Transcripts For SFGTV Port Commission 20240711

All right, president brandon . Clerk [roll call] president brandon next item, please. Clerk item number 6, the 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, with liberty and justice for all. Clerk item number 7 is announcements. Be advised that a member of the public has up to three minutes to make pertinent Public Comments on each agenda item unless the Port Commission has a shorter period on any item. During the Public Comment period, they will use a phone to register their desire for Public Comment. Audio prompts will signal to dial in participants when your audio input is enabled for commenting. Please dial in when the item that you wish to comment on is announced. And note that if youre watching this meeting on sfgovtv streaming on the internet, there is a broadcasting delay. So when the item that you want to comment on is announced, dial 1 415 6550001. And then interio enter access ce 1468930133. And listen through only your television which is a live broadcast. When Public Comment is announced, dial star, 3, to raise your hand to comment. And listen for the audio prompt to signal your turn to comment. For our participants, please mute your microphones and turn off your cameras when not presenting. That brings us to item 8, Public Comment on items not listed on the agenda. We will open up the phone lines to take Public Comment on items not listed on the agenda. For members of the public joining us on the phone, we will provide instructions now for anyone on the phone who would like to provide Public Comment. Thank you, president brandon. At this time we will open up the queue for anyone on the phone who would like to make Public Comment on items not listed on the agenda. Please dial star, 3, if you wish to make Public Comment. The system will let you know when your line is open. Others will wait on mute until their line is open. Comments will be limited to three minutes per person. The queue is now open. Please dial star, 3, if you wish to make Public Comment. President brandon thank you, do we have anyone on the line . President brandon, at this time we have no one on the phone wishing to make Public Comment on this item. President brandon thank you. Seeing no callers on the line, Public Comment is closed. Next item, please. Clerk that would be 9a, the executive directors report. Good afternoon president brandon and Vice President adams and commissioners and members of the public and port staff. Im elaine forest, the executive director. I would like to start with a report on reopening today our mayor announced that the city is adjusting due to the rapid increases in covid cases. And those increases are here in San Francisco, and notably regionally statewide and across the country. The city is rolling back higher risk indoor activities, indoor dinedining will close as will te capacity be reduced for Fitness Centers and movie theatres. This is all in our effort to reduce the spread of the virus. Closely tracking Health Indicators and making decisions based on data and science has and will continue to be the way that our mayor and the Public Health department, the city has responded to the virus. Under mayor breeds leadership through careful planning and work, we have been able to avoid some of the worst outcomes of the pandemic that so many other communities have experienced. We havent had an overwhelm of the Health Systems or high mortality rates fortunately. These decisions are not easy to make for our administration because, of course, we know that Small Businesses are struggling and the Economic Impacts of covid are very hard on our Small Businesses, on businesses and on all of us in the city. Notably the Mayors Office announced a 4 million packet that continues to support Small Businesses during this difficult time. You know, mayor breed always reminded us that the spanish flu pandemic of 1918, it was in the fall and winter that San Francisco had its worst outcomes of that virus. It had prior terrible outcomes. So we are to remain very vigilant as the weather gets colder and were trying to gather for holidays. Stay vigilant. I know that its a long journey but stay vigilant and stay the Public Health orders and well get through this winter. With vaccine news in the press we all have a kick in our step. So hopefully, 2021 we will see vaccine and the distribution in the early terms. So that we can get back to a life postcovid19. On equity, the port race equity working groups continues to develop feedback from the listening tours into recommended actions that will be implemented as early as next year. In addition, staff are working to complete the development of goals and metrics to reduce Racial Disparities and increase Racial Equity within our portfolio. We will present this action plan at a commission in december and were really looking forward to presenting the specific metrics and planning for a very Strong Equity program in 2021 that is consistent with this commissions strong leadership and values and vision for our waterfront. On economic reopening for the port, we are in the process of finalizing our edited Financial Statements for fiscal year 20192020. And im very happy to report that despite the economic shock from covid, that we actually improved our financial position last year by 37. 9 million to a total Balance Sheet position of 49 million. We ended ending the year the prior year was 340. 6. And the increase in our financial position is largely related to the sale of the jail bonds, but it also is related to ongoing really Strong Revenue results from the port that weve been working so hard to build over time. Also today our current revenues are actually not far off what you approved in the budget. Staff projected a revenue loss in 2021 of up to 40 million and that that projection appears to be accurate. Staff did assume a deeper decline and a faster recovery, but on balance the revenue loss is about right. With staff projections we could be okay if we used all port savings, except for a minimum rainy day reserve of 30 million. And funded only the highest priority Capital Projects through 2023. This would be a big cost, because it would add to our backlog and delete our savings, however, we do see a path to get through 20222023. But as this strategy needs refinement and work because it is not clear that it will be enough. The port base has faced big unknowns whether tenants can make it through this period without business closure, for how long it takes to take care of this, and so were in a wait, analyze and see mode, and were working diligently on recovery concepts and strategies. Well bring a revised budget in february for 20222023, and that will be the starting point for us to review our outlook and recovery responses and strategies. Port staff is soliciting feedback internally and from tenants because we know in this covid pandemic its very open and flexible to new ideas. Shifting to more operational updates, last friday the South Beach Harbor playground reopened to the public with guidance and directives from the San Francisco health department. And thank you to tiffany tatem for all of her hard work making that happen. So we have the required safety measures, the signage and the new handwashing stations. And its a great place to provide safe play for children and have a fun interactive experience with peers. So im very pleased that port staff worked hard as i said led by tiffany tatem and tim did a lot of work on it as did karen taylor, and keith hu keithhubba. And i understand that theres users identity there so were happy to provide that space. That the time im happy to report that 81 of pier one staff have completed their covid Safety Training and all completed by december. Weve had great compliance in performing our Health Training wearing face coverings and maintaining social distance. We, thanks to jenna calu, and manny, updated our cars and vehicle fleet with all of the disinfectant kits and everything that is required for safe operations. The reoccupancy has safety procedures for events in health order as well. We had three walks for critical Construction Projects and im very pleased to say still no positive covid cases among the staff workforce. A key project update, to update you on the northern piers r. F. P. In 2019, the Port Commission directed staff to issue the south beach r. F. P. S. This is then were doing the 3032 seawall at 330. For south beach we have a Development Partner now and were going to turn to the north issue, the subsequent r. F. P. , bit really need to revise our schedule, because we previously had planned to put it out this year, but right now we have the pier 38 and 40, seawall lot 330, and piers 3032, and mission rock and pier 70, very important resiliency efforts that will culminate in the selection of prop 8 projects along with the efforts to make a portwide Resiliency Program full and functioning. And our recovery efforts. So we will return in 2021 with a schedule for the issuing of the r. F. P. In addition to responding to covid19, and the pause in the r. F. P. Is important because it will allow us time to look at the climates that are affected by covid. And we can incorporate that thinking into our next solicitation. And also the Resiliency Program is making findings and doing analysis and gathering data that we need to analyze and to look at carefully and weave into this r. F. P. As i said, we will be back in 2021 to discuss schedule. Were currently targeting the spring but well be looking to provide more details to the Port Commission. And, lastly, we received a partnering award. So im pleased to announce that we won a partnering award for Infrastructure Projects under 20 million. And we got the award for the pier 29 utility upgrade and belt line sewer rerouting project. So this award is from a committee that includes Six Department heads that really pushes the city in a positive partnering position and gives awards to the departments that especially partnered well for budget savings and to keep projects on track. So id like to commend Andre Antonio and tim leon who won the award for their good work on pier 29. And im very happy to let the Port Commission know that despite some conflicts that required partnering, we were able to get creative problem solving and to come in with the project on budget, with minimum disruption. So, well done, to tim and andre. Congratulations. And that concludes my report. President brandon thank you, elaine. We will now open up the phone lines to take Public Comment on the executive directors report from the members of the public who are joining us on the phone. Jennifer will be our operator and will provide instructions now for anyone on the phone who would like to provide Public Comment. Thank you, president brandon. At this time we will open up the queue for anyone on the phone who would like to make Public Comment on the executive directors report. Please dial, star, 3, if you wish to make Public Comment. The system will let you know when your line is open. Others will wait on mute until their line is open. Comments will be limited to three minutes per person. The queue is now open. Please dial star, 3, if you wish to make Public Comment. President brandon thank you, jennifer. Do we have anyone on the line . President brand ar brandon, o one on the line to make Public Comment. President brandon thank you. Public comment is closed. Commissioner gilman . Commissioner gilman elaine, thank you for your report. I completely understand and understand the rationale for holding off on the historic northern piers r. F. P. I hope that we can make a commitment to get it out early q2 next year. And around the resiliency and real estate conditions are important, but the Community Asked for a long time to look to develop these piers, so i hope that it doesnt lag too much into q2 of 2021. But thank you for your report. And i want to give a shout out to the port staff for following safety protocols. We should feel proud as an Agency Within the city and the department that weve had no positive covid cases amongst the staff. Thank you. President brandon Vice President adams . Vicepresident adams i wanted to thank director forbes for her report, port staff, and i am pleased with the report. I have no questions. Thank you, president brandon. President brandon thank you. That was a lot of good stuff. First off, i want to commend mayor breed on how she has handled the covid efforts here in San Francisco. And how we are a model for the rest of the country. So if were, you know, going back on Indoor Dining and other items, its something that we really need to look at and make sure that were adhering to all of the covid protocols. Hopefully soon well have leadership that will help us through this crisis, but its just spreading. So i really want to commend her and to commend our staff for following all of the protocols. I mean, out of 250 plus employees, not one covid case is phenomenal. So thank you for your leadership also. Elaine, congratulations on the award. And congratulations on the financial position. I think that put us in a better place to be able to deal with, you know, the covid and our our Balance Sheets. So the staff has done an incredible job through this whole journey. So thank you so much for your report. Call next item please. Clerk item 9b, the commissioners report. President brandon commissioner, anything to report. Commissioner gilman or Vice President adam . No. President brandon okay, nothing to report and no Public Comment needed. Next item, please. Clerk that would be item number 10, the consent calendar. Theres one item on the consent calendar, item 10a which requests approval to enter into a memorandum of understanding with the San Francisco Public Utilities commission for temporary youth of up to 5. 1 megawatts of Power Capacity at pier 68 and 70 for up to three years. This is resolution number 2049. President brandon commissioners, can i have a motion to approve this consent calendar. So moved. Second. President brandon okay, lets open it up for Public Comment. We will now open up the phone lines to Public Comment on the consent calendar. For members on the public who will join us on the phone, jennifer is our operator and will provide instructions now for anyone on the phone who would like to provide Public Comment. Thank you, president brandon. At this time we will open up the queue for anyone on the phone who would like to make Public Comment on the consent calendar. Please dial, star, 3, if you wish to make Public Comment. The system will let you know when your line is open. Others will wait on mute until their line is open. Comments will be limited to three minutes per person. The queue is now open. Please dial star, 3, if you wish to make Public Comment. President brandon thank you, jennifer. Do we have anyone on the line . President brandon, at this time there are no members of the public on the phone wishing to make Public Comment on this item. President brandon thank you. Seeing no callers on the phone, Public Comment is closed. We have a motion and a second. Can we have a roll call vote. Clerk yes. [roll call] president brandon motion passes unanimously. Resolution 2049 is adopted. Call next item please. Clerk item 11a is an informational presentation on the status of current tenant relief and proposed stabilization measures and a request for approval to use port property for restaurants and Retail Businesses adjoining port property under the shared Spaces Program for Outdoor Dining and retail activities. That is resolution 2050. Good afternoon, commissioners. Im the manager im on the real estate and development team. Accompanied by michael martin, the assistant port director. Id like to thank a couple of the port staph staff who are instrumental in getting prepared for this. [list of names] and it has been a lot of work to get us to this point. Thank you. Next slide, please. I will provide an update on our rent Forgiveness Programs and the commercial Eviction Moratorium. Michael lead the discussion on the proposed Repayment Program. And our rent Forgiveness Program and the waiver of related license fees. We are recommending an approval of resolution 2050 as carl shared earlier. Next slide, please. A brief update on our broadbase rent Deferral Program. As you recall we passed a Commission Resolution which authorized the waiver of fees and interests and deferral of rent from march 1st through july 31st. During that period of time on average there were 274 tenants that took advantage of the program and they represented 12. 8 million during this period of time. And there were 271 tenants representing 12. 5 million in revenue that continued to pay us rent during that period of time. Next slide, please. We did pass an opt rent Deferral Program from august 1december 31st. Since the passing of that program and launching, we have had 81 tenants that have been deferring rent, representing 11. 3 million from the period of august 1december 31st. We during this period of time we have experienced 211 tenants paying rent and representing 11. 8 million. And, unfortunately, 238 of our tenants are representing 8. 3 million. At this time they have not resumed normal rent payment. It should be noted that of the 81 tenants in our opt in program, 14 of those tenants submitted forms after the original deadline of july 14th. In response to the lack of participation in the opt in program and the nonpayment of rent, they have elected to keep the Application Online to maximize the participation in the program. Id also like to highlight that of the 11. 3 million in rent deferred, some of that will be forgiven through our sectorbased rent Forgiveness Programs. And in regards to our over 200 tenants that have not opted in and resumed normal rent payments, theres outreach to these tenants to understand the reasons why they have not resumed normal payments. This drop in tenants making normal rent payments could be attributed to the depletion of the Payment Protection Program and other governmentfunded Small Business supports that lacks additional approvals at the federal level through cares act funding. We will continue to keep the commission updated on this data as it evolves. Next slide, please. And to update the commission on our rent Forgiveness Programs, as you recall, we have awarded or we have made available rent forgiveness to three of our tenant sectors. Our local Business Enterprise tenants and our select maritime tenants. On our percentage rent tenants as you recalled we needed to introduce an ordinance at the board. Director forbes and i presented at budget and finance last week and the items were well received by the committee. Many of the supervisors hailed our rent Forgiveness Program as a very thoughtful approach that other landlords to look to as a model. So we came out of committee with flying colors. We had recommendation by the committee to the full board of supervisors. And it is actually currently at full board for First Reading today and rebecca is limiting the full board as we speak. We anticipate approval on the 17th, and the ordinance in place in december and will help our 32 tenants impacted by this ordinance. It should be noted that some of our percentage rent tenants listed in this category can move forward in their lease amendments and we will be beginning those discussions in the coming weeks. As for l. D. E. Tenants, outreach has been conducted. We mailed letters to all of our l. B. E. Tenants and we have posted all of their documents online on our website. And i imagine that our online application will be confirmed on thursday with the help of kelly mckoy and the communications team. As we look to our maritime tenants, there are 121 of those tenants and we are working with our Maritime Team and our Property Managers to begin the accordinatioaccordination to gee outreach conducted and to have the application to be posted in the coming weeks. Next slide, please. So id like to turn our attention to the commercial Eviction Moratorium. As you may recall in march, mayor london breed had the Eviction Moratorium program in response to the covid19 pandemic. And the shelterinplace orders put in place to keep us all safe. In april, that initial Eviction Moratorium was extended through september 30, 2020. And in september, governor newsome extended the state program through march 31, 2021. Theres been discussions and inklings that this may be extended even further into 2021 and we will continue to monitor those changes. In september, the members of the board codified protections and provided definitions under the Eviction Moratorium. Staff are going through all of the documents to better understand how the new proposed amendments might apply to our leases here at the port. Next slide, please. The current proposal prohibits eviction for missed payments from march 16march 31, 2021 and is contingent on extensions by the governor. It also institutes repayment timelines of up to two years of up to a twoyear period, depending which tier a Small Business may fall into, as shown on this table on this slide. Next slide, please. What we know is that it excludes the occupants that is approved for office uses. It has interest and other charges to the end of the relief period. It does allow for agreeable repayment plants to replace the deadlines that were seeing in the table in the previous slide. And it notes that if a tenant in a tier 1 category terminates the lease prior to march 31, 2021, or through any extensions that the tenant would still be responsible for Outstanding Balances but would not be subject to any early termination fees. It should be underscored that the moratorium does not apply to city agencies, but as discussed earlier, they follow the processes laid out in the moratorium. We will monitor the progress through the board and provide updates at the december meeting on where that lands. Id like to turn it over to mike to continue the presentation. Thank you. Thank you. This is michael martin, assistant port director. Ill take on the presentation from here and well move on to our new items for discussion and direction to hopefully to bring back to you as directed by the commission. Next slide, please. The first is a Repayment Program. So the Eviction Moratorium ordinance does not cover tenants of city agencies such as the port. But i think similar to that legislation i think that wed like to create a clear set of repayment options for our tenants, both the ones that have opted into the Deferral Program as well as the ones that have just not been able to pay rent so that everybody understands the ways that they can try to get themselves back into current status with us and, obviously, hopefully, to support their continued survival along the lines of the shared prosperity framework that we use to discuss our other Tenant Relief Programs. So standardization of the program would allow us to be more fair across the different tenants and different tenant sectors and, obviously, the efficiency of having clear paths would help us in implementing this across that large number of tenants who will have balances to repay. It incentivizes the resumption of normal rent and observes that more tenants may be more impacted than others in trying to provide pathways for each of those tenants to see a repayment strategy that works for them. This last note, we tried to think about for tenants that typically under leases that we see a deferred a late payment interest charge of up to 10 , that we thought that we were trying to find a different percentage that i will talk about in a moment and we wanted to provide the context that the 3 that we have chosen actually exceeds the port earnings on its deposits with the pool. And so its a prudent approach to these Repayment Programs over an extended period of time. Next slide, please. So the proposed criteria very much reflects how we have approached rent forgiveness and our other Tenant Relief Programs. We need the tenants to resume the normal rent as of january 1st of next year. They must pay any balances outstanding prior to the or the onset of the covid pandemic in march. We would limit the Repayment Programs to tenants with monthly rent on the individual lease hold, not exceeding 20,000. So hopefully our smaller lease holds are the target and must be a Small Business, again, trying to focus this on the tenants most in need and most challenged in bringing in additional revenues. Next slide, please. So this slide encompasses the options that we would like your feedback on to offer different pathways to repayment. Option a reflects the fact that there are some tenants who may have entered the Deferral Program but who have been able to get back on their feet because their businesses arent as impacted by the health orders. And wed like to encourage these tenants to repay as soon as possible. As noted in the staff report, that theres a city administrator memo that applies to other city agencies that we have looked to to help inform what were doing here and it calls for all deferred balances to be repayable, on or before june 30th at zero percent interest. We see value in encouraging tenants to pay even before that date, but in this option a it is meant to say if a tenant pays the full balance or 95 of the full balance they received 100 credit of that balance and be fully current as of december 31st through early january when they made that payment. So instead of forgiveness of that additional 5 , obviously, its an even better deal than the city administrator memo, but, again, i think that theres value to us in this very impacted fiscal year in getting those revenues in the door and getting a tenant back into current status. Option b reflects that the city administrator memo more closely by saying that we would also offer an option for someone who is able to continue current rent payments starting the beginning of the year and they could repay their back amount or deferred rent amount in six equal installments between january and june of next year at 0 or no additional fee. So that Principal Amount split up six ways. The third option is targeted at tenants that have received the most impacts but have not quite made it back to a point where they can not only pay their current rent but also pay start paying down their balance. So what we have offered here, proposed to offer here, is that those tenants would begin repaying current rent amounts starting in january, but we wouldnt require repayment of the deferred amounts or the deliquent amounts until the beginning of july of 2021, so giving an additional six months to get their Revenue Generation abilities back up to where they can pay the deferred amounts or the delinquent amount in 12 equal installments. We have that 3 fee that i alluded to earlier to the Outstanding Balance that would then be divide understan dividee payments. Though its an upfront fee to make it more easily administratable with our systems, and, you know, ultimately this would hopefully allow the tenants more runway but hopefully will get them back on their feet by the end of june of 2022. You know, what is that 20 months from now. So this slide in particular is something that were hoping to get Commission Feedback and direction on at the end of the meeting. Next slide, please. The second item that were looking for Commission Feedback and direction on has to do with what we call civic impact rent forgiveness. So this was sort of the catchall category that we have been talking with the commission about, you know, ever since we started the rent forgiveness discussions over the spring and summer. You know, we realized that the prior approved rent Forgiveness Programs for percentage rent tenants and maritime tenants and l. B. E. Tenants may not capture all of the tenants that, you know, that are important to the Port Commission and the public aspect of the Port Commission, but who otherwise need support but dont get it under those categories. So what weve proposed is a capped dollar amount in, you know, in a program that would reach out and receive forgiveness who can demonstrate financial need with the impacts of covid19. Based on Commission Feedback at prior meetings, the two categories that we are proposing are based on that feedback are locally serving nonprofits with budgets of less than 3 million. And this is akin to the special events waiver that we approved with you a couple years ago on the parameter rent delegation authority. In terms of this categorization. So its something that were comfortable with. And the next category is we have heard about the commissions interest in helping artists, so we have tried to have tenants who use art as a primary use of port space. That seems to be a harder category to administer, i will confess, so were interested in your feedback in ways that if we do want to target that tenant sector, ways to define this that may be more objective. And we can continue to think about it with your input and to bring back a revised proposal once we have heard your thoughts. Next slide, please. And the proposed terms are to focus on the rent due in the period of sort of the deepest shelterinplace. So march 1, 2020, through may 31st, 2020. That threemonth period that was part of our rent Deferral Program. Relief would be available to each qualifying tenant on a prorated basis. Which means that if we get eligible applications and the total rent for those three months of all of those tenants s and not add up to 200,000 or more, wed forgive all of the rent due for all of those tenants for three months. If, on the other hand, if we had exceeded 200,000, we would prorate each tenant so that they, you know, according to the percentage of the total rent as compared to 200,000, so each would be forgiven an equal percentage of the rent for those three months. Next slide, please. This is sort of more background as summarized in the staff report of how wed approach this. In terms of applications wed require tenants to document their satisfaction of the criteria of the program that we agree to based on the commission direction. We need tenants to resolve any unsettled disputes and pay any amounts outstanding prior to march 1st in advance of receiving the rent forgiveness. Or that if they were if they had already paid rent for this period they would be entitled to rent credits as we have approached our other tenants, who have received forgiveness but have paid rent for the forgiveness period in question so that those rent credits would begin in june of 2021. And, obviously, to my earlier point about paying prior balances those rent credits can be applied to those prior balances first and whatever is remaining could be taken in fiscal year 20202021 if the tenants wanted to participate in the program. I think that summarizes this slide. Next slide, please. So i guess sorry, i should have realized that was the closing slide of that item. So thats the second of your items that were looking for your feed back and direction on so that we can bring back a proposal for action at the next meeting or a subsequent meeting based on your feedback. This slide begins the last section of this multifaceted presentation. Thank you for your patience and allowing us to sort of outline all of the different pieces that were keeping track of on this. This is a fairly targeted update on the shared Spaces Program which allows free use of sidewalk or outdoor park space for city restaurant and Retail Operations who would like to pursue Outdoor Dining in the face of the restrictions on Indoor Dining under the Public Health orders. So recap of the history of this program. On may 26th, the mayor announced the shared Spaces Program which drove the port staff to work closely with our partners who are implementing that program to try to align our work with our tenants in a way that made sense and sort of is in keeping with the mayors intent. We also work with the bay Conservation Commission and we appreciate their help in providing a sort of streamlined route to review these applications for compliance with the policies that apply to port property. So we sort of had that additional regulatory hurdle to jump and we were able to Work Together to get that into a place that we could offer the program at the same time as the city did on june 15th of this year. And then on june 16th was the day that the businesses were allowed to activate and, in fact, they were allowed to activate before the license was fully executed by the city in recognition of the emergent circumstances and wanting these businesses to operate, generate revenues and keep people employed and obviously to try to blunt the very massive effects of the pandemic. Next slide, please. So were happy to report that the port shared Spaces Program has offered 17 businesses the opportunity to expand their Outdoor Dining by over 700 seats. Weve activated 20,000squarefeet of port property with these activations and having gone to a number of them i can say that its been a great way when live in the waterfront and to bring people down to the waterfront in a responsible and socially distanced way and its something that we as the port want to continue to support into the winter months when we know that the weather is going to be challenging and as we have heard with todays announcements, you know, that more Indoor Dining rollbacks. So we, obviously, want to be on point with our tenants to make sure that they have these opportunities in a way that can generate business and can offer dining opportunities to San Francisco residents and visitors. We also have an interesting category of nonport tenants that border our property. And so these nonport tenant does not have leases with us but their sidewalks are on port property. In the past we had licensed those sidewalks to those tenants that wanted to do Outdoor Dining in a shared spaces sort of way so long as we could, you know, uphold the requirements of the rightofway and the regulatory requirements in operating a sidewalk or a curb space or wherever they were looking to operate. Those licenses required the payment of a fee. And it was brought to our attention as we implemented the shared Spaces Program that, you know, we issued new shared spaces licenses at no fees to those new applicants, but the prior applicants who had nonport tenants who had port licenses were still paying those fees. Those licenses were terminable on 30 days notice but in speaking to these tenants what we wanted to do was to try to figure out a way to get on the footing to facilitate what they were also doing. And keeping with our own Tenant Relief Programs and how they have treated rent paid. Next slide, please. So to achieve and to confirm what weve been working on, we wanted we brought a resolution forward as part of this previously scheduled tenant relief item to try to address the unique situation of these nonport tenants with with and without preexisting licenses, to use outdoor space. So the proposed resolution would confirm the port staffs ability to continue to issue licenses for nontenants who border and want to use the outdoor port space. And confirming that ability through the current expiration of the program on june 30, 2021. If that program was extended wed economic back for further extension so that we could stay in keeping with the citys Program Based on, you know, the role that the port operates under on state law. In addition, the resolution has a temporary waiver of sidewalk and street use license fees for preexisting licenses for nontenants, retroactive to the start of the city program when the other areas of the city, those operators, could occupy sidewalk space. So for those tenants whose licenses still exist from the before times when they were required to pay license fees, we authorize a waiver of those fees for this same period. For those nontenants who had a preexisting license who did pay those fees and did not choose to terminate their licenses, we would authorize a rent credit on the same terms as we have authorized for port tenants who received rent forgiveness for rent they already paid. So that if and when the shared Spaces Program is terminated that additional fees do after that time that are due after that time would be credited to those tenants. Prior to the issuance of the waiver as we have shown in our other summaries we require nontenant licensees to pay any Outstanding Balances from before the shared spaces period. So that is our proposed resolution. Next slide, please. So to summarize again, this multifaceted presentation and our request for the Commission Feedback and direction, were hoping that we request that you approve the proposed resolution and were here to answer any questions that you may have about it. We have proposals for the payment of Outstanding Balances and then, obviously, we are here to answer any questions that you may have about the other tenant relief updates that she provided. With that, that concludes my presentation. Thank you very much. President brandon thank you, mike, for that presentation. Commissioners, may i have a motion. So moved. President brandon is there a second . Second. President brandon now lets open it up for Public Comment. We will now open up the phone lines to take Public Comment on item 11 a from the members of the public joining us on the phone. Jennifer will be our operator and will provide instructions now for anyone on the phones who would like to provide Public Comment. Thank you, president brandon. At this time we will open the queue for anyone on the phone who would like to make Public Comment on item 11 a. Please dial star, 3, if you wish to make Public Comment. The system will let you know when your line is open. Others will wait on mute until their line is open. Comments will be limited to three minutes per person. The queue is now open. Please dial, star, 3, if you wish to make Public Comment. President brandon thank you, jennifer. Do we have anyone on the phone . Yes, president brandon, we have three callers on the line at the moment. President brandon thanks. First caller. Thank you. Opening up the first line now. Caller hi there. My namely an family and i have n longterm customers, and im happy to see that the port is addressing these issues but i still do have concerns. Firstly, these restaurants are already struggling. They really need every cent in order to stay afloat. So i believe that the port should make this a refund, rather than a credit. Specifying the end date is problematic. And i just think that the commission should tie the date to the citywide shared Spaces Program to keep it fair and consistent. Thats all ive got to say. Thank you. President brandon thank you, caller. Next caller, please. Thank you. Opening up the next line now. Caller hi there. I live along the waterfront and really enjoy going to these restaurants. I read in a report that the port wants to offer a rent credit. These restaurants are already struggling so i strongly encourage the commission to fully refind these payments rather than to offer a credit. The restaurants should not be required to do business with the port to benefit from payments theyve already made. This is only brought up now because they reached out to assemblyman david chu and has been really helpful. So please issue a refund to these restaurants instead. Thank you. Can you please state your name . Next caller, please. Okay. Thank you. Opening up the next line now. Caller hi. Good afternoon. My name is stephanie muston. I have been directed to address this committee based on my conversations with jennifer gee of the port with regards and emails that i received and expectation to repay the missed rent payments since march. I build the floats for all of San Franciscos parades and i work out of pier 54. The lease is held by the Chinese Chamber of commerce. And im a subtenant and a close relationship with the chamber and the chinese parade. I employ artists of all mediums to create floats and art for the cultural events including Chinese New Year, pride, carnival and cherry blossom, and since march we have lost an approximate 500 million from the cans laitionz of these events. Cancellations of these events. I had to lay off employees and with no Chinese New Year parade in 2021, we anticipate a loss of 175,000 to start the year. We started getting Small Projects again in september and i have been able to rehire two of my 20 employees. And they are now working parttime. I have been saving up enough money to be able to get back to paying my rent starting in january. And i have been working a second job to be able to pay my own personal bills. I received the 10,000 grant and a 10,000 loan to help to cover my insurance and to keep one employee working parttime for six months whout work. At the beginning of covid i was in communication with the Mayors Office who said they welcome the value that our Company Brings to San Francisco and that we would be taken care of. I was under the impression that we would not be under the hook for rent because of the loss of events and income. I hope that you will consider the creative and cultural value that we bring to the city and to the greater bay area. And we really hope that you will work with us to get us back to track so we can continue to do what we do. Thank you very much. President brandon thank you, stephanie. Jennifer, any other callers . Yes, president brandon, theres one last caller on the line. President brandon please go to the next caller. Thank you. Opening that line now. Caller hi, i am a Loyal Customer to several of the restaurants mentioned. And im a strong supporter of the shared Spaces Program. Given todays news that the Indoor Dining is being paused, more and more restaurants will continue to rely on their outdoor space. Putting a specific date on when this fee waiver would end raises is a lot of concerns as this pandemic is changing every day. I urge the commission to tie the end date to the shared Spaces Program so that these restaurants are not left out when the city expands the program. Thank you. President brandon thank you. Jennifer, any further callers . President brandon, at this time theres no other callers on the line wishing to make Public Comment on this item. President brandon thank you. Seeing no more callers on the line, Public Comment is closed. Mike, do you want to address indiscernible . Yes, i would. So in terms of the comment of stephanie muston, i think that is exactly the kind of tenant that we felt that was not covered by the prior categories of rent forgiveness that you approved. And so thats why we came here today to discuss with you what this additional category could potentially do. And so that is definitely a tenant that we feel that is very important to the civic fabric. I feel that thats definitely i think the reason that we wanted i would assume the reason that we wanted testimony to you was to emphasize the value of this program to a lot of the very important tenants that are not, you know, already captured by the other sort of Mission Driven categories that we have already directed us to provide rent forgiveness to. So thats the kind of feedback that were looking from you today and well definitely try to bring back a proposal that addresses that in more detail. In terms of the shared spaces callers, we wrestled with both of the issues that that have been raised by the commenters when we spoke with the restaurants themselves, both in the call organized by Assembly Member chu and a followup call after that. In terms of the termination date of the fee waiver as i described in the original presentation, we would come back to the city program was extended for a temporary basis and wed come back to you and request that you extend the fee waiver for that same period. Thats fully our intent. Our concern in tying this to the city program is that if that gets extended indefinitely or permanently, that there are other legal issues relating to the use of our property and getting fair market value for our property that wed have to work fly together. And so we work through together. So we felt that the best option was to set up the resolution so that its expiring on the current expiration of the shared Spaces Program, with the intent to come back to you and to discuss any changes or extensions of the program as the conditions on the ground change. As for the fees that were previously paid by the restaurants, as we described to them in our calls with them, these were actually unlike our tenants that, you know, had to endure the impacts of the pandemic, you know, in other context, these were not leases that they were required to sort of maintain on an ongoing basis and they were terminable with 30 days notice. So these tenants when they didnt elect that, we obviously continued to build them and to collect that rent after the broadbased deferral moments for that deep shelter in place. So in trying to deal with what to do about the rent the amounts paid, we wanted to set them on equal footing with the port tenants who in similar situations, in fact, in other situations where they were required to keep paying, they did pay. And so we thought that it was appropriate to sort of credit those dollars back at the end of the program when the prior arrangements with license fees were sort of reignited. So weve tried to address each of those comments in what we presented to you, but were definitely interested in your feedback and direction from here. President brandon thank you. Commissioner gilman . Youre on mute commissioner gilman. Commissioner gilman thank you, sorry. Before i started because i have several sets of questions and in many ways i appreciate the bundling of these items, some being informational and some being action items. I guess that i wanted to just ask staff or commissioner brandon, how do you want to take questions and reflections . Do you want me to just run through all of them or take them piecebypiece, since they are separate items . President brandon run through them. Commissioner gilman okay, just wanted to check. So i i guess that ill take them sorry, im just looking at my notes. Maybe i should take them in order. So could you go back so on the rent forgiveness Deferral Program, first of all, great work for i believe that it was the 81 that was on the slide who have opted in. And my one question that i have about that program, which i know that is informational is on the folks who are not opting in, i think that you said it was 221. Is there any way to pull back up that slide . Thank you so much. I really appreciate it. So of the tenants who have since not being paying the 238, 8. 3 million in the scope of the other categories, its the smallest. I had a question why why we wouldnt i know that its not been approved by the board of supervisors but indications are that it will be. Why wouldnt we mirror the city program for noncity tenants that are being tasked by the board of supervisors. Or why wouldnt we offer a longer runway as the governor has in his proposals . I just wanted to understand the rationale behind sort of the timing and the framing of having it all due, as my understanding, january 2021 . Unless im understanding it wrong. Are you talking about the proposed Repayment Program . Commissioner gilman yes, the Repayment Program. So, i think that we thought a couple of things. But basically, you know, as you know that and as described, the City Ordinance sort of laying out those new repayment plans has not been adopted. And technically does not apply to the city agency as of now or it may. Or they may make an amendment to change those Repayment Programs. You know, other agreement plans are available. And so i think that we were trying to set something up that we thought that made sense that was more favorable than our lease terms and i believe that under the moratorium that i think that our attorneys can correct me if im wrong, i believe that tenants still need to pay, you know, late charges or deferred interest, so what were trying to say with our repayment plan, is that maybe its a different time frame but were trying to give something more favorable, again, as ann incentive to bring people in to get dollars into our budget sooner. Because we have not received relief so thats part of the incentization that were trying to create. Commissioner gilman okay. And more questions, both of my questions are for the other two items. What if someone you know, cant begin repayment or just cant pay rent in january and february, looking at Outstanding Balances between march and december of 2020 . So, you know, the pandemic is still happening and were actually moving backwards. Knock on wood, and mayor breeds leadership, we dont move backwards in the system. What is the game plan with the same group of tenants that we saw, the 238, dont pay q1 of next year . Well, thats well, we observed that were doing outreach to those tenants who havent paid that amount and opted in. We assume that that outreach would grow to those tenants who have opted in but arent able to fully play in and dont select the repayment plan. You know, the mayors Eviction Moratorium requires an exchange of notice and a request for feedback from the tenant on why they cant pay rent. Sort of setting up a more extended negotiations and sort of running off to court to get an unlawful detainer to cover our property. So i think our strategy is to observe as weve tried to observe or share with you sort of the shifting environment of Eviction Moratoriums and were going to have to take a collection strategy that takes that into account. Mike, can i add to that as well. Of the 200 plus tenants that havent resumed normal rent payments, some have already reached out to us to start the conversation on potential terminations and other alternative approaches, like rightsizing their lease hold. Some of our tenants, you know, have a small tenant has two Office Spaces in 412fb and he moved all of his operations into one. So its unfortunate i think that the 200, were going to have to just take that information and approach it as they come through the door. Commissioner gilman okay, great. Thank you so much. And the next set of questions is someone who has been asking the staff to bring this forward, sort of the Tenant Relief Program forgiveness for Community Serving artists nonprofits, that program. I just had a couple of questions. And i apologize if it was in the staff report. I think that the jumping around i was having a hard time tracking it. Can you just overall, what was the rationale for capping the program at 200,000. Is that mirroring our maritime or l. B. E. Programs or sort of how did you come up with that number . Mike you want me to well, ill start and you can fill in if i get it wrong. But basically what we felt that it was appropriate to do a capped amount because we dont actually keep data, for example, on nonprofits on port property. And so we try to take account of how much rent was due from what we thought would be eligible tenants. And we saw that based on the time period that were talking about, 200,000 would cover all of the ones that we knew that would come in. And you have more specifics about that calculation. Is that pretty much tied up against our estimate . Or is there a contingency amount for additional eligible tenants . Yes, for the threemonth period of time on the tenants that we believe to be artists producing art or a nonprofit 10ant it came to about 185, so we bumped that number up to 200 to give us a bit of breathing room for tenants that we may not know of their nonprofit staffus. Commissioner gilman and how many tenants or entities do you believe that to be . At this time i think that it was about 50 or so tenants. Commissioner gilman okay. I think that its i mean, to give scale, its less than 10 on the nonprofit side and the rest are artists. Commissioner gilman okay, just a question. Thank you. And then can you just remind me for the l. B. E. Rent forgiveness Deferral Program, which is different from the loan program, what was our cap for that . Im sorry. Our web page commissioner gilman i know that well revisit this and this is not an action item today and so id like to see this group of tenants benchmarked against the l. B. E. And the maritimes because i just want to understand the rationale if the terms are different. And ill say the same thing with the rent forgiveness period. Unless im remembering wrong, i thought that for those tenants we were forgiving rent through the end of this calendar year with the option to extend. So these are just some of the things that seem inconsistent compared to those two programs that i would neither need to understand staff, and you have strong rationals, i would go along with that, but i couldnt approve the item until i have a deeper reflection on how that reflects against those two programs. I think that this is absolutely needed. I just want to make sure that this is not because this is an unknown tenant entity to us, unlike our l. B. E. Contractors who rent from us for maritime, i want to make sure that were having equity in how were lining up these programs for three groups of tenants which i think that our core you know, to the trust, and also core to the fabric of San Francisco. I actually wont go into more details since this is an informational item and im happy to also oneonone to send a list of questions that i need to be answered before i take action on this item. Does that make sense where my mind is going to you guys and where im trying to see alignment . It does. We may have some denominator challenges, you know, with the dollar amount versus how many tenants would be benefited. But we could take that and lay it out more clearly as we come back with a more defined proposal. Commissioner gilman i dont want to belabor it here but i want to make sure that were being equitable because i do note that many some of the nonprofit tenants are nonprofits that are run by communities or mostly serving communities of color. I dont know that about the artists but i want to just make sure that its equitable against those three areas of forgiveness. And you addressed it a little bit about the action item which is today, which is the fee forgiveness. And you said in the staff repore how many of the folks who are paying for the shared Space Program who were going to be waiving or possibly not refunding, how many were leasing space from us before . I sort of lost that. Did you say that it was hold on i think that it is here. I think that it was only two. There are two that are on that area across on the western side of the area. Commissioner gilman okay. So the shared Space Program did not exist, and they would end their outdoor seating . No, it was preexisting licenses to use outdoor seating. Commissioner gilman okay. But rest are new licenses . The rest are new licenses that we issued on the basis of the citys program as a sort of temporary special event type of thing. So part of the resolution was just making that clear to you, the commission, that we were doing that and to hopefully confirm our ability to do that Going Forward. Commissioner gilman okay. I guess on this item you know, i would love to hear commissioner adam and commissioner brandons thoughts. When we pass this resolution that instead of us putting an arbitrary end date and having to come back to commission as it gets extended, because i think that causes anxiety for Business Owners and uncertainty, especially if theyre trying to leverage other resources through these hard times, that we tie our resolution to any action by the board of supervisors to extend the shared Space Program during our state of emergency. Because i do concur with you, mike, that if when the program ends, the pandemic ends, that we are no longer under i guess that i looked to director forbes, our city attorney, to note that the state of emergency is the right tool. But if life goes back to normal and, you know, the emergency is over and People Choose for some reason the city decides to allow these structures to be permanent, i do agree that we need to negotiate new leases and we have fair market value. All of those thing comes into play. But i would like us to give certainty to our restaurateurs and businesses that as long as the emergency is in place, and the board of supervisors extends the shared Space Program that our program would follow suit. So thats more for discussion with my fellow commissioners and thats the only piece of your proposal that i had a slight difference of opinion on. Thank you. President brandon Vice President adams . Vicepresident adams yeah. Mike, thank you so much. And thank you for your comments to commissioner gilman. I look at this situation here ae truth and the truth of the matter is that this thing may get worse before it gets any better and you just always tell people the truth and then they have time to prepare for what is coming. I think that is what youre trying to do. I think that i know that well have a change of leadership in the white house, but its going to take some time and i see going through june of next year at least. And even with this virus and the vaccination, i still think that 2021 could be a lot like 2020. Im just being honest. And i appreciate what youre doing. And we are doing the right things by helping these artists, nonprofits, and commissioner gilmans maritimes and restaurants. I mean, we dont have a blueprint for this, this is trial and error, and we dont know. We have never been to this dance before but well definitely learn from this. And so i have a very, very open mind and want to do what we can, but we have to help our tenants. Because were going to be in this for a while. And were shutting down and theyre saying the worst is yet to come with this virus, and weve got just to be honest about it and get our head around it and to help as much as we can help. And thats where im coming from. And because this is a very painful conversation because were going to lose some people along the way, but if we can help as many people i think to stay afloat, this is our commitment as a port. And so, yeah, you have my support. I know that commissioner gilman wants more things to come back, i appreciate that. I aplawt applaud that, and i agh her. And i want to hear what president brandon says, but this will take time. 2021, will be just be like 2020. And we have to face that and just tellen tha tell everybody. And we anticipate the worst and if Something Better in between happens, we can move on from there and i think that, mike and criza, were having a reality check here. We have an obligation to do whatever is needed along with the port staff and our director and the mayor of our city leading this charge to do what we have to do. So im all in to do what we need to do to keep this thing going. Thank you. President brandon thank you. I need to reopen the Public Comment line. I think we have a caller that was having problems getting in. So, jennifer, if you could open up the line to the caller that is waiting. Yes, i can do that. Thank you. Unmuteing their line now. Caller hello, did can you hear me . President brandon yes. Caller hello . Can you hear me . President brandon yes, we can hear you. Caller yes, hi, hello, everybody. This is about chapter 11a. My name is john van lu, and im from waterloo beverages. I immigrated to the United States in 1998. I have been a tenant at the port of San Francisco since 1999. And presently holding three leases. The estimated revenue that i have paid so far for all of those years is about 690,000. We are an independent Beverage Distribution Company who serve 80 of our business through restaurants and bars. My business was strongly affected and its been challenging until today. We are making it, but your support is needed. Im not requesting the full forgiveness, but a forgiveness for the first three months when everything was shut down. During the shutdown we lost over 40,000 in inventory due to outcoded dated products. And due to the restaurants shut down, we have over 15,000 in unpaid collections. It was not successful in receiving any grants i was not successful in receiving any grants as i was in a very weird category, and, therefore, not applied to receive anything. Thank you, gentlemen, thank you for listening. President brandon thank you. Thank you for your call. Are there any further comments . President brandon, i do not see any other callers on the line. President brandon okay. Public comment is closed again. Mike, we thank you so much for your presentation. Its very thorough and a lot of information. A lot of food for thought. I think that its really commendable all that we are trying to do to help our tenants to stay in business during this pandemic. I think i think that, of course, theres a lot more that we could do, but theres also a lot more that our tenants can do. Because of over half of our tenants chose to not opt in to work with us is really hard to find ways to further help them. So i think i think that we have been very, very forgiving and we have tried to work with all of our tenants, but i dont think that we can put ourselves in the position to respect our tenants who wont let us to know how theyre doing or how we can help them, and so they can be helped during this crisis. So, commissioner gilman asked a lot of great questions. But tenants have to meet us halfway. You know, you guys have done outstanding work in putting these programs together. And following tenants individually to try to get them whatever help we can give them. But i do think that we have to work both ways. And then we also need to we have to look at our bottom line. And how supports flow and how we keep our staff, and how we keep our operations going while were forgiving and deferring all of this revenue. So all of this has an impact on our finances. And thankfully we were in a great position prior to covid. So hopefully we can wade through this for the next couple years because, you know, nothing is definitely going to go into 2021 and well continue to have to help our tenants. I agree that we should do all that we can. But i know that theres a limit to what we can do. So with that i think that with the opt in program, i think that our tenants really need to work with us and opt in so that when were trying to come up with these policies Going Forward that we have a better understanding of what our tenants need. Because theyre just not giving us any information we dont know. I think that i think that the rent Forgiveness Program is phenomenal. I think that what were doing for the artists and the nonprofits is also great. And what i thought that i understood you to say is that the 200,000 cap was based on six months rent from those particular tenants. So hopefully everyone we would have enough for six months relief for all of those tenants. And, if not, then it would be up to aer i a percentage. If you have further needs you can always come back to us, right . Yes, that is true. I just wanted to clarify that the proposal, the 200,000 is tied to three months of forgiveness. But per commissioner gilmans comments, were going to come back to you for an action item on that and well be more detailed how that fits in with the length of time and dollar amounts that we have forgiven on the other categories. President brandon right. But it should be tied to how many tenants there are and what, you know, you know, what the total amount of the rent is for those tenants. Yes, well definitely provide that estimate of tenants and their rent too. President brandon yes, yes, that would be great. But i think i think that the port has done a phenomenal job in trying to work with our tenants. And to helping our tenants during this time. And so i want to commend our staff for that. And for me its always, you know, how does that impact our fiscal capacity. Whatever decision were making, what no matter how big, no matter how small, and with shared spaces, with those tenants that were forgiving those licensing agreements, what is that impact . In terms of all of the shared spaces . I think she means the two, mike, that had previous license agreements and were paying us. President brandon i mean like like on the opposite side of the street. That arent port tenants. So were waiting just so that its ratifily those two tenants that were discussing at this point in time and are under 3,000 a month. Very nominal. Correct. Thats why we sort of moved ahead to sort of align with the mayors program, but also to bring visitors to the waterfront because we see that indirect effect on our businesses when people are down there. So we saw that as a worthwhile approach and were hoping that you support that today. Great. President brandon i do think that you guys have done a great job. You know, theres i am sure that theres a lot more that we could give, but what can we fiscally, responsibly do . President brandon, if i could just add to your comments around fiscal prudence and responsibility. We did have a good year closing, but as i said in the directors report, things are looking good relative terms. But there are a lot of waitandsee moments. So one of the things that staff and i really liked about the proposal for the civic tenants is that it was limited and there was a certain budget amount and it was based on the tenants that we identified. If we needed more funding for it, we should come back and well make a proposal, of course, looking at commissioner gilmans questions and justifying the three different categories. But if we do need to prepare for february, and were in such a waitandsee mode as we wait to see what happens. So i would feel more comfortable if we can come back with more information and Financial Reports if we were to increase that amount. Because at this point i can tell that you were on budget, our losses look to be about right. The program is coming in as anticipated. But as we move further, i cant continue to make those statements without more information. President brandon right. Right. Thank you. Definitely i appreciate that information. Commissioner gilman, did you want to Say Something . Commissioner gilman yeah, sorry, just raising one additional question. So going back to the staff report sorry, im maybe getting confused about the tenants. Theres 17 businesses currently right now that were talking about doing the fee waiver from today, from november 1, through june 30th, 2021, to align with the citys program. Sorry. No, so that 17 is the total amount of all port tenants and nontenants who have done a shared spaces activation. Commissioner gilman okay. So our tenants are still pulling licenses on the basis they have in the past where they dont pay additional fees, they just pay a percentage of sales as they would pay under their lease. Commissioner gilman so were talking then only about this resolution affecting five tenants . At this point in time there are two that weve identified that have reached out to us that prior to covid had existing licenses with us. And they are requesting the request is to waive their fees between june 16th through the june 30th, 2021, timeline that we are proposing. And as of a ballpark figure, that amount of money for those two particular tenants is roughly 36,000. With that said, there are other tenants nonport tenants that are adjacent to port rightofway that may and can take advantage of this program if they approach us. So there are a handful up in jefferson commissioner gilman right, so this is like an optin program. So i guess it seems how many licenses are used for things like dropoff space, etc. . So its not clear. If the nonport tenants are using the shared Space Program for Outdoor Dining, you know, for ways to assist businesses they would approach us and wed have the same policy that were asking for today. Which is to align with the city and not charge for the use of that sidewalk space. Commissioner gilman okay. So a question for commissioner adams, are you comfortable because i will concede having this only go to june 30th, 2021, knowing that most likely it will be extended and having the staff to come back to us each time. Or do you want to amend the proposal to say that we would just mirror the city as long as the state of emergency is in . I guess that is just the question. Well, i thought that mike said that there was some legal reason for us not doing that. So, commissioner, i was worried about the potential permanent extension beyond this emergency sort of moment in time. And so if you wanted to pursue commissioner gilmans proposal, staff doesnt have an objection, i think wed probably tie it to the mayors let me see expiration of the mayors order because that already is tied to the state of emergency. We dont have an objection to that. We just felt like the commission we would offer you more control but, obviously, the argument now would be the same if the mayor extends another six months and theres still an emergency. Yeah, it might give more certainty if the folks know that while theyre participating in this program under the mayors order were waiving these fees. If they want to continue postmayor orders, we should negotiate with them and take into account the whole other step of priorities and our trust responsibility for fair value. Im on the same page as you, president brandon, when you said that we give them love, theyve got to love us back. I agree, but i kind of am thinking that were following kind of mayor breed to june of next year. Im good with that. And if we have to extend it. But i have a feeling just within myself that with the new administration coming in that the new president and then our Vice President who is from this area, Vice President harris, i think that we are going to get some stuff done. I believe that theyre going to try to get as much done as they can. Im willing to go to june next year and then look at it. But i think that is all we really can do because none of us have a crystal ball. Right. I dont know i know that what were talking about is based on a restaurant using a shared space for Outdoor Dining. I think what the mayor is looking at is so many different businesses and industries within the city and not just this. And so i would be more comfortable with going with the staff recommendation. Okay. President brandon of june. And then if we need to extend it, i mean, lets lets look at it again First Quarter next year. Okay. President brandon so we can give tenants leeway if needed. But i think that for now im comfortable with june of next year. Yeah, me too. And i think that youre right march, look at it, First Quarter. I agree with you. President brandon any other questions . With that, we have a motion and a second. A roll call vote, please. Clerk on resolution 2050 [roll call vote] president brandon thank you. Motion passes unanimously. Resolution 2050 is adopted. Call the next item, please. Clerk item 12a is an informational presentation regarding the Waterfront Resilience Program alternative Development Strategy and proposed decision framework. Good afternoon, president brandon, Vice President adams, commissioner gilman and director forbes and members of the public. The port waterfront resilience director here today, along with lyndee lowe, the port resilience officer, to make a very important presentation about work that is ongoing in the Resilience Program. We want to talk today about Alternatives Development and a proposed decision framework. Next slide. So this is our agenda today. We want to start with a discussion about a goal for the Resilience Program and principles underlying that goal. Then well move into alternatives, development, and how to use evaluation criteria to evaluate these alternatives and well talk briefly about seismic and flood standards. We have developed some proposed proposition a funding guidelines for the commissions consideration as well as the public consideration. Well talk a little bit about our adapt plan and adaptation guidelines that are under development. Discuss community and Stakeholder Engagement. And then most importantly we want to engage the commission with some key policy questions related to this work. We will trade off during the presentation to cover different elements of this presentation. Next slide, please. We wanted to start with the draft goal statement and draft principles. Next slide, please. For context, we want to remind the public that the Waterfront Resilience Program has a number of efforts portwide and in specific geographies. The portwide efforts include the adapt plan that you will hear about today. And the Flood Resiliency study that staff presented on the last commission meeting. And the Seawall Program is in a more limited geography for Fishermans Wharf to missions creek. Weve got somests in the southern waterfront including the seismic Vulnerability Assessment and the creek adaptation strategy that were pursuing along with the planning department. And the San Francisco municipal transportation agency. And then there are a number of related port efforts by other divisions that have a resilience component. Next slide, please. So just to get a sense about how these efforts overlap, i will focus in on the Flood Resiliency study which is its an effort looking at the flood risks and how to reduce those risks port wide. The entire 7. 5 miles of port jurisdiction. And the Seawall Program is looking at flood and seismic risks and Risk Reduction strategies for those for those specific hazards. Theres clearly an overlap between the Flood Resiliency study and the Seawall Program in that northern waterfront area. Where were looking at flood Risk Reduction. And where were working very closely with the army corps to see how we can also begin to solve some of the seismic risk exposure as well. Next slide, please. So we have been over more than a year working on developing a draft goal for the Waterfront Resilience Program. We presented on an earlier version of this and been out in public workshopping this goal statement to see if it reflects community values. More recently working with commissioner forbes to work on the resilience plan and the Strategic Plan today which says to prepare the port for natural and humanmade risks and hazards. We propose today that the goal for the Waterfront Resilience Program should read that the Waterfront Resilience Program will take actions to reduce seismic and Climate Change risks that support a safe, equitable, sustainable and vibrant water front. We understand that the commission will be considering potential updates to this Strategic Plan in february and this would be among those proposed amendments. Next slide, please. Underlying that goal we have draft principles that we have also been sharing with the public. Clearly want to prioritize life safety and city and regional and port Disaster Response. We want to advance equity throughout the Waterfront Resilience Program, including Stakeholder Engagement, planning, contracting, jobs and decisionmaking. Enhance and sustain economic and eclogical opportunities. Inspire an adaptable waterfront that improves the health of the bay and ensures Public Access and protects historic and maritime resources. And provides opportunities for diverse families and businesses and neighborhoods to thrive. Finally, we want to lead a transparent and collaborative and adaptiv adaptive resilience. Next slide, please. We have been out seeking feed back from the public on both goals and principles and we have heard a lot of what is embedded in this to be reflected back, to be transparent and to continue to engage communities and clearly prioritize life safety and Emergency Response and responsiveness. In terms of the principles, people embraced the idea of inspiring an adaptable waterfront and asked us to think about how we can connect the city with the waterfront through additional Public Open Space and accessible waterfront. And clearly on protecting job centers and people have a deep attachments to the creeks, both with Mission Creek and want to protect the housing, schools and youth facilities. Next slide, please. Ill hand it off to mindy to talk about alternative developments. Thank you, brad, good afternoon president brandon and Vice President adams. I mindy lowe. My portion of the presentation includes alternative evaluation criteria and the adapt plan, Community Engagement and key questions and considerations for the commission. Next slide. And Waterfront Resilience Program team has been developing draft alternatives over the last month or so. These alternatives are designed to reduce the risks and consequences in a way that is consistent with stakeholder and Community Input as well as port and city priorities. It includes a range of time and geographic scales. That can be implemented in phases. The program will use adaptation pathways to communicate the alternatives to ensure that near, mid, and longterm risks are conplated an contemplated it address the costs and efficiencies. Next slide, please. As we have presented at the last few Commission Meetings, the team is using the subarea material that has information about hazards and priorities and measures of a subarea scale. And added the focused work that we prohibited tpresented to thet the last mideasting. Those developed in the army corps study to have a range of alternative from sitespecific actions to subarea alternatives to waterfrontwide alternatives. Next slide. And an important considerations regarding the draft alternatives that have been developed to date, we would have a range of short, mid and longterm as was Site Specific to larger scales alternatives for the commission to consider. The draft alternatives being developed will be used to inform both the Army Corps Flood study and the proposition project. Due to the unique characteristics of the waterfront theres alternatives that are specific to areas such as Fishermans Wharf and the Ferry Building that wont apply in areas such as south beach and piers one through 35. And the program will emphasize the alternatives that will serve as the initial emphasis or the initial investment funded by proposition a, which will be focused on the highest priority life safety and Emergency Response risks. Next slide, please. Im now giving to give you an overview with the understanding that none of the alternatives apply equally well to the entire water front and the team has not started developing alternatives south of Mission Creek. That work will start next month. The first high level alternative that im going to talk about is the alternative waterfront alternative that has razeeing and rebuilding the wharves. The primary actions to prevent flood risks to the city and the port and the wharf area by rebuilding and elevating the wharf zone. This alternative is relatively low cost, less disruptive, and it reduces the impacts to the bay and the roadway. Next slide, please. Another draft developed by the team is the resilient alternative in which the roadway corridor is raised to reduce the flood risk. This increases the adaptation Space Available by including the roadway, it could provide ability for stormwater improvements and allows for a utility to have flood risks for utilities currently in the roadway. Next slide. And the seawall includes the construction of a new seawall, which stabilizes the old city wall and reduce the seismic and flood risk to both the port and the city. This alternative has opportunities for mobility and utility improvements depending on the design. Next slide. Last waterfrontwide alternative developed by the team is the tactical life safety alternative, which is designed to prioritize the risks at high occupancy life safety and Emergency Response locations. The focus of this alternative is to reduce the highest consequence seismic risks and to address the flood risks opportunistically, meaning in the same locations. The purpose of this alternative is to reduce as much of this type of risk as possible for the lowest cost with limited disruption. I want to remind the commission again that these are only some of the alternatives under development and they are presented just to provide a high level understanding of where were at in the process at this time. A critical way to know if were consistent with the city priorities is through the use of evaluation criteria that the port Resilience Team has drafted for the program. Next slide. Evaluation criteria is important because it enshirrs that decisionmaking has considered the program, provides stakeholders with a link to the decisionmaking process, makes decisions transparent and accountable, and identifies tradeoffs for additional benefits, provides clear ways to improve approaches to alternatives and allows a comparison of the alternatives to one another. Next slide, please. The port program team developed evaluation criteria in four categories to ensure that we are considering a wide range of issues that are important to the port and the city. These categories include feasibility and performance, economy and jobs, society and equity, and environment and ecology. Next slide, please. The Program Evaluation criteria categories have a number of more detailed metrics and heres a limited example of what is included in the broad categories. For example, under economy, the number and diversity of jobs are one of the metrics. The criteria will be used to refine and to improve alternatives as well as to assess the performance of those alternatives. When using the criteria, the team is not currently planning to produce waiting and scores for the different metrics, but report whether and how alternatives address these criteria to make it easier to communicate and to understand each alternatives strengths and weaknesses. I now turn it over to bad to give the seismic and flood standards. Next slide, please. Next slide, please. So as part of program development, we are looking for guidance on performance standards by which well evaluate these alternatives and ultimately the team will design these alternatives. So what are performance standards . Performance standards describe the engineering performance of buildings and infrastructure as compared to seismic and flood hazards. They could be used to evaluate how the existing assets are anticipated to perform before and after improvements as well as new assets. When performance standards are established they are used to develop the Engineering Design criteria. How are they developed . Thinking about the Army Corps Flood Risk Management efforts underway with the army corps, there were thinking about building flood Risk Reduction to benefit the city. So that thattest requires consultation with the city effort requires consultation with the City Departments and policymakers to determine the citys flood risk appetite. The seismic performance is a bit different. The ports chief harbor engineer manages the ports building code. We have assembled a seismic peer panel to provide advice for particularly difficult issues. Next slide, please. So flood zone codes address the performance of buildings and marine structures. It does want be address the performance standards for shoreline stability. That is a pretty unique condition that was just identified in 2016. After that was identified the ports chief harbor engineer issued guidance requiring that the new projects that overlap the seawall in areas subject to lateral spreading risk would have to perform to a certain standard. The chief harbor engineer has the power to publish new or revised guidance for life safety as our understanding of these risks develops. Next slide, please. Thinking about flood risk, as we engage the city in the policy discussion about the level of flood Risk Management that we should be pursuing along the shoreline, there are a number of factors to consider. Ultimately as we build things well look at a design elevation. That could be built initially or over adaptive measurement over time. In order to chiez tha choose thn elevation we need to understand what sea level scenario wed be building to. The army corps has three Sea Level Rise curves. They overlap, they do not match the state of california, likely a one in 200 chance curves. So this is an area that we need policy guidance. We have coastal storms and extreme tide events. And the National Standard is a hundred year flood for a flooding event that has a 1 chance of occurrence each year. We need t need to have feed bacm the city on that standard and any safety margin that we call free board. Next slide, please. Next slide, please. We have been working on funding guidelines to help us to all think about how to allocate that initial investment that voters have provided for. A strong point for this discussion, mindy talked about the alternatives that we are developing that are waterfrontwide. Well have a range of alternatives and a process by which the Port Commission can choose preferred alternatives for each geography of the port. So were really thinking about a case where we have identified the alternatives for the entire seawall area and using these funding guidelines as they may be modified by the commission to identify specific assets and locations for first investment. Because we know that we wont be able to improve the full threemile area. And then im going to walk through each of these. Next slide, please. Life safety and prevention response. And this is what we emphasized with proposition a on the ballot. Which are subject to the highest lateral spread risk and other seismic risk that could pose a risk to life safety. Where are the highest concentrations of people. Importantly, where are the critical Disaster Response assets. And we have identified all of this through the ports multiRisk Assessment. Finally, we want to ask the question, are there relatively cost improvements that are less disruptive that can provide a significant improvement to life safety . Next slide. In some areas we may determine that we dont have sufficient funding. Lyndee talked about the sufficient corridor and we had risks to the utility infrastructure. If theres a determination to address those risks, obviously, that is a multiagency effort. With a cost well beyond what we have in proposition a. So is there further planning, stakeholder alignment or analysis required . If the answer to that is yes, should we seek other funds grants or dedicate a part of proposition a to advance that plan and work and Stakeholder Engagement for those areas . Next slide. Other partnership opportunities. Iare there city agencies pursuig a project or in their 10year capital plan a project in areas that we might be making investment in order to allow for economies of scale . Is there an opportunity to partner with the private forprofit or nonprofit . Are there federal, state, regional funding opportunities where we can leverage proposition a funding. That was specifically called out in a bond report as a use of bond funds. Next slide, please. Equity is a key principle. That benefit the entire city. That was really the theme of proposition a, you know, protecting waterfront functions that benefit the entire city. Are risks addressed across the area in an equitable way . Are alternatives informed by a broad range of stakeholders . They have been committed to the prospect of engaging all the way through this process of both Risk Assessment and developing alternatives. And then are the economic benefits putting equity first in terms of jobs, local businesses, community projects. Next slide, please. And then we want to evaluate the projects that are going through this set of questions and geographies. Can the projects be delivered within the time schedule identified in the bond report. Does the collection of projects together represent a program that we can efficiently deliver . Next slide, please. We have heard that, you know, earlier in the agenda that theres a plan to pursue the pier rehabilitation efforts for piers on the northern waterfront. Is there a planned redevelopment in an area . Is there another source private equity or c. F. D. Proceeds related to that development that can pay for the improvements that would be required . If yes, is that project financially feasible. Would it need an additional subsidy to ensure that those historic rehabilitation projects could move forward. Next slide, please. Similarly, is there a tenant, a longterm tenant, that might perform a lease extension and might be willing to make substantial mysterimensubstantiy for the program. And i want to caveat that to note that there are some seawall alternatives under consideration that are probably not appropriate for delivery by a one of the Ports Private Development Partners. For instance, ground improvement in the embarcadaro is not something that we recommend as an action for our private Development Partners. And the other alternatives, the new resilient wha wharf that wey described are appropriate. Next slide, please. So now ill turn it back to lyndee to go over the adapt plan and the adaptation Design Guidelines. Thank you, brad. Next slide. If has the program for the critical components of the program and including the area from Fishermans Wharf to harrington park. So the entire port jurisdiction. And the plan is underway now and it includes the narrative of the ports Waterfront Resilience Program, including the risks and the Stakeholder Engagement fundings, decisionmaking criteria, adaptation Design Guidelines and recommendations for the proposition a projects. And the other actions and alternatives to address the waterfront sorry to address and achieve waterfront resilience. Next slide. The adapt plan will integrate the recommendations with the ports near and longterm objective. Describe how risks will be reduced over time. Allow the port to take action on the most urgent risks while adapting over time to remaining with the increasing risk. And integrate with the waterfront plan to support the resilience work over many years. Support adaptive actions communicated clearly to provide the public and stakeholders with confidence regarding the ports approach to resilience. Next slide. This is a chapter abstract review of the the adapt plan wih the idea of the content of the plan. Its meant more to be a takeaway than for me to walk specifically through it. But as you can see it includes the hazards that we identified and the multihazard Risk Assessment and includes findings from our Stakeholder Engagement process. It describes the alternatives that were processed and engaged in, the decisionmaking criteria that were talking to you about today. As well as includes a set of recommendations for the proposition a projects and the flood projects. Next slide. One critical component is the adaptation Design Guidelines which provide the elevations and the design approaches to ensure that the resilience work taken over time and by Different Actors will result in consistent functional and desirable waterfront, rather than a myriad of elevations and approaches to reducing seismic and flood risks. The guidelines apply to all port projects and provide a framework for adapting the waterfront over time and, again, for actions undertaken by Different Actors. Next slide, please. I will now provide an update on the community and Stakeholder Engagement that we have planned over the next three to four months. Next slide. As we have presented at your last meeting, we continue to work closely with our City Department partners to ensure that the resilience work considers the city perspectives and expertise, and it is designed to take advantage of partnerships. Next slide. We have some upcoming Community Engagements, including cohosting meetings with the communitybased organizations and the bayview and the Mission Creek communities. We will continue to use our Digital Engagement during this covid19 period to obtain feedback on the material and storing that that we have previously shared with the commission. And then we have been engaging with the tenants over the last several months on the multihazard Risk Assessment finds and we will continue to engage as we develop alternatives. Were also working with our wonderful l. B. E. Team members on Youth Engagement and engaging on our element and coming up for approaches for both of these exciting upcoming engagement opportunities. Next slide. I want to thank the commission for your patience with all of this material. We know that littl it is a lot o consider in a short period of time. We have a few areas for the Commission Consideration that we would like to highlight. And to receive your input and feedback on. Today if you would like. But we also want to let you know upfront that well be returning in december to provide the commission more time to consider this information and provide input at that time. Next slide, please. The first area for input results to the goal statements and principles. Does this goal and do these principles reflect port values and the role that the port plays in the citywide resilience. Is there anything that the commission would like to change or feel that is miss something next slide, please. Missing . Next slide, please. And the next area is on the evaluation criteria. Does the commission feel that theres the right side of metrics and the alternative work . Is the Commission Comfortable with reporting out how the alternatives measured against the criteria, rather than a more detailed waiting and scoring approach . Next slide, please. Does the commission have any guidance to staff on the issue of coastal flood Risk Reduction standard as we begin to engage the city on this issue . Next slide. Finally, on the proposition a funding guidelines, does the Commission Support the approach to using these guidelines to help to advance and to communicate decisions on proposition projects. Do the guidelines prioritize decisionmaking appropriately . Does the Commission Support aligning the Waterfront Resilience Program to work with other strategic work that the port is doing such as the location efforts and the long term lease extensions and other work . Next slide. This is our last slide. In december we will return to obtain feedback on the items that we have presented to you today. Including the gold statement and the principles, evaluation criteria and proposition a funding guidelines and the role and structure of the adapt plan. Next slide. Thank you again for your time today. And were looking forward to your input. We have greatly benefited from hearing from the commission over the last few presentations. And we look forward to further engagement over committing months. Thank you again for your time and attention on all of this material. President brandon thank you. That is a lot of information. indiscernible going to Public Comment. We will open up the phone lines to take Public Comments from the members of the public on the line. Jennifer will provide instructions now for anyone on the phones to provide guidance. Thank you, president brandon. At this time we will open up the queue for anyone on the phone who would like to make Public Comment on item 12 a. Please dial star, 3, if you wish to make Public Comment. We will let you know when your line is open. Others wait on mute until their line is open. Comments are limited to three minutes per person. The queue is now open. Please dial star, 3, if you wish to make Public Comment. President brandon thank you, jennifer. Do we have anyone on the phone . President brandon, we do not have any members of the public on the phone wishing to make Public Comment on this item. President brandon thank you. Public comment is closed. Commissioner gilman . Commissioner gilman well, first of all, brad and lindsay, i want to thank you so much again, two Commission Meetings in a row and well see you again in december for these very thorough and indepth reports. I have no questions. I guess that i just wanted to have a couple observations. One, i want to thank you for your Community Outreach approach leading with equity and always remembering to include our l. B. Partners. I think in the long term for our prop a funding and the funding decisions and for the resiliency of the port, theyre key players. I wanted to thank you for your engagement with them. And that i am very interested in seeing the interconnectedness between this Resiliency Program that is so critical with the historic piers on the northern waterfront to the overall Strategic Planning and the update of the waterfront plans. I wanted to say that youre right on the mark, that this needs to be part of everything along the stage that were doing on the waterfront to protect us. When we know that Sea Level Rise is coming, and now that is coming, and now that we have lived through a pandemic, and we need to prepare for it. So thank you for all of your diligent work. I have no questions and that concludes my comments. President brandon thank you. Vice president adams . Vice president adams . Youre on mute. Vicepresident adams i just wanted to say that it was a good presentation. Im going to continue to monitor this, but i thought that it was very indepth. It looks like were moving along. So at the moment, president brandon, i dont have any questions. I took a lot of notes and i know that theyll come back. President brandon thank you. Thank you so much for this presentation. You have covered a lot of information and definitely a lot of us a lot for us to think about. My only question is on the evaluation criteria and what we should be considering. Can you go over that again and the difference between using this so everyone can know how it works one way or the other. If that makes any sense. Yeah, it does, it does make sense. And ill start. So theres a variety of ways to go about using evaluation criteria. And i may have heard of triple bottom line or quadruple bottom line. And those are evaluation criteria approaches and processes. One thing that were lucky in at this point in time is that a lot of folks have been using evaluation criteria in a variety of different ways over the last 10 years for big programs like this one. And one thing that theyre finding is going through a very lengthy waiting and touring process, that when obscuring the actual way in which the evaluation criteria are interplaying with your alternatives. So what happens is that you come out of the end of a process this alternative scored a four out of five, this one scored a two out of five. But you dont know why. And you can dig back into the material, but the challenge is that you cant communicate to your stakeholders and youre not exactly sure why it happened the way that it happened. And rather than doing that, what were proposing that we do is that we have a very transparent process where we go through the evaluation criteria and we say this alternative scored very, very well in the areas of you know, you focusing on equity and addressing some of the most pressing community and society concerns, the citywide concerns. Where it seems to be not scoring highly or even scoring well is more on the area of environment and ecology. And that allows us to share the tradeoffs very transparently. It also allows us to maybe to change the alternatives and to maybe do a better job on the environment and the ecology side of it. So it makes the process much easier with the criteria, to communicate the criteria and then to fix the alternative if its not performing up to the system. Does that help . President brandon that does. It makes a lot of sense. So that way coming up with a score. That way we can really see why it scored the way it did, versus just saying this has a one, this has a two and this hases a three. Thank you. So theres a lot of information. We have a long way to go. So can you briefly go over what the commission should focus on for the next presentation to be able to give feedback. Brad, you want to take that one . Sure. So in the staff report for this item, we included the questions that lindsay went over and theyre in italics in the staff report. I think we really want to come back not to reiterate everything that we have explained today, but to dig into a conversation offered by those questions. So that thats our intention with the december presentation to the commission so that we can get valuable feedback from the commission. We theres alignment about the decision framework and we can continue to prepare these alternatives knowing that were coming forward in a way where the commission agrees with the proposed approach. President brandon we have our homework. Thank you, guys, i really appreciate this presentation. And im glad that its staying fresh in mind so that each time you come back we dont have to dig back to figure out, okay, where were we last time. But this is great. And i think also that it is key to include its key to include our city our city family. Our city family, in in all of our talks about how to tackle this huge project. Because its going to affect all of us, its port property but its going to affect the entire city. So im really happy that were looking to other departments to engage in this discussion now so they too can play a Critical Role in this process. So, thank you. And we look forward to seeing you in december. Thank you so much. President brandon okay. Call next item please. Clerk that would be item 13. New business. I have recorded coming back on the shared space update in the First Quarter of 2021. Is there any new business . President brandon any new business . I have no business at this time. I have none, president brandon. President brandon thank you. Okay, so i guess that, carl, the next item is adjournment . Clerk correct. Thats right. Item 14 adjournment. Motion to adjourn. Second. President brandon roll call vote please. Clerk [roll call vote] president brandon the meeting is adjourned at 5 25 p. M. Thank you, everyone. Thanks, everybody. Take care, everyone. This committee will convene remotely until legally authorized to meet in person. Public comments will be available on each agenda item. Each speaker is allowed three minutes to speak. Call 415 6550001. Access code