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Committee severs $2M shore‑power item and forwards bulk of Pier 27 appropriation
Summary
The committee approved a supplemental appropriation for the Pier 27 cruise terminal but severed the $2,000,000 shore‑side power reimbursement from the America's Cup event authority pending DDA/COP clarity; the Port was asked to return with funding updates including the unresolved $5.3M phase‑2 gap and the $6.5M general fund question.
The Budget & Finance Committee voted to forward an appropriation ordinance for the Pier 27 cruise terminal to the Board of Supervisors after severing a disputed $2,000,000 shore‑side power reimbursement.
Elaine Forbes of the Port told the committee the supplemental would appropriate $5,448,352, drawing on $3,448,000 of Port fund balance, $1,800,000 in 2010 port revenue bond reappropriation, $1,100,000 shifted from a delayed Pier 35 project, and $700,000 realized from an underrun on a Pier 19 roof project. The supplemental also recognized up to $2,000,000 in reimbursements the America's Cup event authority would pay for shore‑side power relocation, Forbes said, but she cautioned the Development and Disposition Agreement (DDA) under negotiation could change whether that $2,000,000 is reimbursed by the event authority or absorbed by the Port as harbor funds.
Budget analyst Mr. Rose recommended placing the $2,000,000 on Committee reserve given the uncertainty. He summarized project budgets: Phase 1 funding identified in attachments totaled about $62.3 million, the full project budget was cited as roughly $93 million, and phase 2 totaled about $30.7 million with an unidentified $5.3 million gap. The Port is also exploring AB 664 state revenue sharing and other funding avenues.
Port staff said they are working with the Mayor’s Office of Public Finance on a potential Certificates of Participation (COPs) issuance that could provide cash flow later in the summer; without the $2,000,000 the Port expected a short‑term commercial paper need in May. The Port asked the committee whether to reserve the $2,000,000 or sever it pending DDA finalization.
Supervisor Avalos moved to sever the $2,000,000 shore‑side power portion from the supplemental and forward the remainder with recommendation; Chair Carmen Chu agreed. The committee asked the Port to work with the City Attorney to produce redlined documents for the full Board agenda and required the Port to return with an update on the $5.3 million phase‑2 gap and the status of the $6.5 million general fund item.
The committee’s action sends the amended appropriation ordinance to the Board of Supervisors; staff will return in April with updated financing information.
