at every single meeting. he was a great contributor. i am glad to see him moving on to something where i know he will be helping us out. this one is even bigger, and i do not know if we have found a place to put it in the court. last week it was the golden gate bridge from fort baker. it has a combination of marines, coasties, and sailors, and i hope you will find a place to put this in the port.

>> thank you very much. >> you folks, there has been terrific cooperation and i thank you for all that you have done to make fleet week so successful. >> thank you. it was definitely our honor. this will be prominently displayed nearby office, of course. >> any further comments on fleet week? >> my name is catherine hooper, with the fleet week association. when i was here last year -- here i go. [laughter] i said to watch out, because it would be bigger and better than ever, and it was. the general took a lot of what i

was going to say. the amount of time that went into this, the amount of communication, the amount of relationship reform measurement , and the articles of the volunteers -- 75 that we can name, not to mention everyone down in camp pendleton, it was a celebration. when we were writing thank-you letters, we were trying to get at some facts. one of the things that charlotte said, when she was addressing the opening reception, it was one of the hard core things. humanitarian response. i wanted to make sure that not one of our sailors purchased a beer in town. and it happened. they were all telling us that we had really turned around their opinion of san francisco.

we do have a quirky reputation. which is being nice. but we have really turned around that reputation. i think that our city fathers, the people that run the city, are in a better position to do that. i think is very important to understand -- is not nice to talk about money, but it is important to understand the economic impact that the port has on the city. we had over 1.2 million visitors. we cannot really quantify it. what i can tell you is that we had over 20,000 human beings boarding our ships on saturday and sunday. 20,000. 13,000 alone boarded 32.

we had 14 ships coming in this year, one of the biggest we have had in the city. and out of camera from florida, appointed by the central government, one of the things that we chatted with him about it is -- you will respect what the city, the county, in court what you to do. you will hire local vendors. we said it was a non-negotiable issue. we cannot force you, but we really encourage you. we all think about the money spent on hotels, regional out with, vendors and suppliers -- is that me? [beeping] those 14 ships out in fleet week spent $1.7 million in services. pilots, barges, ferries bring people back and forth.

garbage disposal. rations. everything that they brought. we are still under the threat of damage to our ships. and they required security at every port. that, alone, $480,000 are spent in this city for a local vendor suppliers. i could say more, but my three minutes are up. this event was enormously challenging to coordinate. if you think that this is big, get ready for next year. [laughter] [applause] >> sorry. kevin, come up. >> one of the things that we want to give to monique is symbolic. this is a spent shell.

we fired a 15 gun salute to the aircraft carrier. these were true the shells. we elected them. we think it is only appropriate that our wonderful port director and her staff have one of these. [laughter] [applause] >> i just want to thank the fleet wheat board and planning committee for all of the work that they did -- fleet week board and planning committee for all that they did. for those of you that were out during fleet week, you can see that there were hundreds of thousands of people that came out. it was such a great opportunity

for us. we are an area that welcomes more people into san francisco. for both myself and my colleague, melanie what can, we served on the planning board. we would joke, every monday, that it was time to go over it with the planning committee. but the work that they do is demonstrated here. we want to thank fleet week, the general, and congratulate them for this event. the tie in with humanitarian efforts helps us to demonstrate how we can support, during and after, a natural disaster. thank you very much. [applause] >> good afternoon, commissioner. my name is the rain scullion --

more rain -- lorraine scullion. i am here on behalf of the alliance with hewlett-packard. at hewlett-packard, we believe that our global reach of resources and technology assessments has great potential for responsibility to help make our world a better, safer place through improved emergency prevention, unpreparedness, and key social innovation. the activities and programs developed by the san francisco fleet week association, particularly the disaster response humanitarian aid program, reflected many of our own goals and objectives. we were honored to be a sponsor and wanted to thank the port commission and fleet week association for their efforts to get leadership in orchestrating

such a valuable and from an event. particularly, we would like to recognize the volunteer citizens that were inspiration only led by the major general, and the incredibly dedicated and hard- working board of directors, who ensured the success of fleet week. in the program, it was gratifying to see how partnerships and the channels of communication were open by having state, local, and federal agencies, planning side by side with the u.s. military and private corporations. together, we identified common goals, physical gaps, and most importantly, the next steps for strengthening our fiscal partnership. your efforts mirror the beliefs of hewlett-packard, as out --

highlighted by david packard, when he said -- the benefit of our society is not for the few, it is a responsibility to be shared by all. thank you for supporting san francisco's fleet week. we are you in such a worthy endeavor and look forward to seeing the results of a stronger, more productive, and impact full partnership in the future. thank you. [applause] >> good afternoon, members of the commission. my name is jeff collins. i am on the fleet week committee. i was asked by our executive director to tell you about a particular project we always engage in in fleet week, sometimes is not either get the recognition or the notification perhaps that it should. in particular, i'm talking

about community relations projects that the fleet in gauges in when they come to court. historic day, when the fleet comes in, an important aspect of their visit is to reach out with their sailors, marines, and coast guard to the local community by undertaking tasks which benefit that community. this year, about 100 sailors and marines helped with habitat restoration of the san francisco zoo on monday. additionally, they did landscaping and means projects -- maintenance projects. others help with habitat restoration projects that land'' end, the battery and of the presidio, and at the pacific co. on the curled vincent, and they collected 2 tons of crushed cans worth $200,000 for

charities. why is that even more significant? because the aircraft carrier had just returned to the first american corp., san francisco, after a seven-month deployment and an historic tour to the middle east. yet, the sailors found the time to go out and do this particular project. lastly and certainly not least, the visits to our hospitals. sailors, marines, and coast guard visited our hospitals in palo alto, san francisco, and also san francisco general hospital children's ward. having attended last year, i got the same for this year. the kids, doctors, nurses, they did not want these sailors, marines, and coast guard to leave. most importantly, it was a two- way street. all of them said the same thing.

it was great to be involved with the community, to do these projects, and to come away with the great feelings they have of san francisco. if you do one good act, it has a ripple effect. i suggest to you the community relations project of fleet week are a veritable tsunami of goodwill. thank you. [applause] >> i am the gift that keeps on giving. i am sorry to come back up again, but jeff reminded me of a project we had during fleet week. that involved having military music throughout the city. one of our events was a high- school band challenge that took place in the golden gate band show at 10:00 a.m. on columbus

day. six high school bands from as far south as castro bill, all the way of the peninsula to benicia, competing with the marine band. we had cash prizes for every band that competed. the winning and got $10,000. the second place that 6000. the third place cut $4,500. every other band took away $2,500. there is no money in these systems these days for instruments, uniforms, and it was the idea of the wife of our honoree co-chair, secretary shultz. she said, let's have this band challenge. after it was over and it had been reading that day -- although the crowd never left.

charlotte was about to get in the car and one of the high school band directors came over and said, i just want to thank you for this program, for doing this today. he held up the check and said, you just saved music in my school. [applause] >> good afternoon. my name is paid in sullivan. the public affairs officer. i am also honored to be a part of the planning committee with fleet week. since 2004, the conflict general of canada has used week as an opportunity to showcase the integrated nature of our shared north american defense, collaboration between canada, the u.s., and the friendship we share. this year, canada participated with four ships.

we were also pleased that our lead flying team, and the royal canadian air force snowbird flight team also performed at the air show. just to give you perspective, and the snowbirds are our elite flying team, on par with the blue angels. in addition to the air show, the pilots also visited the local v.a. hospital to do good will of reach. the government of canada, consulate, and partners, secured $31,000 in corporate partnerships -- sponsorships through the consulate, transcanada, alberta tourism commission, and canadian tourism commission, and that money went to support the snowbird participation. while the week was entertaining, our participation is more than just the activities but showcasing to californians the integrated nature of north

american defense. canadian u.s. military forces partner through various forums including nato, and un missions, and the linkages that we develop over the course of fleet week will be put to use in the summer when we participate in rimpac in hawaii. of interest to the ports, canada's participation devise a significant boost to the economy, to the berthing fees, hotels, and the spillover effects of our sailors and local community that comes to see the canadian participation. the consulate general of canada, the royal canadian navy, air force, were very pleased with this year's fleet week. record to participating next year. on behalf of the consulate general, i would like to thank the port and also the fleet week board and the general for their leadership over the last six months in putting together such a great week week event this

year. thank you. [applause] >> any other public comment? >> maybe one last round of applause for our fleet week four. -- board. [applause] thank you so much. to wrap up, i just wanted to announce, due to scheduling issues, we are proposing to cancel our regularly scheduled meeting on november 8 and replacing it with a special meeting exactly one week later november 15 at the same time. public session at 3:15 at the port commission meeting room. one last thing i wanted to make sure that commissioners and staff and everyone -- the front page of the "san francisco chronicle" featuring david

kelly, an amazing man in his own right come and a tenant of hours at pier 36. we are proud of him and his company and everyone working there. we hope you got a chance to see it. that concludes that portion of the executive director's report. >> thank you. is there any public comment on this item? >> for the second portion of the report, the informational update on the status of pier 38 closure and the steps, jonathan stern has agreed to present. in the interest of time, we will focus on the next steps, unless you or the public have questions on what has transpired to date. the staff report does give a good chronological history. now we are really focused on what we can do next. >> thank you. good afternoon, my name is jonathan stern.

monique had asked me to focus on the future. again, the closure of pier 38 was an unfortunate event and we went to apologize to the occupants of pier 30 and thank them for the way they handled the exit. it was a safety concern of port staff appeared in the end, we got great corporation and we think it is a proper for us to come to the commission to inform all interested parties of what will happen next. in october, we entered a contract with a consulting engineer firm to explore our options for what repairs need to happen for potential real occupancy of pier 38. they are under contract now. they are there through november of next year. one of the major reason the facility closed was due to code

compliance issues and safety violations of some of the new construction there. so they are going to go in and document the as-built conditions, they may have to remove some walls, potential floors, to look for this issue in the electrical and plumbing system and assess the occupancy. as documented in the report, they will look at that in a number of stages. they are going to look at doing what it takes to make corrections, allow the first story to be reoccupied. pier 38 is a maritime facility. the old hen house is a two-story structure and it has an upstairs and downstairs usage. it was permitted as a restaurant. when we took back the property

in august, we found most of those facilities are occupied by office users. that is what triggered our code compliance review. they are going to look at the first story of that building. these are separate modules of what else they will be looking at. they will be looking at the boca building and make recommendations for repair. they will also make recommendations for repairs on the shed structure. this really has to do with fire safety, overall safety of that structure. additionally, looking and any improvements that need to be made to the arena, making sure they are octuplusable by tenant. and because there are public access requirements at this facility, that they would continue, based on those different spots that are preoccupied, what they identify as the requirements needed in

each case and the cost needed to achieve that. that is an ongoing analysis. they have through the end of the year to not only document the conditions there, but to come up with estimates for what it would take to achieve each one of those options or alternatives. we expect to be back in front of the port commission for your recommendation in early 2012. based in that direction, we can come back with the necessary construction documents, and drawings, to put out to bid in may 2012. that would allow construction to begin by the middle of 2012. that is all premised on what we find and what happens in that analysis. so i wanted to spend some time to talk about what it would take to get real occupancy at pier 38. the first thing i want to say,

it really matters, what are the existing code issues, how extensive are they to fix, what can we achieve when we find those things? our biggest hope is it will be relatively inexpensive. i think our current estimates range from $500,000 to $2.5 million. there are different ways we could approach funding that. if it is on the higher end, the above that, and involves other complex issues, it really goes from being a repair products to a development project. once you're in the realm of development, you have to start contemplating going through environmental review, permitting, etc., and that would trigger a different level of skills to affect with those things.

it would go beyond repair and construction. we would need to get other expertise on board and create a development project. we would look at a news program, look at how to finance that, and how the regulatory structure would work. before i went through the steps, i did want to talk about those outcomes, which are on page 10 of the report. there are four potential outcomes that we can recommend to the port commission based on what we find in the physical investigation. options 1 and two, we have a relatively low amount of code corrections that need to happen, not too expensive. in that case, we can envision bringing back policymakers to the port commission to see if there is money in the capital budget -- we could consider a capital works project. we could present a contract to you the normal way we present our facilities. we could start that by june of

2012. the other possibility is the repairs are a little bit more but still a construction project. based on our resources, we do not feel we have the wherewithal to manage all those projects. in that case, we would be looking for a master tenant to take over the facility. part of their charge would be to reoccupy under approved uses, and also they would make sure that it is all code compliant. they would do that through construction. that would be similar to the foreign trade zone. 1923. there was ongoing concern for many years.

that is on the low end, if we find there is a re-occupied will portion of pier 38 and can be done quickly. if the fixes are more expensive, either more money, and/or require more development activities, talking to regulators, reaffirming, and changing the uses, environmental review, we would be an option #3, which is selecting a master developer. that is a process that the port commission has done a number of times, most recently for seawall lot 357. that is what we're asking our partner to do, a more significant task, other than doing re-tenancy. it could also be possible, because of cost, regulatory

process, or the legal status of pier 38, we may need to keep its shuttered for the time being. if there is no feasible path in 2012 to print -- quickly bring the facility back into use. i would like to mention, as i talk about the policies and procedures, in each of these cases, the first of those, the legal status of pier 38. most of the things i will be mentioning are 4 overall and standard procedures that have to be followed under any development project. but pier 38, a former tenant has appealed. there are civil claims back and forth between the tenant and port. furthermore, because the former tenant had a loan with the california department of boating

and waterways, basically they have an agreement on the property. they have a right to take over the tendencancy. beyond a special case, we would have to look at how report uses are determined. the backbone of that is the waterfront land use plan appeared that and then a bios policies, potential uses, for each of the port facilities. we have outlined what it has been for pier 38. it is mainly about maritime use. in the past, it was always the maritime facility. the land use plan looks at this as a maritime facility with other ancillary uses. that is something that we examined and will have to reconcile. secondly, any plan for real occupancy,