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Like. What we give back as a shop owner is creating an ambient lifestyle. If you do it in your area and if you like it, then you can do it on the streets you like. Good evening, welcome everyone. We will start this meeting with our pledge of allegiance. [pledge of allegiance] welcome, all. Thank you very much for your attendance this evening. This is a reminder to silence all electronic devices. The Fire Commission regular meeting of wednesday, may 22nd , 2019, and the time is 5 00 p. M. Item one, roll call. [roll call] item two, general Public Comment members of the public may address the commission for up to three minutes on any matter within the commissions jurisdiction and does not appear on the agenda. Speaker shall address their remarks to the commission as a whole and not to individual commissioners were Department Personnel. Commissioners are not to enter into debate or discussion with a speaker. The last of a response right by the commissioners or the Department Personnel does not constitute agreement with or support of statements made during Public Comment. Thank you very much. Is there any member of the public that wishes to give Public Comment on the item on general Public Comment . Seeing none, Public Comment is closed. Item three, approval of the minutes. Discussion and possible action to approve the Meeting Minutes of our regular meeting on may 8 th, 2018. At this particular agenda item, to approve the minutes, his is there any member of the public who wishes to comment on the approval of the minutes . Seeing none, Public Comment is closed. Are there any questions or discussions from the commissioners at this time . I moved to approve. A motion has been made to move to approve. I need a second. Second. It has been seconded. I call for the question, all in favor . Aye. None opposed to. Item four, presentation from the port of San Francisco pertaining to the m. O. U. With the s. F. Fd. We will have this presentation and then we will ask for Public Comment. I understand mr. Hurley is here. Im currently finding out where he is. He maybe running late so we may need to switch of the agenda if we can. All right. Here she comes. Lets see. Here is jamie hurley, right on cue. [laughter]. Thank you very much. Welcome. Thank you very much for your appearance. [laughter]. You are up, brother. I grabbed a u. S. B. Drive here will. Is warmer outside than i expected. Okay. Do we want to go to the laptop . At your pleasure, mr. Hurley. Good evening, commissioners, chief nicholson, members of the department. My name is jamie hurley, i am a project manager with the port of San Francisco, and your staff has asked me to be here tonight to give you a brief presentation , really orienting you to a new memorandum of understanding that port staff have worked together to develop over the past several months, and which our Port Commission is poised to approve at their next Port Commission meeting next tuesday, the 28th. I just wanted to give you a highlevel overview of that agreement. And on this title slide, you will see, and i wanted to highlight the fact that this is really a collaborative effort by three sister agencies here at the city of San Francisco, so it is the port of the Fire Department, and public works acting on behalf of the Fire Department who is the project lead in terms of him lamenting the project, which i will talk about, which there is obviously a connection between the project at fire station station 35 and this new m. O. U. Lets see. Just to give you an orientation, this is the birdseye view of the site where fire station 35 is located. Basically it is at the foot of harrison street on the embarcadero, very close to the bay bridge. The parkas right near there. Very centrally located on the waterfront. Here is an aerial view of the facility as it exists today. You will see in this photograph, you know, a couple of things. You will see the existing historic fire station 35. That building is actually a San Francisco landmark. I believe it was landmark in 1999 after an effort that i think was really led by the firefighters working at fire station 35. It is also a contributing resource to the embarcadero National Historic district. You also see a onestory shed building where in this photo, i believe that is the guardian, im not sure, but that is the existing fireboat house, and then to the south of that, you will see another finger. Which is in the very in very Poor Condition conditions. That is what we have out there today. Again, just to talk briefly about the project, which really is the impetus for bringing this new m. O. U. Forward, the project will do a couple of things. There will be some demolition involved, demolition of those finger peers that i just talked about, the one where the shed building is located and where the boat is currently birthed, and then to the south, the abandoned, derelict. And then there is also some area on the pile supported marginal wharf that will be removed and replaced with a new structure that will contain the ramp, or that would be the landing point of the ramp that connects the embarcadero to the new station, and you see sort of the footprint of the new station there. Theres also a pedestrian bridge that will connect the new floating station, fireboat station to historic station 35. This slide i wanted to show you, because the areas in yellow are going to be new dedicated Public Access areas, and this is part of the b. C. D. C. Permit, which we received a month or so ago after a long protracted effort with that body to gain approval of the project, and i think it is going to be something really great for the public to be able there is going to be a new Observation Deck where the public can gather and watch whats happening and take voters to the boats, that sort of thing there is an area just to the south of the building that will be open to the public i believe during the daytime, but the part the department has an ability to close it in the event of emergencies or, you know, for security purposes at night. That is that. This slide also shows, you know, the layout of where the boats will be birthed around the new facility. And now i just wanted to get into the m. O. U. , that was just a brief overview about the project , im sure that you know a lot about the project. I think if you need a more detailed update about the project, im sure public works would be happy to do that for you, but, you know, for tonight, i was really asked to focus on this m. O. U. This slide, it says lease area, but this isnt a lease. It is an m. O. U. It functions similar to a lease, a port lease, commissioner hardeman is very familiar with these port leases. Good to see you. I wanted to point out that there are several different m. O. U. His you have the historic firehouse, you have a marginal wharf area that i was talking to earlier, that was a public area. You have what they call submerged land that is essentially the water parcel where the new facility will be built, and then you have two access points, vehicle access from the embarcadero, one for the engine that can go into the bay in the historic firehouse 35 , and then a new access point onto the ramp that i described that will take you down to the new facility. In total, theres about 53,000 square feet of land or land and water. I have a couple of slides where i wanted to highlight the main key terms of the m. O. U. The term is 50 years. That term of the agreement corresponds with the design life of the new facility, it is a fiftyyear design life, and so that is where we pegged to the terms of the agreement. It allows for two things. It allows for the construction of the project that is about a twoyear construction project and i think and i hope it allows for after during that, operations will continue and after the new facility is occupied for the operations. It provides for the payment of rent to the port by the Fire Department. Approximately 14,000 a month which would not commence until after the project is completed and the new facility is occupied i wanted to spend a minute here to talk about this because as you may know, the department has not been paying rent to the port up until this point, and the department, to my understanding, has been at this location since at least 1930, which predates by about 40 years, the port of San Francisco coming into being. I think the existing agreement that we are operating under didnt have a sunset day or an explanation expiration date, so i presume it is still in effect. It was dated 1954, i believe. It is quite outdated, and frankly inadequate and is not reflective of current port practices we do have a mandate from the state as trustees of port lands under the Public Trust Doctrine to charge Fair Market Rent for property. We can make a determination on what constitutes Fair Market Rent in some cases. We are able to provide rent credits to offset to our tenants for investment in our property, that type of thing, and that is exactly what we have done here, you know, in working with your staff over these several months and in negotiating this agreement, it became very clear that what your budget realities are, and so we developed a mechanism whereby the port is granting rent credits for a couple of things. One, we had already provided rent credits to the Fire Department four. Twentysix, which is a facility that if we have an m. O. U. With you currently, there is rent payment in that case as well. There are rent credits. We calculated their be about 1. 6 million in unadvertised or unused rent credits available. At the end of the term of that agreement, so we said we will apply those 1. 6 million to this project, and this agreement, and then in addition, there is some work that is being done as part of the project. I briefly alluded to it earlier. It is for the new Public Access areas on the south side of the historic station 35. Theres the need, in order for that to be Public Access, opened up to Public Access, to shore up the substructure and i think the costs there are proximally 800,000 or Million Dollars in cost to do that work, and so we have said, okay, we can apply those costs as rent credits as well. I think the math works out currently with those two pieces, that is 2. 4 million, and at 13,000 a month in rent, it works out to around 15 years where those things will even out completely. There will be no actual collection of rent by the port for least 15 years, and then the m. O. U. Also provides for the ability for us to grant additional rent credits for additional investments that may be required at fire station 35. And then as with all of our longterm leases, you know, if you think about the ferry building, they get the exploratory him, the ballpark, any of these facilities where we have these longterm leases, the tenant is required the tenant is responsible for maintenance and repair, and so this agreement does have that as well that responsible that responsibility falls to the Fire Department, but again, we recognize the budget realities that your department faces. We recognize your ability to prioritize your Capital Funding dollars towards your operational needs, and that those will really dictate where those dollars are directed, and so we have language in there that basically says that we will Work Together on identifying Funding Sources to complete those repairs, but the basic idea is, you know, as long as the Fire Department continues to need, for example, the use of the historic firehouse, then any repairs or maintenance that is required will continue to be as it is today, and the responsibility of the Fire Department. We also recognize within this document that your operational needs are constantly evolving with the growing city, and in particular, in this case, where you have a brandnew facility that will open in a couple of years at this location, that you may not have the same need for historic station 35 as you do today, so we have built in a provision whereby you may relinquish portions or all of the all of those premises, and that we will Work Together on figuring out, you know, away for the port to continue to be able to use that facility in that case. I will just pause here, too to talk about the fact that, you know, this historic station is something that members of the Historic Preservation community, in particular, really love, and they have said that many times throughout our permitting process that we have gone through with, you know, our port advisory groups, and wed be c. D. C. And so forth. So i think we all even just regular members of the public, i mean, i think it is a very cool, unique building, old building, and yet, you know, still an ongoing, you know, operational firehouse, and, you know, theres a lot of people who would love to see it continue to be used in that way, especially in conjunction with the new facility that gives it an even cooler feel and look to it, but again, we recognize that that may not be the case in the future. That if there are, you know, repairs that are needed to that facility that, you know, go beyond your financial ability to perform them, and it turns out you really dont need all that space anyways with the new facility, then this memorandum of understanding allows for that and then finally, you know, we just had in there, you know, the compliance with see quote within the sequel document, which has mitigated a negative declaration it was prepared for this project there is a number of mitigation measures and improvement measures that were built in there. There is this mmr p. That the Planning Department developed. It stands for mitigation, monitoring, and reporting program. Compliance with that, compliance with all regulatory permits such as the be c. D. C. Permit, there is also an army corps permit, a Regional Water Quality Control board permit, those are the three main ones. A playbook all of these sort of standard things that we have now over m. O. U. His. That is the end of my slides. I am available to answer any questions. Obviously cheap nicholson has been involved in this project from the beginning, and had a very central role in the discussions. Deputy chief rivera, especially in terms of project questions, thank you for your time. Thank you very much. If you could remain, chief nicholson, before we do this, would like to call for Public Comment first. At this point, is there any Public Comment on this agenda item . Seeing none, Public Comment is closed. Chief nicholson . Thank you very much. Jamie, welcome. Thank you for being here. I beg to differ on one thing, you said we have been working on this for the past several months , i think it has been more like a year, maybe it just feels like that, not that i dont like you. Yes, we have worked diligently with you, with your City Attorney, with our City Attorney , with the mayors office, to come to this agreement, and there was a lot of backandforth, and i just want to say that i am in support of this. I spoke last week at the Port Commission meeting, and i know the Port Commission will vote on it next week, but we have a lot of good feedback there as well. And i have had a lot of conversations with the port director who is absolutely onboard, on board, and he really worked with us on the rent rates and all that kind of stuff. Thank you for sticking with it with us and collaborating, and we are happy that we will have an m. O. U. Going forward. I know you have others with other departments as well. Thats right. We have them with the Police Department, with the department of elections, department of homelessness now, as you have read about, we got to open our second Navigation Centre on port property. Recreation and park, all of which include, by the way, payment of rent. It is not singling you out. We also have a work order with you for our fireboat staffing and dry docking and all that stuff, which is separate from this. Anyways, i am in support of this moving forward, and thank you again for being here. Thank you. Thank you very much. At this time, commissioner freeman. Thank you very much for your presentation. I have a couple of questions. How do you establish the market rate rent . That is a good question. One thing that we do is every year, the Port Commission approves a parameter rent rate. These are rental rates for different types of Port Properties where if the rent charged falls within these narrow bands for these different types of property, then it doesnt need to go back specifically to the Port Commission, it is already approved. So that was one of the reasons why i had this slide showing the turn parcels because, you know, the submerged land is one rate. I would hope so. Yeah. It is the lowest rate as you can imagine, you know, there is a rate for improved open land, there is a rate for unimproved land in certain parts of the port, so here, i think it was the submerged land, improved land, which is the marginal wharf area, and then for the historic firehouse, what we did is we charged our lowest building rate, which is a shed rate. We have, you know, a lot of our finger peers have sheds, warehouses, and what was that rate . I have it somewhere. I believe it is a dollar 60 per square foot is where we ended up , but i have said, as part of our negotiations, we actually took those rates and in some cases, chop them in half. I think originally we had an office rate for that building and then we realize that is not appropriate for this. So i think the water parcel rate , which is the biggest parcel, is initially the parameter is around 20 cents, but we are able we cut that in half to 10 cents a square foot. You gave us a discount because were not charging you for fire protection. Well, thats not exactly true , you know, as chief nicholson alluded to, we are being charged through a work order for the fireboat his, but, yes, there is Additional Services that you provide, so we did take that into account. Thank you. Sure. Thank you very much. [indiscernible] thank you for coming out here for presenting and giving us your slides. You filled in a lot of blanks that i had winners reading over this. You do charge for the Police Department to rent . Yes, we do, and i havent been involved in that one, but, you know, they have this driving range facility, Training Facility down in southern waterfront, and we have a new agreement with them for that, which is in the millions of dollars because it is a lot of land. What about the land off of the hyde street. Im not entirely sure what the lease is on that. Again, in general, it is it is actually a port policy that dates back to 1987 to charge other city departments, obviously we are an enterprise agency, we dont receive general funds, we also are trustees under the public trust, and we are required by state law again, to charge Fair Market Rent, but how do we determine what that is . It is somewhat subjective and up to us. So are you saying you do charge the Police Department for that facility . Im not entirely sure, but in pretty sure we do, and i know for a fact that we do down in the southern waterfront for the driving range. Okay. Is it unusual to charge i noticed the Square Footage because i was looking at it, i had a big question how you got the 37,000 square feet since the building is floating, it is not 37 square feet, but you are charging for the water space as well that the boats will be at . Yes. Do you do that for other boats, as well . It depends on the use, but certainly for something being constructed overwater, if it is just a birth on existing facility, then wes birthing right then wes birthing rate, but it is considered submerged land. It will provide for birthing but it is also going to be an active firehouse with quarters for the firefighters and their equipment and all of that, so we determined that the area that is going to be occupied to be that amount, we measured that up can you put this light up again . Sure. So people can see what we are talking about. It is basically the footprint right. The green part, the actual footprint of the building is much smaller, what youre charging as for the green part, even for areas that we couldnt even get to, light between the dock i guess it is it extends to the birthing area on the side of the building, as well. Right. I see that where the two boats would be. Im assuming the size of the boats for the st. Francis and the older boat, the phoenix. Okay, so that is not unusual. You have other leases when you are charging for the space. Absolutely. So the old station 35 is on peers . Correct. So the red area that you have there, the dilapidated. , we will pay to remove that, right. Correct. So that is not that will be gone. And we are paying for that . Yes. And then the area to the right of fire station 35, theres kind of what looks like a finger where the ambulance bay will be landing, there is currently a peer there that we have to tear down, right . Right. He gets shown in this slide. That is a better slide. That one shows their, the removed area of the south pier, and you see it underneath where the new ramp is going to connect to the embarcadero, and if you look at that wedge of area that is south of there, that is the new Observation Deck that is Public Access areas,. Right. We will be removing the south finger. , we will pay for that, then we are removing the area of the south pier, well pay for that, too. And then the one story shed there, that finger pier that sticks out, we will pay for that , too . Correct. All of the project costs are being paid through the 2014 easter bond money. The port is not contributing to any of the project costs. Have you ever charge any other tenant to remove appear . Oh, yeah,. The one that i can point to most readily, because it is under construction now, and it is located near here is the downtown Ferry Terminal located near the ferry building. It is an expansion of the existing terminal. It is under construction. They removed that. That used to hold sinbads if you are familiar with that restaurant. Right. As well as, you know, that hole. , and then they are constructing a new plaza that will also be used for emergency staging. They are covering the project costs. So the historic fire station that you have on the screen, it looks like there are piers underneath them. What is the condition of the substructure . Will be have to repair that as well . Where the engine sits, my understanding is that was reconstructed about ten years ago, i believe. I think it was around 2009. Those costs were paid for by the Fire Department, so i think that area, that portion of it is in good shape. Yes, i can tell you that lets say the north side of the building, that area is in quite poor shape, and if there is a need to rebuild that area, again , as i mentioned, that is where there is potential for additional rent credits to be granted later, but thats not part of the project now, those repairs to the existing facility they are not part of the project but we are responsible for them . Correct. Okay. So chief, do we know what the cost of all of this is outside of, take the new floating station, what is going to be the cost of the department for the tear down of these three and the reconstruction of the historic fire station, and what are we going to be using the higher the historic fire station for . I am going to have assistant deputy chief rivera come up and do some intel on that. Good evening, commissioners, chief, jamie, assistant deputy chief tony rivera. I dont have a cost breakdown on the cost of demolition for. Twentytwo, the shed. , in. Twentyfour, the other finger pier that is going to be demoed, but there was an evaluation done prior to the condition of the existing pier as a whole, and i know that the north section will eventually have to be reinforced at some point. I believe we had approximately a milliondollar quote to repair that area, so under this new plan, the northern part of next to the firehouse will not be used at all. It will just be, kind of, fenced off, and we wont be using that area until we get repairs. And if i can, the pier removal was part of the project scope. Correct. All the current construction and demolition for this whole project will be paid for by easter 2014. Okay. But will be paid for by money allocated to the Fire Department yes, sir. Yeah. I guess my question is, what are we going to be using the old Historic Site for . The historic firehouse will be used to store our turnouts. Fire engine, engine 35, and we will also place the wash extractor for the turnouts in that apparatus bay area. Because the new station is going to have a cooking facility, a communications room, so we are not going to be utilizing all of the area of the historic firehouse, other than still having the engine 35 deploy from the historic firehouse, which is the reason we have the gangway coming from the new floating station directly to the rear of the apparatus pay for quicker deployment of firefighters. Okay. There was a mention earlier about a separate site agreement with the port that we charge them for. What did we charge the port for . I believe we have lets bring our numbers man up. Thank you, chief. Good evening. We currently have a work order with the port. The port currently pays for the officer of the fireboat, the pilot, and the engineer. Those are three positions that are staffed 24 hours a day. There is an allocation for dry docking repairs of the fireboat on an annual basis. In addition, they paid for some Fire Prevention personnel for plan review, but also the court fire marshal, and the dedicated fire inspector for the port. Okay. We dont charge the port, for example, there was a fire on. Thirtynine just today, coincidentally. We dont charge the port for our Fire Prevention services . No, we do not. Okay. Thank you. Do we know i know there has been a lot of time gone into this, but i also understand there is an issue with this particular area because once fouled weather comes, we have to move our boats. Is that still the issue . That is correct. During a king tide or a certain wave height, the current policy is actually to move our fireboat to pier one at treasure island, but now that we have actually done some remodelling two. Twentysix, well be able to move the fireboat his over two. Twentysix. Which is right next door . Yes, sir. That will be a better response time. Absolutely. Correct. Is that with the lease with. Twentysix . Yes, sir. We did some structural upgrades, we also added birthing for all of the boats, and we upgraded the Electrical Service so that we could have sure power connected to all of our fireboat his. Okay. The other issue with this particular location is that most of the calls, as i understand that we respond to, are between 39 and lands and. I know we have only part of the city that is being constructed south of that, so were not sure what will happen, but this is not an ideal situation it is not an ideal location for the surf and rescue team, or the marine unit, is it . I think that would have to be answered by someone in operations, but i will add that this new floating fire facility station will have the capacity, not only to birth all three of our current fireboat his, but we can actually birth an additional rescue boat and a dive boat, and two jet skis, so we are going to have a lot more capacity, and a lot more maritime firefighting tools at this new facility than what we currently have, and i think in response to a lot of the development that will occur in the southeast part of the city, we will have a much faster response. I know that every time there is a big game at the Giants Stadium , that we do get a lot of calls for kayakers down, and we currently rely on one of the large fireboat to respond, we will now have jet skis responding to those incidents. Does the new station resolve the foul weather problem that we have, or will we still have the need to move the boats . We will still have to move the boats, but i believe that, per our findings, there was only going to be one or two times per year which we will have to move the boats. Okay. I just have a couple more questions. So one does the rent start . Does it start when the new station is there, or how does that yeah, yeah, it will start the rent commencement will be, i believe it is on certificate of occupancy of the new facility, after construction is done. Chief, do we have rent budgeted for this . I know that the mayor has asked as to reduce our budget, so it is almost like we are in a negative situation. What i can say is i spoke with the mayor directly about this, and we worked with the port on this, and it is, just as mr. Hurley said, will not have to pay anything for 15 years, basically it has already been covered, or will be covered in the work that we are doing at 26 right. Nothing is coming out of our pocket. But i have a similar concern that the commissioner did because it allows for a market rate rent at a certain point, every ten years, and so im just wondering, i know that it is set by the Port Commission, but that could be anything with the way rents are going in San Francisco is there a way we can cap that . It just seems to be an ambiguous number. If i were a lawyer advising my client, i would not tell them to sign that portion of it. What i can say is that i am confident that we can work with the port on that in the future. I have no doubt that we can do that, and i know that the mayor wants us to do that. Yes. Again, i am in support of this, i hear what you are saying and your concerns, but im confident that we will be able to work on that in the future. And what about the seawall . I understand there is going to be there was a ballot measure for the seawall and it did pass. Correct. At least an initial allocation for studies and so forth. I think the total project cost for the seawall improvements is in the billions, i believe. I think that initial bond was about 400 million, which is a big chunk of money. There is language in the m. O. U. About the seawall, you know, i havent been we have a big seawall team that is working now on and studying the conditions of the seawall and assessing where the initial set of improvements might need to be made. To my month to my knowledge, this location is not, you know, we dont have immediate plans or , you know, anything foreseeable to rebuild the seawall right there in such a way that it would disrupt Fire Department operations at this location, but the question was more along the lines of, if there is money for a seawall, and there is clearly portions of our construction anticipated that that seawall were far station 35 is, is there money to pay for that substructure . I know that will be really expensive, and i know that those substructures of the piers havent been touched and 100 years. Right. That is an interesting and probably a good suggestion. I mentioned earlier that, you know, weve got language in the m. O. U. That talks about working cooperatively to identify Funding Sources, so that is the kind of potential Funding Source you know, it is not coming out of the harbour fund, per se, but thats additional bond funding, so that may be, you know, there may be the ability to apply some of those funds if you are going to be rebuilding the seawall, you know, you probably need to rebuild the adjacent structures in order for the whole thing to be usable. So i think that is a good potential source. Again, for those future repairs if they are needed, or when they are needed. Is this the only fire station that the Fire Department doesnt own . Do we know . Do we not own 39 . Fiftyone . Chief rivera . Im back. I think that the only fire station we currently do not own is station 51 located in the presidio, and furthermore, station 48 was recently moved, or couple years ago, moved to a temporary modular housing, but we do have plans on housing them in a new facility, which will be provided by i and the future development. The station that is going to be floating, that will be property of the Fire Department . Yes. Okay. So the only part that is not property is the fire station 35, the new land around it and the substructure that would be reinforced. Correct. That is owned by the port. Okay. It seems like this thing is pretty baked. I understand you are supported valve this, chief, and the best part about this is the one line on page 3 that says we can get out of it in 30 days notice. That is my favorite part favorite part of this lease. As an advocate for the San Francisco Fire Department, that is my favorite line in all of this. You are a lawyer, i understand. I am a lawyer, and i have sued the port, i understand the substructure of these ports, and i understand how bad and dilapidated they are, but i also think, as an evolving department , this may not be the best location. I love the fact that 35 floats, too. The new 35 floats, but that being said, is this Commission Even voting on this . No. Chief, if you have the support, if you support this thing, then i support it, but i love that one line. [laughter] i want you to know that. I can appreciate that. Thank you. [laughter] thank you. His jamie is jamie your first name. James, but i go by jamie. What is your last name . Hurley. Thank you for coming today. Youll be happy to note, there is no Security Deposit either. I saw that. If the thing falls into the debate, they will not get it anyway. [laughter] if the thing falls into the bay, they will not get it anyway [laughter]. Thank you very much, commissioners. Thank you, mr. President. Thank you, mr. Hurley for your presentation. It is eyeopening. I appreciate your being here, and i want to thank everyone who participated in hammering out this m. O. U. I understand a lot of the questions that were posed by my fellow commissioner, and i think it sounds very good. I understand why it is only 15 years, because you cant make an arrangement like this in perpetuity because things are going to change over time, so a 15 year period it is actually 50. A 50 year period not changing is very good. You can get out of it and 30 days. [laughter] i shudder thinking of the circumstances under which that might be necessary. [laughter]. It means that half of the city is in the bay. So 50 years, i think it is very good. It cant be forever. I was interested, however to learn that the 50,000 square feet was land and water. So when you made your statement, that was very helpful. I noticed that we have two documents, one that was in our packet, and then one that was here on the dais as we arrived. Other than what you were talking about, comparing the two documents, trying to ascertain the difference between the two, and i see that there is schedule one, the National Flood insurance program, and since i could not both listen to the conversation and read this legal document, at the same time, can you please give us a summary of what this is . Im probably not the right person to do that. It is something that, you know, it is disclosure we include in all of our leases, you know, so the two documents that you have, i think are essentially the same the one that you got today is the execution copy, but i dont think it includes i think there are several exhibits there that are probably not included. Im certainly happy to provide those to your staff in short order so they can provide them to you. That would be helpful so we have all of the background information. Certainly. I also noticed that some things that were highlighted in the original document were not highlighted those were things that had been agreed to, but were new in the last version, so now they are in the final version. Very good. Now has the port being getting increased monies from the land that used to be under redevelopment . Im thinking about south beach harbor, i am a former redevelopment commissioner. Okay. I know that there are numerous births there, and a lot of people were surprised that redevelopment owned. [laughter]. Yeah, it was interesting. Owned both land and water. I mean, again, im not super familiar with how that is impacted and has impacted our budget, but we have taken over south beach harbor, for example, and obviously there are certain revenues associated with that facility, you know, the marina, the births, it generates revenue , but there is also significant costs. I think the park next to the facility here that we are talking about was really Redevelopment Area property, and it has been put back onto the ports books. Obviously there is no real revenue associated with that, there are costs, and a couple of other areas, but, yes, we have expanded our portfolio to reclaim those areas that i think were poor jurisdiction, we had agreements with the redevelopment agency. Okay. The port has an incredible portfolio. Can you talk a little bit more about the Observation Deck . Sure. And can you bring up that slide . It is on this slide. So to the bottom of the screen, and the yellow is indicating that these are Public Access areas pursuant to the b. C. D. C. Permit, so that southernmost area would that be 24 and 21 . Yes. Twentyone is referring to that public Observation Deck, which is, you know, it is going to be im not exactly sure what the Square Footage is, but it is a pretty good size, and there will be a piece of artwork there, and again, you know, i dont have all the details tonight about things like that, about what the artwork will be, it will be something we have had a presentation on that previously. Great. I think that is location of it, and i think, again, it will be something really neat for the public to be able to interact with that piece of art and, you know, view the boats, and maybe some of the activity. I know there is probably certain activities that will need to be shielded from the public and, you know, they will be within the building, but loading hoses and things like that is something that i think the public finds interesting. So the Observation Deck is to observe the firefighters in action. Yes. And deploying the boats and that sort of thing. Is there a way we can monetize that . Im just kidding. [laughter] one of the things that was included is they wanted to see tours made available to the historic station, and i believe since it is no longer a dormitory site, that that might be possible. Right. Maybe you can try for that. Okay. Thank you very much. Youre welcome. I had one other question for you , i cant remember what it is right now, but can you please send that last visual to our Commission Secretary so that she can distribute it to us . Certainly, i will do that tomorrow. Thank you again. Thank you very much. Thank you for your report. It sounds like your heart is in this project. Absolutely. I have been working on it for a number of years, and i do think it is it is obvious the very innovative in terms of its response to sealevel rise, for example, and i think it is something that it has been under the radar so far, and i think once it gets under construction and it gets closer to completion , you will see a lot more, you know, publicity about it. Theres been a little bit about it from junking in the chronicle , but i think it is a really neat project, and obviously, you know, really important project for the city in terms of providing critical Emergency Response infrastructure. Im very excited about it. I know Port Commissioners are as well. Chief nicholson mentioned we were at the Port Commission last tuesday the 14th, unfortunately i had been called in for jury duty, so i wasnt there. I watch the video. They are very, very supportive and poised to approve the m. O. U. Next tuesday. Its a

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