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tv   [untitled]    October 21, 2014 10:30am-11:01am PDT

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generating any revenue. it is generating revenue. it could be profitable. >> so it's getting close. that's the other reason, because it seems like we are narrowing the gap and i don't see what the last month would say with an opportunity like this if the gap is more and more you have a cumulative number of 1.1 versus 1.3. >> that's what the issue is that the original waiver expired in august and you have to come to us with a rate and that is participatory. >> deputy director, yes, the reason we are here is because this was a 24 -month project that you approved, but you only approved the waiver for 1 year, for 12 months. that waiver has expired, we are here to request that you approve a second waiver
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and while here, we are saying, you were asking for authorization that staff if the conditions are the same and if you are to approve the waiver today, if those conditions are the same next year that staff based on your approval today assuming you are doing that, would approve a third waiver. so we are asking inform doctor for that in advance and says same conditions, we believe the staff could make that namsz. analysis. >> i understand that. if it's profitability by august 2016, there won't be a second waiver? >> right. either because it's successful or we request it because based on the financial analysis they provide that they can pay, then they
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would bring a waiver. but assuming the conditions are the same as they are today, you would be authorizing staff the director to approve that third waiver. so we are talking about a period of three 3 years and we'll come back to you. >> okay. i understand the general basis. i guess we don't know. it's a question of seeing, you are very close. $200,000 differences. the closest most recent projections or your most recent history is more accurate on a month to month basis from the beginning. >> sure, and also for context, we sent monthly reports to port staff. so they are not waiting a full year to see what's happening. they are seeing the information on a month to month basis. i do want to point out the addition of
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$200,000 from the one 1 year of operation, that doesn't take into account any of the cost of the acquisition of the equipment which was $6 million 50 percent ,000,050 percent which is in san francisco and it also doesn't take into account the fact that we should have acquired additional equipment but there have been delays referred to some of them and changes in the industry. there was a bankruptcy of our equipment provider which is why there is a delay and we now feel that many of those hick ups have been worked out and there is a new opener and st industry is stabilized and we are gathering ourselves to be ready to replace that expansion order going forward. the numbers you talked about the $1.1 million, it's a moving target and doesn't take into account the acquire the equipment, it's just the
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day-to-day operations. which is why our feelings that without private sportsmanship which is the -- sponsorship which is the way it becomes profitable or being able to charge more with the service is not how the system is designed because we want to encourage participation and bike use versus vehicle use. it's not that it will not be profitable within the next year but within two 2 years we might be able to secure additional private sponsorship to be able to create the p financial models to have the program financially stable going forward. >> so there are some where in the neighborhood of 40 bike sharing systems in the united states right now
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and one of them is profitable and that is miami beach. all of these in denver, minneapolis, they operate at a loss and the business model makes up for the difference between public funds and private sponsorship. i do think we can achieve operational self sustainability here in san francisco if you don't count at the norms capital cost of the equipment. but not, i don't think it will ever happen at a scale of 350 bikes, we need closer to 1,000 bikes to be sustainable. so profitability, it won't happen here. >> i think, i just want to thank you for coming forward and i recognize and appreciate what you were doing in terms of trying to be ants
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anticipatory and i hope you appreciate that we want to see this work and for added for congestion on the port, anything that can done to improve it is a huge help and i'm pleased to hear how many rides have been taken to and from the site. i'm happy to see the program expanded and see the port help this along. it might be nice for us to get an update periodically on the project because it's another opportunity to spread the word about what's happening to the public and those that observe it. i want to thank you for bringing this forward in anticipating some of the steps and needs we'll need to ensure the success of the project. do i have a motion? >> motion to adopt resolution 1554. >> second. all in favor say, "aye".
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>> aye. >> any opposed? resolution is adopted. thank you. >> item 13. new business? is there any new business? commissioner adams? >> director, i haven't heard in a long time, this place right behind the ferry building, there was a restaurant there. it was a stake house, was there any update or can we get anything at a future meeting? [inaudible] >> i have to be out of here at 6:30 >> do i have a motion to
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reconvene this closed session. >> so moved. >> second. >> we'll reconvene briefly do i have. are we ready? do i have a motion to reconvene in open session and not report out or discussion. >> reconvene session and not reveal anything talked about in closed session. >> second. >> all in favor say, "aye". >> aye. >> any opposed? is there a motion to adjourn? >> motion and second. all in favor say, "aye". >> aye. >> any adjourned. thank you everybody. [ meeting is adjourned ] >> >>
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