Regarding anticipated litigation matters. Motion to go back into open session. Second. All in favor. Aye. I make a motion we dont disclose anything we discussed in closed session. So moved. Second. All in favor. Aye. Pledge of allegiance. I pledge allegiance to th e flag of the United States of america and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. Please be advised use of cell phones and Electronic Devices are prohibited at this meeting. Be advised the chair may order remove from the meeting room for any person responsible for the ringing of a cell phone. Please be adviced you have three minutes to make comments unless a shorter period. Item 8. Public comment on items not listed on the agenda. Any Public Comment . Seeing none, Public Comment is closed. Ey item 9. Executive directors report. I am the executive director. My first item. I am very, very pleased moodys upgraded the port Credit Rating from aa3 to a1 in association with refunding of the bonds. I am excited about this upgrade and thankful to the finance team at the port. When we went into this refunding, i dont think anyone had in mind we would receive an upgrade from moodys. It shows the discipline which the commission has provided to staff in terms of Financial Management with our capital reserve, really carefully setting aside money to tackle the capital backlog with the voters approving prop a was into the moodys consideration that we are receiving external funding and great stable management. The port has gone through a lot of economic cycles. Because we have so many kinds of tenants, it does help the strength of the balance street. I am excited to announce the rating upgrade to reflect the hard work we have done to get there. Second item i would have to have in memorial to stephanieci ncotta. Her father started the wholesale fish company. They are wellknown for highquality seafood. She was born in San Francisco in 1928 and longterm resident. She married in 1968. They had six children. Thomas, mary ann, stefani, joseph and angela. She is the anchor of the family. A calm force. She should be commended for her very successful management of the business her father started so long ago is now run by Third Generation of the family. There is a fourth generation in training. I would like to express our condolences for her passing to family and friends. We will close the meeting in her honor. That concludes our report. Thank you. Any Public Comment on the executive directors report. Seeing none. I wish to comment. I want to congratulate staff on the Credit Rating for moodys. It is most respected in the market. That is significant that the port has achieved that. I think it has been a long term effort. To get these rating changes and increases it happens over time, not overnight. I think that we have worked together and it is a statement to what the staff has done and hopefully with direction from the commission as well. Iit is important since we do hae to raise money in the Public Market that we have a high Credit Rating and that we are able to show we can sustain and fiscally responsible. I want to make a special notation and thank elaine who started this when she was cfo and now she is the executive director and to katie and the finance staff and everybody that contributed to this. It really is a big deal. It helps in terms of cost of capital Going Forward when we try to raise money in the markets. Every basis point we save is one we can am locate to allocate to the capital plan. Thank you. I would like to thank katie for the Credit Rating. She doesnt like to hit the mic. Her mouth gets dry. Thank you both. Also, i would like, madam president , to have a moment of silence for stephanie and her family, a fourth generation doing business here and proud to be San Francisco. If we can please have a moment of silence. Thank you. Any other comments . Katie and the finance team, thank you so much. This is such an honor. The consent calendar so a request authorizes to modify 2809, pier 23 and 19 restroom upgrades. It is to extend the completion date. B request authorization to execute a memorandum of understanding to provide temporary Electrical Service for the sfpuc to provide temporary Electrical Service from building 102 to the 28acre pier 70 mixeduse project. So moved. Second. Is there any Public Comment on the consent calendar . Seeing none, Public Comment is closed. All in favor. Aye. Resolution 2005 and 2006 are approved. 11 00 a. M. Informational presentations on the fiscal year 202021 and 202122 operating budget. I am the chief financial officer. I am pleased to be here with an overview of the biennial budget for fiscal years 2020 and 202122. This focuses on the operating budget. Next is an overview of the proposed two year Capital Budget. Creating a budget is group effort. I want to begin by acknowledging tyrone and maryland for help on the real estate and maritime budgets. I would like to thank our San Francisco fellow for her excellent work on the Capital Budget and, finally, i have to offer my deepest gratitude and appreciation to margaret doyle, our budget analyst. She has really dove into this budget process with me. Her hard work, tenacity and thoroughness throughout this process has really helped us get to this point today. I am glads to the port is entering this budget cycle in a great position. We have key investments in real estate and merit time. Staff will restore facilities and staff is rising to the challenge to ensure a clean, safe, resilyet and equitable port. At the start of every budget cycle, the mayor and controller evaluate the citys financial and economic outlook. Their projections for the next two years indicate while San Franciscos economy continues to grow, the rate of that growth is slowing. Additionally, as a city we continue to face Significant Growth in personnel expenses. Given thics impact of the given the impact of the growth they ask to submit savings of 5 . A selfsupporting enterprise the port must live within projected revenues knowing mayor and controller strongly urged all departments to manage growth of expenses versus growth of revenue. Taking this advice to heart, this budget reflects the ports commitment to prudent fiscal management and economic stability by controlling expenditure growth except for key areas. It includes recommendations for new permanent positions offset by over time savings as well as programmatic positions contingent upon availability of project funding and do not count towards the citywide total. This budget seeks to support the ports growing responsibilities while continuing to allocate resources to address our continuing port capital backlog. The proposed operating and Capital Budgets are integral to implements the ports Strategic Plan. Funding over the next two fiscal years aligns with delivery. This supports the seven goals. Initiatives highlighted include support for parks and open space along and evolving waterfront, funding to continue the work of waterfront resilience. Staffing to advance racial and social equity, funding for Capital Projects to support the maritime and real estate lines of business. Under stability funding that exceeds the ports policy to invest 25 of our operating revenue and capital. I want to note between direct Capital Investment and designation of net revenues to capital the port is investing 57 of its operating revenue in two capital in the next two fiscal years. This budget meets setting aside a 15 operating reserve. The port faces a number of opportunities and challenges in the next two fiscal years including implementation of the pier rehabilitation program, continuing to support Waterfront Development at pier 70 and mission rock, continuing to develop piers 80 to 96 to revitalize maritime assets, advancing carbon reduction to support climate change, planning for the future in the Waterfront Resilience Program and supporting improved trap transportation in the city. Capital backlog of 1. 7 million. The secondary cruise terminal is capped at 15 calls flattening growth until we can deliver a secondary clean power source for the cruise shore. Pier 70 shipyard is under used. We must activate that space. We must provide a clean healthy and safe embarcadero that requires more security and environmental stewardship. The budget is estimated to grow from 159 million in the current fiscal year to 194 million next year through combination of ongoing and onetime revenue. Staff projects the second year of the two year budget will drop to 170 million with the loss of onetime sources and reduced use of fund balance. Operating revenues will support twothirds of the port budget in the next two fiscal years. Half of the operating revenues are from commercial rent. 17 of budgeted revenue is from parking. Approximately 23 from maritime sources including cargo, cruise Harbor Services and fishing. Our operating revenues continue to grow with the projected increase of 14. 4 million between the current fiscal year and fy2122. This growth is driven by increases in commercial and industrial rents especially from new leasing opportunities as well as by strong growth in the maritime portfolio including cruise and cargo. This is offset by reductions in parking revenue. Parking lots are turned over for development and as citation revenue from parking meters drops due to the fact the public has a variety of ways to increase the Time Available on a parking meter and pay for the parking meter. Staff projects operating expenses will increase in the next two fiscal years with growth in salary and Fringe Benefits, work orders from services from other departments. An additional investment in equipment, among other expenses. This budget includes Capital Investments including 52 million in project and 26. 7 million in fiscal year 2122. As i noted earlier. This also meets the Commission Policy mandates 15 operating reserve and 25 designation to capital from operating revenue. The operating expenses are driven by our most important asset our staff. 50 of the budget in the next two years supports salary and benefits for staff. Next largest slice of the budget Inter Department mental work orders, City Attorney and funding for parking meter maintenance and collection. It including funds materials and supplies and professional services as well as security and custodial work. Debt service and equipment are the other two major categories in our budget. This chart provides a quick look at the drivers of growth in the port budget in the next two fiscal years. Salary and Fringe Benefits are increasing due to collectively bargained wage increases as well as increases to retirement and healthcare costs and due to the addition of 11 new positions, which is offset in part by reduction in overtime. Work orders are increasing as we must pay for for insurance premium, Fund Additional City Attorney time, send more funding to sfpd for screws security. We have 22 more cruise calls next year as well as to increase funding to the Public Utilities commission for shore side power. We are seeing growth in other current expenses and are proposing to invest a little more in equipment in the next two fiscal years. I am very excited to note on this slide that these increases are partially offset by an estimated 800,000 in annual debt service due to the 2010 revenue bond refunding. To meet the organizations strategic needs, support mayors priorities and address policy challenges the port proposes new 11 new positions in this budget. 10 f. T. E. In maintenance and one additional position to support the port work to advance racial and social equity which i will describe in the following slides. It includes a variety every assignments to meet changing needs and adds 11 project funded positions to support waterfron waterfronts, Development Projects maintenance of the park and it initiatives. These are all time limited, will be funded by projects and do not add to the ports overall position count. To support the citywide goal of clean and staff streets it includes adding a swing shift to the Street Environmental Services in maintenance division. It will ensure seven day a week cleaning of embarcadero from pier 40 to Fishermans Wharf and allow maintenance in quite times to help staff to be more thorough and reefficient. It will also allow a day shift laborers to concentrate on southern waterfronts and includes a new supervisor for the gardening staff. As we continue to add open space along the port, the park which is seven acres which will open in this calendar year, these spaces must be maintained to make them welcoming, invite youth and meet the mayors goal of vibrant neighborhoods. To support Data Collection and reporting and improve Capital Planning, the budget funds implementation of a new Asset Management system. In support of the ports goal of evolution, equity and sustainabilities and the citywide goal of sponsors healthy neighborhoods, this budget supports development on the waterfronts including the mission rock appear 70 pier 70 projects and includes new project funded maintenance resources for the park, the cost of which will be partially off set by a new cfd over the development. To support the ports strategic goal of equity and meet the mayors goal to provide an inconclusive city. It includes an analyst position for the new social responsibility unit in external affairs. It will be working on a variety of projects and initiatives in the next two years including in contracting, Work Force Development and creep ating creating a race equity plan that was approved by the board of supervisors and mayor in 2019. It funds engagement by waterfront resilience. Funding the planning to engage the community to envision the water front 80 years from now. Finally, by carefully controlling the ports operating expenses and focusing resources on key operating investments, this biennial budget supports the strategic goal of stability. In the next two years they will invest over 106 million in capital including direct Capital Investment and designation to capital through net operating revenue. This investment will address key life safety and state of good repair needs, helping to reduce ports backlog of deferred maintenance and supPort Investments to produce additional revenue over time. We are deep into this budget process. Under the charter, the budgets are due to the Mayors Office on february 21st. Staff will return to the Port Commission for the final approval at the february 25th meeting. If the commission has changes to the budget at its meeting on the 25th. We will work to reflect these changes in the budget system. We will then spend march and april engaging with the Mayors Office, answering questions, providing analysis and making changes. On may 1st, the mayor will submit the port budget along with those of the other agencies to the board of supervisors. The board will hold hearings in may and will take action on the budget in july. This concludes my presentation. I am happy to answer what i am sure will be a number of questions. Thank you. Is there any Public Comment on this item . Seeing none, Public Comment is closed. Thank you, katie. As you know, we had a briefing already on the budget. I am not going to give you detail questions. I want to highlight one thing which we talked about. That we carry about 150 some Million Dollars in investment balances that are managed by the city Treasures Office. I want to make a notation. I would ask the executive board as Enterprise Agency we have no representation on the se the Investment Committee. On the 1. 5 return which is what we have seen, i would ask that executive request that we do have some representation on the Investment Committee of the city Treasures Office so our money that we noted as being managed, im sure very well. We would have some input to that return for every basis point that we could increase that return given we will hear on the capital side how important that is to generate as much money as we can. This is one of the areas that would not take that much effort to improve the return on those funds. That is my comment for the budget. Thank you. Thank you for the private brieferring. I want to make sure the new personnel is the number that is right for us to operate for the coming year and to look forward to the second and third year because the hiring process is a slow process. Yes, it is. It doesnt pay for us to be behind in cleaning the embarcadero and it doesnt pay to be behind in projects for development. Delays cost money. We have heard in the past that personnel may not be able to handle it. We may have to push it out so this is the time i want to know that we have a proper team in place so we can do what we envision to do in the next few years ahead of us. Is the personnel you are recommending 11 new positions . It is. 11 new permanent positionslus 11 positions that are funded through project funding that are time limited and funded through projects. We are proposing these 11 positions primarily for maintenance plus one position for social equity and responsibility. The positions that are being funded through projects include positions for crinko park, Development Project work and a couple other areas. I know that you have expressed concern that we are appropriately staffing the real estate and Development Division in particular and i would just note that this budget transfers two positions from elsewhere in the budget to support real estate. One from planning and one from the executive position. In the last budget cycle we added two other positions to support real estate and development. Really these were positions that were intended to focus on creating analytical strength through the division and to provide support around improving business process and really bringing more of a business lend to the real estate division. The budget as we are presenting it feels as if we are meeting those needs. Next on page 7 you have a table that you provided us that talks about Capital Projects that were defunded. If you will allow me to make a capital presentation, i will discuss defunding projects at length. Okay. Thank you. That concludes my questions. Commissioner gilman. Thank you for the presentation and for the briefing. I have questions on the Capital Budget that you answered. I shared similar concerns. I want to make sure the rps we are issues that we can bring the transactions more in in in timy matter. Whawhat is the total f. T. E. Cout for the division . We are looking. 26. 5 f. T. E. Everyone feels comfortable that is what we need. We have a lot of transactions coming forward the more we can move them in a timely fashion and the benefits we are doing business with. I think this is the right staffing. If we had more Financial Capacity we would probably tremor positions in real estate. We walk a tightrope, so to speak, i in terms where the positions go so we can afford them down the road. Since i have been director i shifted a lot of resources to real estate and combined development and real estate together. It is a team with a lot of expertise. We have a lot of Development Opportunities out on the street. We are trying to activate spaces. We have taken on a lot of projects in that arena. I do feel that we provided all of the resources we can afford and reassigned all of the resources that we can spare. Thank you. I appreciate the emphasis on maintenance and embarcadero on having clean and safe and healthy streets. Thank you. Vice president adams. I like your comments. I definitely agree with commissioner woo ho somebody needs to be on the Investment Committee. Not having someone there is unacceptable. This is painful. San francisco has taken a hit in the media for being a dirty city and streets not being cleaned. We have to do better. That is unacceptable for San Francisco. That red carpet needs to be out that we are open for business. I think, too, this diversity is long overdue. We have to continue to build on that. I appreciate your budget, but there is some stuff that you brought out that in some ways we might have to reinvent ourselves. It is kind of bad the beating we have taken nationally about clean and dirty streets. The mayor is committed. We have to work harder. We have 37 million tourists each year that come to our city. That is the number one economic driver in the city. I think we have to continue to keep working. I appreciate and i am waiting to hear the second part of the report. I know it is hard when we are short of staff because that makes it more for everyone else. We have to get numbers up so we can as a team do what needs to be done to deliver. Thank you. Please keep banking away. We have to get that work done and the positions filled. Thank you. I want to thank you and your team for all of work that went into this. I know it is a lot. It is hard to believe the budget is almost 200 million per year. That is phenomenal. I want to thank everyone. We have done a great job in managing our assets and being able to set aside funds for Capital Investments. Thank you for my briefing last week. A couple questions. I agree with commissioner woo ho a representative on the Investment Committee is wonderful and something we should have. I was wondering we have th the Inter Department mental work orders. The largest. I wonder where that 4 of that 25 million is going. For work orders . Yes. On page 20 of your staff report, there is a summary of the work orders so the single largest work order is for risk management, which pays for all of our insurance. She is asking all other. The bottom line. 4. 1 million. I apologize. I am sorry. I dont have the number of work orders but it has got to be in the 30 to 40 different work orders across the division. It is oewd or to rec park for programs for health and safety. There are so many different work orders. They all grow. Dwd is included. I am wondering where the total other is going. Maybe you can get that to us. It is an easy answer. No problem. Regarding the staffing. I do know during the briefing i asked if we could include the f. T. E. Division so we would understand what we were funding. I see that is not done and hopefully that can be done before the next meeting. I had questions regarding the new f. T. E. And the 11. I know that our embarcadero is extremely important to us, i do think the entire waterfront is important to us. With us developing two new communities, bringing a 36 million park online that if we are bringing in 11 f. T. E. For maintenance, we need to look at the entire waterfronts, not just one section. We need to make sure that we can clean everything and keep it so everybody wants to visit our waterfront. I think it would be helpful if tom carter could speak about the waterfront wide plan. I would like tomato address tom address this one. Yes, it has been years getting to this point and trying to understand how we do our business, how we are not efficient at the way we do it. We are not efficient because we have staff at 6 00 in the morning to power wash the streets with people getting off boats. People are walking around, we are flowing water on them. It is not good. We want to transfer that to night. When we were figuring out how many were going to be here monday through friday, it is my fault i didnt put it in the report originally. My staff when we had eight left over they said we can finally get those at the waterfront. I didnt put that in the report. We are going to at night have two crews during the days that start h start at 12 30 and go. There will be a one hour overlap to power wash and clean from pier 40 through Fishermans Wharf. Today we have seven people and a supervisor doing that. We have 8 people in the day. We will eliminate that and have those folks go to the southern waterfront. With parks we have staffing proposing for the parks. Laborers and supervisor to manage that waterfront. What i am saying if we have a team of 11 new people they should be as needed along the waterfront. Not just from the embarcadero to Fishermans Wharf seven days per week with nobody committed to the southern waterfront at any time. Can you explain there is staff committed to the waterfront . We are adding a night crew. Tom is focused on where we cant clean in the day. The existing f. T. E. Will be redeployed to where we cant clean during the day. We are adding for the areas we cant clean during the day because there is too much customer and visitor interaction. The plan is to bring a new crew to the southern waterfront. The existing crew will be dedicated to the southern waterfront in the day . There is what i am saying. During the day we will have eight. Now we have 15. To your point for the folks that we envision from pier 40 to Fishermans Wharf. As we use them if we see we can redeploy them and we are getting the work faster, this is a plan. It could be not the best plan. We can redeploy to the southern waterfront during the night even. We will figure that out. My concern is the maintenance apartment pier 50. It is not cleaned. My concern is to make sure that we have laborers cleaning the waterfront in all of our space from pier 96 to Fishermans Wharf on some type of regular basis. We do that but not as often as you would like. Because of the number of visitors, it is important. The rest of the embarcadero has become that for us. Clearly, we have folks that go out and spy what is going on. Then we send resources. My preference is that we dont have to deploy because we saw something. We will pick it up as we go. That is the intent to have crews keeping the bridge clean, keeping 24th street clean and everything in between. How many employees will we have for maintenance . We are going from 15 to 19 laborers. Four Truck Drivers to seven Truck Drivers. From two supervisors to four supervisors. We have a supervisor to help managing the staff. It doesnt seem like enough. We are adding 11, right . Yes. It is nine for the street crew, yes. Plus a park supervisor. 11 to an existing team of eight . No, no. The existing team is 15 laborers, two supervisors, four Truck Drivers. We are expanding that 15 to 19, four to seven Truck Drivers. Two to four supervisors and one park section supervisor. We will have a very clean waterfront. That is my intention. Thank you, i appreciate that come bin nation. Questions or questions . It is interesting because we had our separate briefings. I think the question has come up from several of us regarding staffing and workload levels for the Real Estate Development division. I heard your response. I think maybe at some point you could come back to us in the budget or not and i know you put in place a Program Management office so there are changes on projects. Maybe you can come back to assure us in a way you can communicate to us that the workload in the real estate and Development Division is being handled so that we feel comfortable. There is a perception perhaps there is over load there and part of that is external in the amount of time it takes to get things done. Some of that is beyond our control but some are internal as well. It would be helpful to understand more because we look at the real estate and Development Division to develop the revenue stream we need to sustain us over the longer term. That would be worth while given this question has come up among several of us. That is a very good request. Mike martin and i can come forward an and reassure you thae are deploying as many resources as reasonable. As i said, we are constrained by a capacity to pay. It will be a conversation within our capacity. Using that capacity in the smartest way possible. It is a good request and we will do so. Any other questions or comments . Thank you, katie. 11b informational presentation on the ports fiscal year 202021 and 202122 biennial operating budget and Capital Budget. Good afternoon, commissione commissioners, katie. Here to provide an overview of the Capital Budget for fiscal years 2021 and 2122. I am plowed of the budget proud of the budget. We set out for a five Year Capital Improvement Program and two year budget but considered whole Facility Improvements and relied on uptodate information to support intentional and data driven tradeoff investment decisions. I believe we have been successful in that effort. In 2018, the port staff developed the agencys first five Year Capital Improvement Program to bridge the gap between the distance 10 year plan and the immediate two year Capital Budget with the goal of more strategic Capital Investment decisions. The process to develop this second cip began last spring and resulted in a 157. 7 million five year program. The first two years of the cip, 53. 5 million in 2021 and 28. 3 million in fy2122 when become the biennial Capital Budget. The staff will bring it to the commission for review in april. This proposed Capital Budget meets a number of the ports Strategic Plan objectives including resilience with funding for the program and grant match to support earthquake mitigation project. Productivity with projects that include grading at pier 80. Stability including funding for the project Management Office t ensure efficient delivery and targeted Capital Investments for cruise businesses and funding for additional Facility Assessments and equity including funding for the southern waterfront butte fiction and resiling yet studies including the seismic investment. The port faces a 1. 7 billion deferred backlog and must allocate astr as a strategy as possible. The port has identified 500 million in funding sources, leaving 1. 2 billion funding gap over the next 10 years. Given the size of the shortfall, the port has made concerted efforts to budget as much Capital Funding as possible. This including allocating 25 of operating revenue to capital and to spend onetime sources on Capital Investments. The ports careful stewardship has led to increased Port Investment and funded several notable projects completed in the last fiscal year. Sub structure to pier 31. 5, back lands improvement, relocation of power at pier 70 shipyard, construction of the passenger shelter at the cruise ship terminal, mechanical electrical plumbing upgrade at pier 23 as well as construction of new Public Restrooms at pier 45. As i mentioned staff began this update to the five year cip with several objectives. We solid to consider Facility Improvements we look to make investment decisions. To achieve these goals, staff developed the facility inspection repair program assessment, a k aferpa process. We engaged Engineering Consultants to assess 10 port facilities. Pier 45, pier 9, pier 54, round house one and two, pier 35, pier 33, pier 50, sheds b and c. Staff selected based on several factors including maintenance of existing lease revenue and potential for new revenue. The importance to the maritime portfolio and the existence of Capital Needs in these buildin buildings. Ferpaprovided Critical Data to define the full scope and cost to bring all 10 facilities into a state of good repair. The condition assessments gathered data on pier sub structure, building structural systems, building envelope, utilities egress and accessibility. It also provided assessment of each facility including narrative of findings, description of methods and assumptions, condition ratings for every element of the facilities they looked at as well as cost estimates for work proposed to be done. In addition to the ferpa, staff across the port were invitessed to submit requests for Capital Projects. In total including the ferpa, staff submitted 50 project requests that were category rised as ongoing capital commitments, requests for funding for projects needing Additional Resources and new Capital Investments. All told staff submitted over 600 million of capital requests for an estimated five year budget of 125 million. Staff further categorized project request as addressing life safety needs, ferpa projects and projects supporting the ports Strategic Plan. The deputies spent two days reviewing each project request, discussing the projects and using a forced ranking process to prioritize these requests. Finance staff took the results of that forced ranking and determined how to fit the prioritized projects within the available resources for each year of the five year cip. The result of that process is a two year Capital Budget 11 higher than the prior twoyear period. This including several sources including port fund balance, proposed appropriations, South Beach Harbor operating revenue and private gift from a donor who wishes to remain anonymous. The single largest proposed is a proposed loan to support construction of Mission Bay Ferry Landing which i will discuss in more detail later in the presentation. As you can see from the slide port fund balance and the Appropriations Fund the majority of the budget. 26 projects as well as the loan to mission bay comprised 90 of Capital Expenditures in the next two fiscal years. Given the size of the ports ongoing 1. 7 billion capital need, staff looked hard at previously appropriated Capital Projects that have not been spent. As a result of this staff proposes to deappropriate approximately 17 million in projects that have been completed, have had scopes reduced or we propose to defer. In addition, we propose to closeout unused funds from vacant project positions. Projects for defunding include repairs to belt line building, pier 70 building stabilization, grant match, elevator and escalator repairs, port ada transition plan, Shipyard Repair and funding for Fire Protection engineer. Deferred include drunking and work on the pier 50 apron to be funded in a later year of the cip. The two year Capital Budget including funding for 27 projects. There are three categories. 8. 5 million to fund critical life safety improvements as well as work that corrects a code violation or prevents one from occurring. The budget funds 13 million. Improvements to four facilities. These address life state of and state of good repair neats to each of these facilities. The budget fundings investments to support the Strategic Plan, investments to maritime needs at pier 80 and ongoing funding for the project Management Office to ensure Timely Delivery of Capital Projects. Finally, this budget proposes investments in public art at pier 27, you support for resilience costs and investment of South Beach Harbor net revenue and investment in the southern waterfront Beautification Fund and loan to the Ferry Landing project. As you can see the projects we have listed in the slides prior are spread across the water front. The key investments that staff will highlight blow include the Ferry Landing, southern waterfront beautification. Mission bay Ferry Landing. Staff proposes to loan this project 25 million to allow the project to continue to move forward despite a cash flow challenge. The port strongly supports this project as it expanding the regions Ferry Network and meets the Transportation Needs of a growing neighborhood. The primary funding for the Ferry Landing is 25 million from measure three. A bridge toll increase approved in june of 2018. Item 3 is litigated. From the increase are not available to support projects. The litigation was dismissed in superior court and is appealed to the California Court of appeals. It is currently awaiting a decision if there will be oral arguments. The metropolitan transportation commission, administering agency feels strongly it will prevail in this litigation. That cannot employee guaranteed. To keep it moving forward staff proposed 25 million to loan the project in the budget. Port staff is currently working with m. T. C. Staff to secure a letter of no prejudice from m. T. C. That will allow the 25 million loan to be reimbursed if the litigation is successfully resolved. Port staff proposes to return for final approval before approving any funds. Staff anticipates a wording of construction for the Ferry Landing in early 2021. At that point we would request that the Port Commission make an affirmative decision to allocate more capital to this project. We expect to have much more information about the litigation to guide this decision. Finally, on the Ferry Landing this including a many 4 million private gift as well as 5 million from the general fund to support this project. The second key Capital Investment is an 11. 4 Million Investment an to piers 33, 35 ad 45. These funds support improvements of pier sub structure, building envelope and accessibility. It also funds 1. 6 million for the next set of Facility Condition assessments. The budget includes 2. 4 million to support the envision work of the Waterfront Resilience Program to imagine what the water front will be in 2100. Budget will look for Additional Stores to fund 5 billion of meet to fully emment the flood mitigation absize me repairs needed on the embarcadero seawall. This includes 565,000 as a potential match to a fema grant to study how different types of piles would perform in an earthquake. The last key investment is 6. 3 million allocation to the southern waterfront Beautification Fund to come apply with the port Commission Policy to allocate lease revenue generated to support improvements to the area including open space, Wetland Restoration pile removal and public art and historic preservation. Port staff will submit to the Mayors Office on february 21st. We will return to the Port Commission for approval on february 25th. The mayor will submit the port budget to the board of supervisors on may 1st and have the approved budget by the end of july. We will plan to bring the entire five year cip to the commission for review in april. In conclusion, i want to note this proposed two year budget is an 8 increase. It reflects staffs efforts to gatherdat i data and use it to make the investment decisions. It is the product of a tradeoff process and reflects the port effort goes to approve health of its facilities meeting the most pressing life state every pair and strategic needs. I am glad to answer questions. Public comment . Seeing none, Public Comment is closed. Commissioner gilman. Thank you again for the presentation, indicatedty, and for the briefing. One question and two observes. There are 40 projects you looked at. We are funding 27. 50 projects. I am sure in a Perfect World we would love to fund all 50. This seems broad to me. I think when you come back for the action i would like to see the list what was not funded unless i missed up on the staff report. Maybe a deeper understanding. I am not going to ask you to do it the method how we made the painful decisions. I am sure every project had its advocates. I want be to say i am supportive because i have confidence we will prevail in lending the resources for the Mission Bay Ferry Landing. We need to move forward to the commitments we made. I am pleased to see we are making the investment to the southern waterfront that were overdue. I am in support of those two items. That concludes my questions and comments. Thank you for the presentation. You addressed the defunding. Can you go to the chart. Page 11 to see if you would be able to provide the commission with a list of projects that have not been fully closed out. Are you referring to the page 10 of the staff report . Page 11. Of the slides. Surplus funds for vacant projects. Historically we have budgeted staff positions in Capital Projects to perform primarily we have funded positions that are related to pile crews. We did analysis a number of years ago that indicated work that port staff did in terms of pile repairs and removal could be less expensive than work we contracted for. We have budgeted positions in capital funds. The positions then we have struggled to filling because of the tight labor market. There are funds that were allocated that we did not spend. We proposing to closeout that funding reallocate it to a smaller set of positions in the budget. Are you defunds them all . Yes. There will not be another list and something will be defunded two years from now . Well, exercise the analysis we went through in terms of defunding was to look back to see if there were projects where there was funding that had been appropriated but over a period of at least several years had not been expended. I can see the two years from now we would go through a similar exercise. Two years from now would be no older than two years. Is that accurate . If not i am interested to see how much money may be laying out there. We have approximately 100 million in appropriations for Capital Projects currently. This 17 million of projects that we are proposing to defund is only a slight amount of that funding, in the neighborhood, yes. I think it would be fruitful to see that list to see what money is there and what projects have money in them. We can provide you with the current list. When you have a project that costs 10 million, you put 5 million reserve in it, 50 of it. Is that a large reserve. Walk me through what you do with those reserves, in your estimate. When we are building an estimate for a Capital Project. I would actually defer to rod on that question. Harbour engineer. The facility inspection work that we are talking about we are at zero percent design for all of this work and i think we have gotten caught in the past with coming back to the commission to ask for change orders. It seemed prudent within industry guidelines we would put a 50 margin or contingency on projects at zero percent design at this point. As we progress we will know more and that contingency will come down. What is our Historical Performance . When we put 50 contingency there, what is the Historical Performance . Are we on budget, 10 off . We havent put on 50 contingency in the past. This is new. What we have done has been more intentional about looking at the planning work, design and permitting work and actual construction work and budgeting those more carefully in terms of time and space so we are not asking for all of the money in budget year when it takes five year to deliver the project because other projects could have benefited from the budget needs. Using the ferpa acronym, we identified a group of needs that are quite substantial, but there is no design work done on them. We are looking only at the rough estimate. That is why rod and his team said it is engineering standards to put 50 contingency. I remember hitting the roof, so to speak. They convinced me not doing so will mean not enough money to do the work. What will happen the projects will move to design, we will come to you for construction and award. You will see those packages go out. Knock on wood, we should have enough budget to perform the work. Surplus will go to surplus projects to be de appropriated in the next two year budget cycle. It is a constantly renewing process. We dont have any 50 contingency from two years ago . No. 20 has been the standard. Other city departments have use higher. We have struggled with 20 contingencies. That is why we cant come to budget because the construction climate is so strong right now in terms of Price Inflation so we have struggled with 20 contingencies on design projects. These are projects not designed. We are certain the number will change. That is why we adopted the 50 concept which is a standard when you dont have a design complete. Thank you very much. Thank you, katie. We also went through this at the briefing. I want to make a couple comments. One, i have been on the commission for several years. We have seen this Capital Planning process has continued to improve and be enhanced. I want to congratulate all of you for the process you went through this year. It is getting more vigorous in coming up with prioritization and more holistic approach and how to complete with the funds. This is a process that will never end. I think even to the point the de appropriation will be a dynamic process. I dont think it is onetime. It is dynamic particularly with the 50 reserve that we will see what happens in that regard. I dont have any specific questions. Some have been asked in terms but i did have one comment. Since mission bay landing is the most significant project we have and we are not sure where the funding is. As i read the description of the project and the fact we have benefited from a private gift, it seems that, number one, we need plans b and c so hopefully we get the funding through whatever it is called mp3. Rm3. Rm3 that does come through, but we should have another plan and maybe there are other donors to benefit from the mission bay landing we should approach in the marketplace. Second plea, as we were talking about and we have seen this work with the cruise ship terminal. We charge the ships for not only docking for passenger fee. As ferry transportation becomes more critical and we need to build a network of Ferry Landings and this is costing us 39 million. We dont it to be the only one over the next few years. We need to source the revenue. My suggestion is that will take a lot of work and conversation with different agencies we introduce some sort of ferry passenger fee. If we want to in the future raise bonding for any potential for Ferry Landings we have some designated revenue source. We have seen how that works on the cruise ships, why wouldnt we see how it works for ferries. That is a suggestion i would make and ask you to take it back to your counter parts. It is going to take a lot of collaboration to get this passed. Vice president adams. Katie, this is a very, very good report. Clearly you did due diligence. San francisco is a boutique port. I agree with the commissioner. Clearly i think we have the third worst congestion in the world in San Francisco. Clearly water taxis and ferries and things like that. We have to get so many people off the streets and cars and get them on the water, whatever we can do to make our city run more eyefficientsly. We cant always have everything we want. We are trying to get what we need, and sometimes we have to look down the field and do other things later. I am fine and i know you will be back on the 25th. If we have more questions. Thank you. Thank you. Katie, thank you very much. Your team has done a phenomenal job with a lot of information. I appreciate that you guys are putting so much emphasis on increasing our capital output and what we are doing with our funds. This is wonderful. Just a couple questions. I think it would be helpful to see the list of 50 projects that were submitted and how we came down to the 27 that we are funding. I also think that Going Forward maybe it would be better to see the five year plan before we see the two year plan so we understand how it all works together. The timing gets challenging, yes, that is a reasonable request. It would be great to see the history. Somewhat happens within this Funding Group . Is everything completed and we are moving to the next projector do we still have outstanding projects from previous allocations . Understanding how this all flows would be great. Funding from previous Capital Budgets and whether we have expended those funds . Yes, and those projects have been completed or are we defunding projects that should have been completed . What are we doing . How does it Work Together . We have 18, 19, 54 million allocated. Just trying to understand are those completed or do they need additional funding . Why did some other project take precisprecise dense over that. How much is supposed to go in there annually at that point . Approximately and it depends what the actual revenue collected on the annual basis. It will only increase. Yes, it will because the represents are going up. We are where we are taking a percentage of what is collected. For fiscal year 20182019, it was 1. 1 million. So we should be looking at over 1 million on any annual basis Going Forward. So this 6. 000000 allocated what is that timeframe of those funds . The analysis that we did on southern water front beautification at your request showed that for the period between fiscal year 2007 and 2018, we owed the fund 10. 8 million. Of that 10. 8 million, 6. 8 million had been appropriated. But we didnt agree on that . I thought we had. Commissioner i am so happy to sit down again and walk through the numbers. My math shows that we needed in order to true up. Based on what was spent with no approval . I dont think we did, but lets move forward. We needed to appropriate to catch up and to include the payment for fiscal year 20182019, 5. 1 million. Okay. Then we are also including the payment, an additional payment for the current fiscal year. Okay. Then next year since this is a two year cycle. What you are putting at 2. 3 is over a twoyear period. What is to go in next year is that included . I think we center. We need to be certain of our math and be comfortable with what our mat is. Our math is. I am glad we put no funds are expended until we are comfortable and sure with how we are going with the lawsuit and everything. Thank you. Thank you. Item 12a Information Update on the California Barrel Company llc mixeduse project located on the former potrero power station site bounded by 23rd, illinois and 22nd streets and San Francisco bay including port of San Francisco shoreline an and adjacent lands referred to as portions of seawall lot 349, pier 72 and 23rd street and port related transaction documents for the potrero power and station project including consent to Development Agreement, two approval of lease, three delegation of authority to ports executive director to enter into one or more memoranda of understandings with the various San Francisco Public Works Department and the department of building inspection relating to each agencys role and responsibility and four adoption of environmental findings includes a mitigation monitoring and reporting program and a statement of over riding considerations, pursuant to the California Environmental quality act. Thank you for that mouth full. I am joined here today with the office of economic and Work Force Development. I want to recognize mike martin and a lean maley with the City Attorney who provided support as well as carol and rona. I am joined by associated capital who will be participating in the presentation. This slide is an overview of what we will cover today including the ports role in the project overview by tina. Then when tina wraps up, i will conclude with the port benefits, the Public Outreach and the next steps. In september of 2018 we brought this item to the commission. A couple questions that came up regarding the project how the port benefits. I will cover that as part of my wrap up. This slide illustrates the entire power station project. Everything colored is included within the proposed special use. The purple color outlines the port within the project area the shoreline with parks and improved 23rd street that serves as access to the property. Outside the project boundary but related is red line, which is a shared private alleyway called craig lane. The actions that will be required from the Port Commission at the next meeting are request of adoption of environmental findings, consent to Development Agreement that outlines what infrastructure and public parks and open spaces will fall within the ports property, approval of the lease for the shoreline open space, and the option for a public trust easement on the private lands within the project area, finally, delegation of executive director to enter the memorandum of understanding with multiple city agents related to permitting and maintenance of public improvements. With that i will turn it over to tina to provide an overview of the project and then i will closeout. Thank you, david. Thank you for the opportunity to speak before you. Last time we were before you was september of 2018 before we published the draft dir. Today we are here a couple short weeks after receiving unanimous approval to redevelop the power station. This site including barrel making and power generation. It is denser than the surrounding environment. After a long hard fight it came to a close resulting in the underutilized industrial site. We cannot be more excited to bring this back to the city fabric. We are excited to make the project site as active and productive as it once was and how it meets todays city. One of the large projects conceived by the Mayors Office of workforce development. John is in the audience. It was to ensure large projects would provide ample housing, particularly Affordable Housing and jobs and open space. We are immediately south of pier 70 and are thrilled to extend dogpatch to the beautiful San Francisco bay. As you saw on the previous slide that david showed. We have 29acres. 1. 6 are in light blue on the water. Remaining acres within 23rd street. Here is a 3d diagram. We are a majority housing site. Within the project featured three 180foot residential towers. In blue were five commercial buildings 1. 2 million square feet. It includes ruoten reretention e power stack. This is the result of Public Outreach. At that point we had completed eight public workshops and site towers and dozens of presentations to advisory groups and hosted large scale events. We recognize that our Public Outreach was not done thinking the community had more feedback to provide after publication of the draft. We met in coffee shops and having more intimate conversations. We have attended 169 events and reached out to 82,000 people. This publication outreach led to a couple key changes to our site. This includes reduction in height in station a. The large brick building on the west end of the site. From 300 feet tall, the tallest is now 240 feet matching mission rock. Without question the reaffection of station a in the new building contributes to the project. This shows our program has remained the same. We continue to provide 2600 units at full build out with a touch more office or commercial space and less retail. We retained the principals of providing as much connection to the existing street grid and open space. We value the historical string of gems. We want to continue that between the two power stations. On one end is unit three, the power block and the 300foot tower. This provides active Community Gathering place on the water edge providing the public welcoming connection to the bay. It is a beautiful backdrop to the park as well upon the base upon which is new building would fit. A key conopponent was in a waterfronts as vibrant and engaging place for visitors to enjoy. This is in the larger site plan with 10 other buildings as well as robust package of 30 Affordable Housing will provide Affordable Housing in every phase, affordable to Household Earnings 72 as renters. We will also provide 36 units of housing to home the homeless mothers seeking Higher Education or Work Force Training with the prenatal program. Additionally we will provide Community Facilities including 25,000 square foot Community Center which we will do in partnership with the ymca, 12,000 square feet of child care and 2. 5 million for the library. It includes a mini bus for the dogpatch and Shuttle Service to caltrain and bart which are part of the robust package. We will provide 65 million to the Transportation Sustainability fund of which 2. 5 million will be used to pilot water transit in the city. Historic preservation will be incorporated to pier 70 where the site history will be told and woven through the site. I would be a. M. I be the projects 862 million in Community Benefits including significant investment in infrastructure. This concludes my presentation. I will be happy to answer questions. I will hand it off to you. Thank you. Thank you. Thank you, tina. To get back to one of the questions the commission had about what the port gets out of this. I want to highlight that the benefits that tina mentioned to the city in addition to that will be improving and creating parks and closing a gap, creating public amenities and significantly is the option to impress the trust on the area outlined in yellow, which is additional shoreline parks area, 23rd street leading to the waterfront to protect the shoreline for parks for future generations and may provide an option for the port should we want to in the future want to do a trust swap for the additional lands. The project pays no rent to the port. Therefore it wouldnt contribute to the Beautification Fund, however the improvements that come with the project meet the objectives of the policy. We are available for questions. Thank you. Any Public Comment on this item . Katie . Good afternoon, commissioners. I am katy ladell, could chair of the Central Waterfront advisory group. I am here to speak for the southern water front advisory committee. We had a joint committee meeting. We have had a couple of joint committee meetings. The last one was at the site. We had a great discussion and we all agreed that we support this project. By the way, i would like to point out that we are lucky to have members with expertise in architecture, in historic preservation, Land Use Planning and in business. We are grateful to have those people on our group to be able to depend on their advice. We are grateful to the dogpatch and bayview communities for closing the power plant. We are overjoyed to see this wonderful piece of waterfront property to transition to mixed use to pack with Community Benefits. The fact it will reuse historic features and connect with existing street grid adds to excitement. It will make available a huge part of San Franciscos waterfront that has been closed to the public for 160 years and it will also extend the blue greenway. We have asked and associate capital agreed to continue discussions as the project proceeds to insure the community has a say in it Going Forward. We believe associate capital has a great track record of working with the community and we support the proposed lease of the park property and development of this property. Thank you. Any other Public Comment on this item . Hello, commissioners. I represent the ymca. We have been serving San Francisco since 1853. It is located on lane street that addresses the critical needs of the community including health and wellness, house being stabilization, youth development, Work Force Development and family strengthening. In dogpatch we are an active supporter of the key initiativ initiatives. It is in full support of development of the power station project. We are excited to share our expertise in Community Development as well as health and wellness opportunities. We have been very impressed with Community Outreach effort to strengthen the project and shape what the community would like it to be. The y will serve as a bridge for Community Support and it is our ongoing priority that all Community Voices are heard as it pertains to the ongoing support of this particular project. Thank you. Any other Public Comment on this item . Seeing none, Public Comment is closed. Thank you, david for the presentation and tina. I have been out to the site. I was visiting pier 70 with director forbes as i recall. At that point it was in the raw state. It is exciting to see given we know what is happening in the neighborhood that this is coming on stream. The fact this is being developed very much in line with some of the other projects we have underway, and with the Community Outreach and everything taken into considerationanticly also continuing the open space. I am very supportive. We have a sliver of land included in the project. We are not going to generate any revenue, it is an important part of the chain of somewhat we are seeing in the happening in the southern waterfront which is making commissioner brandon pleased to see it in her neighborhood. It is exciting to see this coming on stream and well thought out and developed and very excited. I wasnt very well aware of the whole neighborhood until we started developing the area and have gotten to know more about dogpatch and the interesting facilities there. I am excited to see this. This area of the city will be exciting. I support this and i am glad we have a chance be to look at our sliver of land that when contribute, particularly to the open space. Thank you. Thank you for the presentation. I support the item. I would like to learn about the water bus, when it is going to happen, when we can implement it, more about that. It doesnt have to be today but at some point i would like to hear about it. The offers of economic development. Thank you, commissioners. It is a pleasure to be in front of you today. Yes, the connection to your prior discussion on water transit opportunities. It is worth noting we have negotiated with rea really our Sister Agency in m. T. A. To include the package this project will generate a piece that would go to a water transit Pilot Project if the certain criteria were met and we worked with your team and staff at m. T. A. And others to develop those program criteria. I am thinking some operator could meet those in the future. It would be eligible for the funding identified in the Development Agreement. Thank you. Commissioner gilman. Thank you very much. This is really exciting for the last piece of that section of the waterfront. I will be out there this week. I had one question about the transportation package. It was mentioned in your presentation, tina, there will would be Shuttle Service to transportation hubs. Is that for workers of the complex or open to the public . It would be open to the public. For folks living in dogpatch they could participate in it . Yes. Okay. Then one other question really impressive with your Affordable Housing package and partnership with homeless prenatal. I can take it offline. In every phase of the project can you remind me of the residential phasing in the project . We dont have that slide before us. We are planning for residential in every face. 30 affordable in each phase. Is there something specific . In every fazul do the affordable section by section. That answers my questions. I am excited. Thank you. Vice president adams. This is something that will continue to transform San Francisco. This is San Francisco 2100. Clearly this will be the coolest neighborhood to live in the city. What is happening in the southern waterfront and to the commission and port we may not make a lot, but something stands out to me. Over 862 million in Community Benefits. This commission we represent the port. This port belongs to the people and the county of San Francisco. They are going to benefit by that. In the next generation, the generation to come will benefit with this transformation. I am excited. I dont think i will afford to live there. It is nice to know this is where it is happening with restaurants and hotels and parks. Skateboards for kids and cool neighborhood to live in. It is like commissioner gilman said, this Affordable Housing aspect of it because of the homeless problem and that we have in San Francisco. This is a new start for our city. I am totally on board with that. I am excited. I do worry about the congestion. We have 30,00 30,000 ubers and. You can get in a traffic jam in six or seven blocks. I dont know how to fix that. Maybe more people need to walk and get exercise. We have to do something. This is going to be really nice. I am glad the port gets to play a small part in this. This is San Francisco 2100. This is vision looking forward. I like this project. Thank you. David and tina, thank you so much for the presentation. I agree with my fellow commissioners the Community Benefit part of this package is wonderful. Thank you, katy for your comments. I was going to ask if there were comments. I appreciate you coming to share your letter with us. I have a couple questions regarding the Community Benefits. The district 10 preference marketing program, what is that . There will be some and correct me there will be some fundings that are part of our project and our land dedication parcels where we will be advertising for district 10 Affordable Housing developers to develop Affordable Housing on the site. Also, commissioner, a preference for d10 residents. We will work with ycd to market the units. Residents have the first shot. That is for all affordable units . The specifics if it is a percentage. We want a broad program in every phase. We will come back to follow up in an email and when we come before you again. Thank you. The 25,000 San Francisco facility operated by the ymca. What is that . There was a request for a Community Center. Dogpatch lacks many of the Community Facilities that other neighborhoods have. The request was there. The ymca having a foothold in bayview and in tom mulcair has a network effect. We partner with them. Project provides 25,000 square foot facility within one of the buildings. We will provide tenant improvement allowance for the site for partner for the project and Community Center. We are excited to partner with the y. It is a Square Footage, not dollar amount . It was originally 20,000 feet. Then it was increased to 25,000 feet based on community feedback. I love the y. Same with the child care facility, 12,000 square foot . It is the largest, to my knowledge, that is built in any project. We are excited. It is two separate facilities. We would help fund them and get them started with nonprofit operator to run within the site. Thank you. Look forward to seeing you aga again. One more question. David, can you talk about investment in Sea Level Rise . Did someone mention about that and precautionary because of the work we are trying to do here on Sea Level Rise. How are we going to be out front on this . Two levels. There are design features in the project. As in the master plan they address the Sea Level Rise in terms of the development. Additional component, the out years of the Community Facilities district we will establish on the site, revenue from those assessments will go towards sea level adaptation measures, more broadly not just Site Specific but citywide as needed. The mechanics we need to work out. Likely may use the fund that was established with the port projects prior to this along the waterfront. That is the intent of that future set of resources. Thats right. We are fortunate this site is quite high and so compared to other projects it is relatively high. For the areas it is low we will raise it on the most conservativesty mats in the packets. We will leave space to raise it should it be necessary as estimates change and Sea Level Rise continues. Thank you. Item 12 request authorization for staff to enter into a 99 year ground lease for parcel e2 at the appraised value of 5 million, 185 maryland street assessors block 4116, lot 008. Moved. Seconded. Mike martin real estate and development. Here today joined by our pier 70 team rebecca, christine, and annette jackson. Pier 70 is a large iceberg of work of which you see only a little bit these days. Part of the rest of the iceberg is coming before you today. Normally we would give you an information item and chance to digest the material. This is happening at a time where delays each month we are losing 1. 2 million in accrued developer return if we are not able to bring in more dollars. We want to get your feedback to see where you want be to go from here. Some quick background on pier 70. Project approved late in 2017. Groundbreaking mid 2018. More dontal construction horizontal construction is underway. Phase one is seven buildings, three are in the near term. Building 12, which we issued a lease on two weeks ago, but today we are talking about the other buildings e2 Residential Rental on this slide it is the shadedin to the bottom right e2 with dark blue border around the gray parcel. Parcel a is an Office Building up at the top in the middle of the project. Also outlined in a darker blue border. A little bit more detail on the specifics of those parcels. E2 has 281 units, 20 Affordable Housing below market rates at average of 80 a. M. I. The project promises 30 affordable. The difference will come in a couple 100 affordable buildings to be built later in the project. Parcel a is commercial building of 350,000 square feet. To pause on this slide. As you may recall when we approved the transaction. It was structured so that the master Developer First had a first option on each parcel as it was ready for lease. The price of the option would be based on an appraisa an apprais. That would come in, developer would say i will exercise my option at that amount or either party could challenge to seek an arbitration process where we get new appraisals that would take an additional three to four months. In addition we negotiated down market delay. It was an idea if land values decreased to a level where the project was no longer feasible in the manner proposed to you, we wouldnt be required to transact at that low value. We set those down market amounts at a percentage what the full value we showed you in the performance at the time of approval. Now we run into the down market provisions and wanted to walk you through that. This is a flowchart that shows what happens when the appraisal comes in above or below that thresholds. On the left side of the slide if the fair market is above the threshold the developer has the ability to exercise the option of that parcel at that fair market value or says no thanks. Then we go out for a competitive sale. If on the right side the fair market is below the thresholds. The delay provisions are triggered. Three potential outcomes. One, the master developer brookfield could option at the down market threshold. Another option is the option parcel could be sold at a price agreed to buy the parties. Third option would be we trigger down market delay. It is no longer leased and we will hold off on leasing that parcel until the values are above the dow market threshold. There are other effects as well. Those matter for todays discussion. In looking at those options, brookfield was not willing to take at the down market thresholds price. This slide shows the comparison of the two. I should stop on this slide. Parcel e2 had down market approves 11. 3 million. Appraised value is 5 million. Parcel a had a down market 12. 87 million. Appraised is 66 million, five times that. As you can see on the far right if you sum the two projects we are in excess of the combined down market but that is not how they work. It is by individual parcel. I also want to as a reminder. This is very reminiscent with mission rock with two office and two residential. The residential parcels appraised for less than zero dollars. We had a mechanism to take the linkage fees from the office to pay to the residential developers, therefore, we had four feasible projects. Here we dont have that mechanism. We have even gauged with brookfield since they would not take the parcel at down market delay threshold. We have proposed they take it down at the appraised value of 5 million. That proposal we made was contingent on a couple conditions. One is first of all, this slowed shows two this slide shows two paths forward. Start with the right. We would transact e2 at the appraised value of 5 million. Require that both options be exercised together or rejected together. Then as part of this offer the parties would accelerate the closing timeline for parcel a from approximately 410 days between when the option was exercised and when the lease issued to approximately 180 days. By reducing that timeline by that amount of time that will save the port 6. 5 million of return that would accrue over the 410 days minus 180 days. The sooner we get the dollars in the project the sooner we can pay the developer bark to stop the return from clicking. The benefit is aside from the finances building the housing along with the office, which i think is very much in line with the ongoing debate with the jobs housing balance in San Francisco. If this is not agreed by the parties, we would be left with being forced to transact the parcels separately. Parcel e2 would not transact, parcel a would transact. No delivery of Housing Units and no accelerated timeline for the transaction. Broadly speaking, i think as staff we wanted to recommend to you an approach where we moved ahead with the appraised value. It is lower than the down market thresholds, we think it is keeping with the current market in San Francisco especially as to Residential Rental which we have seen elsewhere at mission rock and with the appraisal of the project why Construction Costs have outstripped the softening rents. The value of the Residential Rental properties is dropping with that. Thithis is a strategy to pursue. We needed to do anything but the transaction as described in the documents we need Port Commission approval. We are ask requesting approval of the resolution authorizing us to offer to the developer shorter close period for parcel a. If we move ahead and the developer elected to exercise the option by june 3rd, the developer and port would enter the Development Agreements and by august 2nd we would close. If the developer did not exercise options after we made this agreement, we return to the rights under the documents and be walking through that flowchart we described. That is our presentation. I am sure you have questions. We are here to answer. Thank you. We have a motion and a second. Katie. Im sorry. Is there any Public Comment on this item . Seeing none, Public Comment is closed. Commissioner makras. I believe that the appraisal is below the fair market value in a substantial way. The appraisal estimates this parcel valued at 9 million. I believe that is substantially below market. It is an error. I have referred out to our executive director and asked her to work with her team for this, and i am candidly surprised it is Going Forward, even though indication was that it would be continued for two weeks. I will be voting against the item. Just so i am clear i believe this parcel is worth in the range of 28 million, not 9 million. I will leave it at that for face value. Offline i will continue my discussions with the staff. I will let you know that i decided to move forward with the item because it was on the calendar. I felt if we had concerns we should get them out now. If the Commission Wants to continue we can do that. I want to hear everybodys thoughts on the item. I would like to ask staff a couple questions. This appraisal came in first. Would you be kind enough to share is this 9 million appraisal just voluntarily given forward with instructions or negotiated rate . The appraisal instructions were negotiated closely with both developer and state Lands Commission in the transaction. The negotiated rate is that the question . [please stand by] one an appraiser, another a real estate economist. We received their draft indications of value. We went over that internally with staff that you see before you as well as our two consultants. We produced ten pages of comments. It was lower than the one before you. We fought hard to get this up to a higher level. In conjunction with brookfield, we saw each others comments. We transferred them to the appraiser. The appraiser transferred the comments back to us and came forward with the appraisal you have before you. I hope this answers the back and forth process. This was a heavily scrutinized document. We believe it is the appraisers opinion of value and i do feel like weve spent a number of months going through the document, because we, like you, want to see a higher value. And the initial appraisal value that the appraiser put forward, what was that number from the [ indiscernible ] i think the lease hold value was 1 million in comparison to the 5 million it is today. Do we know the fee simple value . I think hell find it in just a moment. I will argue to my colleagues that that in itself should put great scrutiny on this appraisal where the value was negotiated, it was structured with the parties input. And anyone who put a value of 2 million forward, their independent valuation and then negotiate up to a 9 Million Value is in itself suspect. I believe this parcel is worth 28 million or greater. The fee simple value is 5 million. The original appraisal was 5 million. For the fee simple 1 million. And after receiving comments from both parties, the appraiser made some changes to the report and recognized various aspects of the report. I can guarantee you that brookfield made comments opposite. We both had comments. We were making comments, saying we thought it was more valuable. Brookfield making comments that we think the Construction Costs are going to get worse and those sorts of things. The appraiser took that in. We heard everyones comments. Our sense is he was trying to listen to both parties and determine what is the right value of the site. My last question, who benefits with the difference in value . Using my number of 28 million and the appraisers value of 9 million and this differential, who benefits from that money, the port of San Francisco or the developer project sponsor that will develop that differential in value . I can answer this in one way. The financing plan requires that we take the value of these leases and use it to repay the horizontal developer brookfield for their they spent about 100 million to date developing this site. So the only use of those dollars will be to repay the horizontal Construction Costs. So if it were higher if it were the higher value than that, we would take that money and give it to the horizontal developer. The value that it is goes to the horizontal developer to pay them for their infrastructure costs. Thank you very much. Commissioners, i would be voting against the item, but i would put great caution on the value thats put before us today. Commissioner. Okay. I hear 5 million. I hear 9 million. Im confused. Where does the 9 million come from . Shall i answer . So the appraiser in their report provided the 99year prepaid lease value which was 9 million. For information they also provided if you were to sell the site, the appraised site for sale would be 9 million. Okay. We are not proposing to sell the site. That was information that was a nice benchmark to have because there are other transactions in the city that are fee simple transactions so you can compare that against land sale. Does that make sense . As you answered the commissioners question, that if the appraised value had come up to anywhere close to the numbers that he also suggested, that the horizontal developer, which in this case is also brookfield, right . Yes. So it would benefit them to have a higher appraisal value because it would pay off their horizontal development, correct . It can only go to the horizontal developer, brookfield. But brookfield, another joint a Development Entity of brookfield has to pay that money. So a vertical developer is going ton an affiliate. They pay the 28 million. The horizontal developer brookfield gets that money. Theyre on both sides of the transaction. The benefit to the port is by paying down that developer balance, its continent we have to pay back before we get our money. The way i understood this is set by shortening the time period to six months, where we would benefit by perhaps the 6 million. I dont know whether that was how that is derived in relationship the downward threshold number. It is not related to the downward threshold. The reason that the port and the cash flow benefits, because you take what we were showing the 66 million from the Office Parcel and the 5 million from the residential, and you move it up in the cash flow. So right now we owe them or they have put in 100 million. Theyre incurring an 18 return. If we can move up that 66 million plus 5 million what could be up to a year, if we move it up on a date in six months, that saves us 6. 5 million. The way i was interpreting it is it neutralizes the amount that comes in. That is right. We didnt design it that way. We designed it in a way which is how fast can we possibly close on these leases. We came up with the 120, 180 days from that perspective, but youre right, it has the effect i thought it was going to be an economic, but youre telling me its cash flow as well as economic benefit, it cancels itself out. Right. I was mentioning it was coincidental. We wanted to go as fast as we had could. Those were the dates. Economic neutrality as well as economic benefits. Right. We need to understand at the end of the day, even though i can understand the question that has been put, that the appraised value is technically perhaps not correct, and i guess we could argue there are so many ways to appraise that what the value might be, we are not necessarily damaged by Going Forward with this proposal from the standpoint that weve neutralized it. I need to understand that. I would be in his camp if we benefitted more with the appraised value. I completely agree getting the 6. 5 million of time, we neutralized the difference between 11 million and 5 million. The only other item i did want to mention that maybe you were thinking as well is this deal is structured around appraised values. So we worked this out with this appraisal trying to get it up to where we wanted it to be. It came out at 5 million. If we say what the commissioners are saying, were going to dispute this and dont agree with this appraisal, the next step is to hire another appraiser and go through the same process. If the next appraiser agrees with the first appraiser, the documents have it so that automatically if theyre close, then thats the real appraiser. We request do it again and we have a third appraiser come in and break the tie. You already have a Third Party Independent review of that appraisal that did not dispute that this was within they agreed within the 5 million . Right. They thought it could be a little bit higher, but they also thought there is an interpretation that every appraiser has to make about the information theyre looking at. So they thought it was within the bounds of market. So i just also want to understand if the developer chooses to walk away. So as you said, under the last page while we can dispute, it does not exercise both options. I need to understand what the consequences of that means. What does that mean and lead to . So if we go back to the flow chart, if we can have the slides ba back. So were on the right side here. So the fair market value of the current appraisal is below the down market threshold. Were agreeing that they can option the parcel at a price agreed to by the parties, but if they dont take that option, were back into the agreements flow chart. At that point, we have an appraised value that is below the down market level. So we either have to dispute that to bring it up to the down market level or were in delay and the transaction cannot transact and were waiting for the market to come back to the down market threshold. Does that make sense . So our hands are tied behind our backs . Were desperately trying to avoid having this being called a down market delay because it takes us out of the ability to transact this and the remaining parcels until the market comes back, which means Construction Costs are down, rents are back up. So we just had a presentation earlier about all this very optimistic picture of the parcel that is absolutely in the neighborhood, right. So i guess and i dont know what the appraisal value of what theyre using for this because were not involved with the Actual Development of that project, were just agreeing to the land that we actually own it thats adjacent to their project to use it for open space. We keep hearing about all the issues and the demand for housing. So im trying to correlate and i understand Construction Costs on the other hand in the demand for housing. How is it that we have such a down market issue here . So i have you know, i think Construction Costs have just continued to escalate and rents havent kept pace. Its unfortunate. There is an excellent graph we brought for this part of the conversation that shows Construction Cost curves going up and the rents levelling out. Thats being seen at a lot of housing sites in the city. Thats depressing land value . Correct. Basically people are willing to pay only in the amounts that their revenues generated outstrips the costs to build that building and operate that building. But any appraisal will factor that in from comparable sales. The appraisal will blend all of that in when they take their comparables . Agreed. They looked at comparables and Construction Costs, including information we gave them about this specific projects so they could be not taking in my next question until i cede the floor. Where do we think the developer is at this point in terms of what option they have . Well, we negotiated the developer, i think like us, wants these buildings to transact and be built. They, i think internally, are informing us that theyre not able or willing to transact at the down market threshold thats now effectively double what this appraisal shows. They believe that this agreed Appraisal Amount is something that they internally would exercise the option on. So thats it was from that basis that we together negotiated, okay, what are the pieces that would make this deal work for both sides. We came up with the timing benefits. I just want to be totally clear with you. This is extending them an option at this price. They would not be required to take it down. Theyve not yet agreed to take it down, but they do think this is a way forward to achieve our mutual goal of getting those two parts transacted and those dollars into the project. The only alternative is to dispute and then order another appraisal, which would be another threemonth delay or something . Correct. Thank you. Thank you for the presentation. I actually really appreciate my fellow commissioners and the conversation. The only thing im going to add and well wait and see if the commission is going to move forward today. Commissioner bran, you said there is an option to delay and i understand the cost to delay. I want to say i think moving forward in the future, things like this we would have benefitted from an informational item first, versus you bringing it today for an action item. This is a very complex transaction with obviously differing opinions from the commissioners about that. Thats my only comment i have. I can speak to that because we put this on the calendar as an action item, but you do not have to act today. It can be an informational item. Putting it on as an action item leaves your options open to act if youre prepared to do so. As i shared with you, we can delay this until the 25th and answer additional questions. The delay and the cost is if we get into additional appraisals and add three or four months to the project, that would be serious Financial Impact to the port. If we just delayed for two weeks for informationgathering and questionpondering, that would be no consequence to us . That works with our schedule. It works. I just want to be clear its two weeks of that return clicking. That is the cost. Its not three months, but there is a cost there. Its totally i had this conversation before. Its totally okay to come back. We know were throwing a lot at you fast. But they havent exercised their options, so it doesnt cost anything because they havent exercised their option or indicated theyre exercising . I promise you theyll take this in one minute of us approving it. I was just going to say that we have agreed they have 120 days to sign and that started last week if we were able to bring this forward today i want to add if we brought it in on the 25th, we would do that. I want to see what the rest of the commissioners think. I want you to go ahead and ask what you want to ask. I dont think time comfortable making a decision today. Ill address the elephant in the room. Why dont we hold this over. I dont know where we got the 28 million. I dont know how that works or doesnt work to me in my brain. Maybe theres something im missing on that. Maybe a little bit more time to kind of understand this. I dont understand where commissioner max said 28 million and the other commissioners were asking very good questions. Im a little bit confused on this. I want to know how much is it really worth. From 9 million to 5 million to 28 million, thats a big gap. Thats not even close. Commissioner macsaid 15 sml or 20 million, but nowmillion or 20 million, but now its 30 million. I would like to hold it over for a couple of weeks. I think we need to be clear what are our questions. What do we expect to learn in two weeks . Because the appraisal is not going to change. So what is it that we want to do in two weeks . I just want to understand the gap between where were at on the presentation and what commissioner mack was saying, 28 million. Thats a big gap. Ill answer that. I believe the discrete value of an entitled project in San Francisco is worth 100,000 a unit all day long. That simple. Back of the envelope mathematics for real estate. This body approved a similar sale of a 240unit partial p. K. N. , a 240unit process we sold for 24 million ourselves. So theyre not identical, but im just giving you the pointed direction of where im coming with the value. The assumption states that this is completely entitled for development of 242 developments covered over floor retail and subterrain level parking. This contemplates construction starting this year. No risk to the developer at all to break ground. Thats where im using my back of the envelope evaluation. Staff has been surprised, not only here, but in mission rock. The dynamics in the market place have changed in delivery of housing. Just what mike said, the cost curve is very steep and rental values are flat or inching up very slowly. T commissioner mack hasnt had a lot of time to look at this appraisal and the methodology, and we were discussing what we might exchange in the next few weeks to get him more comfortable with the appraisal. This was independently and fairly done, but to make sure it is not missing things and the methodology is sound. The other thing about parcel k. North is we also thought about that transaction. Its a economic project, not encumbered with a 20 affordability requirement. And it doesnt have the same level of c. F. B. Taxes on it either. There are many things pulling this parcel down, but we have a commissioner that is not comfortable with the appraised value and has deep professional experience in this arena. So we were more than comfortable to answer questions about the appraisal in the next few weeks, but fundamentally the appraisal is not going to change and staff is all saying to you that we do not want to move into an arbitrated situation because on balance we think that to reduce the timing of closing and get the office in line with our policy is the way to get this online. Providing Additional Information and getting a commissioner with expertise more comfortable around something is certainly something were more than willing to do. Actually, i have a question for staff, so theyre prepared to break ground and Start Construction this year . They are prepared to have the site permit online. They are not required to break ground in year, but i think its a fair statement to make that they would be six months away to get building permits. Im sorry this is me not familiar. I assume this is not stick construction . It is concrete podium with a wood frame and its a 70foot building. So i think, elaine, youve outlined perhaps the next step here. For some people its really understanding the transaction. The other is really having a conversation to compare previous transactions in this appraisal and coming back. Then we would feel more comfortable that weve done our homework. If were in agreement, we will have to take a vote at that time. So we will continue this. Thank you. Thank you. Clerk item 12, informational presentation regarding a proposal for a lease renewal when andre baker is incorporated. Good afternoon, commissionerings, mike martin, Real Estate Development. This one is much more i think within our usual realm of conversation. So my hope is it will go smoother. [ laughter ]. So this is relating to the chowder hut which is a kiosk i keep calling it a kiosk. Its bigger than that. Its in the triangle parking lot at fishermens wharf at number 35. It is affiliated with the boudine flag ship. This is San Franciscos oldest continuously operating business. This bakery is a subsidiary of the flag ship, they entered a port lease to rehabilitate the facility. At that time they invested over 700,000 to develop a casual dining experience, with both indoor and outdoor seating. Last year they generated sales of 4 million and paid 460,000 rent to the port. And the current lease expired on december 31, which prompts us to be before you today. As weve discussed with you in other transactions in the recent past, the port retail leasing policy has an exception for direct negotiation of lease extensions in certain circumstances. The conditions for doing so, the tenant must be in compliance with the tenant in Good Standing policy, the staff and the commission would evaluate whether the tenant is the most suitable tenant based on reasonably projected sales in the port using comparable retail rents. And in particular focus on making sure that the applicant has aboveaverage rent per square foot compared to like properties. In addition, port staff should issue a Business Plan and evaluate the Capital Improvement plan to determine the value of the transaction to the port and future revenues. So we have negotiated proposed business terms, as shown in the staff report before you today. The proposal is a 10year term with one fiveyear option to extend. Minimum rent remains the same as current, ratcheting the greater of 70 of annual revenues for three years or the prior rent adjusted for inflation. Percentage rent remains 9 of all gross revenues. I want to highlight that. That is significantly above every other percentage rent in the wharf. Im not sure there is another one that is above 8. Thats why this facility performs very well. This chart i really wanted to put in because it highlights what i said earlier about the shoulder ones. You can see it pronounced plateau in march through may and that is really jumped out at me as what this will address making it a plateau and a spike up as june and july hits. Monthly Sales Comparison for comparable operations. Chow der hut is performing better than the high dive and its not performing as well as pier 23 cafe but its well situated in the above average set of performers the District Association exception was intended to address. As you can see in the top chart, for chow der hut it out strips and total Square Footage as before it comes in behind pier 23 cafe but again, we think this is the kind of operation that we think deserves a chance to expand and improve performance for the port. The summary of the value analysis and the consultants performed analysis we showed you in past transactions comparing the proposed lease extension and proposal in else it of port revenues to a scenario where we terminate the lease and issued a new competitive solicitation for a new operator and shown here in the chart and and value of 51 to proceed along the path of the least extension. And some pre standing tents and not the protection were hoping to have. This laws it to be open air and closed in so that more people can take refuge from the weather when its not so good. Based on the financial an sil sis and port staffs negotiation, we think that theres a significant benefit in pursuing i wont repeat myself in the cam parson but i will say based on the factors ive described and subject to completion of negotiations, we would recommend that you district us to come back to you with this amendment or new lease, since it expired. For approval at a Port Commission meeting. Thats the end of my presentation and i will take your questions. Is there any Public Comment on this idea . Thank you, mike, for the presentation. Its exciting and i have no questions and sim supportive of the item. Im suppose port tive of the item. When we relooked at the leasing policy for current tenants ill have comments at that time. It is our role and in this case, its supportive and i was surprised to see a stack come forward when a tenant was not in Good Standings with some infrastructure stuff so this is exactly what should be coming before us. I will support the item. Thank you, commissioner. This makes a lot of sense so im supportive, no questions. Vice president adams. Mike, i got to Say Something to you and that was a we were here for six hours and we had like 30 police in the room. That was a barn storm. It was pretty like. You remember, we had all to be escorted to our car. That was a barn storm. Good job, mike. I support this. You know what im talking about, you were there. Agreed. Request authorization to request for qualification to identify qualified operators to activate port open. So moved. Ill second that. Lets wait until the we hear the presentation. [laughter] all right, moved. Im just waiting for my. With the Real Estate Development team and im accompanied by michael martin, our director. Today i will district on our popup activation and our request for qualifications. I would like to acknowledge that i have had support from many Staff Members including an net, byron and tiffany who provided a lot of countless hours. My presentation will cover our goals, values and areas for the pop ups to occur. As you know the pop up rq was from our process and of our historic waterfront responses and the responses to the Port Commission dialogue since that have alum natured the opportunity to create a pool of interested and capable operators for short term activation and programming along the waterfront. And to enhance the experience of visitors to the San Francisco waterfront. Port staff have engage of other port stakeholders and the values were affirmed in that process. Providing public or entered and diverse uses, promoting equitable access to the waterfront for all to enjoy and addressing and mitigating transportation impacts associated with the event and its gee off graphic location and increasing opportunities for small and local business participation. And partnering with operators who are equally committed to engaging our stakeholders. Aside from what is date heard on the slide, stakeholders did emphasize their desire to see activation of the entire portfolio and not just the concentration of activities in areas with heavy foot traffic. In terms of likely locations of popup opportunities, the rq will allow for respondents to propose activation of the port 100 plus acres of open space and open air lots. However, the rfq will highlight these five locations which include the open space at pier 29, pier pod 30 and 32. We anticipate that proposals will fall into the following five categories. Cultural events and activations, food and benchmark et cetera, retail markets, athletic showcases, Art Exhibition and performances. As stated in the staff report, the duration of activities may be up to one year in term. With many looking to be less developers. In order to provide opportunities to those activators and additional potentialal activators port staff proposed the minimum qualifications and experience of successfully executing at least one similar activation within the past three years. Demonstrated Financial Capacity and willingness to fully finance the proposed activation and ability to work with city and community stakeholders. Port staff believe these qualifications will allow for broad participation while ensuring the port is partnering with organization can deliver with what they propose and successful activations. The proposed rfq process is modeled after they conducted in 2019. Our processes as follows. We would issue our rfq and then we port staff would conduct further outreach to port advisory groups and other stakeholders in order to maximize participation and awareness of the rfq. Conduct a pre submittal conference, port staff would review submitals and finalize qualified operators. We would then review potential maximum between members of the pool and popup locations. The port would then offer opportunities to members of the pool and qualified operators are likely to have diverse locational preference and competition for space will be minimal or mitigate through strategic curation, allowing maximum participation by operators and optimization of our portfolio. In terms of the next steps, we anticipate the following schedule. We would release the rfq in march, conduct a piece of middle conference in april and submit the list finalized in may. Theres a twomonth open rfq and further outreach to stakeholders and the pre submittal increase awareness of the opportunity. We then expect to conduct negotiations in the summer with the first set of activations in the fall. We look forward to on the rfq, thank you, very much. So moved. Is there any Public Comment on this item. Commissioner. Sips you decided on these locations, what do we do with people that are just sort of wanting to do some sort of activation on a occasional basis or street musicians or whatever. And how we handle that so how does that handle in addition to what you are plan to go do with this rfq and we have had obviously some of our Major Projects sponsors come to us and talk about how they want to activate their open space so how are we approaching this program versus their intent to activate their open space so that were all sort of in tandem many of id like to understand that better. So, i guess i should say im negotiating the Parks Management agreement with mission rock so that is an example of this. I think where we have a master developer that is providing open space, that space would not be part of the portfolio we would activate through this pool of operators. With that said, we do have other existing avs for people to activate our space, the Street Performer Program up in fishermans war of is an example of that and its been interesting through this process, people have highlighted, well someone could just supply through our special events program. It was when we were preparing for this, it was well why are we rfqing this and this is really a call to action to bring parties and interested activators to the space. I hate to say that its acting luke a marketing but it is doing both for us. And so, to your question of i think we are highlighting these particular spaces but were open to any proposal from the community in activating our space. I guess the difference between this and whatever our current street performer sort of activation or i guess they have to get a permit or something to actually be on our property if they want to do something . Im just trying to understand what we do on the what we see currently and what the difference is going to be with this and then as i understand it, you are negotiating obviously with mission rock and to make sure that the programming aspects are sort of sinner jess tick so we dont see something duplicated. Mike martin again. Thats a really good point. The good thing is our Division Real Estate and development manages and its meant to give everybody guidelines who who gets to operate and thats been a really successful way to sort of manage that better and its a good back and fourth. On our staff, we have our special Events Coordinator so when someone from outside, aside from this process, comes and says i want to activate port property, that expertise gets routed through this division. So in her work on this frq has been speaking to those staff and i think its going to be, as you saw, as we sort of curate these responses we get in this program well be aware of oh, someone else is lurking on that site and were going to have that sort of map of the port jurisdiction in front of us and as the mission rock and pier 70 parks come online, hopefully this is going full throat by then but we have their work to bring different activations and hopefully in a managing that to have distribution with a lot of different types of activations. Thats the goal. I definitely am supportive of having more of this type of activation to attract people and we are very cultural city. We have a lot of talent in this city and sometimes we see it in forums or capacity and we see it in terms of in the open space and i think it adds to the witchness and since tourism is important to us its nothing more than people coming by and seeing something that they enjoy watching and for the children of the city to have something theres something to do on the weekends or where we plan to do something. I think its very important we keep this alive and i just want to make sure the left hand knows what the right hand is doing and everything is sinner jess tick and it could be some of the same operators or not but we know what is going on. Commissioner. I have questions and well have so you mentioned this is a Marketing Tool for activations and im wondering how we link that to the public . I dont know if randy is getting up to come ep with this question but i am sitting on our Website Committee to redesign the website so there have been opportunities to improve our events calender. Good afternoon, randy, Communications Director for the port as we are working to redesign our website and throughout that process, we have been working to and we have improved our calender function and fullstage improvements is something that we can look forward to when the website is redesigned and put out to the world. It won happen in the short run but its something were working towards and very excited for. Thank you, stuff. Im supportive of the item. Thank you, president brandon. Im very supportive of this and randy mentioned you are doing an updating the website and i really like this and this is really good and reaching out to people so thank you. Thank you so much for this presentation. And i think its a great concept. I think popup along the waterfront will be wonderful. Just wondering if at any time you will come back and share and who responded with the commission. So, yes, we plan on coming back after the responses are due to provide an informational on where, how weve curated the programming and the event along the waterfront. I did touch on a little bit that in the staff report that if there was a competition for space that we couldnt mitigate through scheduling, that we would come back to the commission for guidance on that. Its such a great concept i would love to see who is applied and what the popular sights are and what theyre proposing. Definitely. Well come back and do an informational. Its very exciting. Thank you. All in favor. Aye. Resolution 2008 has been approved. Item 13a, update on San Francisco municipal transportation agencies safety projects and plans along the embarcadero and a longer term embarcaderoe enhancement projec. Members of the commission, dan with planing and environment division. I am here to introduce sfmta and they will present the safety improvements along the embarcadero roadway and enhancement project and i want to provide a little Background Information about how this project some of what has been happening in this so that you bear with me for a couple of minutes. Its constructed in phases from 1993 to 2000 to replace the embarcadero freeway with surface transportation improvement serving all modes of tral. As built, it has a narrow bike lanes but its not anticipated nor do they adequately serve current and growing bicycle and pedestrian demands. The embarcadero has one of the citys high injury corridors and particularly for pedestrians and bicyclists. Under the citys vision zero policy, the sfmta is the lead agency to develop improvements to eliminate traffic deaths in San Francisco. That process evaluated alternatives and included with the conceptual design for a two way protected cycle track an the eastside of the roadway and two vehicle lanes in both the northbound and southbound direction on the roadway between pier 35 and the ballpark except for a short segment which is one northbound lane. Sfmta provided this on this concept design. Coming up, sfmta must complete Environmental Review sunday go Design Engineering for this project and also secure the funding to implement. While this work is underway, sfmta is focused on implementing other bicycle and Pedestrian Safety improvements and such as new painted safety zones, reconfigured turn lanes and bikepedestrian single head starts. In 2019, mayor breed directed the creation of the vision zero quick build initiative. Sfmta is proposed two quick build safety projects on the embarcadero to be presented today and one of which is twoway cycle track along the embarcadero between mission and fulsome south of market quick build improvements along howard and fulsome streets. In addition to address safety issues on the block between harrison and fulsome streets, director forbes requested sfmta extend the mission to harrison street. The mission fulsome quick build project requires the removal of 25meter parking spaces. Sfmta is working on the design so the presentation on that block will be less detailed. Port staff have been working to support these vision zero safety improvements. In addition they are working with design details to improve Bicycle Safety along the embarcadero at pier 35 with the ports maritime cruise terminal at that location. Any additional quick build projects, or work on the Engineering Design details for the embarcadero enhancement project, will proceed with close kawartha dinnation between port and sfmta staff and meetings with port tenants, the San Francisco Bike Coalition, walk sf, and other public groups for operational attended businesses. With that context, i would like to now introduce casey hill who will tell you about these planned safety improvements and the embarcadero enhancement project. Thank you, dan. Next slide. Perfect. Good evening, president randon, commissioners. Casey hilldrith, planner with the sfmta. Thank you for that great overview. Ill dive right in and try and be quick as possible. Thank you. First, i want to point out im not the only mta staffer here and i want to point out, sarah jones, our manager of our Planning Division and our senior planner both working actively on sustainability and working with the Port Resiliency Program as well as several members of my project team on the embarcadero enhancement project. Im here today really to focus in on our 2020 work plan providing more background on the quickbuild program that is sort of our new program for vision zero and to give you a quick update on the next steps and schedule. I gave a similar presentation last week to our mta board. Although i focused a lot on some of the many port activities and programs moving forward to give them the context that they needed. So we did talk about the Resiliency Program efforts in our coordination to stay on top of that. As well as the historic pier rehabilitation program, waterfront use plan update and several of the key projects moving forward. I introduced in particular, the planning framework the resiliency is moving forward with strengthen, adapt and envision. To really highlight that we need to move quick to protect safety in the near term while building towards a longterm sustainable vision. We talked a bit about nesting our transportation work under that program attic framework and received a lot of positive feedback on that. Undeny blee, as the economy has picked back up over the years, the waterfront has born the brunt of city growth and congestion that is a lot of why were here and i think its important to point out that theres some negative aspects of that and uber and lyft didnt exist or certainly werent as up to scale when we first started planning along the waterfront for improved safety. That has certainly now come to the forefront of the competition for space out there so this image, with tourism, commercial loading, with people walking and cycling and people trying to touch the curb, it really only takes one walk, one bike ride to see this happen and it a reflection of the growth, the competition for space but also that the demand for accessing the waterfront is perhaps not being met by other modes and so as we think about the design of the embarcadero, the design thats out there today really is not able to accommodate the changes and demands that weve seen over the years. Its important congestion is over subscribed in large part because it is so popular. And so, as we think about how to solve for congestion, we do need to be mindful that whether its the Farmers Market or the cruise ship docking, or just people getting off the expanded from terminal congestion can be a great sign of success and vibrancy and so needing to tease out sort of where we can address congestion and where its really just a sign of success in growth. You know, we are caught in this sort of negative loop where we have conditions on the roadway that is not safe for people on bikes in particular. They are then moving onto the promenade creating other conflicts with pedestrians and trying to separate themselves from traffic so here is an image of psych cyclists going througha light and its a reflection of the deficient infrastructure out there. I want to remind folks why were here. And, at the end of the day, these are our most vulnerable users and people who are not in vehicles. Vehicles speeding is the number one cause of safety issues on the embarcadero. Obviously its a complicated issue but you know, for the gentleman who is in the bicycle lane, you feel pretty mismatched up next to these large vehicles and so that is a stark reminder of why were here and gets at our entire vision sar zero progm and its where the vast majority of injuries and fatalities are occurring and to dive into the details a little bit more, its about, once a week were seeing someone get injured along the embarcadero with a vast over representation of those people being people on a bicycle, despite being relatively small amount of the over all traffic. And you know, the drive behind our Vision Zero Initiative is that this is not acceptable. We can do better, we can prevent these tragedies. Seso safety is our number one gl and we have to look at objectives and opportunities along the embarcadero and not the least of which is continuing to keep the waterfront vibrant and keep people and goods moving and respect the civic nature of the corridor and build a sustainablbuild asustainable wa. Its shifting what is out there in the roadway to a twoway water side protected bike way but were addressing a lot of the other goals with this vision. The problem being that this type of infrastructure this level of change takes time and time is what we are running out of. I want to pause and say this is where our quick build initiative was born and early in 2019, march 8th, 30yearold was tragically killed while riding her bicycle on Howard Street approaching sixth street where she swerved to avoid a driver opening the door of a parked vehicle. Like all traffic fatalities, it was a tragic loss of life and we feel it was preventable but in this case, it was painful because she was a few feet away from a protected bike lane and plans to protect that bike lane were put on hold due to parking concerns and our Agency Approved a larger vision for that corridor that still remains in detail design. It wont be completed for several more years. We cant replace the lives lost in our streets and it did put into stark relief the necessity of our Vision Zero Program and it was a water egypt moment for the city to rethink how we can accelerate our efforts to make San Francisco streets safer as quickly as possible. We had about 30 deaths, 29 or 30 deaths in 2019 its a far cry from zero and so, we noah chiefing zero deaths within the next five years by 2024 is ambitious. We have to act and make tough decisions as if nothing else is acceptable. So, what was our response . Well, first, the mayor called on our agency in may of 2019 to double the pace of our protected bicycle lane installation over the next two years. And our agency developed the Quick Build Program which came along with a set of policy changes to accelerate our work on vision zero corridors. What is the quick build initiative. Its using changes on our streets more quickly through the just of adjustable Safety Measures to paint, post, post and signs and nal timing as we try and gain feedback and build towards longer Capital Investments. Theres been policy changes that is more applicable to our sfmta board and we didnt invent this and weve been doing this for a number of years but we certainly formalized this program and this approach and we are accelerating it so my livable Streets Division is pretty much solely focused on quickbuild initiatives. A great example of this recently was with a better Market Street project. A project that was caught up in years of planning and it was moving forward with a vision for half a billion dollars of investment thats going to take time and five to 10 years to implement in phases but it would be hard not to notice we made a Market Streetcar free and delivering a lot of safety benefits in the near term as we build toward that longer term vision. Cycling is up and transit is moving faster on the surface streets and somewhat surprisingly to me anyway, probably the biggest comment was just how much quieter and more civil Market Street is to be walking and cycling. Other aspect of our quickbuild program. Its meant to be transformative and it can be but it can also serve as just an extension of our Public Outreach process as we troy to test ideas and gain feedback. Part of that is also as we say things are reversible and adjustable, were putting data metrics and evaluation behind that and so we are committed to transparency and introducing actual information and data that we can use and share with people around, is this achieving the goals and outcomes that we want. A good example of a recent evaluation effort took place on valencia street where we had a Pilot Project and we were doing a protected bike lane and a lot of parents were concerned how their children would interact with that bike lane and we spent a lot of time evaluating and pushing that information backout to the communities it was serving. And we move and sampson corridor including the location where Kevin Manning was killed in 2018 at chestnut and sansome. This wasnt branded as a quickbuild project but we delivered in a similar timeframe. Using a lot of the similar techniques making it safer for everybody. This is a good example of recent actions that certainly fit the mold of our quickbuild program. And when we say reversible adjustable, we really do mean that and so this is just an image of samson street where we had to go to a single lane turning onto the embarcadero and we we want to rethink this. We can also adjust this moving forward thinking about a longer term solution. So this gets us to the embarcadero quickbuild planning for 2020. And i first wanted to talk about the fulsome to mission segment. Ive been out there a number of times recently in the last several weeks and just have been amazed with the explosion and growth of pedestrian and all manner of wheel deenterovirus d68 travel as the Ferry Terminal has expanded. South of the ferry building. Its meant to respond to the work that we have been doing on the fulsome and howard core cors we can doncorridors. We do see it as solving the embarcadero problem but an extension of our soma work and really contributing to the maritime use and the extension of the Ferry Terminal so at the same time, we think we can use this as a way to preview test kick the tires on some ideas and it could be applicable along the corridor. At the same time, we want to bring other improvements like improving which can serve everyone. More details, if you care to see it at some point. In terms of the quick bill proposal, the water power epic block and kudos to the port for sort of challenging us to reconsider what we can do in the short term as we build that longer term vision so we took a second look and realized we can fit a reconfiguration of this block and one day northbound bike lane and retaining the load zone and four passengers and four the businesses and we plan to move forward with this proposal in the same timeframe as that mission to fulsome quick build and there are a few details that we want to share with staff before promoting a more and so, Mission Street around the Ferry Terminal and around here at pier 35 on the weekends. Here we have a extra wide loading and parking lane that we think again we can reconfigure in the near term as we build towards the longer term vision and and again, move that forward in 2020 as were building towards a longer term vision. Just quickly, you know, we are not just focused on engineering and working on port staff in discussions with our advocacy groups and we have a census ability on the waterfront and also looking at ways we can engage uber and lyft to selfenforce their behavior so if im in my happen im going to the street and i cant just be anywhere and pick up a ride and im being nudged to a formal loading zone where on the larger embarcadero enhancement project were currently in the preliminary engineering stage and setting up an Environmental Review period and so we are refining our project description before we undergo ceqa review. As part of that, we continue to coordinate with the port on data sharing, technical coordination with the Resiliency Program as well as staying abreast of the Row Development becomes available. As we get into the details, in circ lace and it has been and achieving our short term goals and in the southern section of the waterfront, we dont have that third travel lane. Make sure that we responded to the Quick Build Program and other needs and pressures and then also want to remind you that the segment north of north point, we have a separate study moving forward. More close to the line with fishermans wa as part of that e looking to formalize and i will prove the turn around for the historic streetcar so making some transit investments to improve transit along the embarcadero. A lot of that means the laundry list of folks we talked to well go back and talk to again and revisit a lot of these same conversations and make sure folks are aware of our project and have a chance to weigh in. So it certainly will be a busy 2020. Here is our 2020 plan. The first short blue and green is what i just described and after we get through our ceqa review for the enhancement project, we do anticipate wanting to develop perhaps a second wave of quickbuild work and not exactly sure what that entails quite yet and then the original and purple bars really representing the first phase of a Capital Project where we are currently targeting the section from fulsome so townsend and as we gain more understanding of the issues, up in fishermans warf, pier 39, well plug that into the schedule as well. Immediate next steps we have a spur launch time forum talk next week and really that was meant to dive into one of the key areas of concern that was raised back in late 2018 around how are pedestrians and bicyclers inner act with this twoway bike way. Shout out to members of the senior and disability action, walk sf and Mayors Office of disability and others and late last year they produced this getting to the curb document which really speaks to how protected bike lane infrastructure and projects can actually be pedestrians safety improvements if one correctly and so, a lot of our panel and our discussion topics are going to be focused around this bicycle and pedestrian action and hope folks can make it next week and otherwise we have our consult attribute and segment and our short segments of 2020 quick builds and we want to get those in the ground and evaluate those and use them as opportunities to gain peoples understanding of the project and get their feedback. Hopefully that was not too quick and i look forward to your comments. Thank you. Ok. Katie. Skate daled. I was going to our Neighborhood Association meeting at South Beach Harbor Community Room and as i walked over there around 5 30 in the evening, i was zipped by bicycles and skate boards and also a including two petty cabs which are not supposed to be out there and so, i want to see thank you so much. Thank you so much. President brandon, Vice President adams, commissioners. Thank you for giving me a couple minutes here. Im the managing partner at water bar and epic stake and were located on the embarcadero between fulsome and harrison. Opened in 2008, january of 2019. Were really proud of our reputation and the diversity of guests that come to water bar and epic. Its a great mix of locals and visitors and business clientele and were also proud of the fact that we employ 250 people. We really do take our responsibility seriously to the waterfront location and we strive to be Good Community servants and good neighbors. So, contrary to whats been out there on social media lately, water bar and epic have never opposed any of the plans for the embarcadero project. We havent even been wove seen plans and were really committed to cooperating and collaborating on an embarcadero plan that will balance the needs of all the stakeholders. Those being some of restaurant guests, bicyclists, pedestrians, Public Transportation, vehicle transportation, the port sfmta, sfpd, the fire department, and to be able toll do so in a manner that is safe and efficient for all. So thank you for letting me speak. And then janice clyde. Wow. These are really long meetings. Weve been here for four and a half hours. A lot has happened since then. Andrew yang dropped out of the primary and bernie won new hampshire. I am really excite today bicycle home soon although it will be in the dark. From that i want to voice my support for this project. Its like very strongly connected to my perception of San Francisco as a city. Its the most beautiful part of the city and when friends visit they take them to embarcadero. As we heard tonight, the embarcadero is used by so many people in so many different ways and its used more and more often and its super congested and not very safe for pedestrians, bikers, people on scooters or people in cars. I can go through examples from cars swerving into bike lanes, taking rights on reds and hitting bikers but really excited when i learned this project was coming up and i just want to he can echo my support and be something that can happen as soon as possible. Thank you. Janice and then jessica jenkins. Hey, everyone, i have good afternoon on here but good evening commissioners. My name is janice lee and i wear many hats having chaired your Plan Working Group and im here today as a advocacy director as the San Francisco Bicycle Coalition where we are an organization with over 10,000 active members for everyday transportation and is it since the enhancement project kicked off in 2014 weve been saying the same thing. A worldclass waterfront deserves a worldclass biking experience. And what that means for us is a consistent continuous, and fully protected bike lane for the entirety of the embarcadero. Weve not changed on that. Yes, we support the projects and yes we want to fix the water flog between some some and air son and we appreciate petes willingness to engage and we believe theres a solution that balance where we can have a protected bike lane and his restaurant patrons can safely and conveniently access his restaurant. But more than anything, we dont want to wait. Make all of the embarcadero saving now and not just for three blocks. Build the protective bike lanes people biking here deserve and lets make the prom nad a safer place. Without a protect the bicycle lane the port will always and inevitably deal with complaints of fast bicyclists on the promenade. Get on record with a protected bike lane and district port staff to work with the sfmta and come back to this commission in three months time on how to implement a near term protected bike lane and i get this is the information item but you all can step up and take action in different ways. Lastly, the like will support and promotes safe predictable bikely theyve year through owl of our free bike education there ises and i know i have limited time and i cant talk about all of that but ill be around and i will answer questions by the bike education we do and the outreach we take about so it works for all of our users. Thank you. Marcel moran. Good evening, commissioners. My name is jessica jenkins, i regularly work at the old round house where my company leases office space from the port of San Francisco and i pass by Kevin Mannings memorial everyday. He was a petty cop operator killed by hitandrun driver biking in the unprotected bicycle lane. I came here to the Port Commission in 2018 to ask for protected safe bike lanes and little progress has been made. The existing bicycle lanes are unsafe for me and a death trap for more vulnerable psyche list whos are capable of biking himself all over San Francisco the problem with the cars. They are too narrow with 30 Miles Per Hour and faster traffic speeding alongside. They block an unexpected cost into the bike lane. God for bid you have to pass traffic drivers will honk, swerve, scream and terrorize you. The waterfront walkway is packed with food traffic and its not safe for pedestrians to have bikes and scooters dodging around them. The flesh and blood people deserve more space to travel and enjoy the waterfront safely and sustainably. We need to take the space from the dangerous polluting low occupancy vehicles that currently use four plus road lanes and are frankly on a waterfront. Please use your powers to work with the sfmta to provide a protect the and safe bike lane for the full length of embarcadero so families like mine can bike from swim class at the y to visit the sea lions at pier 39 without fearing four our lives. Thank you. Thank you. Marcel moran. Thank you, commissioners. My name is marcel moran and im a residents of San Francisco proud member of the Bike Coalition and a phd student in city planning at uc berkeley. The embarcadero should be a gateway to San Francisco many attractions but that isnt the case for those traveling by bicycle. Residents, tourists commuters and children who bike are faced with an unprotected and patchwork network of painted lands that expos them to crisscrossing uber and lyft and speeding cars towards the bridge. I support a fully continuous bike lane along the embarcadero and urge you to expedite the process. The lack of protected lanes makes this trip impossible and hostile to thousands of people that would gladly make this trip by bike or scooter. Like the research knows that creating protective facilities diverse ties those who bike and denly in quarters like this, improved business outcomes. The conversation on bike lanes is sub track tive, how else will the cars get there but it should be additive. Who else can we bring to the embarcadero when we make it safe for all modes of travel. Helsinki and oslo in 2019 got to zero traffic deaths. So vision zero is attainable when theres political will behind it and i dont think theres any reason San Francisco cant make that. But it wont happen as a marketing campaign, it has to happen with political will. Please prioritize this proposal for all of embarcadero and its users. Thank you. Thank you. John and then miles epstein. Question, commissioners. I am a middle School English teacher and my name is john. I teach at Francis Middle School in north beach. For several years, i had the pleasure of using the embarcadero bike lane as part of my commute but it was too terrifying. Ive since shifted to grant street which although still dangerous, moves lower and i dont have 30 or 35mile an hour trucks coming inches from killing me. As a teacher, i think about Street Safety and i think about climate safety. Cars are the leading cause of death for americans under 5yearsold. They kill 40,000 americans a year and its one person every six minutes. We cant talk about a safe city and we cant talk about a safe embarcadero. If wov weve got vehicles with o and going right next to psyche lists. Theyre too fast and too often distracted and its just not safe. Likewise with light duty Passenger Vehicles with a number one carbon emitter in our state. If we want to get serious about Climate Justice and a future thats case for my students, we are going to have to say no to a lot more Motor Vehicles and say yes to protected bicycle infrastructure for all. Thank you. Miles epstein and then laura. And then simone. I dont know if we lost michael. Go ahead. Go ahead. Miles. Go ahead, laura. Hello commissioners, my name is laura and i live in the city. I used to bike everyday along the embarcadero to get to work and in the beginning, like the previous speaker just said, i used to use the on street bike lanes and i would have preferred to use them because obviously theres a lot of foot traffic and its not that fun for me to have to dodge around pedestrians either and too often there were vehicles parked fully or partly in the bike lane and with such fastmoving traffic i did not feel safe merging in and out of the traffic lanes. So i strongly support the building of protected bike lanes as soon as possible and ask you to work closely with the sfmta to make this happen. One of the commissioners earlier today mentioned that the port belongs to the people of the city and also mention the traffic problems that San Francisco experiences. Unstalling bike lanes that make people feel safe and are safe is key to getting people out of their cars and baking and other modes in our city. The embarcadero is a jewel of the city its say same we dont have safe infrastructure for people to use and whether theyre residents commuting our tourists exploring the city. Weve been waiting a long time for action on this and weve seen the results of inaction on the embarcadero. I urge you to take action as soon as possible both with the quick build projects on the table and for the rest of the embarcadero that so desperately needs it. Thank you, very much. Thank you. Simone and then peter. Good evening, commissioners. My name is simone and im a resident here of San Francisco. Commissioner adams, you said earlier about a barn stormer of a hearing and we have dozens of people who waited four hours to make a Public Comment on this issue. I hope that you all are listening. I too used to ride along the embarcadero in the committing bike lanes in 2010. And i think its emblematic so many commenters have said used to. So many of them. Because it is incredibly dangerous to bike along the embarcadero. I remember one time when i was biking, there was a delivery truck parked in the bike lane and i had to merge to traffic and i started getting beeped at and honked at and yelled at from drivers because i was in the only lane i could have and that is not acceptable. As i said, you know, i used to bark along the embarcadero in 2010. This is not a new problem. This is anybody who goes to the embarcadero can understand this problem ver viscerally. Its not a hard problem to understand. Weve seen along valencia along market until recently when cars were banned that the only safeway to promote biking in the city is to have fully protected bike lanes along the entire length of where bikers bike and that means a lane protected bike lane along the embarcadero. Again, i said this is a problem in 2010. Its been 10 years, were in 2020. Not enough has been done. I do support the quick build projects and its good to prioritize the parts that are most dangerous but the entire length of the embarcadero bike lane is dangerous. The entire length. And you as commissioners need to step up and not enough has been done and you need to step up and say, we need to protect this now. Fully protected bike lanes along the entire length of the embarcadero can be done in a quick build project. Weve seen how fast the city can move in other areas of the city and i would urge all of you to go back and say, we need to improve the plan and we need to do more and diana pray. Martin munoz. Martin munoz. Hi, commissioners. Good evening. My name is martin munoz. Im very excited to be here talking in favor of the embarcadero protected baike lane. You know, typically, when i come up to commissions or i talk to the board of supervisors, i usually have notes, but i think its selfevident from the comments that we all really want this bike lane. But i want to come about something that hasnt come out yet. On the embarcadero, yesterday, it was broken up by the police. So if the police is supposed to be the people that protects us and makes sure we dont get run over on our bikes or assaulted or anything else, ahow can we lean on the police for enforcement when they wont even let us have a protected bike lane that people get together to build with their own bodies . Beyond that, last time i was here, i was here in support of the Navigation Center on the embarcadero. And you guys acted on that in a quick and speedy manner, so i know you have the power to push for a bike lane on the embarcadero as soon as possible. I saw you do it with the Navigation Center. It was the right thing to do, it was the equitable thing to do, and i think its the right thing to do with this bike lane. Thank you for your time. Hi. My name is katie, and i commute every day from my apartment at polk street to the embarcadero. I moved to San Francisco four years ago largely to take advantage of the weather and the Natural Beauty that is here, and im so grateful to have the waterfront to take advantage of. I think its really what sets San Francisco apart from other cities, and i am lucky that my commute is the most environmentally friendly that i have. But that said, its unsafe, and ive been in two accidents on the embarcadero. One with an uber driver on pier 39 who didnt signal to drop off a passenger. Im obviously extremely supportive of the quick build project and any movements that are being taken to make my commute safer, and i guess i would just urge you to take more and quicker action. I was so thrilled to be here last year to see the designs out in the lobby for the twoway bike lane along the whole embarcadero. And thank you. Thank you. Courtney and scott phinney. My name is courtney, and im really proud to be a member of the San Francisco Bike Coalition. I have braved along with many other people, the climate to be here. Its not a safe place to bike, as so many people have said. As janet mentioned, the quick builds are great, but we need to work faster to build a protected bike lane among all of the embarcadero so that we can have a waterfront to bike along and admire before the whole thing is underwater. We can transform it into a wild Class Destination for walkers and bicyclists alike, so i hope that youll get this to the sfmta and get this approved as soon as possible. Hello. My name is scott feeney. I am supportive of improving the bike lane by making it a protected bike lane and would like to echo comments earlier by making a protected bike lane all along embarcadero. I think its important when we talk about a protected bike lane along the embarcadero, its not just for the people in this room. Its for all the people that would bike or scooter except because theyre scared of the conditions going on in the city. When i tell people that im biking home from something or that i bike somewhere, a lot of times people are taken aback. Like, whoa, good for you. I never bike in the city. Its too scary. I think its worth remembering that the people too scared to bike right now are the people that are in their cars potentially parking on the embarcadero, getting into their ubers and lyfts potentially also along the waterfront because they would take maybe a bay wheel spike or a scooter but its too scary. Good evening, commissioners. Some of the people have already made comments about how long this meeting has been. Ill tell you the number of president ial candidates throughout this meeting is not one but two. Another thing thats been very long is the process about getting improved biking structure in the embarcadero in the first place. I remember being confused when i first biked here as a tourist over a decade ago, especially when you get to north point when the bike lane sort of disappears. Do i go to the train tracks . Do i not bike at all . And in the years since, there have been studies and visions have been put out, and as early as, like, 2014 or thereabouts, and ive forgotten the exact timeline, m. T. A. Presented a timeline, and it wasnt very different from what was presented today five years later. I would say dont let this be another central subway or b. R. T. Project. Were talking about starting the ceqa process and having it take another year or two. Thats insane for something we had a vision for six years ago. Secondly, presenting that twoway bike lane on the waterfront side as a vision in the year of our lord 2020 is not a very visionary thing to do. I think it would be better to move all the cars over to the other side and have half be biking and scootering and and what have you, and the sidewalk. Obviously, in the year term, protect cycling allaround the embarcadero, improve conditions for the poor european tourists as well as the people who commute on that street. I dont bike on the embarcadero anymore because its too scary. I take polk street instead. And polk street is an example of bad infrastructure, but at least theres not 24hour 35 Miles Per Hour threelane traffic there. So please get this pushed through. Thank you. Good afternoon, commissioners. Thank you for waiting so late tonight. My name is john entwhistle. Im a longterm resident of San Francisco. I remember when the freeway was there, and i liked that for one reason. The piers were undeveloped, and all the cars were up in the sky. Im not hugging the past, though. Times have changed. Youve done a great job. The embarcaderos gone. Youve done a great thing of making that a beautiful thing, and a lot of people have responded. We have a lot of foot traffic there. You know the story. Now its a lot more dangerous to ride on the embarcadero. Thats undisputable. One of the other big contributors is a commonality to the whole city. Weve got a lot of cars now where we didnt used to have. Its growing by the year, and thats a complicating factor. Were squeezed off the embarcadero, and thats a bad thing for pleasure purposes and also as a practical commuting purposes. Ive always used my bike to get from here to there in the city. Second thing is basically the culture that youre supporting here. Youre building a lot of buildings here. Its great, and its fairly high density so the better we do the bike facilities, the Better Success we ought to have, and we ought to get credit for that, by the way because it is a valid transportation aspect. We should be given credit for building housing along bike paths. Anyone thats ever tried to across the bike path by east beach knows that a lot of the tourists and a lot of the people that were working with love bicycles. Theres a tremendous demand for this, and id like to see that demand stretch from the Golden Gate Bridge all the way down to the richmondsan raphael bridge. The last point is very hi hifalutin. You control the stretch by the water. Lets make it greener, and do our contributions to save the planet. Thank you, everyone. Thank you. Matt, and then greg. Hi. My names matt brizena. Im one of the organizers of the people protected bike lane. I hold this sign. You see a parent or caretaker with a child on the back of their bike. Many of those who stand out in the street and create a protected bike lane because we want a safe embarcadero. I want to echo what janet lee said. This was an informational item, but everybody in here is asking more from you. We would like you to make a statement, raising your hand i dont know what the process is, but free to take some stance to say we want to see a protected bike lane the entire length of a embarcadero. So i can take her to pier 29 where im a boat leads tenant. This is such a beautiful place, and its so sad that its dangerous for us to ride our bikes along that scary street. So please, take a stance today. Thank you very much. Thank you. Greg and then maureen prosecco. Good evening, commissioners. Thank you for hearing this important item. My name is greg, and i work in the city, and i live out in oakland. Today, biking along the embarcadero is just an impossible choice. Youre either going to be stuck trying to navigate through the mass of pedestrians, which is always stressful because i i dont like the idea that im creating stress for somebody else trying to get somewhere. The alternative for that is just trying to be out in the street, sometimes just a couple of feet of cars speeding by at 35, 40. Every person that ive seen scootering on the embarcadero, in the back of my mind, im just scared for them because you dont know whats going to happen to them at some point. I support the quick build projects, but i ask you to look into something and getting something built for the street that would make a big difference for the city. Thank you. Thank you. Good evening. Im maureen pushniko. Im a parent in a carfree household. Ive spoken to you another time because i care about my biking neighbors. Bicyclists are being killed, maimed, and terrorized along the embarcadero and what have you done to help . I have done something. I cocreated the people protected bike lane movement, and we are a group of activists who put their bodies on the bike lane line to protect vulnerable bicyclists. Weve demonstrated twice now at the embarcadero, including last night. We will continue to demonstrate along the embarcadero until we get the bike infrastructure needed. The quick build the quick builds are good, but dont go far enough, and you are not taking action today. Chris songer. Hello, commissioners. Thank you for inviting us to be here tonight to discuss the bike lanes along the embarcadero. Id like to voice my support in favor of them. I commute every day along Market Street, along embarcadero. I work in soma, and it is really dangerous, having all those cars, like, roll by me. It makes me nervous, but i do it because i like it and i feel like its the right thing to do. And also, ive seen some of the bike lanes, like, in, like, oakland along merritt that are absolutely beautiful, so im hoping in the future, we can get some bike lanes that are some really beautiful protected bike lanes. Thanks. Is there any other Public Comment . Come on up. Hi. My name is robert fruckman and im a resident of San Francisco. I had a friend who wanted to get fish and chips at Fishermans Wharf last weekend, so he took his bike and i rented a scooter. And i remember thinking i was taking my life into my own hands by scooting down that street. I actually felt my scooter being dragged sort of towards the car lanes. I was incredibly scary knowing that i was going maybe 12 Miles Per Hour and the cars were going, like, 20 Miles Per Hour faster. And there was wind i think it was from the ocean that was actually pushing me towards the cars, and it was very scary. So please, dont just build one protected bike lane for a couple blocks, build it for the entire length of embarcadero. Ill also add that the reason we were going along embarcadero is because of the lack of a protected bike lane on polk street. The city has a thread bare network of bike lanes, so it would be an incredible asset to the city to have one whole street i hate to see one whole street with protected bike lanes would be a monumentous achievement for the city, so thank you. Thank you. I think i run something of a risk by stepping up when i see everyones getting a little hungry. My name is ben summers. I live in the dogpatch, so i want to thank commissioner woo ho by saying its an upcoming district. I will not be able to now purchase a home in the district. The reason i wanted to take another two minutes of your time is that i share a background with commissioners makras, woo ho, and brandon in particular, which is that im a business consultant. When i think about what i heard tonight, which is the approval of 2400 units of housing, 2. 5 million square feet of commercial office space in the dogpatch, theres the question of how is everyone going to get this is the district where people most often take bikes to work. Everything that the commission has approved set on the path that things will only guess worse. You all have an opportunity to set that right, so please, go on record tonight in support. Ask your staff to do something. We appreciate it. Thank you. Is there any other Public Comment . Good evening, commissioners. Miles epstein. I bike allaround the city. Commissioner adams, i heard you say a couple times, we need to get folks out of their cars and onto the water, and then later, you said people can barely move with regards to dogpatch. I think this is exactly right. The flood of people into this beautiful area is going to be crushing. More people are going to be wanting to ride bikes. I rode here, ill ride home again. I ride a tandem bicycle, and im a good captain. Im going to offer any of you guys, if you want a ride, ill take you all along the waterfront, so hit me up for that. Thank you. Thank you. Is there any other Public Comment . Seeing none, Public Comment is closed. Commissioner gilman . Well, first of all, i have some questions for staff, but i also have some reflections. I think ill start with the reflections first. So first, ill thank the public for come willing out and staying tonight. I support walk sf in this role and in previous commissions i served on. I was increasingly concerned, it was our first public speaker, on the fact that folks on mobile scooters, bicycles, the Little Things that have a giant wheel and they used to be a skate board, but increasingly the folks who use those devices to get around feel less and less safe and are taking our sidewalks. I walk to the financial district in the neighborhood where i work, and folks like that feel a stronger need to be on the sidewalk. So i want to create a safer environment for those that are biking and scootering, and we can do that by protected bike lanes for them, and for pedestrians on the street. I guess my questions for staff are a couple. I know the previous m. T. A. Staff might not be able to answer them today, but i would request that you come back to the Commission Even in two weeks to answer them . It was striking that beyond the protected bike lanes, many comments are about the speed limit. Can we first explore why we cant reduce the speed. Great question. Short answer is state law. The reason we set speed limits is kind of backwards. We are pushing for more flexibility in how we set our speed limits. But basically, in order for it to be enforceable, we have to set the speed limits within a certain range of how fast people are actually going, so its somewhat of a chicken and egg where the faster folks go, the less were able to lower the speed limit, so thats hopefully makes some sense. I think that just leads to the next question and need for being able to do some intervention in the road way to bring down speeds a little bit to then bring down the speed limit. So i can go into more detail, but i think thats the basics. As a follow up to staff, i would like to understand more measures we can understand in the future when were planning along the embarcadero to lower speed. Another question i had is i got the impression sorry if my terminology is wrong on these faster projects while were waiting for the environmental process, that these projects can be done within the calendar year. Did i misunderstand that on the slide . No, youre correct. While they will undergo ceqa review, you know, some of them, because the impacted as are ve light, there are just administrative approvals. We are not necessarily breaking any curve, requiring any large infrastructure. Theres no utility complex, so that allows us to move quickly, utilizing our own shops, paint posts and signs. And in some cases i think this would be one of those cases, we can utilize public works to construct a concrete barrier where were just drilling some holes and putting it in the ground. Excuse me. Sarah jones, planning director for the sfmta. I do want to add with regard to ceqa, its not just about the amount of impact, but a project one of the quick build projects and the way that quick build projects are selected in terms of a project that can go forward on its own without being part of the analysis of the full corridor is that the project itself has independent utilities, so the folsom to mission section is a good example. Thats one where we would want to improve that regardless of what happens with the rest of the embarcadero because of that because of that being that link between the Ferry Terminal and soma. So thats what part of the planning is, but a lot of these segments are really most useful and need the entire corridor to be done and analyzed all together. Okay. So i guess my question sorry along the same lines is understanding that we need a fuller analysis, and understanding that Fishermans Wharf and pier 30 were kind of a set aside in your planning process, why couldnt we do a quick build just temporarily while were waiting for these processes, while were waiting for ceqa, while were waiting for analysis . Why couldnt we build a quick build, like whatever is the que quickest for the protected bike lane. Someone said the bike lane ends at north point. Im wondering why there cant be more for this limited project . Ill answer from the ceqa standpoint. From a ceqa sandpointandpoint, could do ceqa analysis along that entire corridor, and you wouldnt have to consider impacts that you werent doing, so thats so that review would capture whatever the project did that youre trying to do, but casey can talk about the decisions about what actually gets built. So i do think, one, that, you know, the timeline for the ceqa review is still up in the air, depending on how quickly we want to move versus doing additional outreach and making sure were being, you know, inclusive of everyones comments. But in terms of the potential next wave of quick build opportunities, theres likely to be some areas where we will have to excavate at the very least curb ramps, moving zones. Were moving that facility off of the curb and making sure that were providing Accessible Facilities for everyone. Even just that minor alteration of the promenade, that requires a little bit more analysis. But in terms of how long this process will take and what it will look like, we still dont know. I think it could be relatively quickly. I dont think itll take one to two years. We should hopefully be in a short of time frame than that. I hope that answers your question. It does. Its obvious from Public Comment ive been on the Commission Less than two years, and this has been a comment over and over again. Were in a crisis mode. Whether we like it or not, 90 of the people in bay area counties rely on cars for their main transportation system. If we dont have good Public Transportation options for folks. So we know were going to be on the embarcadero coexisting with bicyclists and all these other wheeled devices, it seems like its almost a crisis and call to action and urgency, and im just wondering if theres some way we can extend this quick build project to create more ground and create more safety . Youre correct, and i think that the quick build challenge and my presentation is the answer to the challenges. I think the project as weve defined it to date at least through the conceptual phase, we committed to certain assumptions that now as we are more directly realizing the need to move more quickly, we have to revisit some of those assumptions. In order to get a quick build in the ground, wed have to break some of those assumptions in terms of the travel lanes. Thats not something that were ignoring necessarily, but we want to make sure we have conversations around that with stakeholders, so we want to have some time to allow folks to digest the reality what would it take to have a quick build version versus a version that was more capital intensive. Thats what were bouncing about right now. I just hope to with this, in the larger visioning, that we do as much signage and sort of as much public awarenesses for folks as we can. I love that last slide. Pedestrians know where to cross, bicyclists know where to be. And i was very impressed, it was either on mission or valencia that have protected bike lanes, and they have a little traffic light for bicycles, as well. I am concerned that theres a lot of driveways in and out on the embarcadero from piers to parking lots, and so anything we can do to encourakeep that. Anything we can do to assist sfmta to make this a priority, i am happy to do as a commissioner. Commissioner woo ho . I know that the topic is a high priority, and the topic of safety is a priority for you, as well. The question is how fast can we move. I dont think any of us are in disagreement about it. I guess my first question is of all the vision zero and safety projects that you have, where does this stand, the embarcadero stand in priority . Quite high. Well, i would say based on what were hearing and of course from the seat that we sit, were saying that this should be the number one priority. Yeah. I think the unfortunate reality is that the embarcadero, while youve heard of the issues, is not the only corridor where we have those issues. Market street, lower mark street in particular, i think the recent changes that weve made are a long time coming. Valencia lacks safety along some key stretches. I think others are significant, but as we complete projects, the embarcadero is rising, given the safety issues and the popularity. So by no means is it not a priority. Well, i just wanted to state that for the record, and i think its important for all stakeholders to hear, that its number one. As long as youre saying that its one of the top priorities. It seems like having a protected bike lane is extremely important in figuring out in the interim how it can work. We are here not jurisdictionally being able to give you the mandate to do that, obviously, within the t sfmta, but from the ports point of view, we want you to know theres a lot of support to do that as quickly as possible. I guess one of the questions that i have, getting into a little more detail i have noticed those traffic lights, and im just wondering if the technology has advanced in general to have those smarter lights in the city. In my experience, a lot of people speed because theyre trying to catch the light or run the light or whatever. You hear about facial recognition, you hear about all this other a. I. Stuff. It seems we could really have smarter traffic lights so that we can manage the congestion better. Im still in a car, but i think one of the complaints and frustration that everybody has is that traffic could be better managed with better management of lights. I think theres lots of ways to speak about this, and i guess my message is how were employing technology into trying to solve this . The last comment i wanted to make, i did not hear anything about how were trying to increase the usage of mass transit on the embarcadero. Bikers today have been a huge issue, but ive noticed on cruise ship days, the traffic comes to an absolute halt because youve got all these people trying to get to or from a cruise ship, and the traffic is totally congested on the embarcadero. It seems like we have to have other transit usage besides car, bikes, wheels. I dont know what were doing to improve more Public Transportation so that people can at least go back and forth a little more efficiently on the embarcadero. So i guess my question is safety, absolutely, but im not convinced that weve heard about the most efficient ways to solve these issues yet. I dont think any of us disagree about safety. I think we want that safety for all the stakeholders, but i think theres more to be done on efficiency of how this problem can be solved. Thank you. Commissioner mack . A few years ago, there was a program in San Francisco called clean, safe, and on time on the muni, which focused on the embarcadero. Im going to make a recommendation that as a commission, we should be proactive on everything we do. This is our front yard. We are the most directed person responding to this, so i believe we should set the pace. We should say that we want a full protected corridor, we encourage the transportation board to do a full ceqa analysis on the whole thing so we dont have to do it twice. I think we should make our statement if we want the quick build, as many as they could, simultaneously because we make our statement, then all the attention will go to the people that have to implement it. Public shouldnt have to be coming here to push us if this is what we want. By voting, this will indicate if this is what we want. I promise you if its not a full resolution, if its not a full, unequivocal statement, were going to be having these meetings every six months. But lets go beyond what we heard in Public Comment, and do we really want construction out there three, five, eight times in front of the embarcadero or do we just want to put the bike lane in and be done with it . We just funded 11 people to clean the embarcadero for us, so lets put it all together to make it work. We just made a commitment to loan 25 million for a Capital Project, and were saying to ourselves, we believe theyre going to pay us back, but its the right thing to do for the port, so i think the question, if its a money issue, then we should look at our Capital Project and say is this a worthy enough program to fund and lonesoan some money and th they can pay us back. But its important that we put it on our agenda and make this an action item rather than just a discussion item. So i would request that we calendar the item and then we can make it a 100 commitment from our board. Thank you. Vice president adams . This is a i think this is a conversation thats very painful, but you know, its very good. Im all in favor of the protective lane, but also, too, this is a city thats out of control far as cars, motorcycles, and bicycles. It is, and theres a lot of road rage out there. And along with the protective lane, one thing that nobodys mentioned, education, because theres a lot of attitudes and arrogance because people dont like people on bicycles. Its like racism. People have views that the streets belong just to them, people in cars, you know . And ive been almost run over by people on bicycles. But as far as the protected lane, i totally agree with that. But this whole city is in a hurry. It is. Everybodys in a hurry, and nobody respects, and you know what . Bicycles, cars, and pedestrians, weve got to coexist. Animals in the jungle, they coexist. Sometimes theres predators, and others are afraid, but they coexist. We have tourists that come here to ride their bikes up and down the embarcadero. I agree we need some kind of protected lanes, but also education to the public. People dont need to be thinking that bicycles are the enemies or people on motorcycles or pedestrians. And maybe, well get people off. And ive got to go back to what commissioner woo ho said, where does this rank . I mean, you didnt give her the answer. Clearly, its not number one, but what gets to the top of the priority list . What has to happen . How many deaths have to happen until something becomes a priority in our city . Im not putting it all on you. As you said, youve got other parts of the city, so how important is this . And i think that from the public, i can hear their passion. Theyre upset about it, and these are the people every day because if youre on a bicycle or motorcycle, you have no protection around you, none. In a car, youve got some protection. I walk, and if i was to get hit by a car, or a motorcycle, it would kill me because i have no protection. Those on bikes have no protection, and so what do we do . So i think, you know, you ought to come back in a month or so, not, like, six months and tell us where were at because we need an answer. And i do want to say, one person said something about the Navigation Center that we immediately acted. We might have immediately acted, but there was a lot of lawsuits, too, to stop us. When youre trying to get something done, theres always people trying to stop you. Im all in favor of the protected lane, but im also in favor of an Education Program for those on the embarcadero, especially those in vehicles, motorcycles. And then, we need to tell people in cars, slow down. Like, everybodys on edge. Everybody looks at the other person like theyre enemies or somebody. Every everybody has different forms of transportation. Be respectful, and i think we have to say that. So thats where im at. Im totally supportive of it. But just me walking like alice said, ive been walking several times, and ive been almost run over by bicyclists, kids on skate boards, and im just walking. This is something that weve got to deal with it, and its bigger than just the bicyclists. Its the city and all the modes of transportation and how do we make it safe . One thing we dont need is more deaths because people in transportation, they have a right to go home to their families. So thats where im at. Thank you. Any other comments . Casey, thank you so much for this presentation, and i want to thank everybody for staying here with us so long to make sure that we heard everyones comments regarding this issue because this is an issue. I think we all support theres no doubt that we all support a safe embarcadero for everyone, and i think that we have to make sure that we are taking everyone into consideration when were making these decisions. I think we all support a protected bike lane along the embarcadero, but we also have to manage for the pedestrians and the cars and muni and everything. So im just wondering what is reason for you to be able to come back with recommendations for us to ensure that were actually doing something, and we have a plan. Thats a great question. I certainly think we can come back sooner than six months. One month might be a little we can come back with more information. I would say somewhere in between the sweet spot, well have more information and certainly have an opportunity to deep dive with the staff at the port. And i think its important that you still talk to your constituents, that youre doing everything you need to do, but we need to make sure that we dont have informational appreciations every six months, that we need to make sure that were going somewhere, that we have a plan of action. Agreed. I think we are on the jurisdictional issue, making sure we know what we want, were talking to attorneys and not just the process of information. I hear your comments that we need to bring the public along in that same time frame, and we will adjust our time frame accordingly. So casey, are you recommending three months or four months . Because one thing i want the commission to be aware of is a threeway bike lane is a residual concept, but i want people to know there are details that we have to work out, and there are tradeoff decisions that we will have to make to implement this plan. Everyone agrees this is critical, everyone agrees we need a plan, but there are tradeoff decisions in this project that we dont understand or havent analyzed or discussed at this point. Maybe the conversation is more of a fourmonth or what are you thinking . Three to four . I think we could circle up after this, but i think three months we have a lot of work, but we have a lot of folks working on it. Okay. Three months. Great. We look forward to seeing you in three months with our plan of action and our budget. Thank you very much. Thank you. Item 14, new business. Is there any Public Comment on new business . Is there any new business . I have two i have two. Im going to schedule an informational process on how the r. F. Q. Process is going, and obviously, the m. F. P. Back on the embarcadero project, and well be working with commissioner makras and anyone else on the port transaction. I also requested, elaine, for us to discuss how your real estate staffing and workload, and that is not really part of the Budget Discussion or approval, but its to understand better how the project management and workload is working with these resources allocated. Thank you. Thank you. On my end, id like to have a public meeting, not a closed session meeting, on the World Trade Center building. Its vacant for many, many years, and understand if theyre in violation of their lease by being closed for as long as theyve been closed, have a discussion on their rent payments, if were receiving a percentage rent, are we disadvantaged because theyre closed, violation or not, and were precluded from receiving percentage rents . The blight im sure that many will think that the closeddown operation is contributing to blight, so well see what we want to do with that. Did you ever come back with an update on whats going on with the Navigation Center . I know that president brandon was there and others. I have it in my directors report. We can have a fullblown presentation if youd like that. We are waiting for the first wave of guests to come, but theres definitely lots to report on. We can do a full blown presentation or i can give you a summary of how its going in the directors report. Would you rather have a questionandanswer format . No. Ive only heard things on the street, but i didnt know elaine, the difference between giving you a report versus an informational presentation, it does put the department of homelessness to come in front of us and its more a direct absolutely, and it does give you an opportunity to hear from the neighbors, as well. Thank you. Any other new business . Motion to adjourn, madam president. And, then oh, im sorry. A motion to adjourn in the memory of stephanie lazio cincotta. Is there a second . I second. All in favor . Meeting is adjourned. Streets. speaking foreign language. i wanted to wish you a best wishes and congratulations the community has shifted a lot of when i was growing up in the 60s and 50s a good portion of chicanoamerican chineseamerican lived in north beach a nob hill community. As part the immigrant family is some of the Recreation Centers are making people have the ability to get together and meet 0 other people if communities in the 60s a 70s and 80s and 90s saw a move to the richmond the sunset district and more recently out to the excelsior the Avenue Community as well as the ensuring u bayview so chinese Family Living all over the city and when he grape it was in this area. Were united. And growing up in the area that was a big part of the my leave you know playing basketball and mycy took band lessons and grew up. speaking foreign language. allergies welcome to the Community Fair it kicks off three weeks of celebrations for the year and lets keep everybody safe and celebrate the biggest parade outside of china on february 11th go best wishes and congratulations and 3, 2, 1 happy enough is enough. I grew up volley ball education and in media professional contrary as an educator he work with all skids whether or not caucasian hispanic and i africanamerican cumber a lot of arrest binge kids my philosophy to work with all kids but being here and griping in the Chinese Community being a chineseamerican is important going to American School during the day but went to Chinese School that is community is important working with all the kids and having them exposed to all culture it is important to me. It is a mask evening. Id like to thank you a you all to celebrate an installation of the days here in the asian art museum. One time has become so many things in the past two centuries because of the different did i licks the immigration officer didnt understand it became no standard Chinese Marine or cantonese sproupgs it became so many different sounds this is convenient for the immigration officer this okay your family name so this tells the generations of immigrants where they come from and also many stories behind it too. And what a better way to celebrate the enough is enough nuru with the light nothing is more important at an the hope the energy we. speaking foreign language. relative to the Current Administration it is, it is touching very worrisome for our immigrant frames you know and some of the stability in the country and i know how this new president is doing you know immigration as well as immigrants fireworks later than you think new year the largest holiday no asia and china those of us when my grandparents came over in the 19 hundreds and celebrated in the United States chinese nuru is traditional with a lot of meani meaning. Good afternoon my name is carmen chu assessorrecorder i want to wish everything a happy new year thank you for joining us i want to say. speaking foreign language. speaking foreign language. im proud to be a native san franciscan i grew up in the chinatown, north Beach Community Port Commission important to come back and work with those that live in the community that i grew up in and that that very, very important to give back to continue to work with the community and hope e help those who may not be as capable in welcome. Thank you all for being here. Its just a wonderful, joyous occasion to celebrate such an important accomplishment. And without any further adieu, i would ask you to join me in welcoming to the dais our mayor london breed. [applause] thank you, thank you don. Well, first of all im really excited to be here today. I remember when i was campaigning to be supervisor of this district, one of the things that i made a priority when i got elected was to focus our attention on rehabilitating Public Housing in this i