, part museum, or part retail. Then, you can also transition into event space. Were not really sure what type of proposals we would get, but this would be something we be keenly interested in to augment the uses that we have. We are thinking that in an ideal world, would be curated space. Maybe we could have a number of artisans stalls and there could be one tenants that would curate all the spaces. Or, maybe we might need to do multiple tendencies. We are still testing that i process this but today we went to get your feedback on the vision. So, again, this is the vision that we showed you a year ago with a bulkhead being phase 1 and then phases two, three, and four being followed on phases. Now that weve undertaken the waterfront Land Use Plan update and highlighted additional planning for the northern waterfront, we suspect phases two and three will be focused as part of that update process. Phase 4 is the back of the shed thats open on two sides. Three, if you figure its a five sided area, and our vision right now is that would remain an open space that could be programmed for special events and special uses as opposed to a fulltime use. I think we have more work to do there. Were focusing still on the bulkhead building which is number one in this photo. Doing the seismic work which gene will talk about in just a minute, we come to the conclusion that we can accommodate about 20,000 ft. 2 of usage of Public Assembly space without triggering a seismic renewal of the substructure of the pier. Im going to stop there on that part and let go into more detail. Weve drawn the 20,000 ft. 2 in the bulkhead in this weight for now. It could be drawn in any number of ways, which could be more in keeping with the way that the yacht club use the space or which would be a flipping of that rectangle if you will to be parallel to the Ground Transportation area in the valley appears 27 and 29. Theres different ways it could be utilized, but the key factor is to consider it for 1000 ft. 2 for purposes of staying within all the allowable codes. This is just a reminder what the inside of the bulkhead looks like rain appeared on the far right side of that picture you can see the utility system that is part of our power system for the cruise ship terminal. That is a permanent structure that would stay. It was there for the yacht club. They did a nice job of camouflaging it. You can see, following the 20 12th fire and fabulous rebuilding that Wendy Proctor let, it just a gorgeous facility. Full of light. Its a historic landmark. Very inviting and it is in a really keen place within the hellish. Newbie great opportunity to help put the ornaments on the Christmas Tree while the investment we made in that area. Some strategic objectives that to mean the same, but again to activate and i live in the area of the waterfront to return the bulkhead to economic use, to provide Additional Services to the people are there already. Cruise passengers park users, or just the folks who are coming through the promenade and looking for that unique experience, which is drawn into the waterfront in the first place. And the ability to reopen and reactivate a very significant part of our historic district. Then, project objectives, of course, is to continue with what we do best which is creating vibrant people destinations. Making sure that come as we promised to our neighbors and tenants, whether they use is, its additive to the environment in which it is with our neighbors and tenants, not cannibalizing it. We would like you to really celebrate some diversity of our culture in the bay area. In the arts and culture and other areas. As opposed to the food area, which we have done quite a bit. Not to say that food would be allowable use on something that would be welcomed, but we think that it would be lovely to see more arts in the northern waterfront. Then, also objectives of course are to try to promote our local businesses and local artists and our local workers. Of course, do so in keeping with our historic standards. By building and fire code requirements. So, with that, alternative or two gauche to hypothesize the condition of the visit. Good afternoon. Commissioner. Pier 29 was originally built about 100 years ago in 1915. Although in 1994, following the earthquake, the substructure for. 37 and pier 29 was upgraded seismically. So, it needs it meets current codes, however the superstructure, which is the building on top of the deck, that has not been upgraded. Although, in 2012 there was a fire. It was reconstructed and its in new condition. It just does not meet current seismic codes. Seismic code is triggered by occupancy. Based upon the original occupancy of pier 29, we could allow a total usage of occupants of 775. That would allow for accommodation of various types of uses. Some include a combination of retail, Light Industrial, commercial, and storage. The following is, just an example of how you could divvy up the space to utilize the total peer. Its hard to read, but the yellow portion is warehouse and storage. The blue portion is fabrication Light Industrial inc. Is a retail. This is just one of an infinite number of combinations in order to meet the occupant loading and stay within the range. If we wanted to intensify the use, we would have to seismically upgrade the pier shed and the bulkhead had which could run between 1 million for the bulkhead building 269 dollars, approximately, for the warehouse portion. With that, ill turn it over to byron. Commissioners byron read. Planning and development director. I just wanted to be a great appoints that the directors made. In terms of Going Forward and next steps, really want to take the feedback that we get from you through this presentation to be able to finalize the rfp and come back to you tomorrow hopefully in september, if not much later than that to get your approval, but as part of the process i wanted to also mention or remind you all that we have Advisory Groups for all of our various sub areas, and are we have a northeast waterfront Advisory Group. We rely on those Advisory Groups to give us, help us with our Public Outreach and to get feedback from stakeholders and community when we are moving forward with a particular approach in this case, a leasing opportunity. We are rating as the director has said, this is not a new development proposal. This is a leasing opportunity. We are working with a real estate to make that happen. So, i just wanted to briefly touch on the feedback we got from last week as we brought this issue of trying to move forward on. 29 back to them. They gauche it hadnt been discussed in front of them. Since last year as well. Not long after, i guess, it had been presented to the commission. So, in summary the Advisory Group was very supportive of the idea of moving forward with this leasing opportunity in the bulkhead building