Annual Report 2004-2005 April 12th version - Port of San ... · PDF filePort of San Francisco Annual Report 2004-2005. ... Drydock Ship Repair Pier 80 Cargo Terminal ... Dogpatch Illinois

Welcome

2Port of San Francisco

Port of San Francisco Annual Report 2004-2005


Introduction and Overview

Monique MoyerExecutive Director


Diverse Lands, Diverse Needs


Our MissionFundamental Attributes:

Trustee for Public Trust

Lands

Self-supporting enterprise

agency

Committed to an inclusivecommunity planning process

Public Trust:

Promote maritime commerce, navigation and fisheries

Preserve natural resources

Attract public to use and enjoy the waterfront


Economic Impact to San Francisco

Port Operations Activities

produced 29,531 jobs

generated $1.6 billion in revenues

resulted in $120 million of state & local taxes

(Source: Economic Impact Report, Martin Associates, 2000)


Environmental Regulations

Transfer Agreement

City Charter

Waterfront Plan

Burton Act

Public Trust Law

Community

City Hall

State LandsTenants

BCDC

Federal Gov’t

Governance and Oversight


Maritime Division

Peter DaileyDirector


A Diverse Portfolio of Maritime BusinessesCargo Shipping

Foreign Trade Zone

Commercial Fishing

Sport Fishing · Recreational Marinas ·Public LaunchesExcursions

Ferries Harbor Services / Lay Berthing

Ceremonial / Historic Ships

Passenger Cruise

Ship Repair


Container Cargo 1990 through 2004

0

20,000

40,000

60,000

80,000

100,000

120,000

1991 1993 1995 1997 1999 2002 2004Full Units

116,323

12,727

89% Decrease in Containers


Breakbulk Cargo 1999 through 2005

0

2550

75

100

125150

175

200225

250

1999 2000 2001 2002 2003 2004 2005

Metric Tons

(1,000’s)

2004 tonnage figures represent a124% increase over prior year.

14,000

237,000

1,693% Increase in Breakbulk Tonnage


New Markets: Breakbulk Promotional Ad

13Port of San Francisco0

300

600

900

1200

1500

1998 1999 2000 2001 2002 2003 2004 2005

Metric Tons

886,000

1,495,000

169% Increase in Dry Bulk Tonnage

Bulk Cargo 1998 through 2005


0

40,000

80,000

120,000

160,000

200,000

1 2 3 4 5 6 7 8

Cruise Passengers 1990 through 2005

207,500 (2005 est.)

35,495

+457%

197,57383,53870,05433,87052,87456,96856,14835,495

20042002200019981996199419921990


Passenger Ferry Ridership

6,147,946

• 3% Growth in Tourism / Excursion Ridership• 26% Growth in Commuter Ridership

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

'93/'94 '94/'95 '95/'96 '96/'97 '97/'98 '98/'99 '99/'00 '00/'01 '01/'02 '02/'03

5,381,422

Tourism / Excursion Passengers

Commuter Passengers


Future OpportunitiesJames R. Herman International Cruise TerminalIllinois Street Rail Bridge• Greater cargo market flexibility• Accommodate heavy lift project cargo

Pier 94 Backlands• Distribution / logistics campus

Ship Repair • Commercial interest in expanding Drydock 2 to

capture growing “Big Ship” market in PacificFerry Growth Trend • WTA regional program• Bay Area congestion & traffic impacts

Harbor Services CenterNew Marina at Mission Bay (Warm Water Cove)


Real Estate Division

Denise MartinezReal Estate Analyst


Revenue MixHistorical Comparison

1993

27%11%

62%

2004

20%8%

72%

Maritime Related Real Estate RelatedInterest/Other Income


Major Operating Rev. & Associated Sq. Ft. 2004

14,87229%

35,64671%

Maritime Related Non-Maritime Related

Annualized Revenues Square Footage

35,646

71%

14,87229%

12,33566%

6,48334%


Top Ten Revenue Generating Tenants

Towed Auto Storage

Recycling Center

Office/Retail Development

Bulk Cargo Terminal

Parking

Retail

Ballpark & Parking

Office/ Storage

Ferry BuildingInvestors, LLC

Office Development

Ferry/Excursions

10.

9.

8.

7.

6.

5.

4.

3.

2.

1.


Challenges of Managing Our Properties• Conditions of Properties

• Lack of Adequate Funds for Improvements

• Competitive Disadvantage to Private Sector Properties

• Competing Interests

• Long-term Revenue Reliance Uncertain Without Investment


Environmental Health & Safety Division

Carol BachAssistant Director

Port of San Francisco

Environmental ManagementProtect and enhance the waterfront for our community & visitorsSupport environmentally sound operations and development through planning, permitting and educationProtect environmental quality and public health through inspection and enforcementEnsure strong relations with the Regulatory Community


Environmental ManagementRecent Successes

Cleanup of Southern Waterfront Illegal Dumping

What was a dumping area… Is now a revenue generating tenancy

Affordable StoragePier 80 Affordable Storage



State approval of Port Storm Water Management Program

Initiated public outreach efforts to control pollution to the Bay

Working with tenants to develop innovative ways to prevent pollution

from industrial operations

Storm Water Retention Basin

Catch Basin



Finding alternative disposal options for dredge spoils minimized environmental impact and saved the Port $200,000 in 2004 and in future years

Reduced Disposal Costs for Port Dredging Program


Employee Health and Safety

All Port employees now have a safety performance goal

Injury rate is down 45% from last year

Workers compensation costs are significantly lower than last year

Upcoming efforts will focus on repetitive motion injuries and vehicle accidents


Engineering Division

Uday Prasad, S.E.Civil Engineer


Infrastructure39 Piers total along WaterfrontAll piers originally built in 1900sFunded with State Public Funds & State Debt 4 Piers rehabbed since 1950 with Port-paid bonds 4 Piers rehabbed since 1950 with private/public partnerships 30+ Piers still in need of refurbishing

Substructure deck condition under east apron of Agriculture

Building


India Basin to Pier 48

Substructure Deck, Wharf 8,

Pier 70

70


SBC Park to Ferry Building

Pier 36 Closure

3640

38

2628Agriculture

Bldg


Pier 1 to Fisherman’s WharfSidewalk/Seawall Failure @ Franciscan

39

919-23


Pier 17 North ApronRed Tagged due to substructure deck

deterioration


Pier 19 North ApronRed Tagged due to pile deterioration

Deteriorated & Missing Piles


Pier 15 Pile Deterioration

Complete loss of Wood Pile

Cross-section inside concrete

jacket


A typical Pier Repair

Pier Substructure - Concrete Deck supported by concrete

jacketed wood piles. SubstructureRepair 1,000 piles @$10,000/pile= $ 10.0 MillionAdd misc. Deck repairs (Lump Sum)= 0.5 MillionAdd Seismic Mitigation= 7.8 Million

Total Substructure= $ 18.3 Million

Superstructure

Misc. Superstructure & Seismic Mitigation= $ 1.0 Million

Total Pier 15 Rehabilitation Cost = $ 19.3 Million

Using Pier 15 as an example


Maintenance Division

Tom CarterDirector


ChallengesThe Maintenance Division maintains 19.8 Million Square feet with 104 staff members

By comparison the Hall of Justice maintains 1 Million Square feet with 32 staff members


Work Requests

0%

20%

40%

60%

80%

100%

Completed Scheduled

87%

68%


SouthernWaterfront

31%

CentralWaterfront

15%

NorthernWaterfront

54%

Distribution of Production Hours


Roofing11 roofs identified as priority for replacementAverage age of roof - 46 years1 Million square feet4 Roofers

Plumbing39 pump stations98 backflow devices40 miles of pipe5 Plumbers

Ironworkers640 gates1146 rolling steel doors125 miles of fence 4 Ironworkers

Resource Limitations


Planning & Development Division

Byron Rhett Director


India Basin to Pier 48

Bayview/Hunter’s Point

Mission Bay

70

5452

50

48

94-96

I-280

68

80

92

Third St.

San Francisco Drydock

Ship Repair

Pier 80 Cargo

TerminalPier 90-94 Backlands

Dogpatch

Illinois Street Multi-Modal Bridge

Heron’s Head Park

Pier 70 Opportunity

Area Pier 48 Fire Repair/Seismic Retrofit


SBC Park to Ferry Building

James R. Herman Cruise Terminal

Mission

3628 26 24

Bay BridgeInternational Museum of Women

Brannan Street Wharf

Rincon Park/Restaurants

Pier 14

Financial DistrictMarket

3830-32

Bryant

40


Pier 1 to Fisherman’s Wharf

North Beach

Fisherman’s Wharf

Columbus St.

Bay St.Broadw

ay

Greenw

ich

13

7

915-17

19-2327-29

3133

35

45

43½

4143

Financial District

Ferry Building

Ferry & Excursion

Vessels

Cruise Terminal

Foreign Trade Zone

Piers 27-31

The Embarcadero HotelPiers 1½ - 5


Finance & Administration Division

Tina OlsonDirector


0

20,000

40,000

60,000

80,000

2000 2001 2002 2003 2004 2005

Thou

sand

s of

Dol

lars

Total Revenues* Total Expenses‡

Revenues and ExpensesFor Fiscal Year Ending June 30

*excludes (i) revenues from capital gains and other contributed capital, (ii) $9,245 from the sale of a land parcel in 2004, and (iii) $25,700 from the up-front payment in 2001 of a lease in perpetuity of a land parcel

‡ excludes depreciation and amortization expense

+12.5%

+41.7%


0

5,000

10,000

15,000

20,000

25,000

2000 2001 2002 2003 2004 2005

Port Expenses for Fiscal Year Ending June 30

Thou

sand

s of

Dol

lars

Personnel Costs Cost of City Services & Overhead All Other Expenses

Breakdown of Total Expenses


Number of Positions vs. Avg. Cost Per Position

195200205210215220225230235240245

FY 97/98 FY 98/99 FY 99/00 FY 00/01 FY 01/02 FY 02/03 FY 03/04 FY 04/05 FY 05/06$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

FTEs Labor Costs per FTE


City Tax Revenue Generated on the Port

Fiscal Year Ending June 30, 2002

$ $ $ $ $ $

(Source: Port of San Francisco Nexus Study 2004)

Possessory Interest Tax $ 6,506,788Payroll Tax 2,371,200Sales Tax (est.) 5,268,436Admissions Tax 1,189,259Parking Tax 4,408,909Utility Users’ Tax 657,900

Total $ 20,402,492


Develop Ten Year Capital Plan

• Identify Magnitude of the Port’s Capital Needs

• Help Senior Management to Develop a Funding Strategy

Added Staff Member to:

• Assist in Development of Ten Year Capital Plan

• Pursue Grant Funding Opportunities

Reduced On-going Operating Expenses

Steps Taken


Options for Financing the Port’s Capital Needs

•Southern Waterfront Infrastructure Financing District

•Issue New Debt

•Grant Funding & Third Party Contributions

Looking Ahead


Infrastructure Rehabilitation

•Pay as you go

•Public/Private Development

•New Debt

Operating Costs

Revenue Development

•Bring Existing Leases to Market Rates

•Strategic Leasing

•Expand Leasable Space

Long Term Goals


Extensive Deferred Maintenance of 100-year Piers

Lack of funding

• No taxing authority

• No tax receipts

Constrained Resources

• 217 Staff for 20 million sq.ft.

Heavily Regulated: BCDC, State Lands, Board of Sups, RWQCB, Army Corp of Engineers, etc.

Competitively Disadvantaged to Outer Markets

Conclusion


Board of Supervisors’ Budget Hearings• May 23, 2005

• June 1, 2005

S.F. Stat Hearings

• May 23, 2005

• August 22, 2005

• October 24, 2005

www.sfport.com

Stay Tuned…


Thank YouThank You


Documents

Annual Report 2004-2005 April 12th version - Port of San ... · PDF filePort of San Francisco Annual Report 2004-2005. ... Drydock Ship Repair Pier 80 Cargo Terminal ... Dogpatch Illinois