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September 20, 2007

Maritime Commerce Advisory Committee

Meeting Summary Notes

September 20, 2007


Board Members Richard Smith, Phil Eastman, Bobby Guillory, Fred Sherman, Richard Smith, Bill Butler, Jim Wiltshire, Farless Dailey, Leif Gistrand, David Gavrich, Ira Maybaum, Fred Pecker

Port Staff - Peter Dailey, Jim Maloney, David Beaupre, John Davey, Denise Turner, Louise Anderson, Tina Olson, Daley Dunham, Rich Berman, Sean Jenkins

Summary Notes


Peter Dailey opened the meeting and noted that the early start time is due to a meeting scheduled today with GM executives from Detroit, UP Railroad executives from Omaha , and Pasha to discuss interest in auto imports to Pier 80.

BAE Ship Repair -

Peter Dailey reported on the finalization of the Port's lease agreement with BAE Systems to operate the Port's drydock facility. Ira Maybaum reported that Princess Cruises will be contributing $3 million towards modifications to the Port's drydock that will now make it capable of handling ships too large to transit the Panama Canal. This decision by Princess to invest in a San Francisco asset that can better serve the cruise industry will not only strengthen the Port's relationship with its largest cruise customer, but will also position San Francisco as the only port capable of handling post-Panamax ships in the Pacific region. This will not only attract more ship repair jobs, but will also motivate all cruise lines to make the big decision to redeploy their megaships out of other areas such as the Caribbean and Mediterranean, permanently position these ships along the West Coast, and generate more cruise itinerary options for San Francisco.

Southern Waterfront Community Benefits and Beautification policy proposal -

David Beaupre reported on the draft Policy for Southern Waterfront Community Benefits and Beautification Projects that would set beautification measures, community benefits and a rental surcharge to be incorporated into any new, amended or extended leases, licenses, permits, operating agreements or memorandum of understanding. If the Policy is adopted by the Port Commission, such considerations would be included in the Port's standard form leases. Deviation or waiver from such considerations would require approval by the Port Commission.

This policy is being presented for discussion in upcoming port community advisory forums, including MCAC. Port staff then intends to return to the Port Commission with a recommendation for approval of the proposed policy and any alterations thereto.

One community benefit cited in the policy is to encourage use of local businesses for the use of Port facilities in the Southern Waterfront. It was pointed out that due diligence should be paid to ensure the businesses that claim to be local are in fact located in the community.

Rail update –

David Beaupre reported that the port is moving forward with studying the feasibility, cost and funding sources for modifying rail tunnels 3 and 4 on the Caltrain/UP/JPB main line to accommodate auto railcars and oversize rail cargo. The Illinois Street Bridge southern approach rail connection is back on track and scheduled for completion by mid-January, which when completed will provide on-dock rail service to Pier 80. The Illinois Street rail line north of Cesar Chavez will be abandoned in exchange for funding from Muni for other rail improvements.

The meeting was halted at 11:40 due to the early arrival of delegation from GM, Union Pacific and Pasha to discuss auto imports into Pier 80. We apologize for the inconvenience to the membership for having to end the meeting early.

Special interim meeting to cover remaining agenda items: Thursday, October 18, 2007 11:30-1:00 Pier 1 Bayside 2-3-4 Conference Rooms.

Agenda will be attached to the email accompanying these minutes and will be posted on the Port website.

Next regular meeting Thursday, November 15, 2007 11:30am-1:00pm Pier 1 Bayside 1-2 Conference Rooms

Tentative Agenda Items for next meeting:

- Special presentation from John Pasha, Co-Chair, Working Waterfront Group on San Diego Bay, and Sharon Cloward, President, San Diego Port Tenants Association

- Presentation on Pasha Auto Processing Facility at the Port of San Diego by John Pasha

- Cruise Terminal Advisory Panel update – John Doll

Last updated: 6/18/2010 3:24:52 PM