Transcripts For SFGTV Port 20240704

Approval of minutes and july 11, 2023 Port Commission meeting. So moveped. Second. We have a motion and second. All in favor . Aye. Any opposed . The motion passes unanimously. The minutes of the july 11, 2023 meeting have been approved. Item 3, 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. Item 4, announcements. Please be adviceed the ringing of and use of cell phones and similar sound producing Electronic Devices are prohibited at this meetling. A member of the public has up to three minutes to make Public Comment on each item, unless the Port Commission adopts a shorter period. Public comment must be in respect to the current agenda item. The commission will take inperson and remote Public Comment on each item beginning in person. For remote Public Comment, dial 14156550001 and access code 26612350803 , then star 3 to raise your hand to comment on the item discussed. Audio prompt will signal when it is your turn to speak. If you are watching the meeting on sfgovtv there is a Short Broadcasting delay. Do not miss your chance to comment, please dial when the item you want to comment on is announced. Your device and listen to the meeting from your telephone which has now delay. Item 5, Public Comment on items not listed on the agenda. We will take Public Comment. Any Public Comment in the room . Seeing none, do we have anyone on the line . At this time there is no one on the phone wishing to comment. Thank you corey, Public Comment is closed. Next item, please. Item 6a, executive directors report. Callers who wish to comment on this item, please dial star 3 to raise your hand to comment. Thank you. Good afternoon president brandon, members of thePort Commission and staff. Elaine forbes the port executive director. First i want to acknowledge a very busy month of july and early august. It has been also remarkably beautiful weather here. I want to thank staff for making it really safe vibrant and clean during these big event days we had. We welcome mayor breed to our waterfront several times including National Media interviews, conversations with Business Leaders on economic recovery, her love of the waterfront shining bright and expressed appreciation for all the work we are doing in the city economic recovery. One of the strategies as you know is to activate this waterfront. It takes a invasion and post covid environment to see that through. Our newest activation is pier party at the wharf, a exciting outdoor concert series, 26 fridays. It has been Getting Better every time. The team is innovated and iterating to make sure it is a great space. Last friday 11 timep grammy award winner tony lindy from santana played. We have lots and lots of people join that event. Starting august 19 well have this event saturday as well 26. It is free. Come out and enjoy the wharf and music. The Ferry Building is celebrating its 125 anniversary as you know and having its first ever summer ferry fest. This event is all through august. Sorry, the event is august 17 from 5 to 7 30 at the Ferry Building. Enjoy what the grand building has a offer. We also started market place in crane cove park this past weekday. This is a new reoccurring market which feature local makers rkss food activities musicians. It is organized by the Sf Parks Alliance and sunset mercantile. The park market will feature 4 theme markets from august through november so please come out and enjoy the park. Last month has been a boom to the port with 4th of july firework, concerts, movies at crane cove park, pier party at the wharf, the Ferry Building 125 celebration, the Women World Cup viewjug so much to come. I again want to thank port staff. It has been quite a lot of work to prepare for these events and this vibrant waterfront is helping the tenants succeed. Now, more to economic recovery. Apec mayor breed announced the city will host the Asian Pacific cooperation this fall and feature several high profile events including events on our waterfront. The leading forum in the Asian Pacific facilitate trade, investment, Economic Growth and regional cooperation. President joe biden and more then 20heads of state will visit our city from november 1217. We are collaborating with the city carefully to insure we pr prepared to do our part as the world will have its eyes on San Francisco. We are extremely excited for this opportunity and we will continue to work with the Mayors Office and City Administrator Office to be part of the team. And well keep you informed as we know more. Mission bay park transfer is a responsibility of our ours to connect residents with the city waterfront and in doing so we have 150 acres of public parks along the waterfront that we care for. We were happy to welcomedential 10 acres of parks into the portfolio in the mission bay neighborhood. I especially want to thank david indiscernible planning and environment and commissioners who worked so diligently to see the transfer. These are beautiful parks and transformational. The port is prioritizing the waterfront making more inclusive which includes mentoring Young High School students. We are all impressed with the summer Internship Program. Our team put in time to make sure there are meaningful opportunities for our students. We hosted 21 interns across our divisions. We also had for the first time our maritime intern cohort. They went to various maritime places, learned key skills, and learned a lot about the maritime industry. At the end they were able to showcase their learnings in a formal presentation and it was a 6 week program. It was very very exciting and our maritime tenants participated to have pathways to the maritime trades and also that they have pathways in general in their future to whatever their career path is. Now turning to resilience. We have brad benson the director of Waterfront Resilience Program here today to talk about the army corp study, and carlos will be representing the authorization for our contract award for pier 50 for earthquake improvements. This is a exciting time to both talk about the flood study and our Resilience Program related to seismic concerns. I want to also thank the team for hosting generation climate with youth workforce and enterprise summit this past friday. This was a forum to make Climate Change and adapting to Climate Change more accessible and relatable to young people. On a indiscernible commissioners consistent with the write off policy adopted pursuant to resolution 2211 port staff provided you a report summarizing one recommended write off account to this month. If you haveyou have 30 days to let me know if you have questions or concerns and ill schedule a future Commission Item if you do. In closing, we continue to tackle many challenges and opportunities that we have related to economic recovery resilience and equity and i think we are acceling due to port leadership and Excellent Team we have and thank you as we continue to advance our bold Strategic Plan. Thank you, that concludes my report. Thank you elaine, great report. Any Public Comment on the executive directors report . Corey, do we have anyone on the phone . At this time, there is no one on the phone wishing to make Public Comment on this item. Thank you. Public comment is closed. Commissioner harrington. No questions, but i am always amazed what you can do with a relatively small staff for all the stuff you are in charge of. Pretty impressive so thank you very much for your leadership. Also very impressed thatsorry, in some commissions it seems the executive director takes all the credit. It is nice to share that with the staff. Thank you. Commissioner gilman. Thank you elaine for that great report and it is so great to see that we have events coming back to the waterfront that we are as we say always a vibrant city in San Francisco despite what others want to pigeon hole us into and someone who took water transportation to get here today and was on that ferry, tourism is back, at least local tourism. Families who were so excited to be pulling into San Francisco, hearing stories how the bridges were built before world war 2 from the captain of the ferry built. I want to say embarcadero is back, Ferry Building was alive and jammed and hard to get lunch today so excited for us and staff we get to share this incredible waterfront with everyone. Im really excited about apec coming as well. I have hopefully not unrealistic idea i want to throw out about the maritime cohort that just happened. I hope we can maybe reconvene the cohort. It would be great if we convince the partners add fleet week that maybe those young people could participate or go to special activities or maybe be able to really take advantage of fleet week coming if they have a maritime interest. It was a way of maybe connecting that to their experience and thank you for your report. Thank you. Commissioner. So, yeahthe port is doing really well. I was talking to president brandon how summer is all most over and just got started with entertainment. I was with you that friday and it was great seeing the people out and entertainment was great. Im still very partial to entertainment. It is my blood. The activation with entertainment is what brings the economy back and im glad that they are spending the money bringing good talent for that. As you could see across the street there are empty storefronts so we have to compete against them to fill our store fronts and our restaurants so we still got a lot of work to do, but im glad we are using entertainment to bring people back. Great report and i wish we had another month of summer. Thank you. Thank you so mump for the report. It is wonderful to hear how the waterfront is activated, the northern and southern waterfront, how so many people are enjoying the waterfront and i want to thank the staff for all the hard work you are doing to create a safe space for visitors and for residents to come and enjoy the waterfront. I think we are doing a phenomenal job helping the city towith the economic recovery and success of the city, so i really appreciate everyone. I too thank you elaine for including the staff, because they are doing the heavy lifting and hard work and so, it is just great to hear about all of these activities at the waterfront and july was so busy it sounds like it will bejust as busy august through november, so still a lot of work to do. The port is activating. Thank you elaine. Carmel, next item, please. Item 7a, informational presentation to consider and possible action to approve the amended port municipal debt policy and that is resolution 2338. Good afternoon commissioners. Inate, Deputy Director finance administration. By way of background, the debt policy was first issued in 2009 and amended in 2016. The reason we are here today is because part of the policy is every 5 years we reaffirm or amend that policy. I should have been here in 2021. We were busy with covid and catching up now, so that is what is driving the visit today. Overall the policy just discusses how we issue and manage debt. It talks about some of the structuring considerations, how we trade risk versus borrowing, how we maintain with the indiscernible we issue debt to support the Strategic Plan, water Land Use Plan and 10 year capital plan. One thing in the staff report is a error i wanted to point out at the moment, reference in the staff report that the race equity action plan is also a plan that could be used to use dent dbt to support that plan. That should not have been included in the staff report because it is redundant. The race equity action plan is part of the Strategic Plan, and so calling out wasnt necessary, it is already there. That was a staff report error. I are apologize for that. Lastly, i wanted to call out in developing this plan originally as well as the current amendment in front of you, we did work with the City Attorney office and office of public finance. So, to get to the meat of what is changing and honesty, there isnt a lot of substuative changes here. This is just meeting the 5 year obligation to reaffirm the policy. The first has do with fcc rule, rule 15c212, a whole list of events that if they occur we have to tell bond holders they have. If we miss a Debt Service Payment or obligation somewhere under our debt cuv nns we have to tell people that happened. In 20 i think 19, the fcc added two more events to that list, so now we need to update our list so it matches what the scc list is. Those two additional items are fairly broad. The original 14 events were very specific to bonds, to Revenue Bonds issued. The last two have to do with morebroader events that might indicate any form of Financial Difficulties we are supposed to disclose that to bond holders and enter into any other financial obligations that may effect the bond holders we have to tell them too. Argue that those concepts were something we would have communicated to bond holders but the scc wanted to be explicit. The other is miner terminology update, what i caused Financial Advisor is now called municipal advisor. All the other changes are about structuring the document to make it more accessible. Still not as accessible as it could be, but it used to be a very academic tone of terms and conditions i think we made a little more accessible. So, thats really the changes that we are going through and fairly miner. I thought i reflect for a moment on the deblt we have. The table you are looking at is the active debt that is paid for by the port. We have other debt, but i want to focus on this first. So, these 5 debt instruments are the debt that we pay through our own budget. When you approve our budget we are paying off this debt. The total original issuance is 85 million roughly. Today we over time paid those down. Today that balance is a little under 70 million. That is what we really consider port debt. We also are involved where the city issues go bonds and the city pays the debt service but we manage the proceeds like the Resilience Program. There is hundred million roughly of go bonds issued to finance resilience so those aret noour debt portfolio but very much involveped in that debt. There aortcategory of special tax district debt specifically for mission rock with a independent entity, a special tax district that issues the debt, pays it off, does not flow through our budget but we are involved in the issuance, management and use of proceeds of the debt, but they are separate. Rating agencies dont look at that debt as our portfolio. With that, that concludes my presentation and happy to take any questions you have. Thank you naet. Commissioners, is there a motion . I so move. Second. Thank you. Lets open up for Public Comment. Any Public Comment in the room . Seeing none, corey do we have anyone on the phone . For callers who wish to comment on this item, please dial star 3 to raise your hand to comment. At this time, there is no one on the phone wishing to comment on this item. Thank you. Commissioner gilman. I have no questions. Thanks for the report. Commissioner lee. I have no questions at all really about this. Maybe just one. When this debt service was 84 million, basically it comes out of whatever rent incomes we generate from maritime, anything that goes into paying this, correct . That is correct. The 84 million is the loan amounts. How much we borrowed. The annual payment is closer to 6 million a year. But you are right, that is a expense that gets paid out. We bring in rents, pay salaries and all kinds of things and debt service is a line item. When we are short on rent or we have writing off rent it effects that. We still have to pay the 6 million a year . Absolutely. Okay. Thank you. Commissioner harrington. Thank you. A comment and couple questions. We had this discussion a lot in different places how much debt you take on because it is a fixed cost when there are issues or any kind of uncertainty it is hard to have a large fixed cost. Rating agencies in my experience have actually been more interested to make sure you maintain your assets and have a huge amountthere is a limit to how much fixed cost and debt you should have. They are often more interested in the fact you are fixing the system even if issuing debt to do it. It isnt the goal, but when i was in charge of the Water Department we went from having maybe 15 percent of the budget debt to 50 percent because we rebuilt the water system. 3 and 3 and a half billion you cant take out of rent in a year so interesting tradeoff to make. A couple questions. When is the next time or what plans for future issuance of debt . Do you have any . I was hoping to refinance. We have certificates of participation and Revenue Bonds that are callable in the next 12 months. We could refinance those and perhaps lower the 6 million annual payment. The market has gone indiscernible likelihood of that being a economic refunding is pretty low at the moment but we keep a eye on it, we use Municipal Advisors to help us watch for trends there, but i dont foresee anything changing on the port active debt portfolio. We are in process of or considering another special tax district issuance in the future, but the timing of that is still under consideration and then obviously the go authorization of 450 million only issued a hundred million of that. We just did anotherthe second 50 million of the hundred million issued was fairly recent so not aware of near term plans to issue a additional traunch. As we get into more hard cost and design the burn rate of the funds will increase. Makes sense. Just apage 11, the whole policy sounds fine. It sound very familiar. On page 11able to issue negotiated or competitive or private placement of debt. Is there any kind preferencemy preference is competitive, not negotiated. Is there a spoken preference or just see what happens when it comes up . And, it is mostly see what happens when it comes up. I have been actively involved in two, and both were negotiated, but we ask our Municipal Advisors what path they think gets to the best interest cost and that tends to be thei think our name in the credit market does not command what a competitive sale might, so we ends up in the negotiated market. Thank you. Thank you so much for the report. I think most of my questions have been answered so thank you so much for a great report. We have a motion and a second. All in favor . Aye. Any opposed . The motion passes unanimously. Resolution 2338 is adopted. Carmel, next item. 8a, informational presentation on the ports maritime portfolio. Callers who wish to comment on this item, dial star 3 to raise your hand to comment. Good afternoon president brandon, commissioners, director forbes, members of the public. Deputy director of maritime joined today by dominic indiscernible assistant Deputy Director and al vin and maritime staff. This is a informational presentation on the port maritime portfolio. Ill provide a brief overview of our Business Port folio and all we do, and touch on some of our Maritime Strategic objectives throughout. Overview of our Strategic Plan, our division guided by the bullet points here. Cargo maximizing cargo opportunities. Evaluate facilities to support the maritime expanding cruise business,b identify opportunities for revitalizing the ship yard. Pier indiscernible 8396 and back lands pursuing federal and state grants to investigate site improvements, the commercial fishing industry, preserve and enhance commercial fishing and water transportation expanding the port water Transit System and promotion of water transit. As noted in the staff report, there are subcomponents to the Strategic Plan which ill speak on throughout the presentation. For the next slide, this is our maritime revenues by industry. The port San Francisco is one of the home to one of the most diverse maritime portfolios in the nation. You can see industries include cargo, cruise, execution, commercial fishing, recreational marina at South Beach Harbor. This slide again provides just a general overview of the revenues with 50 percent of the revenues being made up by our cargo and cruise portfolio. There are multiple factors that contribute to the makeup of the revenues. For example, we have our tariff rates, parameter rates, revenue sharing in the terminal management agreements and percentage rents. In addition to those, we also have the indiscernible revenues that are generated at some of our maritime facilities and are those are captured in the revenues as well. We have strong fiscal year. Fiscal year 2023. I believe we excluded South Beach Harbor. We were approximately 6 million higher then our fiscal year 18 and 19, so exciting year for us in fiscal year 2023, a lot driven by cruise. Looking at cruise, it was a very strong year for us. We achieved records in both cruise calls and passenger counts on the fiscal year. 110 cruise calls. Around 391 thousand passengers transited through the cruise terminal. 7. 3 million in passenger revenue. That is per passenger charge set through the tariff. The strong year attributed to partnership with the various cruise lines. Specifically with carnival and princess, both who home port out of San Francisco. I like to acknowledge the indiscernible metro cruise and other stakeholders who contributed to making San Francisco a premier port. Cruise port and city. Additionally, thank you to our pier 50 maintenance staff. They do a great job keeping the indiscernible in addition to the cruise, as mentioned in the previous slide, events are also held at the cruise terminal to sep lment revenues when cruise ships are not in port. Happy to report fiscal year 23 we saw approximately 27 percent increase in both events and revenues, so we still are not where we were prepandemic as relates to events but still continue to trend upwards. Some of our near term objectives for the cruise operations as we continue to experience growth in this business. We want to continue to remain compliant with california Resource Board regulations. Again, we only have one lectifyed indiscernible so we are working to analyze and identify viable secondary facility for cruise calls in the southern waterfront. With focus on a facility that can accommodate home port cruise operation. Pier 27 approaching the 10 year anniversary. It is imperative we address necessary Capital Improvements to insure that the facility continues to function as a world class terminal. Ill note that our cruise terminal operators, metro cruise recently worked with consultants to identify operational efficiencies and enhancements at both pier 27 and pier 35, so we look forward working with metro and implementing some of those recommendations. For cargo, our primary Cargo Operations include the importing and are exporting of autos as pier 80 and also dry bulk import at piers 9294, the two largest are indiscernible indiscernible speaker to the pier 80 Cargo Operations, we had a stronger year. 40 percent increase in auto volume. Still lower then the previous highs, but 29 thousand units. In addition to the 29 thousand units, we had 15 percent of those units on the import side which is rare for us so that was good to see. There was congestion issues at ports along the west code so indiscernible strong to pivot and accommodate the autos to the new fiscal year. We had a couple import vessels as well. On the dry bulk side, primarily import Raw Materials used for production of concrete. Serve the Construction Industry here in the bay area. Those imports consist of sand and aggregate and go to the concrete batch plants which is crucial to reducing truck trips in the local community and in the region and 95 percent of the materials imported into those facilities arestay within the concrete batch cluster and moved into the city for construction. We did have a decrease envolumes around 30 percent on the dry bulk. A lot is attributed to decrease in Construction Activity here in the bay area. Historically those volumes do flux wait, however on the revenue side we were slight dip, but nothing too far off of where we historically operate. Near term cargo objectives, pier 80 facility for cargo opportunities. This past month we had a successful project cargo operation at the terminal. Around just shy of 400 metric tons of fiber optic cable. This is the first time in maybe 8 years we had a project cargo operation at the facility, so again, thank you to indiscernible iowu and for their work in making it a Successful Operation and we hope to attract other cargoes like this cable operation we had last month. We have staff attending a conference in houston next month and we will again be working to promote the port. Additionally, Capital Improvements, we had recent calstow award. Some thof funds will focus on installing the new fender system, repairing subsidence and drainage issues and activate parcels at the facility for other maritime uses, such as indiscernible a High Performance yacht race on the bay. Pier 92, we are in the early stages of negotiating a new lease with the dry bulk operator martin marietta. There may be change to the use at piers 94, but we are in the early stages of having those discussions with that operator. Turning to the ship yard, some of the current objectives therebelieve the commission is aware we went live with dry dock rfp two months ago. We received one bid that satisfied our requirements in the dry dock r if rks o. We are early stages of negotiating with that party. Additionally, we continue to create leasing opportunities that attract light maritime industrial uses, for example silverado. They improved select parcels and they will look to build out a vessel disposal or retrieval and disposal operation at those sites, and we continue to use the facility for longterm and interim birthing. Current interim uses, we have a fueling site for the zero emission ferry sea change. First of its kind. It is under going trials but we did have the First Successful fueling operation about a month ago and also in the process of negotiating a new lease with royal automotive services, which is high end vehicles for storage. Moving to Fisherman Wharf and high street harbor. I want to highlight the retail program. The last year of the Commission Approved the program being a Permanent Program so crab season despite delays but when it did come online, a very Successful Program and excited for the pier 45 unsoliced proposal. Focus as it relates to Capital Improvement in, procurement of a new ice machine, reactivation of the fuel dock and reactionivation of indiscernible i think the last Commission Meeting we heard from the commercial fishing fleet, these are essential, ice, fuel and infrastructure so we have projects teed up considered for advancing or replacing the dated ice machine, react ivating the fuel dock and indiscernible provide Public Access to retail fish shelves and also add additional water taxi landing. Other areas of focus improve essential infrastructure. At the last Commission Meeting there was approval to go to bid for construction projects. Appreciate the support there. We are looking at Marina Management program. Always working to improve the harbor safety and security and soon reestablish Fishermans Wharf advisory group. Excursion and water transit, operations have come back online post pandemic and speaking to the red and white and blue and gold around 80 percent prepandemic level so good to see. Some focus has been restoring our Public Landing locations damaged during the 2023 storms so that is pier 1 and a half, pier 52, both of which are public launches, but also utilized by our water taxi operator. We have been working with port staff to refresh our signage at port operated landing locations for both the water taxi operators and excurgz operators and continue to collaborate with our operators to promote water transit. One thing i will note roughly two months ago we were informed by tide line marine that they will be discontinuing operations for along the water and to my private Ferry Service so that was unfortunate, but coming behind that f water taxi informed they procured a larger and faster vessel that they will be deploying on the e water for along the water transit and across the bay transit as well. South beach harbor. South beach harbor, like to note we recently promoted indiscernible to harbor master. He is leading a amazing team down there. Always exciting to be at South Beach Harbor. Great location but an amazing environment being around that team. In addition to manage the marina, coordination with the San Francisco giants, maintain the South Beach Harbor playground and insure the public promenade is well kept. It is 700 acre recreational marina so a lot of activity. Capital improvalments the past year employed big belly trash cans which has been amazing in containing trash and there is other benefits to it as well. Marina dredging, the harbor has not been dredged over 20 years so that is something that we are focusing on this year and we hope to start our dredge operations within the next month. Again, we are focusing on Harbor Security and safety and infrastructure improvements. As far as recreational activities, i want to highlight we have multiple excursion operators from South Beach Harbor and visit from other areas on the bay. Also spin out fitness, this is mr. indiscernible believed he approached the Port Commission maybe 2, 3 years ago during the Public Comment, about we were able to work with him to get a lease in place. I think at the time we executed that lease he may have had two bikes thin program. Spoke with him a couple weeks ago and the business has grown to 30 bikes. Exciting to see his business grow and to see all the water recreation at South Beach Harbor. We have a sf brew boat which brought a lot of foot traffic to the harbor and of interest as well. Moving to equity, so we in maritime continue to stay focused in trying to advance the ports race equity goals and bringing youth and all interested in down to the wonderful port. Happy to report on the South Beach Harbor Youth Sailing program in 2021 we started this program with just two students and it was collaboration between boys and girls club, district 10 visitation valley, South Beach Harbor Youth Sailing and terminal operator at pier 80. Since that first session, we now in the past summer session the sponsorships have grown up to 6 sponsorships, so that was good to see. We also have sail gp and inspire program at pier 80, so that was a base camp where they welcomed students down to their base camp to bring about education to kids, to inform kids on what the program has to offer, welcome diverse and different individuals to the waterfront and so thats the second year of inspire program and we are already working on year 3 for next year. Rising tides, director forbes touched on this in her executive report, but the rising tides program, this was our inaugural year that concluded with maritime career fair and open house. These are students. They started at the cal maritime academy. Engage with all the maritime tenants at that open house so thank the tenants red and white, blue and gold, indiscernible carnival cruise, the bar pilots, San Francisco bar pilots, bay delta, city cruises and also like to recognize tiffany taten for all her hard work putting this program together. I think it was 2019 when she and i discussed this idea and she took it and ran with it and it was an Amazing Program and thank you to the divisions that stepped in and supported the program. In closing, there is other things we are involved in in the Maritime Division whether supporting fleet week, forth of july, new years eve and maritime day so i like to recognize all the maritime staff who are here in attendance and watching virtually. Appreciate the hard work and also to mike martin and director forbes as well for their support. With that, ill take any questions that you may have. Thank you andre, great report. Any Public Comment in the room . Seeing none, corey is there anyone on the phone . At this time there is no one on the phone wishing to comment. Thank you. Commissioner lee. Great report. I know maritime has a lot of assets. My question, when you say you are looking at reactivating the fuel dock and ice machine, things like that, do you have a time line . Did you set a goal . We have project starters in place for the ice machine. We are looking at realistically late 2024 for the ice machine and q4, 2024 for the wharf j9 project as well. The fuel dock is more complicated because that involves a indiscernible at the adjacent dock j10 and there is ongoing management and remediation of that process. We have interim fuel provided to the fleet, but as soon as we work through that complex scenario of remediation and legal steps that need to be taken, that is still tbd. That takes a while i imagine. Do you provide fuel for others in the fleet . If somebody had a boat that was traveling they can actually fill up at the dock . Yes. That is my understanding. The truck is licensed to provide fuel over the dock to anyone who is interested in purchasing fuel. Is that a lease where we lease that out or do we get a cut ramification it is a license and per our parameter rates as far as the licensing fee. So we do get a percentage . Yes. Okay. Have we thought abouti remember back in the day when mission rock used to have those afternoon parties and there was a lot of boats coming in. Whether they were dancing in the water. Similar to tiburon and sams where people go in and bring their boats, dock and patronize the restaurants that were there. They were packed on the weekdays. I know that we are jammed up with so many different things. Have we ever thought about you know, to help build up maybe struggling businesses in the area public dock space where people can actually bring their boats and come from across the bay, vallejo and they want to have lunch and park for 2 hours and pay a docking fee and have lunch at the wharf . We never really had that in San Francisco. So, at the wharf it is focused on commercial fishing. However i say that the wharf j9 project we are looking at would allow for some transitory birthing that could accommodate those interests. In addition to the wharf, we have pier 1 and a half to where the public can dock their boats and visit some of the locations along the central waterfront. And in the southern waterfront we have pier 40, but we have resurrected discussions for bringing back the north dock as well. It is something that is on our to do list and we are prioritizing. The southern waterfront, is there facilities are that are empty that maybe do restaurants, new Development Like that can go into and help the southern waterfront with some recovery . At this time, the only launch is the pier 52 landing site which was damaged by the storms, but we are focusing on bringing that back online. As of now, there are not any locations identified other then i believe the ramp and alsothe ramp. Mission rock . Yes. Okay. I think as we have to support the commercial fisherman, ice machine, fuel, it is important, but i think what we are overlooking is possibly using the assets for public docking. Maybe not Fisherman Wharf but further south. We are developing pier 70, rents are probably more affordable on the south side. There is lot more Economic Growth and of course we can rent out property just sitting around. Again, we are just trying to create opportunities, so i just put that on your radar or maybe on your agenda for the future. Will do. Thank you commissioner. Thank you. Thank you. Commissioner harrington. Thank you. Thank you commissioner lee. I remember being on a friends boat and it was a fun time and that would be a fun idea. Thank frz the report. Congratulations to the now South Beach Harbor master. Congratulations. A couple questions. One thing, i really appreciated that pie chart where the revenue comes from because i didnt understand the relative Revenue Sources from the fishing industry, versus cargo versus excursion. It was helpful, i appreciate that. On the discussion about the cruise ships and pier 35, is the issue that a lot of cruise ships or some cruise ships dont have it the ability to do short side power or the issue of us not able to provide it . Our issue not able to provide it. The majority of the vessels that call port of San Francisco are equip to plug in to shore power, but pier 35 and previous studies is cost prohibitive and electrifying the birth coupled with the age of the facility from substructure and super structure issues as well. The shift is, what other locations are there in our waterfront to where getting electricity to the birth is more feasible as well as having a dock facility in good condition. Amenities once you get off the boat because getting off in indiscernible thats great. Thank you very much. Thank you. Thank you. Commissioner gilman. Thank you so much for this report. I justcouple issues. I love the report. Maritime is in the public trust. To me one of the most important things we need to elevate, promote and make sure happens along the 7 and a half miles of waterfront so i really appreciate it. I wanted to aski was curious looking at the revenue and i like to make sure i understand the revenue piece correctly. Excursions isnt in your pot or is it in your pot . It is. That includes the land side leases as well for excursions. Okay. Have we seen dips at all in excursion, particularly with alcatraz . I can find out that question for you, but i can see speak to the labor disputes. Im not aware of disruptions to their operation as a result of their ongoing labor discussions. Okay. That was just the question. Again, i know i mentioned this before, but im a big proponent of water taxi and shirt term service. I have not yet been able to make it to treasure island. Maybe once more then every 45 minutes would encourage peopleusing water transportation is challenging for that short distance, but anything we can do to also promote or leverage our media and our experience for the Communications Staff that we can do to really help the water taxi operatorsit is hard to know where they are, it is hard to utilize, usually just a person barking out on the embarcadero water taxi so i hope we can promote this and try to make this more a staple on the waterfront, particularly with indiscernible mission rock coming in. I think there will be more and more folks who want to do water taxi. indiscernible is a challenge to get there. We had water taxi and other service it would help so hope we can support that as much as possible and again thank you for everything you are doing, particularly really into this mentor Internship Program and happy to read about that and supportive of it. Can you remind us, how much is your staff and indiscernible we are the mighty mariteam. We added to staff. We had post pandemic retirements so we have staffed up and we will continue to evaluate if we need to add additional staff, but where we are now i think we have a good team in place working in pier 1 and South Beach Harbor. What is your fte count . Around 25. Okay. Just wanted to say to the public, truminds work you are doing with the small and mighty team compared to departments much more massive so i appreciate everything you guys do. Thank you. Thank you commissioner. Thank you. Great report and maritime is doing a phenomenal job along with the rest of port staff. It is just amazing the amount of work we are able to do with such a small staff and maritime has really shown over the years that you know, everything increased in every way. Especially excited about the indiscernible and the need for more space for cruise calls and really looking forward to the analysis of where it is best to move some of that, so that we can have more cruise calls. I think everyone at Fishermans Wharf will be so excited they are getting a new ice machine. I think the tenants, the fisherman, everyone. That is a strong need so really happy we are replacing that. So happy to hear about the Internship Program, inspire program to be able to show the youth at a early age what maritime is all about and the opportunities that are available. I want to commend you and your staff for taking the time to have so many interns and to be able to give them that opportunity. Congratulations on your promotion. I know you will do a great job, continue to do a great job in South Beach Harbor. Great report. Who knew all this was happening in maritime . Thank you. Thank you. Carmel, next item. Item 9a, request to approval of proposed lease number l17080 between port of San Francisco and hotaling and company llc a California Limited Liability company for term of 5 years for operations of tasting room at pier 50 shed b southwest bulk hp head, resolution 2339. Thank you. Callers who wish to comment on this item, please dial star 3 to raise your hand to comment. Thank you. I dont know how ill follow the maritime presentation. Good afternoon president brandon and commissioners. Director forbes. Jennifer gee, Senior Property manager for the Port Real Estate Development team. Before i get started i do want to thank my colleagues for their assistance bringing this item before you today. Kim beale, david indiscernible patrick foster, indiscernible former Staff Members becka and indiscernible the item presented at the proposed new lease with hotaling and co llc for tasting room at the pier 50 shed b southwest bulkhead. To give you a little background, houtling is a non retail port tenant leasing since 2019. The operation currently includes distillation, bottling and storage and marfing package and handling of distilled spirits. The lease exspired 2027. Last year hotaling proposed to expand the operation to operate a tasting room and host events in connection with the distillery. Also intends to charge guests for it tours and tasteings and indiscernible on site. Hotaling and port wish to enter into new lease to allow retail uses at pier 50 shed b for term of 5 years. The proposed lease requires approval by the Port Commission as hotaling is a non retail tenant seeking to become a retail tenant. Supports the Economic Growth and economic recovery objectives by react itvaing vacant space at pier 50 while generating economic benefits and inliveing port property. As well as maintaining the port financial strength by generating base rent plus participation rent revenues. Lets take a look at the location and comparable. The photo shows shed b at pier 50. The tenant lease is bays 414 and 2024. The area they are interested in expanding into and activating is the southwest bulkhead highlighted in yellow. The southwest bulkhead used as office and Office Storage space. It has been vacant little over 15 months now and staff does not view the space as a suitable competitive solicitation site. Absant propose eld stach would market the space for office, however with increased Office Vacancy rates in San Francisco as well as the prior leasing trends for this particular space, we expect difficulty leasing this location as office. Hotaling proposal presents a opportunity to generate base rent and participation recent. Comps are the high end parameter current parameter is 3. 60 a square foot. Monthly rental rate for the previous tenant was 3. 71 square foot for office space and 1. 85 storage space. Monthly rent for nearby port retail tenants is 2. 91 square foot for atwater and 2. 69 square foot for mission rock resort, both of which also pay 7 percent in participation rent. The base rent for hotaling is 3. 75 with 7 percent Participation Rate component. The proposed lease terms for this space include just over 3 thousand square foot shed b, the southwest bulkhead. Permitted uses include the operation of public tasting room and education area, hosting events tasting and sale of productsism the term proposed is 5 years. Monthly base rent is above current parameter and include 3 percent annual increases. The port will also receive 7 percent of gross revenues. The proposed lease also includes a 90 day rent abatement period to low to complete tenant improvements for the tasting room, including code compliant accessibility improvements and any utility related to the instull station of the equipment. The expected base rent revenue over the term is 695 thousand and the port will receive 7 percent in participation rents. In 2011, the Port Commission approved the retail leasing policy allowing staff to engage in direct negotiations with non retail port tenants that are seeking to become a retail tenants as long as the tenant and proposed use meet certain criteria is and authorizing the negotiation. September last year the staff requested and receive authorization from the commission to enter into direct negotiation on sole source basis with hotaling for retail use at pier 50. The tenant is in Good Standing and demonstrating the business and financial where with all to operate a retail business. Port staff has also determined the proposed use is consistent with port waterfront Land Use Plan and waterfront plan. The San Francisco City Planning Department also determined the proposed use is compliance with ceqa. In conclusion, staff recommends the Port Commission to approve the poposed lease for hotaling for operation with tasting room at pier 50 shed b. That concludes my presentation. We have staff from hotaling and im here to answer questions you may have. Thank you jennifer. Is there any Public Comment on this item . This is a action item. I do. I make a motion we move the item. Second. Thank you. Is there any Public Comment in the room . Seeing none. Corey, is there anyone on the phone . At this time there is no one on the phone wishing to comment on this item. Thank you corey. Public comment is closed. Commissioner harrington. Thank you jennifer. Great job. When the indiscernible insight us to the opening party. [laughter] i notice the 5 year lease and just item 10a today is for free design work on earthquake improvements for pier 50. Is there a high risk, low risk, where is that risk of earthquake issue we are trying to fix while renting it out . It is my understanding the bulkhead areas are safe. That is closer to the drive isle for the indiscernible thank you. Thank you. Commissioner gilman. Again thank you. Great to be activation. I had one curiosity question and it might be the tenant might need to answer it. When you showed the map of the space you are moving into the yellow space versus the blue space, there is a gap. There is a space that isnt yours. Just curious why it isnt a continuous space . Currently leased out to somebody else. Okay. indiscernible i was curious about it. Hopefully you have great non alcoholic offerings so we look forward coming to the opening. Thank you. Commissioner lee. I dont have really any questions, but im kind of new. A really quick minute or two, can the business come up and tell me exactly what you do there . Are you producing your own spirits . Aretell me what is going on. Im the vp of operations for hotaling. Hotaling used to be a part of the anchor brewing and distilling company. Our owner is the same owner that sold anchor brewing to saporo in 2017. Out of the merger started we couldnt keep the name anchor so in honor of the biggest whiskey purveyor we tookoon the name. We make brand out of the facility. We have a good collaboration with indiscernible gin. It has been made in the city since 1996 and old potrero rye whiskey made at anchor distilling and now pier 50 and are that has been made in the city since 1993. We have a multiple decades of business here. We want to stay in the city. The opportunity came up to expand with our distillery. It is the only space that makes sense to work so reached out to jennifer once the previous tenant vacated and tried to seize the opportunity so we make spirits here in the city as well as import from around the world to have a two prong approach to our business. Surprised all this time you have been there you didnt have a tasting in your facility, which is straisk strange to me. Especially what was going on with anchor brewing and i hope they can save it because of the history and im all about history. It makes sense for you to go next door. Yes. It makes sense forand good for the port. We are not losing because i am saying it is the same rate under the circumstances. Really wasnt familiar with your name because im not a beer drinker per se, and i think more of the general public should know and think the tasting room will help. We agree. That is our hope as well. Im 100 percent behind you on it. Thank you very much. Thank you. Thank you. Thank you again jennifer and thank you so much for giving us more description what you are doing there. That is exciting. We are all looking forward being invited to the grand opening. We have a motion and a second. All in favor . Aye. Any opposed . The motion passes unanimously. Resolution 2339 is adopted. That thank you very much. Item 9b, informational presentation on the formation of Community Facility districts at the port and discussion of the formation of the new Community Facility district for pier 70 historic core with Orten Development inc. Under port lease disposition and Development Agreement and master lease l15815 each with historic pier 70, llc. Callers who wish to comment on this item dial star 3 to raise your hand to comment. Good afternoon president brandon, commissioners. Project manager with the Development Team joined by bill indiscernible the historic core project manager. I like to thank josh who worked with us heavily on this and he is getting married so congratulations to him. Just walk through a overview of the presentation. First give a update on the historic project. Financials for the project which completed, but it was mostly completed several years ago. Overview of what a Community Facility district is. We used those at two other projets on the port. A keep Development Tool and form one over the Historic Development this year. Background and talk about the historic core cfd specifically. The background for how we are forming it, facility special tax and the Service Special tax. Used for and how they come about and a final note on the special Fund Administration agreement which is how we administer those funds. Turn it over to phil to give a project update. Thank you. Good afternoon commissioners. Phil williamson, port project manager and i have the easy part of the presentation. The project has been around a while but we have new commissioners with us and so glad to give a quick update and hand it back to go into details. Back in 2014 the commission gave approval to proceed and execute a lease disposition and Development Agreement, ldda and a master lease with orden development incorporated, and that lease lead to the rehabilitation of 8 Historic Shipyard buildings. Have you been to the site on 20 street you have seen the result of the work especially in building 101 on the corner which opened last year and also several other buildings as you go down 20to the east of illinois street. Project began construction in 2015 and mentioned just finished last year with the final touches on building 101 and Restoration Hardware. As mentioned, the bulk of the project completed prior to that, 2019, but the ceo for Restoration Hardware is very particular and made sure that building had every detail done so took longer to finish the project the last piece of the project. We are currently working with staff from odi to terminate the ldda now the project is complete. There is a formal termation process we are going through to wrap up the project, confirm the total project cost, set that as benchmark for future participation should the lease change hands down the road. As youll hear later on, we are pursuing formation of Community Facility district outlined in the master lease with the tenant. A quick Financial Update on the project, it has done very well and while the project was more expensive then originally anticipated, the sublease revenues we are now seeing are higher then initially projected to be when the project was conceived. Just a few notes here, the project cost increase from 81 million to 140 million. Project revenue increased from 29 to 44 per gross square foot. And the port received income earlier then anticipated. Last year in 2022, the port received approximately 2. 5 million at approval we are hoping to get 850 thousand in 2024, so i think the project in that sense speaks for itself. That takes care of my update on the project. Ill hand it back to wyat. Thank you. Thank you. What is Community Facility district . It is special tax district that is created over a specific area. Those terms are synonymous. The Community Facility district and special tax district mean the same thij. The special tax is an additional assessment. It is separate from property tax so it is layered on top of that. It isnt based oen the value of the property but all there is a specific rate charged per square foot in the property. In a tax bill there is property tax and an Additional Special tax and it is determined based on the specifics of the cfd and ill get into the specifics in a moment. It can fund Ongoing Operations for a site and or Capital Improvements, both of those. List of facilities and services is the document that governs this approved at the time of formation and that will be a document coming at the approval action. We used cfd at other Development Project special mission rock and pier 70. It is critical tool for development where there is major infrastructure cost. It captures the development and pours into the infrastructure. Without it we would not have a way to Fund Infrastructure at the site. Here it is used a little defly and ill get into that momentarily. Just background on Community Facility District Across the port. There are three projects that happen after the historic core project is or historic core cfd is formed. The mission rock, pier 70 and historic core project. There is one for lease property and one for the condominium buildings. As i mentioned, the revenues are reinvested fl to the projects. Youll see quite jenerate sum of funds generated. The first line cfd ifd are reinvested back into the project to reimburse the developer infrastructure they created so that is funding parks, roads, sewer, everything that goinize to the ground to repair for the actual buildings. The shoreline tax for mission rock is split between reimbursement for horizontal development, the second phase later will go to the port, so a portion of that would be port revenue and the pier 70 shoreline tax would go to the port as well as harbor front revenue. One additional caveat is much of the future projections are based on Development Timeline projections so there is uncertainty about development so want to note that. Finally on the orten, there is a infrastructure financing district. There are two separate taxes, the property tax ifd captures increasing property tax and that will come back to the port to fund future Capital Projects and the cfd. We are looking at about 1. 8 million this fiscal year back to the port. They are earmarked for specific purposes but key revenues for the port. So, the historic core cfd will have two taxes. A facility special tax and Service Special tax. This is outlined in the lease executed with orton development. The facility tax is determined by an appraisal and equal to the market value on a per square foot of net leasable area multiplied by. 63 percent so very clear. The service tax is set so the lease hold interest in the premises will pay a equitable share of pier 70 cost. It is funding pier 70 maintenance and specifically here earmarked to fund a portion of the crane cove park operation and maintenance. The rate specifically, so for the facility special tax and appraising completed by indiscernible on may 31 based on the value there, the facility special tax rate will be 2. 73 per scare foot and escalate 2 percent annually. On the Service Special tax side, we did multiple analysis here. The most important was comparing to the pier 70 lease property cfd, the most similar use. We considered a range from 30 cents based on proposals from the developer to 1. 30 based on Square Footage comparison. The key driver here the best comp is the pier 70 lease property non Residential Rate which includes many uses, office, could include pdr, 1. 22 per square foot. We did adjustment downward to reflect difference in value between new office and historic renovation and pdr and would recommend special Tax Service Tax rate of 80 cents. This will increase based on ppi capped at 5 percent and just a couple notes. The tax levy starts july 1, 2023 so bill back to the start of this fiscal year and this is maximum rate so levy up to this rate. Theoretically you are levy anywhere below the dollar amount per square foot so the dollar amount times Square Footage which is 322 thousand square feet roughly. Finally, well request approval for special Fund Administration agreement. This is the agreement that governs administration of the funds so collection and dispersement will be held within a separate account and dispurse out of those accounts. The term here align to a series of documents. The lease, all the cfd documents as well as financing plans for the ldda. The rfd is concluded so i want to update that and we are in negotiations with u. S. Bank when we request approval then be able to enter into that agreement. Just briefly on next steps so return for approval for the item in the future is two step process. The first step is resolution of intention. That announces intention to form the cfd and outlines the rate, the area of the map and then there is resolution of formation, which is actual process to form. There will be a hearing at the board of supervisors fallowed by a special election. It is residents if there are any in this case there are not residents stow the land owner so the port is the indiscernible and that is it for my presentation. Any questions . Thank you. Great presentation. I will now open up to Public Comment. Is there any Public Comment in the room . Seeing none, corey, do we have anyone on the phone . At this time there is no one on the phone wishing to comment on this item. Thank you. Public comment is closed. Commissioner gilman. Thank you for the report, and i understand the formation. I have one question. indiscernible i want to make sure i understood correctly. The two step process we are doing today is building oen intent and the final formation goes to the board of supervisors . Yes. You said there are no residents and we are the sole owner, we will be voting for ourselves . Yes. We would be the indiscernible correct. So, outside of approval from the board of supervisors and if memory serves me right, i wasnt on commission when we indiscernible this was part of the play book and how we were going to fund these public amenities, so we are going through a process . This is going to happen . Correct. I dont [multiple speakers] it was outlined in the lease. We are following through on everything outlined in the lease and coming back for approval for the formation but this is in line with prior approval based on the indiscernible then i have no questions. I want to make sure my understanding indiscernible thank you. Commissioner lee. This is the first time for me dealing with a cfd. We always do cbd in the neighborhoods and those are a nightmare and now we have a cfd. My question is, i know this is part of the process. It will be built in. Does it have a Big Reflection of rents becauseyou got to put in the rents so does that price things out of the market . Even though it is brand new, beautiful, modern, it has everything, i think indiscernible part of the consideration and formation is if you reach a certain amount all is a impact. Other projects we have a offset to reduce that impact to try to capture it, that is where we invest back into the site. I think at a certain point you will hit that. We try to keep the amounts low, but it is a consideration in formation. If you get too high they are going to reconsider what exactly. Is there incentives later on when it gets to that part . It is this high, but we are going to give you these amenities. That is key part of it is these taxes are reinvested into the site so for all of these, the list of facilities and services limits the investment within the area, so into pier 70, so tenants are benefiting from roads, sewer, parks, all of the area around and thats brand new facilities, brnd new public spaces they benefit from. Just more concerned because of we have so much Office Space Available downtown, whatever. I just worried about the future. It is definitely a concern that we want to keep an eye on. This is fully occupied space with leases. For now. Okay. Thats my only concern is where we will be later when this kicks in. Thank you. Thank you. Thank you. Commissioner harrington. Thanks and thanks for the presentation. Just double back on the timing of this. The resolution of intent isnt today, but when do you expect that will come back to us . We are hoping for next month. Okay. And then through the board and Everything Else by the end of calendar year . The resolution of intention would probably be see by end of calendar year. Formation has a 30 day hold so may be early 2024. You also on page 8 you talked about the recommendation for the special service fee of 80 cents and you said it iswe could do lower then that. Do you have intention doing lower then that . It is technical thing we like to note. We dont have intention to levy below that but we have the ability. There is a need for the funds at the park, it is a critical Revenue Source for that. It doesnt come close to fully funding operations for the park, but we have the ability if in the future there is different considerations we have we have that flexible. You can make the decision each year . Yes. I was surprised on page 6 to see the line called shoreline mission rock and pier 70. The shoreline tax is a specific special tax so we have a facility tax and service tax. The mission rock and pier 70cfd have a special tax called the shoreline tax earmarked for shoreline improvements so studies or improvalment to the shoreline. Why wouldnt this have that too . It was not done here. Related to partly the scale of those being waterfront developments and having a larger scale there was the ability to capture. Functionally it is similar to facility tax here because it isnt being offset and reinvested. Okay, thanks very much. Thank you. Thank you so much for the presentation and thank you for the update. I just have one question. Was the developer involved in the formation of the cfd . Yes, we have discussing with the developer throughout and talking about provided information for the appraisal, which incorporated all that information and indiscernible determined value and on the service tax side we had ongoing discussions which ended with 80 cent. They are in agreement with the terms . We hope so. We talked about it, let them know about it, and they are ongoing conversations. They expressed concerns about some dollar values and we are open continuing conversations with them up till formation. Great. Thank you. We look forward seeing you next month possibly. Thank you. Carmel, next item, please. Item 10a eare quest for authorization to award contract to ghd strucktus joint vercher for proposed pier 50 earthquake improvement projectal. Initial study and predesign not to exceed 2 million 700 thousand. This is resolution 2340. For those who wish to comment dial star 3 to raise your hand to comment. Good afternoon. Carlos indiscernible Program Administrator joined by chris, project manager for pier 50. We are here to request authorization to award contract for pier 50 earthquake improvement project. Ill give a brief overview, description of the scope of work, rfp process, describe how we issued the letter of non responsiveness and why we resended the letter. Talk about the scoring and criteria and ranking and noting to award intent letter. Quick project overview, objective is assess and approve the ability of port maintenance to conduct waterfront repairs after earthquake. Commissioner harrington, i understand you were not here when presenting the informational, so after the presentation chris can give description of the scope and answer the question about project and shed b. Solicitation was from a prequalified pool of 7 firms approved earlier this year. The scope of work is in two phases. The first is the facility evaluation of scoping phase 2 is project predesign, this contract is two years with option to extend one additional year and not to exceed value of 2. 7 million. Lbe requirement is 20 percent. This contract is advertised april 28. We held a preproposal meeting may 8. Issued two addendums the first provide more documents to review, more drawings, the second was to postpone the bid date and allow the port to respond to the questions and give the proposers more time to review the responses and prepare bids. Proposals were due may 30. We received 4 proposals and afterwards a Evaluation Panel reviewed the proposals and scored them and ranked them. I want to talk about the letter of non responsiveness sent to ghd. May 31 day after bids were due, we sent the letter on may 31, hour later they did submit response. After consulting with the City Attorney we were provided three options to accept the proposal. Reject it or reject all proposals and rebid. After consulting with staff, we decided to accept and ill detail that in the next slide and we sent a letter ofresended letter of non responsiveness june 6. These are reasons why we resended the letter. The proposals were dpu 2 pmp may 30. Ghd submitted their online proposal 1226 p. M. That day. I received email from ghd confirming they up loaded the subcommission at 1230. The proposal they sent with the lettertheir email protesting the letter of non responsiveness included the proposal and that meta Data Properties showed the proposal had not been edited since 1218 p. M. That day. 8 minutes before submitting the bid. Ghd also received conformation successful upload of proposal or people soft online bid system gave a bid conformation they bid was submitted so they had every right to believe their bid was submitted. I have meta data and modified date and screen shot of successful submission notification. We determined ghd acted in good faith. They had not received advantage for submitting a day late and it was clear that had it been modified and indiscernible could see 1218 was before the submission date. This proposal had three category. The understanding and approach of work. Staffing plan and firm experience with capability. As i said before, these firms were from a prequalified pool. A pool created earlier in the year. Those responses to the rfq included oral interviews so did not hold oral interviews for this rfp. Of the 4 submissions, each received a lbe rating bonus. After apply today the score, ghd was the number one ranking firm. We then submit after the port approved the notice of initant to award, we sent notice to intent award to 4 firms. There was a protest period of three business days. This is longer because it overlapped the weekday. In the notice of intent to award we include a clear description why we accepted ghd and received no protests. We are here today to request you to approve the resolution award this contract to ghd and thank you and here to answer questions of the contract or contract scope. Thank you carlos. Make a motion to move this item. Second. Thank you. Is there any Public Comment in the room . Seeing none, corey, do we have anyone on the phone . At this time, there is no one on the phone wishing to comment on this item. Thank you corey. Public comment is closed. Commissioner lee. No questions. Commissioner harrington. Im fine with the outcome of this. Im a little confused. They have records showing they put their bid in on time but you did not get notification it was on time because of a glitch in the system . I dont understand what happened there. They submitted the bid at 1226 p. M. , they received conformation. They emailed 1230 with a copy of the conformation. Im not allowed to see what they submitted until after the bid date and time. When i went online i checked the folder where the uploaded documents should be available and they were not there. Is this a cmd system . No, a city system. indiscernible i do not know the extent how this happened. It is city wide system accept the indiscernible i did email the help desk three times requesting assistance. The first time they responded to show where i could find the documents. I told them they were not there. They responded that you are right, they are not there. The third time they said they logged on again and i was right they are not there, but because i couldnt conform hundred percent it want computer or human error indiscernible it seems like they have a record that was accepted and the system is saying it isnt there. It seems that is something that should be fixed. Anyway, thank you. Commissioner gilman. Have no questions, i support the item. Thank you carlos, thank you for the report and thank you for the transparency and informing of what happened and the fact there was no protest. Good to move forward. All in favor . Aye. Any opposed . Resolution 2340 is adopted. Carmel, next item. Item 10b, informational presentation of the San Francisco waterfront coastal flood study. Callers who wish to comment on this item dial star 3 to raise your hand to comment. Good afternoon president brandon, commissioners, director forbes, members of the public. Brad benson, the port waterfront resilience director and pleased to be here tonight to present a update on our Waterfront Resilience Program activities and particularly emphasis on army corp of engineers. Standing in for adam who would be giving the presentation. Been leading great work on this along with other members of the team. Kelly capone the project manager, matt engineering leading and lucky tonight to have on the line mr. Brian harper, the planning chief for army corp of engineers Regional Planning and Economic Center out of the southwest division. Welcome mr. Harper. Im going to lead with a presentation and mr. Harper will then follow with comments and well both be available to answer questions the commission may have. So, just to go over the agenda, give a short update about activities in the Waterfront Resilience Program. Talk about short and longterm adaptation. Give a summary of Community Engagement when we brought draft adaptation strategy out to the public last fall and over the winter and explain where we are in the flood study and what is coming next. We are approaching a major milestone in the study where the army corp will make a indiscernible it is a exciting time. Our Program Vision statement is that the Waterfront Resilience Program will take actions to reduce seismic and Climate Change risks that support a safe equitable sustainable and vibrant waterfront. We are really formed to address seismic and flood risks and we have these risks today. The photos on the right are showing some of the flood experiences both on the embarcadero with flooding in the northbound lane and at pier 96 with the south sea wall is over topped by flood waters during king tide events. We know earthquake risk is a ever present risk in San Francisco and california. The top left photo shows lateral spreading from the 1906 earthquake right near todays pier 27 cruise terminal. We have been studying these problems since 2016. Steven lead the multihazard Risk Assessment which identified this significant ringe to the shoreline along the embarcadero. We are advancing projects through proposition a, the sea wall earthquake safety bond, 425 million bond approved by voters in 2018. We got key studies that we are embarking on the embarcadero and indiscernible i was talking with tim felton the Deputy Director of maintenance who walked by our living sea wall Pilot Project the other day, saw the scientist out monitoring the growth at the sea wall pilot and everybody is excited about the amount of growth we are seeing. The embarcadero early projects are moving through the stages of predesign and be back to the commission to give a update on that soon. And then the focus of todays presentation is the longerterm adaptation planning. So, we know that our waterfront is a place of change. It evolved over time. We are at a milestone now where i think we are seeing the next evolution of the waterfront. We look back to the late 1800 when the state board of harbor commissioner, mayor and governor grew a waterfront line is and 40 year investment. We are doing something very similar with the army corp of engineers looking at the shoreline, what is the alignment of the shoreline and what are the Investment Opportunities that we see over the coming decades. High level. There is a error on the slide. We have 7 embarcadero early projects through predesign. They are circled in the dotted red lines on this slide. We are looking towards a potentially a geographic strategy to advance 5 more in the northern waterfront between pier 19 and 41 and then looking to collaborate with either development partners, port tenants, city departments on 7 additional projects. We are now advancing two projects in the southern watt rf front that are early projects. You just heard about the pier 50 project and there is projects at pier 94 and 96. In terms of longterm adaptation planning, we are working with the corp to develop a system of coastal flood defenses through the study we are working on right now we are really looking at the location of those potential flood defenses and the height of them. We will get into design later after Congress Approves the project. This system of coastal flood defenses will change the waterfront through measures like sea wall, birms, flood proofing and nature based features and we expect the program develops it will be accompanied by policy changes as well, potential changes to the building code, flood proofing requirements in areas that remain flood prone. Thinking about the coastal and inland risk, it is not just bay waters we are concerned about. That overtopping risk with Sea Level Rise is one big concern, but we also have storm water that needs to get to the bay and so we are worried about there confluence of storm water and coastal flooding and then we expect as the bay waters rise that it will cause ground water in the near shore area to rise as well, so we have three flood risks that we have is this is a high level seismic risks the Embarcadero Sea wall had spreading lift north of the bay bridge and to the wharf. We are looking to embarcadero projects to mitigate those risks and the waterfront worked with engineering on the southern earthquake assessment similar lateral spreading risks with respect to marine terminals. We have been working to develop a range of options to address coastal flood defenses looking at 3 broad themes. Defend, accommodate and tlorn life with water and retreat. Moving out of areas that are flood prone. I acknowledge it is heard to imagine mag retreat in an area like San Francisco. But our partners at the army urging us to look honestly at all options. With those things in mind we develops 7 draft adaptation strategies one, no action or the future without project this. Is the baseline against which we compare the performance of all these other strategies. There is a nonstructural alternative no coastal flood defense, what would you do then . A combination of flood proofing, buildings and infrastructure. And eventually retreating out of the flood plain. And the army requires that projects look at this alternative. We have two scaled to address a lower reality of Sea Level Rise. One which adaptable to a bit more Sea Level Rise. And then 3 strategies that are looking at a higher rate of Sea Level Rise. One of of which defend at the current water front another that is looking at manage the water through features like tide gates. And the thishd looking at what restreet approach and alining with future watersheds. So our path to get to a draft single draft waterfront plan is going to look at all of the strategies. Assess performance. Hear Public Feedback. Agency feedback. Hear what other departments have to say. Hear what other parts of the army have to say about the draft plan. Use Technical Evaluation and mixing can match to arrive at a final plan. Thats the process we are in now. The port is luck tow lead this effort and we have a great responsibility for 7 and a half miles of the shore line that is as stake is far more than the port. Mayor breed formed climate sf, group of city departmentos this slide. And we have been luck tow have them as partners this collaboration. Each agency designated a champion to work with the port to develop the strategies and they are helping us evidence the strategies and hopeful low come to a draft water front plan that meets the needs of the port but of all of the departments in their infrastructure and service. There is a lot going on in this effort. A lot of technical expert ease that is needed. We formed an Agency Working group with all of the permitting agencies with responsibility over San Francisco bay. Including agencies with responsibility for historic resource. I have been meeting periodically to hear about the work going on in the program and give advice as we walk down this path. We formed an Equity Working Group of city staff. Am the equity lead in each of the Department Hos have been helping think about implications of our planning work. Public communication, you know of economic both consequences and opportunity coming out of the program. Engineering with nature i will talk more later on in the presentation. We got a human made shore line today. There are opportunity for better habitat improvements. Come i dont are stewards of 2 historic districts that are affected by potential future flooding and have the Historic Preservation committee to advise on those issues. So as i mentioned we went out public low last fall and winter with the 7 strategies to get feedback from the public. They have a firmed some focus on life, safety and emergency response. And prioritize assets most loved by the Community Important to the city like the Ferry Building. Dont just think about the physical built environment. Think how people use the waterfront and that is important in terms of those workers, resident and others visitors. So we held 16 events an open house on the southern water front. A series of focus groups and a lot of online, we have robust story maps and social media and Video Productions to help people understand this work. Had over 500 people participate in those public events. Over 170,000 people touched our content related to the draft strategies. We had good penetration with this out reach effort. There is more to do. Theme was when we heard people are concerned about Flood Impacts where they live and work. Impacts to community safety. Disruption to transportation was key in the public out reach. And Community Members support a strategy that deupon fendzs against the higher projected rate of Sea Level Rise. Folks are spicht of nature based approach bunkham improve Public Access. We did not hear a clear favorite. My observation is that there was so many strategies it was hard to absorb all the information and irrelevant will have a clear opinion. I think people will do bhrt we have one strategy they are reacting to. I was surprised we showed the retreat options in different neighborhoods and if the bayview. In liked the idea. Others did not like the idea. I thought there would be a more negative reaction. Was surprised by that. We heard of strong concerns about equity. People are concerned about contaminated cites over and sore again what does Sea Level Rise mean for those contaminated cites . We are suddening that engagement. Working with a subcontractor. Rdj on a learning surge in the bayview community. Focused on youth, businesses renters in Public Housing and fake focused residents. So that will be on going over the course of the fall. And we are looking for partnerships with Community Leaders get the word out to a variety of constituencies. All of which is leading to the discussion about the next gaps in the army process and the work this we are doing right now. So again. If the army finds the federal interests we will talk about what that is. This study can lead to significant federal funding to build coastal flood defenses. Project costs just sorting through the cost estimates now. But are likely in the billions. And they would pay up to 2 thirds of the cost. And the city would have to come up with a 35 local match. Benefits are across multiple accounts the army focused on the National Economic development account. They wanted build the most efficient project that solves the flood problem. This study is asked to look at all 4 accounts and Regional Economic affects. Other social affects. Well talk more about what those are and environmental equality to try to come up with a multibenefit plan that address more than the flood risks. So digging in the other social affects, we have many metrics in this study. You know trying to understand and who the future flooding will impact. You know how tell affect how people get around the city. Are there social low vulnerable populations focussed on in particular, we have too much data and focus on the decision drivers that will help folks like e lane the board of supervisors and the mayor to make a final recommendation and decision. Thinking about equity. I mentioned that the working group they helped us focus in on the criteria that can help under the circumstances put an equality frame on the Decision Making and sdrnlting the benefits recognizing the history being lack of investment in the southeast. Protect housing and jobs. Looking at the contracting and Workforce Development opportunity and maintaining transit contactivity. Twhoing i wanted highlight for folks to been we are not going to build everything at once. The problem was a problem but there is a way to approach dealing with the problem that will rely on phasing and potentially smaller inter~ ventions, first. Followed by larger inter~ ventions. And so this slide shows that you know we have areas of the shore line that are low as 8 feet in locations. Generally the areas with 8 and 15 feet in elevation. High tide today is 6 feet. If we had today, high tide and the coninfluence of a severe storm, we might have water levels up in the 12 foot elevation which leads to the flooding i showed earlier where the shore line is too low. If we want to adopt to a foot and a half of rise we have to get to 13 and a half feet. Flood walls could provide protection for the near term. So i want folks tong about lower scaled interventions and the longer higher scaled interventions we eventually need. Think burglar engineering with nature. Have a working group with experts from the bito help us look at how we can introduce nature based features along the water front. If you have more space you have more options to work with. If we do instalt nature based features they have to migrate uphill over time. Keep we see a lot of different tunes even in areas where well is a vertical feature like the sea wall. Looking at the living sea wall pilot to install engineering with nature features. We have flood benefits they mitigate wave impacts. And improve the life span of more typical gray infrastructure. And then thinking about our shore line historically we had a lot of habitat before the waterfront was built out. Now we have a few locations where we have nature like pier 94 wet lands. We are looking at this funt to create multiple needs of happen at that time along the waterfront to support a more natural vision for the water front. So, in closing, this is sort of a snap shove time line we near now. We develops the waterfront stljs. Went to the public with them. We recall evaluating them looking at cost and benefits across the 4 accounts right now. With the army we will select a plan by mixing and matching from those strategies. That will be publish in the a draft integrated feasibility report in november. Will be an are bust report and well be back out to the public to get Public Feedback to further shape the plan to get on a final recommendation. A lot of terms and acronyms ribrief glossary National Economic plan the typical plan that maximizes the most economically efficient prop to the flood problem. Comprehensive benefit plan is multibenefit, new for them and we are asked to develop bhon this study. There is the option for a local low preferred plan where we might have features that we pay for entirely. Above the cost of the benefits plan. And the tsp mile stone is where we are headed where we have a draft planful public, tell us when you think. So. I think i covered most point this is is irrelevant an upon fwhons i Generation Opportunity to improve public realm. Flood risk, to improve habitats and protect historically disinvested areas. So i will stof there and then invite mr. Harptory offer a few words to the commission and the public. Hello. First i would say thank you for inviting me i appreciate the opportunity. I present thered and happy to answer quos behalf of the core i dpresz our appreciation for the partnership with the corps and the working team that we have that combines the port staff with our staff and the corps and Consultant Group to tackle the important study. This study is important to the corps. And our leadership is keeping an eye on had we are doing there are some issues that we are addressing that are nonstandard for the corpss program. So, we are we have been asked to work closely with the city and explore some new ideaos how to prepare for a longterm Climate Resilience in important cities and communities like San Francisco. We participate well get the same kindses of requests for study. In other centers great lake and boston already have similar stsd under way. An opportunity for us to learn as an agency and as a destination how are we going to prepare for the longterm risks we see with our Climate Change and need for Climate Resilience . I will stop there. Thank you. Thank you. I will open up to Public Comment. Is there Public Comment in the room . Seeing none. Do we have anyone on the phone in there is no one on the phone wish to comment on this item. Thank you. Public comment is closed. Commissioners. In is exciting and daunting. I take to hard this could be the model for the nation in ways and the work you are doing looking at things like social vulnerability, investigate nature based engineering thing is different. From other places there are so many coastal communities not guilty the world. We are ahead and can do it well makes a difference International Low for people who are dealing with these issues. Im looking forward to having us do it well. And thanksgiving for doing it well so far. The whole idea that it is not just the port when we talk it is how do we save the city . One thing to say we will fix the 7 and a half miles but we are if i canning the city. Had a study about ocean beach. And the same discussion and like retreat. Do you stop with the irish cultural center. Where do you stop . Thats out there in a such an urbanized environment retreat cease difficult. I understand what you said about Nature Based Solutions they are difficult in tight space to make those things happen that would be exciting for me but that would be such a great thing to show people can you do things different low and the response are often easier and scaleable and faster than other ways of doing things. Im excited the only thing less exciting is the time line. It would be great to get something to congress faster. I think the time line in the report was 25 or 26 thing. Is there any chance. We should do it right s. There a chance to do it right and less to do it faster. Done while we have more control who may be in congress . Mr. Harper. [laughter] i can take this one. And i think the short answer is that, no not likely. And the reason 25 is should feel that our authorizations come in every other year. So we will have a Water Resource Development act in 2024 and another in 2026. That is the standard pattern. Well not make 2024. It is in our interest to focus complete thanksgiving in 2025 to have the best recommendation for that 2026 work. Thank you. If i can add to na, to just like harkening back to right. We have been in a lot of discussions and i know director forbes wants to make sure we are working with the other Department Heads who are affected by this. And that there is confidence in this plan. At the end of the day. We will go out with a draft plan it will not be a perfect plan we need to take into account all of that Public Feedback and needs of other departments to get to that right plan. I appreciate that. And i also appreciate the community out reach you have been doing. That will take time to get that back. You know for example condition tammyination not high occupy my list i understand why. And so without that community out reach you would not get the different parts of the feedback. Takes time of and the sea level is rising. Lets work on it thank you thank you. Upon commissioner brad, thank you for working on this ambitious and it is such a forward thinking way. I appreciate your presentations and elevate the community out reach. We are doing it right and ton and really, really important to have the buy in from everyone. I had a question going overnight department lists. I was curious where department of Public Health is not on that slide because of the Environmental Health issues Sea Level Rise could do for folks. It might be nice to include them. I would think than i could have a unique point of view. Goes suggestion. They are not part of the climate sf group but we do collaborate with them the contamination issue we have been in conversation with represents of the department of public haechlth and office of resilience and capitol planning how do we go about identifying contaminated sites that will be impacted by Sea Level Rise. What other public healing recommend ifkdzs of mobilization of contamination . There is collaboration and i will bring that back to the Office Resilience and capitol planning. I think i ask you this every time. So, we get our allocation and get theft and i dont know. We are a rain maker. We get whatever billions we need to do it. Took us unfortunately over a decade to build a short subway station. Are we looking at decades of work to mitigate this . Assuming you were at the go line and money was not the object. Im correspond our public i continue is important that our process is bureaucratic im concerned it could holdup things we need to do now to combat Climate Change. We are looking at the time line it construct these various types of improvements. We need to understand how long it takes to build a pifrpt action. Design and boulevard how long to design and build a second action and begin rates of Sea Level Rise is there enough time to get to that second action and you are right. So the way that the city does business. The way we contract. The way we analyze things through Environmental Review there is time embed in the all of those processes. And it is manage well need to look at and i think the most important thing is how we Work Together as city agencies seen in other big projects in the city there was not that up front cordination. Department come in with a later need and slows down and rebid thats what we have to avoid. Appreciate your occurrence. I hope to for brothers and sisters, i hope we learn of i looked the benefit a worldwide pandemic we learned that we can move quickly and get things up and run when it is a crisis. I hope we treat tht same way. Did you read about the highway collapse on the east coast . I95 and pennsylvania collapse a rebuild in 12 days . Director forbes will get us all. [laughter]. We can act quick when we need to and this in some way system crate critical i hope we can hopefully [inaudible] we need to get approval for [inaudible] and understand that. Thank you again for shepherding this work. [inaudible]. Thank you. So much. Thank you. Commissioner. Im the most impatient person. You are doing it right every agency involved. Im always amazed look under your graphs. My concern is okay if we are not submit thanksgiving the 2025 and before it goes to congress because of the cycle, the cost of everything going up, and if all of the public out reach is done. And like you said now you gotta figure out how to build it. Do you wait until we go to congress to get the money before you decide to figure out how to build it. Or we are waiting for the cycle, are you implementing a plan on how to build it. Happen forecast will be. In 2090. Tell always be like that. And to00 autoconcerns of commissioner gillman. We are a reactive state. We didnt know about covid. Everybody drags their feel and waits for the next one. What earthquakes and we dont know im not a gambling manual earthquakes can happen tomorrow and we are still talking about it and not doing anything. I like commissioner herring ton said im concerned about time and i dont know where we are there, you know it is when it is we have to do what we are doing. Im curious hunotice over foster city they already built their wall. I guess because it is a mall town and have to talk to their own people. They got their wall up and everything does not look great you know facility sea wall will not go to foster city. A situation we are stuck and i dont know what tolls say im wondering are you planning now wha once the out reach is done and now figure out how to build it. Im hearing loud and clear from all of the commissioners the urgency to get going. Director forbes is reflecting this back to the program. Talking about shovels in the ground the other day. So the early projects other earliest interventions we can pursue we will update you where we near those projects. Thats where shovels will be in the ground first. And to your other question. Anything we can do to accelerate the arm corps process. There are a few levers that could be pulled. Lets come become to you with ideas about how to accel rit thing in the army corps process. And just know the message is heard. People are eager to move this along. So, yea. Thats all i have i was think thanksgiving you have done so much out reach. Move more can you stretch out . If tell end in 2025 we cant present typeset until 26. Instead of witting for congress to say, okay. We got halfway how we will build it and you get the money we can start building. Thats my comment. Thank you thank you. Thank you, again you and your team have done an amazing job of bringing you to where you are today. We have done a lot of analysis and studying and we have come up with several options for how to move forward and i want to thank you for bringing all of this information to us and informing and educating the public on what it is we are trying to do and how urgent it is we do this. And my fellow commissioners ask great questions. I think we are all saying, when do we start snr this is urgent. When do we sfart protecting . You know what can we do to move this forward . Im i would like to know, what happens between now and november . How do we come up with that draft plan and that target we are looking to . So that is the work the team is engaged in now. So the project Delivery Team which includes army corps staff and port staff. Has been looking at the plans looking at all the costs and benefit information that is coming through the work this we have been aacceptbling the last of 3 years and mix and match from elements of strategies you saw. To come up with something that will meet a federal interest finding. The army corps can say, as a comprehensive benefits plan. We are now in the process of evaluate thanksgiving work at the department level. I we arrived at a selected plan mile stone army corps says, we will bless that benefits plan on september 7th. And we can do it individual briefings of commissioners to share that work. It is draft and work in progress. That is the flan would go out as part of this draft report that one plan. For Public Comment. And your decision will be in april of next year. So you will be able to look at that plan. Look at the Public Comment and say. The city this is the plan that we are recommending. And this will be in april of next year. Okay. Commissioner. I have one more. Occurred to me we are all thanking you and all excited. We should thank the army corps. They dont typically get involved in these things. Their interest and work is peck tax lawyer and should appreciate all that. Thank you. So, the draft you have come up with. Du want to say something. I, too, was going to thank you and thank our team for we we are so appreciative of the partnership and the relationship we have been able to build with the army corps and we then and there this does not happen often and then and there is a great opportunity for the port of San Francisco. To become a program for the rest of the nation. We really appreciate your support, and all the guidance you have given us overnight last 3 years. Thank you. If i can peek to the urgency issue. I wanted to offer the observation that one of the most critical things we do is make sure we are alined in methoding. To dc were an executive branch we work for the president. And we are getting messaging to lmb we believe the project satisfied you know the criteria for our program and make eligible 65 35 match and important that the hill here similar message from the port that the port and the corps are alined. And how we want to move forward with the project. Uponeen though there is work in front of us. That if we can have the same messages and shared support it does help us with this issue. Thank you. So much and i know director forbes and her team are totally alined with the army corps and will work out the best possible scenario that works for the army corps, port and the nation. Thank you very much. Okay. There are no other questions or comments . Next item. 11. New business. Commissioners i did not record new business in the conversation. Is there new business. There is no new business but commissioner gillman would like to comment. I then and there is unusual i wanted to take my moment on the dias it say we have a big port fan whos birthday is today. Someone from the southeast waterfront always advocated and hopefully she is listening. She dared me. Happy birthday to sun frethe port we appreciate in over a decade you worked for d6 and 3 as a staffer at city hall happy birthday. Sunny. Can i have a motion to adjourn. I make that motion. Silliness. Second. Thank you. All in favor . Aye. The meeting is adjourned at 5 36 p. M. Is r. My name is Debra Alvarez rodriguez. Im the Deputy Director in San Francisco. My background is one in which i have spent the entirety of my life committed to finding solution to poverty and addressing the issues of inequity so people and communities can have accesses to resources and financial freedom. One thing true anode dear to my heart was the power of Business Ownership in creating pathways to financial freedom. We have still in infancy. We had over 100 entrepreneurs come and start their businesses. Some are food trucks. Some are restaurants. Some are in farmers markets and so farther. Thats an incredible legacy and record to build upon. This was the perfect opportunity for me to come back home, you know, come back to the neighborhood and take my skills and networks and resources and put it backseat in service of the community. Given everything with racial reckoning and pandemic it was time for me and everyone else that had the opportunity to leave and get educated to come back home. We have a opportunity to grow our impact in terms of the number of people we serve and how we serve them. We grow our impact in taking the money we make with our entrepreneurs and circulate those resources back interview the community for community development. The third thing is we have a opportunity to have an impact on Public Policy in terms of the policies and practices the district has been notorious about interms of inequities. All of those are just the beginning of what is possible in terms of growth and impact. [ music ] happy Second Annual transgender history month. [applause]. It is an absolutely pleasure to be here with you all. And welcome this very special moment here in San Francisco. I have the great honor to be your mc for this ocean im jupiter per asa. An occasion that is personal to me and close to