Transcripts For SFGTV Port Commission 20240712

Item two is pledge of allegiance. I pledge allegiance to the flag of the United States of america and to the republic for which it stands, one nation, under god, indivisible, for liberty and justice for all. Item 3, a approval of minutes for the may 12, 2020 meeting. So moved. Second. All in favor. Aye. Approved. Role call vote. role call . It passes unanimously. This passes. Item 4, please be advised a member of the public has up to three minutes to make Public Comments on each agenda item unless the Court Commission adopts a shorter period on any item. Please note that the Public Comment period, the moderator will instruct dialparticipants to register comment. Audio prompts will signal to dial in. Please dial in only when the item you wish to comment on is announced. Item 5, Public Comment on items notlessed on the agenda. We will open the phone lines to the public to take Public Comment on items not listed on the agenda from members of the public who are joining us on the phone. Jennifer will be our operator and will be providing instructions for anyone on the phone who would like to provide Public Comment. Operator thank you, president. We will open the cue for anyone. The conference is now is question and answer mode. Press 1 and then 0 to summon each question. Victor makrerish joining the meeting. Thank you. Thank you, commissioner. Youll be entered into the system and others will wait on mute. Comments are limited to three minutes per person and the cue is now open. Please dial 10 if you wish to make Public Comment. Thank you. Do we have anyone on the phone . Operator we have two callers on the line at this time. You have two questions remaining. Hello . Im with the Building Construction trades and i want to say in Public Comment that im in sport o supports of the c mission rock toront and i woulde that you would approve it. Thank you. Thank you. Next caller, please. Operator you have one question remaining. Question im peter osborne, the owner and operator of the mission rock resort on the south end of the waterfront. I want to thank president brandon and executive director elaine fubbs for the opportunity to speak and i hope you and all of your families are well during this pandemic and certainly our lives have changed dramatically announcemen. Im hopeful the vics weekends fire, like the rest of us who are already living a stressful life are able to find solutions to their new layer and problems and our hearts go out to them. San franciscos crab Fishing Community is a big part of who we are. As is all of the restaurant and retail stations along the waterfront. Needlesstosay, the decision to defer rents has been a welcome relief of shortterm stress, not not having to worry about that has been fantastic and i understand youre looking to expand that in the Commission Hearing and further, while you evaluate what truly is the best path forward for all of us. The slogan going around is that we are all in this together and we are literally all in this together and we need to stick together. This is unique and diverse and important to the fabric and the community of San Francisco as we know it and San Francisco has always been a waterfront city town and its up to the port to maintain that level of excellence and to keep life on the waterfront as we know it regardless of how its defined and changing on a daily basis in order for operators like myself to survive the pandemic and to survive not only the first wave of the pandemic but the anticipated second wave of the pandemic and the economic Recovery Associated with both of those, we are going to now more than ever need the partnership of our landlord, the port of San Francisco, to help us redefine what those business terms are. We have submitted i have formed a coalition with a number of reputable tenants up and down the waterfront and we have submitted a letter to kimberly beele, who should be circulating that and we hope to get on the agenda in the june meeting. But in essence, the deferral is great, but any type of balloon payment down the road is essentially putting off the inevitable. That is a cyanide tablet that will kill every business on the port to come up with capital that does not exist and we need to talk about new terms for leases. We need to talk about structuring successful financial agreements for all parties concerned so that we can, in fact, live through this together and prosper in the future. I like forwar look forward to te opportunity to speak with the commission again and thank you for this opportunity and again, i also hope that you all are well as is the case with your families, too. Thank you very much. Thank you so much, mr. Osborne. We have received your letter and im sure the support staff is working on the restaurant. I appreciate this. We are entering this eyes and ears wide open. Thank you. Any other callers . Operator at this time, no other members of the public on the phone wishing to make Public Comment. Public comment is now closed. Item 6, the executive directors report. Good afternoon, commissioners. I am katie patricioni, acting currently as the ports executive director. I have two items for you this afternoon. First, i just wanted to start with an update on the fire this saturday at pier 45. Just to give you all an update. Longterm impact of the fire is yet to be seen, but we are very concerned about our tenant who were previously grapples with the impact of covid1 covid19 d who have lost such a great deal in the fire. Were grateful to the San Francisco fire and Police Department and economic work development, as well as other City Partners who have come together to help us respond to the fire. A fouralarm fire broke out on the morning of may 23rd. It looks like shed c is an absolute total loss. The Fire Department has remained on site as shed c is an active fire scene. There was a slash yesterday, scott fire continued to smoulder and they continued to pour water on the site. We anticipate the fire wil department will be out at the site for the rest of the week. The investigation into the cause and origin of the fire will be forthcoming as soon as its safe for investigators to begin their work. And similarly, structure investigations will begin as soon as its safe. Port staff, red tag and the Port Engineering Division conducted just an initial windshield inspection and made some observations of the perimeter and have not been able to get closer than that. We are hoping tomorrow there will be a perimeter inspection from the water with the thirdparty Engineering Firm who will give us a sense of how the substructure fared in the fire. Shed c was used for storage and the red and white fleet had storages in shed c. There were 35 tenants impacted in shed c. The rest of the site, shed a, as know, is home to the new day mecanicue anque and not impacte. There is the commercial industry and where food processers are based was not directly impacted by the fire. There are 65 tenants overall. It did not spread to pier 45, for which were so grateful to the quick work of the Fire Department. Port staff heard directly from tenants, to provide updates and provide answers. We have offered assistance to the dislocated tenants and were working with red an and white to find alternative space for them. We have brought in cleaning contractors to systematically clean all in sheds a, b and d with the priorities on sheds b and d. Theres concern that much of the gear stored in shed c included plastics, among other things, and therefore, the smoke from the fire may have contaminated some of the space in sheds a, b and d which is why we have the cleaning contractors out. We were able to clean three of the unit yesterday and we expect to complete five more by the end of the day today. Weve been working to help impacted tenants, as well as to provide Technical Assistance for doing things like e like ennatur insurers. We have engaged with the citys risk manager to begin the processinprocessinga claim. We will begin wor working with e insurer to determine what our next steps will be. Thanks to the quick work of the San Francisco Fire Department, Jeremiah Obrien survived the fire is we will be moving that to pier 35. She was close to visitors because of the health order and will remain closed while at pier 35. And then i just wanted to close by saying two things. One, our collective heart goes to all who have been affected by the fire, particularly the Fishing Community who lost equipment in shed c. This is a devastating loss and the port will do everything that we can to support the Fishing Community through this recovery. And then, finally, i would like to thank all of the port staff who have responded magnificently to yet another disaster. And so, just quickly, that would include tom carter, Oscar Wallace and tim sulton, as well as the many maintenance staff who responded to pier 45 on saturday morning. I want to thank rod washington for his expertise is guidance, randy kisada who was been working incredibly hard to keep the information flowing to the public and press, joe riley, the ports emergency manager who got the first call early on saturday morning and who has been on site every single day and then finally, our real estate staff, particularly demetris omyle, who has been patient and compassionate and supporting the pier 45 tenants through this crisis. My next update is slightly happier news. So i want to announce that downtown ferry termal, click completion is imminent and will open in the next couple of weeks. So, ass know, project completion was somewhat delayed by the onset of covid19 and, unfortunately, the Public Health crisis is going to prevent us from a ribboncutting ceremony but i wanted to acknowledge the dedication and hard work who brought this project to completion. This was absolutely a collaborative effort not only among port staff but the port and leadoff. This is an example of what happens with collaboration and partnership and i hope we ca thw facility south of Ferry Building includes six ferry berths including the ferry bay passengers, the current routes including richmond, harbor bay and arbanita oakland and it will expand service to deep plain lagoon and Mission Island and includes a new public plaza between the Ferry Building and ag building. The new gates and amenities will significantly improve waiting and cueing for listing riders and they will expand the Space Available for stage emergency Transit Service in the event of a regional transportation disruption or disaster. So i just want to ask everyone to join me in congratulating the completion of this project. This is good news amidst the challenges of the pandemic and we know as the bay Area Recovery occurs, this will support increased transit across the bay and that concludes the exclusive directors participan report. Thank you. Now lets e open this up to pubc comment. We will open the phone line. Operator you will be entered into the system in the order you dial 10 and the system will let you know when the line is open and others will wait on mute until the line is up open and comments are limited to three minutes aperson. Dial 10 if you wish to make Public Comment. Thank you, jennica. Anyone on the phone . Operator at this time, no callers are on the line for Public Comment on this item. Thank you. No callers on the line and Public Comment is closed. Operator your question is now in question and answer mode. Press 10. President brandon, wish item are you on . Were on the executive directors report. You referenced insurance and could you elaborate on whose policy it is and is it the ports . Are we partially selfinsured . Is it an insurance policy under the leases . Do the tenants have an place to obtain their own insurance for their business component of their operations so we can have an understanding of the insurance that will be available for recovery . Certainly, commissioner. So the port is insured. Our property is insured and we have been working with the citys risk manager to begin what will likely be a lengthy claims process with the goal, ultimately, of rebuilding this facility. So were in the process of gathering information. But the port itself is absolutely going to pursue a claim with our insurer for this building. Would you mind, and maybe this will be helpful for the full commission, if we could identify each tenant that was affected and whether the port has or has not received a certificate of insurance in accordance with that tenants obligation for Insurance Coverage . Yes, we can absolutely do that. Thank you very much. Madam president , that concludes my questions. Thank you, president Brandon Partnership just wanted to say to katie and the whole port staff how much i appreciate your Quick Response to the staff and the fire. I wanted to commend the port staff on incredible work in yet another crisis and also to acknowledge that im sure there were challenges in dealing with this crisis in the middle of covid19 and the pandemic and so i just wanted to give a shoutout to the staff. Thank you. Thank you. Ill echo what commissioner gillman said and the tenants and support staff and all of the city agencies that helped to address this issue. I have a couple of questions. I understand there are a lot of things we dont have the answers to as far as how we go from here, but the question would be, and im sure, are there any alternatives to help the tenants to resume operations because rebuilding the shed will take a fair amount of time . And are there any restrictions on rebuilding the shed . And secondly, are there alternatives for some of these tenants to temporarily operate out of other space . Because the fishing industry would be a tremendous loss for San Francisco not to be able to have the fishing industry and if we waited for the shed t shed te rebuilt, i cant imagine it will be timely. A lot of effort and so what can we do to help the tenants to get through this. I understand the Administrative Offices have been impacted and willie has been sharing from tom esher, they are determined to resume operations but losing the administrative building has not put them out of business but the fishing industry is what they are concerned with and what can they do in the interim to help them get through this . Obviously, they have a financial loss, but in terms of operationally, how want we help them . So, commission b commissiones primary being used as Storage Space and so, we are as well as for red and white, had their offices there and they were helping them find a place to relocate, but by and large, i believe the real losses to the Fishing Community is the gear that all of the gear and equipment that was stored in that shed which is, basically, a total loss. The Fish Processing really is happening in sheds b and d and everywherother than the fact weo get in and make sure the spaces are cleaned up, i dont think that community is necessarily going to see a Significant Impact to its operation. And so, i think, you know, on the one hand, theres a benefit to the fact that we are really using shed c only as warehouse space. And so, i dont know the daytoday operations, other than red and white will be disrupted. Thank you, thats very helpful. Hopefully they can replace their gear if they get insurance funds to recoupe that and youre saying boats and everything else, they can resume fishing. In terms of just even the pier space or what they need to unload, thats not affected . So, its still an active fire scene and so, there are still fire trucks and hoses out there. And as well as the fact that the valley, the space that runs between the sheds is impacted by the fact that there are still some walls standing in shed c that are a hazard in terms collapse. So were definitely limiting access to the southeast portion of pier 45 because of that fact. And im not sure exactly what impact that is having on the processers in sheds b and d. But i believe they have other means of accessing their facilities. Thank you very much. Thank you. Vice president adams. Katie, i just wanted to thank you and all of the port staff and the heroic action of the firefighters with 125 firefighters that were down there putting their lives on the line. Im just glad there was no loss of life. And i think commissioner mackerd said something about insurance but it can be built back up. They can continue and you just have to keep them in our thoughts and we will get through this. And going back to what commission wohaul said, i know the guys have been through a lot and were hoping we can do everything to help them and they were able to salvage the Jeremiah Obrien and hats off to everybody. Thank you. Thank you so much for this board and truly want to thank the support staff. Vice president and adam adams ae getting updates and i want to thank everybody and who a huge shoutout to the Fire Department for their efforts. This could have been much worse than it was. So our hearts and prayers go out to everyone affected, the fishermen, and everyone involved. It could have been much worse and we are so thankful there was no loss of life and everyone can rebuild. And we have our City Partners and the economic and workforce development. Next item, please. Please. Item 7a for a sharing agreement for the u. S. Army corps of engineers, San Francisco district dated september 5, 2018 for the waterfront Flood Resiliency highwaresiliencyproject and shod by the board of supervisors and secretary of the army for their men, increasing the project budget for 6 million to 20. 1 million, extending the schedule from three to five meters and allowing the port to advance cash funds to the project. Good afternoon, president brandon, Vice President adams, commissioners. This is brad benson, the ports waterfront resilience director. Im here to present again on partnership that we have with the army corps of engineers along the ports entire jurisdiction. Here here today to request an amendment to the agreement between the port and the army corps that governs that study and its called the feasibility costsharing agreement. And this is on may 12th Port Commission update on the Flood Resiliency study were conducting with the army corps of engineers. This is the nations experts in flood Risk Management in 2018, we were the fortunate recipient of one of two new starts for coastal flood Risk Management nationally and highly competitive to get the new startstarts. Under these studies theres a 50 50 study. And as i mentioned, the study looks at the port jurisdiction, also aquatic park. Were looking at five sealevel rise curbs to assess damages and consequences under the different curves and there has been and will continue to be rebust community input. If the army corps finds interest, they would pay twothird of the project costs. In the study were looking at five major city neighborhoods and we have broken the area down into what were calling four reaches separated by high ground where there could be independent flood Risk Management systems and were drilling deeper into 15 subareas because we have such a varied shoreline with so many maritime activities and varying from the downtown area where we have a city right up against the shoreline with major infrastructure to the industrial maritimes on the waterfront. Next slide, please. And this is a high level timeline for the study and were at this first phase of over the next several months developing initial alternatives to mitigate the flood risk area and we hope to present to the Port Commission later on this summer along with the public after pub. After incorporating that feedback, we would have a followup by summer of 2021, including a federal plan that is the most efficient means of addressing flood risk and a local plan will other benefits that would enable full Environmental Review of those final alternatives and a potential recommendation to congress in 2023. Next slide, please. These studies are normally conducted in three years for a total budget of 3 million, 1. 5 million from the federal government and 1. 5 million from the local federal sponsor. And we executed an agreement in 2018 that assumed that 3 million study cost in three years. Weve done a deep analysis of the real efforts that will be required to study flood risk along a dense urban shoreline like San Franciscos bay shoreline and believe that it will take five years and more than 20 million to complete. We already have 3 million in federal appropriations through the Army Corps Work Plan and so were already have more federal dollars than with expected at outset. If there is a waiver approved by the assistance secretary of the army, we would expect 20 million study with a 10 million local, which leads to the staff requests today. We would like to amend this agreement with the commissions approval in two steps. We would like to be able to match the federal spending up to 3 million now using the Port Commissionapproved ch2m contract to provide workinkind to support the study and we would like to add a clause that would allow the commission at its discretion to fund the study if in a given year there is no federal funding, we dont expect that to. , buhappen but it can happenandr the board of supervisors to keep this going. And then, if that waiver is approved, not only by the assistant secretary of the army but by the board of supervisors, authority to spend up to 10 million for federal spending. Next slide, please. This gives a sense of the approval steps, so the top row is what happens in 2018 and the federal government approved a new start and the Port Commission authorized the original fcfa and the ff district engineer and port director signed it, assuming 3 million in three years and the second row shows what were requesting now and so authority to fund the Port Commission, to increase the study to 6 million and then 20 million and this summer, the port director and sf district engineer would sign an amendment reflecting the 6 million study cost and army corps in august is expected to apply for a waiver on Standard Army corps rules to take to the end of the year to get that waiver. In the fall, we would go to the barred oboard of supervisors toe that cost to 30 million. Under the charter, we would expect to spend more than 10 million in city funding. And then, after both of those actions take place, the port director and the district engineer would sign an amended costsharing agreement. Next slide. So that concludes my presentation and were available to answer any questions the commission may have. May i have a motion, please. So moved. Seconded. Now lets open it up to Public Comment. We will open the phone lines to take Public Comment on 7a, for members who are joining us on the phone. There will be instructions for anyone on the phone who would like to provide Public Comment. Operator thank you, president brandon. At this time, we will open the cue to for anyone who would liko make Public Comment on item 7a. Your question is now in question and answer mode. To summon each question, press 10. You will be entered spot systeme system in the order you dial 10. Comments are limited to three minutes per person. The cue is now open. Please dial 10 if you wish to make Public Comment. Thank you, jennica. Is there anyone on the phone . Operator president brandon, at this time, there are to members of the public on the phone wishing to make Public Comment on this item. Thank you. Seeing no callers on the phone, Public Comment is now closed. I think weve heard on the information briefing and i have no more questions at this time. Thank you very much. Thank you. Commissioner mackerel. Good report and no questions on my end. Thank you. Commissioner gillman. If yothank you for the repor. I support the item with no questions at this time. Thank you. Vice president adams . Good report and i am fully in support of it and i have no questions. Im sorry, role call vote. Amy, could you do a role call vote. role call the motion passes unanimously. Thank you. Item 8a requests approval of infrastructure plan amendments and memorandum im sorry. Commissioner, do you want to make a statement . Yes, president brandon and fellow commissioners, i have a fascial interest ifinancial intt wall 337 and must recuse myself from discussing or acting on this item which is agenda a8. 8a. I will be leaving and returning when this matter is concluded. 8a, structure planned amendment and understanding of lot 337 by mission rock street and San Francisco bay. Good afternoon, commissioners, rebecca benesini fro,acting in the real estate dy role, so you will see me a couple of times on this Commission Meeting and im here to present the mission rock mou and infrastructure plan amendments and im presenting on behalf o of these agreements. These are innercity permitting with primarily the mayors director of housing delivery, judson true and i want to acknowledge sfpuc general manager kelly and acting public works director and elaine f forbes who has been quite engaged in helping and patricioni for stepping in as we move to move mission rock to the forefront. A moment of introduction, we want to remind the commission that we have had a couple of items on mission rock and the last item was on the parks design back in january and we looked at street names at that time, focusing on the public realm of mission rock. There was the phase one budget in september and phase one budget was focused on horizonal cost at mission rock and how much to cost to develop the supporting infrastructure for the first four buildings. And at that time, we touched on a number of things well talk about again today. So ill keep reminding folks to draw the thread forward from where weve been over the last many years to where we are today. Next slide, please. The item were requesting approval are are an amendment to the infrastructure plan, the infrastructure plan originally approved at project approvals in 2018 and it sets for detailed conceptual plans of infrastructure across the whole sites and the amendment is focused on the ground improvement technique which you heard a little bit about back in september call lightweight cellaCellular Concrete and thisd be added should you all approve the amendment. I want to note this affects infrastructure that public works, sfpuc will be asked to accept upon completion and public works acted last thursday and the puc acted on the amendment about two hours ago earlier today and so youll be asked the same question as we move forward in the presentation. The second approval on the memorandum of understanding among the city agencies that will be sort of having responsibilities and actions at the site and that will set forth the rules of the road as we Work Together, not only in phase one but throughout the four phases of the project. Next slide, please. Just to provide context of how these items fit in with kind of what we think is the big 2018 project approval, at the top of the screen, this is overarching contracts and transactions and Legal Framework that provides the rights and responsibilities to the developer and the ports and one of the sort of what we call shoulder documents or ancillary documents is shown below in the grey box with the inner Agency Cooperation agreement. That agreement was among the city agencies to set out how to work on new infrastructure. San francisco is big and active as it is, we dont do a lot of new neighborhoods, new streets, new subdivision maps and that was an agreement among city agencies to set out how well Work Together to get these items evaluated, commented upon, permitted and approved. So the ica had an exhibit, the infrastructure plan, which were asking to be amended at this time and it also set out two processes which we have completed through this sort of centre. One was getting an mou among the city agencies together and so that the ica set out that direction to staff and stating well be working together quite a lot over the phases so please put all of these details into a document that set out the direction to the mou before you. It set out a process in the ica to work on ground improvement at the sites. You all will remember that this is the edge of the bay location as were adding up to five feet to protect against sealevel rise, ground improvement and how the streets will fit on that infrastructure and as sturdy of a base as we possible can. They acknowledged that and set out a profit to evaluate that ground improvement. The infrastructure plan amendment is the result of that process we went through. And youll see weve accomplished quite a lot over these past two years or a little bit two years and we formed the cfd and infrastructure design is advanced and the key thing were trying to get to is this big box at the top right righthand corf parcel leases. They have a right to deliver the buildings were interested in seeing and we want to see those built and that park developed and all of the benefits come to fruifruition. You all know the project very well and 2. 7 to 2. 8 total growth square feet at build out, 1200 Housing Units 40 of which are affordable and a million, million four Office Square footage and that pier 48 to be redelayeredeployed into producte years. Were focused on phase one, what is before you, the mou and ip amendment will sort of set the framework for all of the phases by need these documents in place prior to the phase one final map which is scheduled for the board next tuesday and phase one is the first four buildings shaded in blue, two housing, two office and retail on the ground floor and that 5. 5acre china basin park and infrastructure to go a street from third street to pier 48. If we are able to start this year, were targeting completion in two years. I want to mention a contracting update will be providing a quarterly ultimat update to the commission. We sent out a memo and contracting updates and the project to date has spent about 65 million and about 12 million or 18 was awarded to lbes and were meeting every month with the Development Team and their gms and various contracting entities to keep an eye on contracting and to make sure theyre supporting and affirming all of the goals that were set forward in the workforce plan. Next slide, please. Just an overview, the infrastructure plan sets out conceptual designs for a whole slew of all of the infrastructure at the site and this amendment would allow an additional geotechnical improvement. Its the use of stone columns, literally cow columnsch stone co ithimprove the ground. This will be at the site to protect against sealevel rise. Weve come to this amendment after about 18 months of analysis and full engagement. I want to acknowledge our engineering team. They have been instrumental in helping with this and the City Engineer has been in this evaluation and we are gratified that public works approved the plan amendment last week and puc approved and were hopeful we can move forward with one of techniques at the site. This amendment to the plan would be consistent with the costs projected for phase one. You all had a cost in september and phase one is 145 million worth of horizonal costs and lcc is an improvement in terms of its a more Cost Effective item for the ground improvement as compared with the structure. The amendment would be consistent to the plan. You had a cost in september and phase one is 145 million worth of horizonal and lcc is an improvement in terms of its a more Cost Effective item for the ground improvement as compared with the structure street system which was discussed at approvals. This is to ensure that the infrastructure is like the efficient delivery of infrastructure. Our goal with the mou is to ensure the infrastructure goes to the appropriate agency with the most expertise and able to absorb, maintain and sort of manage parts of the infrastructure of the city that they have the most expertise in and the ability to really absorb. And so ill talk more about how the mou does this, but primarily, the idea is that as infrastructure is completed, each agency and the appropriate expertise column, streets, public utilities, parks for the port, each of the agencies are cued up to receive that infrastructure. Next slide, please. This is a fiveparty agreement and i mentioned all of the parties already, except for Fire Department. Fire department has a key role ensuring that all of the entries, the ingress, egress, there is safe Emergency Vehicle access and theyre on board to provide an ongoing review and concurconcurrence. Standard infrastructure components, including lightweight Cellular Concrete would be accepted by public works and sfpuc but the port would accept the park and this is the key component of our state lands obligation and part of the reason sea lot 337 received the eight to hav abilie legislation is that we were delivering these great access spaces to the water so we want to make sure were continuing to deliver those by maintaining control of the park and well be accepting the parks, the open space and any unique features. They would be decorative pavers and Street Furniture and ill talk about how were going to maintain those. Next slide, please. I mentioned a little bit about the benefits and i think the overall benefit is an efficient delivery of services and we want that in the right boxes. The right division that has that expertise and i want to also mention that when agencies accept infrastructure, theyre provided the title to the property and were unable to give title to our property, to other divisions because of our trust obligations. So this mou is in place of that dedication of land that agencies that accept infrastructure are accustomed to receiving and thats another key item that the mou provides. With regard to portaccepted items, need will be asked to be accepted by the Port Commission when theyre completed in, say, 18 months, about two years, and we are tracking the maintenance of those items alongside the csc recently completed by the board a week or two ago. We have special taxes that total about 2. 8 to 3 million a year at buildout and those are based on the number of square feet developed. Thats a bit of a range there. And we are tracking and making sure all of items will be accepted by the port and tracking with how much money well have to maintain those. Well be coming to the Port Commission as we move on a little bit in terms of the operation of the site to spell that out a little bit more clearly. So youll see future action items how to operate and maintain these sites. Ill mention one final thing on the Public Financing protections that the city will receive. With lcc, a newer type of infrastructure and several protects the city departments ask for and one is a longerterm warrant from thy from the develd project financing. To the extent there are major failures in the infrastructure, the project special tax increment would be drawn upon by the other City Developments in weighing the things like requests by the other city departments for this new infrastructure and that upfront port for the street infrastructure which was the alternative earlier in project approvals was being proposed and evaluated by the developer. Next slide, please. That concludes the presentation. But i want to give you an idea of whats coming next. If were able to get approvals today, the final map is cued up for next tuesday, an upon date, the final map would allow us to sign parcel leases and if were able to get that june 2nd, we anticipate signing all four leases during the month of june and this facilitates construction. , demo and fullfledged construction needs to wait to be signed among other permitting approvals and we also will be returning to the Port Commission with cfd bond issuances and we are working hard with the office of Public Finance to cue up funding for the costs to try to match the lower cost Public Financing dollars and replace the higher cost dollars and youll be seeing future items on mission rock relative to cfd bond issuance as we work through this through Public Finance. Im happy to pause now and take questions. I want to acknowledge jack bear on the line. If the commission allows us, they may wish to make a statement. Thank you. I hope everybody can hear me. Thank you for your comprehensive report, becca, and for all of your leadership on this project and thanks to your team of colleagues at the port who made important contributions to the matters before the commission today. And a final thanks to katie at stepping in to such a critical time in the report, the Coronavirus Impact and pier 45. President bra brandon, members f the Port Commission, the items before you today are technical and administrative but important steps forward. As becca discussed, the mou sets fort the various city agencies moving forward and the infrastructure plan amendment allows us to use the most effective tools to raise the site to project against sealevel rise while preventing settlement. Im pleased to report the public utilitys commission unanimously approved these items today and the public works director also issued an order approving these items last week. With your support, we will proceed to have the final map approved and with the final maps approval, we can sign parcel leases and we can begin work on constructing the first phase of the project. Poini know this is a Long Time Coming and i want to thank president bran ton an brandon if the Port Commission. President brandon who lets the susubcommission 13 years ago. Were almost there. We started dep ligs work and were anxious to get underway. When the different settles and when we emerge from this moment in history, well be able to celebrate our achievement together. It has been a collaborative effort with the work of hundreds of people along the way. Thank you for your support and ill stand by for questions if you have any. Do i have a motion . So moved. Second. Lelets open this up for pubc comment on item 8a for members who are joining us on the phone. Jeffica will provide struck instructions to provide Public Comment. Thank you, president brandon. At this time, we will open the cue for anyone making Public Comment on 8a. Operator to summon each question, press 10. You will be entered into the system in the order you dial 10. The system will let you know when the line is open and others will wait on mute until the line is open. Comments are limited to three minutes a person. Please dial 10 if you wish to make Public Comment. Do we have anyone on the phone . Yes, we do. If you. Please open the line for the caller. Operator you have one question remaining. Question good afternoon president brandon and fellow commissioners. Im Danny Campbell with the sheet Metal Workers union. Im a trustee of the San Francisco Building Construction trades council, as well. Anim here today to tell you the Building Trades Council Supports this important Historic Mission rock project and we urge the commission today to approve item 8a. Thank you very much for your time and your service to our city. Thank you. Next caller, please. Operator you have one question remaining. Hello . Is there a caller on the line . The line was opened but the caller looks to have dropped off the call. At this time, there to other callers on the line for Public Comment. Thank you. Seeing no callers on the tone, Public Comment is closed. Commissioner gillman . Thank you, rebecca, for the presentation. It was very thorough and complete and i just want to say how excited i am to see this move forward and im excited to see the Overall Development move forward, but as i have stated before, ive been very impressed they were the first out of the first with the mission rock project to have the affordability requirements across this project at 40 and i really just want to commend them and i want the commission to move the forward forward to get the part up and running and the first phase and i have no questions. Thank you. Thank you. Commissioner wooho. Thank you for the presentation is thank you, jack, for your comments, as well, to put everything in perspective. Evacueweve worked on this for , long time and great to where well execute now and i appreciate the port has worked hard with all of its sister agencies across the city to make this comprehensive mou and, also, to look at the alternatives that we can to make this infrastructure as Cost Effective as we could. I have been briefed by the staff separately so at this point, i have no further comments or questions and support the item. Thank you. Thank you. Vice president adams . I just wanted to say to you and the team didn and jack congratulations, great job and a very good job and very thorough. And jack, thank you and president brandon, if yo thank r the patience of 13 years from being involved in the beginning and glad its coming to fruition and you have my support. Rebecca, thank you for the presentation. And jack, thank you for your commitment to this project and congratulations on the groundbreaks last week. Unfortunately, you couldnt do a big hoopla, just knowing this project is under construction and putting people to work during this crisis is a plus. I just have one question. I am so happy they have btw and puc approve this and that gives me a lot of confidence and i just need clarification on how it will work and what happens if we are cal called in and what or financial obligation is. Very good to pick up on. You picked up on one of the key components of the mou for sure. So the developer as part of their conditions to getting the map approved has taken on the obligation of up to a fiveyear warranty after they completed all construction on phase one, a fiveyear warranty would kick into gear. The tax district, the i fd and csd would start a tenyear warranty at that time. To the extent the infrastructure doesnt meet certain criteria, if it becomes too bouyant and moves up, some number of inches or portions of an inch, they public works would call upon the project and pay a claim saying we made 200,000 worth of the repair and this is not typical of the city street they call through the mou or tax district to provide that warranty. If the project funds are available at that time and we have the tax district flowing, we would provide that to them and it would go into each subsequent phase final budget that goes to the Port Commission. And so, if the warranty is called prior to phase 3, it would have clear visibility and it would be integrated into each phase budget. We were clear that those funds are limited to the projects tax increment or special taxes to be clear that the port harbor fund will not be impacted by this, but its to the extent we have Funds Available in those financing districts. Does that help . inaudible . Was the warranty consideration in the plan when we were discussion how to do the project for the infrastructure . So theres a typical warranty that they provide to the Infrastructure Agency and that was included for sure in the developer contingency for phase one. If there is a major failure that we dont anticipate, but if there were one, then that would have g go into the phase two budget. Thank you, i appreciate that. Commissioner gillman, did you have a question . No. If there are no more comments, can we please have a role call . role call . Motion passes unanimously. Thank you, commissioners. If you. Thank you. I just texted the commissioner mack and he should be joining shortly. Commissioner mack is joining. Is this the appropriate time . Yes, thank you. Im 8b, informational presentation and the memorandum of understanding for the pier 70 mixed use district project roughly bounded by the 20th to the north, stance ba san francio the east. Good afternoon, commissioners. This is your waterfront director and acting deputy of real estate development. For these next couple of weeks. Im to present on the memorandum of understanding item for pier 70 and i want to quickly acknowledge the same team. Weve worked closely with the department. Public works, with the mayors, the housing, as well as sfca and i neglected the City Attorney calling to help to bring this document to where it is. I wanted to acknowledge that team and i want to mention that similar to the mission rock item, this mou is a precursor to the final map. The final map for pier 70 is not scheduled and were hope approximately tful toget it on. We dont have that scheduled yet and we plan to bring it back on the june item. I wanted to mention one other things, you heard pier 70 at the last meeting, the design for Development Amendment which was an informational item looking to increase the floor area within buildings and well be bringing that back next agenda item sorry, next Commission Meeting. We are working to get the square footages the commission asked for just right and that was not time sensitive and well bring that back in june and youll have a pier 70 double header for the next Commission Meeting. Next item, please you have the overview of the pier 70 special use district, 35 acres and the brookfield waterfront site is 28 of those acres and were looking at about 3,000 units and 1. 75 million square feet of office, nine acres of open space, 500,000 square feet of retail, arts and Light Industrial space. And if we can go to the next item, i just wanted to provide a similar sort of overview for how the mou, the memorandum of understanding with the other city agencies fits into the overall horizonal development and the upper lefthand corner is a development and dispostion agreement approved in 2017 and it guides and bounds the supports and the developer together and provides all of our rights, responsibilities and obligations to one another. audio cutting in and out. Theres a significant amount of construction that has occurred and we also did a step at mix rock, didnt take, but we did a step at this site which was a transfer map in 2019 and it went through the board of supervisors and delineated parcels across the whole site and this project had intermediary steps for a good reason to sell that initial condo site to get revenue into the site early on. Next slide, please. 20th street has been under construction for quite awhileand this can be instructed because there are fewer employees at the site. For phase one, were looking at 600 residential units and overall, 30 of Affordable Housing delivery at the site and theres 400,000 square feet of office and the retail arts and im going to mention similarly, were submitting these quarterly contracting updates so the latest number we provided for the port noted that the project overall has awarded through the end of 2019, awarded 107 million in contract and 39 millions of those were to sea firms and that totals about 37 of the overall contracting and well be happy to continue to keep providing those updates to the commission can stay abreast of all of the contracting at the site. Next slide, please. Similar to what were talked about earlier, the purpose of this mou is what i think in my mind is an efficient delivery of infrastructure. As infrastructure is completed, it be accepted by the approach Infrastructure Agency and it deliverratedelineates infrastrue components and how will it cooperate in undertaking the maintenance. The next slide, please. The structure again is a fiveparty agreement, supporting pub worpublic works and it willt standards type of infrastructure to the extent that the project has some unique designs and primarily, there are two street segments that dont meet city standards in terms of sizes of the different elements. We have the special building 15 frame, which is sort of a public realm enhancement and theres a port on our side of the ledger and decorative pavers that well keep. Next slide, please. I do want to mention one key element of the mou and that it came about similar to the difficulty or the uniqueness of the developing sites on the waterfront and we have these in consideration which means were raising different parts of the site. Pier 70 is unique with its historic score and this creates a bowl in one part of the site. Ingoing through the permitting and different codes the project has to meet, in order to meet subdivision code, there must be what is called an overland release path or stormwater. The flow goes across the shipyard, up to the north and occasionally, when the atmosphere issue river events, you can see the ponding and it has not caused issues to the previous operator and sort of a condition that has been managed in the past and as this project goes through permitting, ar thee is a requirement in the code that this relief pack be memorialized through the mou. Next slide. So ultimately, the permitting notes that the key Infrastructure Agency, they will not accept the sewer system due to their concern about the stormwater unless the port agrees to preserve a path where the water could get out should there be this major storm and the storm drain facilities, perhaps theyre clogged up and the storm drain isnt flowing as the designers anticipate the it would flow. There are two solutions. The first is a shortterm solution and we worked closely with Andre Coleman and jerry warbol. The shortterm solution, we will refrain from constructing the New Buildings on portions of the shipyard where this overland flow path, the water is anticipated to flow should there be a storm. We look at this carefully, to make sure we werent impacting the shipyard use and thats a shortthem solution. Shortterm solution. The longterm, we will be working on an improvement to keep the water confined should there be this sort of overtopping or storm type of events. This would need be to constructed in phase three, when the problem is exacerbated within when the site is raised up on the edge of the water or when that area is needed by a shipyard tenants and they have a need to build a new infrastructure, where this overland release land a located and we would work to more quickly produce this solution. Brookfield is anxious to look at various solutions. They as the developer dont like having this improvement that they dont know the confines of, so theyre working closely with their engineers to look at the potential col yorvert to confine storm Dunkin Donuts watewater. Next slide, please. I mentioned what i believe are the benefits of the mou, anu, pg each in the appropriate bucket, give the utilities to the utility expert and let us environmenhavethe parks to manae waterfront parks. I want to note similar to mission rock, we have the cfd special rocks approv approved be board estimated at 2. 75 million in buildout. Before you accept, well be talking through operations with you with the acceptance that will come to you with the completion of the parks and open spaces. Next slide, please. So the mou was approved by the sfpuc commission and we want to thank their staff for bringing that forward and well be coming back to you on june 9th to seek approval and public works is prepared. They dont need action with their commission and prepared to work with us to get the document into execution form and well be seeking a final map at the board in june and we hope that is to be determined on their scheduling considerations, of course. And with that, i want to conclude and note we have various members here to answer questions. I know Katherine Riley should there be questions for the developer and kevin mas secondsd others from the portside. Lets open it up to Public Comments. Anyone on the phone who would like to provide Public Comment. At this time, we will open the cue for anyone on the phone who would like to make Public Comment on item 8b. The system will let you know when the line is open and others will wait on mute until their line is open. Comments are three minutes a person. The cue is now open. Dial 10 if you wish to make Public Comment. Anyone on the phone . President brandon, there are to callers on the line. Thank you. Seeing no callers on the phone, Public Comment is closed. Commissioner . Thank you for a good report and i have just one recommendation, if its not already being mentioned. With respect to the overland flow that is planned to be constructed in phase three. If that is to be accelerated because we have identified the tenant as you shared with the commission, i would recommend that you reach out to the project sponsor and start working on a protocol of how you notify each other and how everyone will gear up to bring that construction phase sooner because theres lots of lead time for materials and we would be better suited by having a protocol for everybody rather than just trying to wing how fast we want to bring it forward and avoiding people saying its costing more to bring it forward and identifying a protocol up close and everyone agrees. I think we may be helpful putting it online sooner, but it will be in a cooperative manner without interest being competing. Thank you, commissioner. A good idea. Madam president , that concludes my comments and questions. Thank you. Commissioner gillman. Thank you, rebecca, for the overview and the report. It was very, very thorough and i have no questions at this time. Thank you so much. Thank you. Thank you, rebecca. Also for the very comprehensive report and i think you have outlined the protocol given that we are setting up the same collaborative arraignment an ari have to further questions. I think we should move forward. Vice president adams. Yes, we rebecca, i have no questions on the presentation and i agree with the commissioner that we move forward. If you. Thank you. Rebecca, thank you for the report and i want to thank you for job with the lbe outrcm outh and effort. Rebecca, most of my questions were regarding timelines and you already stated that you will come with us in the future with a plan. But i was wondering, what the timeline for the solution and the implementation . Im not sure that we want to wait until we get to a certain phase. I think this is something to be work on now and to find a solution and fix it. Thank you, commissioners. And catherine, please feel from to chime in. Brookfield is anxious to engage with public works on what would suit their needs in terms of interpreting this code and making sure an improvement would meet their needs in the code, because, ultimately, theyll have to collaborate to dum comeo an agreeable solution. We were talking with blackfield workinbrook foodfield to work on that this year that they would agree and meet the subdivision code and with the implementation puerto ric pre d disaster, i think three, or four five years away. I think the date is now unknown, but the earlier date could be accommodated and we are motivated to keep the cost down and not allow inflation to get away from us. And i think that we are just needing to collaborate with the public works. Also, our maritime will have to evaluate closely to make sure the infrastructure is placed in the least impactful part of the ship yarshipyard and situationst arent difficult for a future tenant. I think that is the port considerations. And catherine, chime in if you have anything from the brookfield sign moving the implementation along, if the commissioners dont mind. Thanks, rebecca and thank you to all. So i think agreeing with rebecca, jumping straight into problem solving, seeing what the fix is and i think that, then, will let us now know, truthfully, what the dollar amount is and that will drive the timing. It makes sense to get that done and off the books. If its a more expensive fix, well have to give that to impact timing. Thank you. So rebecca, when you bring us a plan, you can give us an update. That sounds great. I think those are aligned in terms of timing and that makes good sense. Thank you. I appreciate it. Thank you, commissioners. Next item, please. 8c, extended port policy regarding enforcement of lease populations during the covid19 shelterinplace orders for rent deferral by 2018. Good afternoon, commissioners. Commissioners, president brandon. Thank you for your time this afternoon. I will be presenting the rent deferral and discussion on further tenant relief and i would like to thank our lease Administrative Team and finance team to craft and prepare data for this presentation. And the presentation will cover the proposed rent deferral on tenant ree relief. Next slide, please. The presentation will give an overview on the background of the pandemic, the revenue generated in may and a broadbase extension that is for the action and then the further discussion on the extension of relief measures. The next slide, please. The commercial Eviction Moratorium on march 17th and the statewide shelterinplace on march 19th and tenant relief policy for general fun departments issued on march 27th and the guidance on phase two reopening released on may 12th and the mayoral directive for Curbside Pickup which was issued on may 17th. It should be noted that many of the orders have been extended or modified during shelterinplace to adapt to the fastchanging conditions of the pandemic. Next slide, please. The following slides provide an overview of may revenue as of may 18th. The next series of slides sorry, forgive me. This table, in the stack outlines performance revenue by type. Of the 594 invoices, the port received 298 payments representing a 50 payment rate. And revenue is down across all types of businesses. Next slide, please. Of the approximately 6. 5 million that was invoiced, 2. 2 million was representing a 33 collections rate. Next slide, please. And in looking across the portfolio geographically, revenue portfolios were spread. Amounts of unpaid rent increased in each portfolio. The fishe fishermansworks whae largest. inaudible . In doing a brief comparison in april versus may next slide please, sorry. As of may 18th, payments credited to may were at 33 compared to aprils 54 . Again, may payments continue to be booked and when we return on june 9th, we should see a complete picture of april and may combined as those were the two months of shelter in place. At the last Commission Meeting, there was a desire for rent participation. It is built at the end of the month and due by the 20th of that month. We dont have that information but at the june 9th meeting, we should be able to present march and april participation renfor more review. Covid19 impd our support is needed at this time. Next slide, please. The extent of the broadbased rent Deferral Programme. It covers all tenants with a few exceptions. There is interest on rent payments from march 1 to jul july 31st. inaudible . It is still in place a new tenants executing leases on our after april 1st are not eligible for in release. This deferral does not apply to mous for city departments and agreements for small rentals at the south beach harbor. There are master tenants, such relief will available to the port tenant has offered equivalent relief to their subtenant. Therefore, it is staffs recommendation to approve the extension of the current broadbased program to july 31st, 20 to allow for shelterinplace. Next slide, please. We are now shifting to the continued dialogue on further relief measures. As a summary, we will be discussing the Optin Program and optout process that will be at commission for approval on june 9th. We would also like to engage in dialogue requiring potential learelief measures, such as participation rent restructuring and lease extension. Next supplied slide, please. As shared previously, staff proposals and extended rent Deferral Program programs to pre relief of the broadbased policy. For your consideration, the proposed extended rent Deferral Program moves from the broadbased rent Deferral Program to Optin Program and waives fees and interest on rent payments from march 1s 1st through december 31st if paid by december 31st. It requires the tenants must comply with all lease obligations during the deferral period. I would like to reemphasize that this proposal moves away from the broadbased application of deferral to the Optin Program that is conditioned upon submittal of key documents. Next supplied slide, please. As a generate matter, they have been more willing to provide relief for a range of reasons, including public equity concerns and the mission to look at the impact to the leasing portfolio. We recommend that any extended rent program remain available to facttenants and there be dialoge for forgiveness of rent. Therefore, we propose the following submittal requirement. One, a statement from the tenant describing the impact from covid19 and their need for leaf and backtonormal operations, providing projects in light of Current Commission conditions and projecting the ability to resume rent payments on or before december 31st. Secondly, approve a submittal to federal, state or local Relief Programs and a summary of that status and if no applications were filed, the statement explaining why. Port staff believe this data can help guide our path in the futures unknown. As shared at the may 12t may 12th meeting, in addition to the optin framework, they have talking abouthisgoes to rer that no longer utilizes port properties. Next slide, please. Port staff may rely on resolution for those who wish to opt out this is a term of less than five years remaining and a monthly rent of less than 10,000. Where staff can negotiate a return on to the premises on terms and conditions that benefit the port. For those tenants that opt out , there could be significant benefits in terms of certainty, control and limiting costly legal action later. Port staff believes that the proposed extended rent deferral and early termination to be the most advantageous of relief measures to deploy next. It will allow the Port Commission and staff to develop further release strategies. As you may know, senator scott weiner introduced sb939 to give commercial tenants the right not to pay rent without fear of eviction. It introduces other provisions regarding late fees and negotiations. This is a requirement on the clause which would make it effective the moment it is signed into law. Continuing to monitor sb939 and the ports release effort. Next slide, please. In summary, if the fort Port Commission were to approve the Deferral Program, the process depictured in this graphic would be put into action and proposing a 30day period for tenants to answer whether they want to optin and if so, submit documents. Staff propose a signing, port staff to assistant tenants. Additionally, port staff have been evaluating whether to include an option for tenants to enter into a repayment plan to pay any outstanding balances after january 1st of 2021. Port Commission Feedback on this repayment option and other tenant relief is highly desire. Next slide, please. As for further relief, forgiveness, participation rent restructuring and lease extensions have been all presented as possible relief measures to pursue. Forgiveness is the most desired relief measure, but it is the most financially impactful to the ports ability to operate. As shared by the finance team at the april 28th meeting, real estate was estimated to be 98 million and at that time it was projected to develop to just over 75 million. Those projections at this time are unknown and are best guesses that impact on our economy and therefore, supporting our tenants would require identifying creative solutions. In addition to what is lifted on this page, other ideas are contemplated, such as providing marketing assistance to tenants, pursuing a permit for outdoor seating to allow for streamlined access and ideas on how to activate social distancing respiratories. Respiratorrequirements. In order to allow for our tenants to regain their footing, we must adapt and your feedback and guidance is very much appreciated. Next slide, please. Port staff identify ways to facilitate the ability to manage rent forgiveness which requires the lease amendments. As shared on may 12th, charter section stated anticipated revenues of 1 million or more or a term of ten years or more must be approved by the board of supervisors. Providing deeper and broader relief such as rent forgive next would trigger amendment under section 9118. It presents a challenge to the implementation of an Efficient Program and while this does not impact our entire portfolio, it covers many of the ports major attractions. This would require approval under the charter. Port staff work with the city at minimuadministrator. If submitted and approved, they would delegate authority to the agreement audio cutting in and out. . This ordinance will be introduced in june. Next slide, please. So in summary, we recommend the commission approve the extension of the broadbase rent referral through july 31st. We want one minor amendment that is attached on your staff report. On the second page of the resolution, the second clause should be rewritten to read, whereas on may 17th, the Health Officer earne issued a nw order to shelter in place. Staff is looking forward with relief measures with the commission and our tentants. Next slide, please. So in terms of the next steps, we envision taking the Optin Program and the discussion on continuing the discussion on rent forgiveness on june 9th. If approved, we would launch the optin application period of the extented perform from june 15th and july 15th. On the july 14th Commission Meeting, we would continue discussion on further rent relief. On july 31st, this wont be the closing of the broadbased Deferral Program and august 1st, the launch of the rent deferral and then in the summer, we could take potential action on further rec relief as contemplated today. Next slide, please. Im here to answer any questions that the commission or members of the public may have on this item. Thank you for your time. Commissioner, is there a motion . To moved. Second. Open it up for Public Comment on 8c and members of the public who are joining you on the phone. The operator will provide instructions now for anyone on the phone who would like to provide Public Comment. Thank you, president brandon. We will open the cue for anyone on the phone who would like to make Public Comment on item 8c. Operator the conference now in question and answer mode. To summon each question, press 10. You will be entered into the cue. Dial 10 if you wish to make Public Comment. Is there anyone on the phone . Operator question, it looks like three callers on the line at this time. Thank you, please open the line to the first caller. You have three questions remaining. Is there a caller on the line . Operator caller, your line is open. We cannot hear you. Caller, can you try to dial 10 to exit the cue and 10 to reenter. Shall i move on to the next caller at this time . Yes. You have two questions remaining. Hello, president brandon. Can you hear me ok . Yes. My name is drew harper and i entered a letter in the Public Record at the last Port Commission meeting and i hadnt heard anything back and thought it be wise to speak to you today. Ive been a tenant of the port for 35 years, having paid millions of dollars of rent for two Small Businesses at south beach harbor, a Sailing School and excursion company. These are uncertain and stressful time for all tenants of the port, many generating revenues of over the sunny monthsfus of the year. Your tenants have no opportunity to make money and little opportunity to afford steep rents the port charges for water access. We also find ourselves in an unusual situation that the port is in the city and county of San Francisco and we cannot operate or businesses paying 100 of our rent. Theres no legal precedence, it is very unusual situation to have the landlord tell you that you cant do business, yet require you to pay all of your rent. I dont see any agenda items specifically releasing the relief. Though i appreciate the conversations pressing forked that. Toward that. The rent deferment will push hundreds of your tenants to file for bankruptcy. Were not asking for free rent but recen relief. The fact they can remain whole seems unlikely because none of us will remain whole. I, along with many port tenants have spoken to port attorneys. And i think it is up to the port to which attorneys were afforded to have the conversations with. Anecdotally, i thought you should know pier 39 had not charged rent since the sip order went into effect and this is as per my colleague. On that alone in my 40 years of doing business, you have many rural tenants who have provided extraordinary amount of income to port of San Francisco and please do the right thing to help your tenants survive this pandemic. Thank you very much for the opportunity to speak and i hope you and yours right main healthy and safe. Thank you, mr. Harper. Next caller, please. Operator you have one question remaining. Yes, hi, my name is john valeer. I run can everybody hear me . Yes. Ive been running a nonalcoholic company for the past ten years and ive been with the port since that time. Weve been paying our rent on a month to month basis and weve been good at it. During this pandemic, we lost about more than 80 of our business, restaurants are closing down, bars and its been very devastating on our end. And we also have inventory issues. We have inventory that is expired and about to be expired the end of this month in the month of june and a total of 30,000. We have a bunch of customers which all of the restaurants and the bars in downtown San Francisco that has not paid since february and this goes up to 60,000. We are still operational 15 to 22 and we are hoping to get forgiveness for the past couple of months and who knows what will happen in the future and anything helps. We are very fortunate that we did not getn get any grants fron francisco. We did get ppe, but that was just available and that doesnt cover the losses that were having today. Thank you for your time and i appreciate it. Hopefully we get some positive news from you in the future. Thank you. We really appreciate your comments and im sure youll be hearing from the port. Thank you. Any other callers . President brandon, no other callers wishing to make Public Comment. Seeing no callers on the phone, Public Comment is closed. Thank you for the presentation and this has been an ongoing discussion and i know a difficult one and i think you and your colleagues on staff have been thinking through this issue very carefully as we do. I think one of the things we should move forward with the things you have discussed here, but we know that as the tenants before us just mentioned their difficult situation, i think in order for us to have a full picture as Port Commissioners, theres one thing, unfortunately, none of us wanted this pandemic and its something were all victims of. And we already said that under normal circumstances, we had hoped to have a revenue of 98 million and weve lower the the forecased theforecast to 75t know what it would be if the team took a look at it. What im interested in knowing, knowing that it is dallaire we e to share the pain but, unfortunately, were not the federal government, so that we just cant print money and have stimulus that way. We are not in a position to do that from the standpoint. But we sh what i need to know, e talk about further discussion on rent relief or forgiveness, i need to know how the port is going to fiscally sustain itself during this period of time, because at some point, what is our cash position . What is our cashflow position going to be if we look at some of these programs. We need to look at both sides of the equation. Where will our cashflow come from to sustain us and the tenants through this difficult time . I dont have that part of the equation at the moment and katie, youre in the hot seat and im sure at some point, you can give us a clear picture. I think we should answer that as we consider all the other measures Going Forward because we have to have a balanced picture. If we did some things that have been proposed, would we be able to sustain that on the longtem . Longterm . We need need a balanced view because we cant put ourselves out of business but i dont think it will be that dire but i dont have enough facts to be comfortable to consider more measures until we have some facts is figures in front of us to balance out how this should work Going Forward in the longer term. The Program Makes sense, but as we go forward, we need to have the port side of the equation put in front of us before we make further decisions to didno forward. We need to know at the end of the day, our mission is to sustain ourselves longtem. Longterm. We have to cut back as a result of this and thats painful. Im not concerned about the operational side but i need a projection that shows us what other pain can we take to help or tenants. There will be a point, perhaps, where we can not go all the way and so, we need to explain that to our extents and stakeholders in a fair and transparent way exthats what we should be doing for the city of San Francisco. I concur with commissioner owhos comments. That should be forthcoming. I do support the proposal before us. In totality. I would like staff to do is t to if we know now you can answer this, will we cut individual deals with tenants or is our plan to group tax associate with tenants and implement inequity to the tenants on a certain set of facts . Commissioner, at this time, theres no set. audio cutting in and out . I will say that a proposed fd39 bill does present some challenges, the way that the bill is drafted would require to negotiate in good faith with each of our tenants and so, i imagine that we will be watching this very closely as we it is our desire to have a Relief Program because some sectors have been struggling more during this time than others. I would like to see if well treat the sector groups the same or are we going to negotiate each one to the best of ourability anourability and a gr with a good team may get a better deal than someone without a team negotiating by themselves. All of our leases will be public and well have tenants look at better deals that have been cut than their own deals and do we want to be in that position of negotiating good faith but at a net result being challenged that we werent forthright. When its all over, if they gave someone a better deal, will they give that better deal to all of our tenants . I would like us to walk through this because the leases will all be public at the end. I have shifting a little bit, i have some interest in doing sector programs and having a policy that would affect all of the tenants equally. For example, taking the restaurant sector and ill call out to the parking lot sector is two and deleting their minimumbased rent each month and only collecting the percentage rent that their lease calls out for and we would set it in my example, it would be for a year. All of restaurant leases would be adjusted to their base minimum no minimum resident, just their percentage of business and we would be their partner and we would do that in my example for a oneyear term and were treating every single restaurant equally across the board. A decision like that would actually mean no rent or the actual shutdown from february 26th to the day its lifted. I would like us to have these types of discussions so we know how we want to innerface with individual tenants and the collective results that we hope to get out of this. That concludes my comments, madam president. Commissioner bealman. First of all, thank you so much for the report. I want to reiterate that commissioners comments, im in alignment with them. I want to expand on what i would need to move forward from this in what i would think would be a good conversation. I agree with the sectorbysecker approach. Sectorbysector approach. We node these approaches. When you look at the stack report and the information you gave us, particularly on page 4 and then even geographically on page 5, each sector is reacting to the pandemic in very, very activity ways andifferent waysde restaurants in parking as an example where we have high participation, its very different than our harber facilitys rent and im using this to illustrate a higher percentage of payment. So i want to see the staff break down from a sectorrer approach of how well provide relief to the tenant. I think we should be grouping large projects like pier 70 and mission rock into separate categories due to their size in scope. If theyre seeking rent relief. And i do think we should be exploring some of the comments made from the letter be received, the ability to do new terms, the example that about raising base rent so that we are in this together. I dont think any of us can assess when the public is going to feel comfortable returning to the waterfront to engage in businesses in a meaningful way. We will see a rush in the beginning when the restaurants are allowed to do Dinein Service and i think knowing the answer to that and i think that we knee to be in partnership and we dont want a rash of our businesses going under. And i think we also need to weigh the fact that while were an enterprise department, were part of the city and county of San Francisco and do we want to be putting this is a question from my fellow commissioners. I dont have an opinion formed yet, but do we want our businesses applying for loans to turn around and be providing that money to the port . I just called that as a question to play to the larger ecosystem with the city and resources that are available. And i agree with you we need to track carefully the 939. It could have a major impact on us and i think port staff should reach out to the Mayors Office to understand what the city and countys overall position is since it would have a broader effect. Those are my comments to the things i would like to see discussed with some of the information. I would like to see when we enter that conversation and also sector by sector projections of what those if we were to do rerent reef relief, what the nus would look like and how they tie back to the port. Thank you. Vice president adams. Wow i definitely want to proceed with caution going down this row. Road. I see all of the Major Companies here filing for bankruptcy, like jc penny and pier 1. I have so many questions and i agree with the commissioners, theres a lot of questions and im about to supporting, but we have to use a lot of caution because all of our business will be like an open book and someone would think they got a better deal than someone else and to negotiate a lot of different things, we have an obligation to help and i want to know, will we be getting federal stimulus money or any money from the state. But i think this is a painful conversation and i dont think i can support this today, but i think this is a long, long discussion. This is one of the biggest decisions this commission has to made since ive been on the commission to to that and it cannot be taken lightly and this cant be for public servants. I have to take it lightly as we go down this path. Im done, president brandon, thank you. Thank you so much for your participation and i know a lot of thought has gone into this. And i support what we are discussing here today. We definitely need protection to understand how were going over this. We have to add it sector by sector. We have to take into consideration as commissioner adams said the local support. Theres a lot that goes into this and i the Port Commission said, this will be a huge issue and effort. So the more commission we have, the better and maybe more than one conversation. This may be a continued conversation. This is so fluid and things are changing and there no one size that fits all. There will be a lot that goes into making this decision thank you so much for all that you have done to date. Any other comments, commissioners . A motion and a second. A role call vote. Pair operato. role call . The motion is unanimously and 2077 is adopted. Item 9 is new business. Commissioners . , any new business . Seeing none, can i have a motion to ajourn the meeting. Motion to ajourn. All in favour. Aye. Role call vote. Pair thanthank you very much. M, the executive secretary and welcome to the may 19, 2020, Commission Meeting. Commissioner bernal. And commissioner green. And commissioner giraudo, commissioner guillermo. Are you he