staff to further increase the contract amount by 3,000,927 $676 for a contract modification or change or if needed for unanticipated contingencies. i would like to add that our bid for our steel for our project are due this afternoon, and we are anxious to see how they go. this concludes our presentation. i would be happy to answer any questions you may have. commissioner brandon: thank you. we have a motion and a second on the floor, so i will go into public comment. >> thank you. good morning, commissioners. good morning, president brandon. i want to emphasize that i'm so happy that we are nearing the beginning of construction on the james r. herman cruise terminal. i was a member of the commerce advisory committee and a member of the cruise terminal advisory committee, and i have been waiting a long time. this is great. this will allow san francisco to showcase and interest to this wonderful city with this beautiful cruise terminal. staff has done a tremendous amount of work. this is the fourth time around for the cruise terminal. very hopeful that we can get it completed. thank you. commissioner brandon: thank you. >> good morning. i am with bay delta maritime, a tugboat company. i am speaking just to support the yes vote for the terminal. we have been a company here for about 30 years, supporting the rich maritime history that the day has, and i think the world class terminal will really represent the work itself well -- represent the port itself well. cruising is becoming more and more and avenue of tourism as it grows, and i think our city has always enjoyed a lot of revenue from tourism and a lot of respect around the world as people have come to visit our city. the terminal we have now does not reflect what is san francisco, to be honest. as people see and come through that gateway, and improve terminal, i think, would go a long way to facilitate that. for us, for a smaller company, we employ 30 people, roughly. all bay area citizens. more ships coming into the bay certainly helps us. that is really all i had to say. thanks. commissioner brandon: thank you. >> good morning. thank you for the opportunity to address this assembly. i am the business development director. our general manager would like to be here addressing you, but right now, he is hosting about 300 of our employees at our annual christmas party, along with his family. after this, i am going to sneak back to that. i also understand that with the current volume of ships that call on san francisco, that actually employs about 300 full- time people as well, not counting all the ancillary taurus -- tourists. i believe the new terminal will definitely bring more jobs, more ships, and more opportunity for us here in san francisco. so we wholeheartedly support the construction of the new terminal. as a business development manager, i am always in front of these cruise ship operators, touting the benefits of san francisco, and we have been investing in our yard peer through that investment, as peter said, we have the capability to lift some of the largest cruise ships that call on the west coast here. the carnival splendor, which caught on fire down in san diego earlier this year -- if we had not done those upgrades with the port, the ship could not have been repaired here on the west coast. with these upgrades, the rigid for 2012, we have three ships book. as peter said, the carnival will be coming next month. not for 14 days. only 411, but we still have 35,000 man hours to complete in that time. the splendor carries 3000 passengers. the current terminal cannot handle the -- that. the current terminal -- we are at a disadvantage to san diego. we are at a disadvantage to l.a. and seattle. we all know that more ships will bring more jobs, more dollars, and on behalf of bae, we support the crucible. excuse me while i head off to our party. -- we support the cruise terminal. excuse me while i had often our party. commissioner brandon: thank you. >> business director. the captain would be here today, but he is doing some reserve duty with the navy. i just want to take a few minutes to say how much we support this project. the san francisco pilots have been in existence here since 1850. i appreciated the comprehensive history that peter shared with us, how long this has been coming down the pike. i guess this is the last lap. let's put this through. it was nice to see the team that has been behind this. we want to abolish the hard work that monique and all the people have done. we support this -- we want to acknowledge the hard work that monique and all her people have done. >> good morning, commissioners. jim lazarus, san francisco chamber of commerce, related by marriage to one of your commissioners for full disclosure. i am year to request of the president of the chamber who served on your cruise terminal advisory committee to support this project, to urge you to make the appropriate findings and approve the appropriate contract for this, and in fact, i think the project moved forward because of the other items on your calendar today. a feat -- fewfew events and fewt had as much citizen involvement as the project today, but that the city level, through citizens' committees, through this commission, through the planning commission, through state agencies, and for the america's cup, federal agencies as well. eir and eis reviews any actions before you. yesterday, it was unanimous, which is a surprise sometimes out of that commission that you got a unanimous vote. it indicates a broad level of support for the cruise terminal project in the america's cup. the chamber just this commission to take all appropriate actions on all facets to move the project forward as quickly as possible. thank you very much. >> thank you. next. >> good morning, commissioners. i am representing caspar, the san francisco planning and urban research association but i am here to support the adoption of the ceqa findings in the mitigation and monitoring and reporting program, for both the cruise ship terminal and the america's cup. with your permission, i will testify just was for these two items, which are separately listed as 9a and 9b on your agenda. i actually have read the environmental impact report. [laughter] not every word certainly, this is the longest such a document i have ever reviewed in been associated with, but i have read enough to know that these are very good projects, that the analysis has been very detailed, and i believe the anticipated impacts and propose mitigation are realistic and appropriate. the america's cup will finally get as the new cruise ship terminal and bring other, both physical and financial, benefits to both the port in the city as a whole. so please adopt these findings and programs today. thank you. commissioner brandon: thank you. norman pierce? >> good morning, commissioners. i am norman pierce, and i am speaking on behalf of the citizens of san francisco that i am communicating with with regard to maritime recreation. the cruise terminal and the operation and the merger of the ac, america's cup event to improve this year, to service a broader range of maritime facilities, that includes recreation. it is important that i informed a club called the yacht club. it is in the cloud. it is for any member wants to get into the water and experience the recreation. this cruise terminal, america's cup, will be able to facilitate the general broadbased citizenship to be able to get access to the water and experience of our great place of recreation on the water. thank you. commissioner brandon: thank you. catherine hooper? >> commissioners, i promise i will not cry this time. i am speaking on behalf of the passenger cruise industry, having served as a port agent for many years in this port. going back to what was said previously, i, too, and in 2000 and earlier, served in an array of committees to bring our new passenger terminal. one of the things i remember saying at a meeting is that i certainly hope this happens in my lifetime. it has been going on for quite a number of years, and i think we're finally there. as somebody who has been involved in the passenger cruise injured -- industry for my whole passion to career, i can tell you that when, as a marketer in the passenger cruise industry for 25 years before becoming an agent, we would do market research to find out from potential passengers were they would like to cruise. san francisco always comes up high. having had the privilege of travelling on passenger ships in my former career, i had the privilege of coming to many ports in the world, and we're of one of the most of all natural harbors in the world, and there was sydney, australia, vancouver, hong kong, and san francisco. as you come into all of these boards and go to these fabulous terminals and then you come to ours, and meaning no disrespect to the board because god knows they try to enhance it as best they could with what we have to work with, i think you would wince. and you probably have. to watch when we have a full ship turnaround, to see what a great thing we have done with our 1920 passenger terminal in its time. we need this terminal. my second had it that i am wearing today is that of the operations director for san francisco's annual fleet week. you might ask what that has to do with the passenger terminal -- it has everything to do with the passenger terminal. when we bring these men of sick, glorious, active naval war vessels into our fabulous port where we treat our men and women at the sea service is so well, as an agent for these ships, what i have to do to go through in the port has to deal with to accommodate their needs, which are not all that much different than a passenger ship, is a daunting. one of the great legacy is that we look forward to enjoying after america's cup leaves is the legacy of having a fabulous passenger terminal, as well as a terminal for visiting large vessels, including our fleet week ships. in closing, i urge you to pass it. we worked remarkably happy last time with the 5-0 vote, and we look forward to that today. and please do it in my lifetime. thank you. commissioner brandon: thank you. veronica sanchez? >> good morning, madam president, commissioners. further tests sanchez, and i am speaking for myself. i had the privilege of being the adopted goddaughter of jimmy herman in his last years of his life, so i had a very personal relationship with him, and i was privileged to have that. one of the things i wanted to share with you is that people have been talking about a lifetime and the years that they have been trying to bring a new cruise terminal to our report. it is appropriate that you're taking this vote today at city hall, because i remember 22 years ago as a then young staffer for the mayor, one of the first projects that i worked on was a project to develop the scandinavian center at pier 33, a cruise terminal. that was the first iteration of a cruise terminal i was exposed to. i worked on it, actually, with the commissioner's has been, the deputy mayor, at the time. that did not come to fruition. the land lease cruise terminal did not come to fruition. so i am really pleased that we're so close to finally getting this new cruise terminal. it is a program that it has mr. herman's name to it. a lot of people do not know that even though he really spent most of his lifetime trying to bring cargo ships to san francisco bay area and throughout the west coast, the last years of his life he actually focused on cruise ships. because he understood the transition and the changes that were occurring at this port. and that, although containerships would not necessarily come here because of the impediment of the railroad, that indeed, we could be a cruise niche, and he spent a lot of time even advocating for changes to the passenger services act, federal legislation that to this day impedes this port from maximizing on cruise opportunities. so i am certainly thankful for this moment and this opportunity, and as a final comment, i would add that we certainly hope that this cruise terminal truly reflect jimmy herman's spirit and his passion, which was to make sure that the maritime facilities provided jobs for his dear union, the ilwu, and that we do not take shortcuts are cut costs or corners and put ilwu jobs at risk. thank you very much. commissioner brandon: thank you. next. >> good morning, madam president commissioners. my name is adjacent santana, a member of local 75. since 1939, we have been a charter local of ilwu and have other marine terminals in oakland and port of san francisco. port of san francisco, pier 35. cruise terminals 2729. npr's 30 and 32. we have roughly 200 members, 25% of which are more men, 23% african-american. the new cruise terminal is not job preservation. we need a more efficient modern cruise terminal so the crews i can continue calling at our report. otherwise, these ships will bypass our city, even if it is one of the most beautiful cruise ports in the world. although we were unhappy about some loss of jobs in pier 27 through 29, the port has injured will be able to discuss with to get the most amount of jobs inside and outside of the terminal. we're willing to take them at their word for this. but the most important thing now is to get the contracts out to get this terminal built. thank you for your time. thank you for listening. we look forward to everyone's cooperation in the future. commissioner brandon: thank you. mike and and then peter. >> hello, my name is michael, vice president of the ilwu local 10. at the present time, i soon will be the president of local 10. i just wanted to say thank you, and madam chair, a commission, we wish you a happy holidays. but i am here to announce to you that the ilwu local 10 is looking forward to continuing to do work on these stocks -- docks through the american cup in the new cruise ship terminal. we're there to move cargo. and we want to make sure that this commission is aware of our jurisdiction. we understand this of contractors and those types of things, but we are for short going to do the work on that the docks. i am very pleased that this is happening. i am is second generation of longshoremen. my family has been working on these docks since the early 1940's. this is an exciting thing for us, because it is showcasing san francisco as one of the premier cities in the world, not just in the united states. so by this cruise ship terminal happening due to the american cup helping out with the financial part of it, it is a wonderful thing to go forward. and having it named after jimmy herman and what jimmy herman stood for was representing the working class, we have many, many members, and we represent the locals throughout the bay area. my local is local 10. local 34 is the clerk's. local 75 are the guards. in local 91 are the bosses. we have done work throughout the history of the docks for the last 100 years. even at that time, it was not the ilwu, the it is the same working-class people. you mentioned about not using substandard labor to do the work for the american cups, and i am letting you all know, we're paying attention, and we are there to do it. and the last thing i would like to say, we talked about the roots of this city, the great history of this city with later -- labor. indeed ilwu, the international longshoremen are seeing in, is not giving up jurisdiction. i just want to make that point. it is exciting for us, and we're looking forward to working together with the american cup and the port commission to do whatever you need to happen to make this project a smooth transition throughout the process. so thank you, and happy holidays to everyone. appreciate it. commissioner brandon: thank you, and congratulations. >> thank you. >> peter, and then jennifer. >> good morning, commissioners. my name is peter olney, the organizing director of the ilwu, he has our ticket -- articulated our needs and perspectives on the cruise terminal and the america's cup. we appeared last night at the planning commission. we supported the certification of the eir for the america's cup. however, we did raise some of our concerns around social equity, which are the issues of good jobs and good union wages with good benefits and working conditions. i would reiterate that concern again, and i am very happy about the assurances we have from ports of about a sit-down in the new year to talk about those issues, and also, we have assurances from mr. bopp billingham, and infrastructure manager for the event sponsor. we're going to sit down with him and deal with some of these issues around waterfront were, particularly the operation of cranes. those are discussions that we look forward to, and we look forward to appearing again before the port commission in january to assess where we are at on the social equity issues. thank you very much for your consideration of our concerns, and what a great day it is for the port of san francisco. commissioner brandon: thank you. >> good afternoon. my name is jennifer, president of san francisco tomorrow. i have appreciated all the months -- i have spent about 10 months working with port staff. unfortunately, we were not able to come to agreement on all the issues in the eir or the mmrp, appealed to the certification has been filed this morning under administrative code 31.16, no further action can be taken on this matter until it is referred by the board of supervisors. since you're scheduled to hear it in late january, i am very hopeful we can take care of our issues before that time and not delay the project. thank you. commissioner brandon: thank you. is there any other public comment on this item? >> i am paul, speaking as an individual, but also with reference to my work at the san francisco chronicle as the water for a columnist, a consultant to the bay area council, and a long time sailer. i simply urge the commission, notwithstanding the prior witness, to take immediate action and move forward. all the items under gen a, item 9a, because of the ability to expand the vitality and economic viability of our wonder front -- our waterfront. thank you. commissioner brandon: thank you. any of the public comment? commissioners, are there any questions or comments? commissioner lazarus? commissioner lazarus: this is a question for kim, and you might have a better answer later this afternoon. we looked at the budget numbers to result unanticipated increases. do you have any sense of the construction market now and whether it has tightened up or whether it is possible that some of these bids may still come in lower than budgeted? >> it is my opinion that we're still in an excellent market. turner provided our latest cost estimates and has taken into consideration that we're a very good market. we are going to find that very soon how good it is. commissioner ho: just a question on the condominium sales proceeds. what is the plus or minus, and do you think that is associated with that? >> i will get our finance director to address that. commissioner ho: given the question the costs could still be moving. >> the water mark condominium sales proceeds are actual cash from the sale of the condominium. i think back in 2003. the interest earnings arctic ruled today. that transgression occurred many years ago and our actual. commissioner woo ho: thank you. commissioner katz: a couple questions. i know it is hard to project phase two cost estimates, but do we have any sense, percentage- wise, what we would be looking at with that, given the anticipation of having phase one and in the homeland security issues and other things for phase two? what does that look like in potential funding? >> let me talk about potential funding first. we have the earlier $10 million fema security grant. most of that expenditure will be in phase two, and that match is really our security needs in phase two. so there is about $8,500,000 going into the phase two security systems. the other major funding for that work will be a future bond for the park itself. we have been doing value engineering as the design has progressed, and we're just now finishing the design. we're going to bcdc on january 9, i believe, to try to reconcile their requirements for our park. i would like to report back to you in our january meeting when we have the park finished or the design almost finished, and we will have a new cost estimate by then. it is too early right now. commissioner katz: i did not want to hold you to anything specifically. have we contemplated, if there are any significant delays, the impact if it is not completed in time for use by the america's cup event authority? >> that is a good question. i think it is for the event authority to answer that question. we have assumed confidently that it is a one-year construction program. there are ways, if necessary, we can improve that slightly, but it is a pretty complex project to bring in, much shorter than 1-year time. so the delays will be getting started -- i mean, if there is a problem getting the approvals to start, obviously that is beyond our control. commissioner katz: it sounds like that is enough additional time under sort of a worst-case scenario if there are delays that would address that. >> commissioners, i am part of port development staff, working on the transaction documents for the america's cup. in the development agreement for the america's cup, there are a series of procedures to ensure that we're coordinating and they're fully apprised of our schedule on the cruise terminal. and they do have some rights under the transaction documents, and we will bring them to you for your consideration later in this meeting. it would allow them, and a certain point, to step in with the matter of money and what they invest for the cruise terminal or by may 1, tell us to essentially secure the development site so that the america's cup events can occur