Including contra costa. As a Foreign Trade zone Board Regulations require the Foreign Trade number three be operated as a public utility requiring all rates and fees for all services that we charge within the zone be fair and reasonable. The regulations also require the Foreign Trade zone number three apply uniform treatment under what conditions to all users and applicants within the zone. Either foreign treatment doesnt require acceptance of all proposals by zone participants, but rather the bases for grantees like our decision on a particular proposal, it must be consistent with the uniform treatment requirements. Foreign trade zone number three is a local contact for all Foreign Trade zone operates. This early this consists of the chevron facility in richmond, the valero refinery which was approved in 2010, the 66 refinery in rodeo which was approved in 2014. The Expediters International logistics and distribution facility in brisbane which is also just approved last year, most recently, the aviations air freight facility at San Francisco airport which was just approved this may. These companies will the total value of nearly 20 billion in merchandise through Foreign Trade zones in 2014. The proposed operations agreement in front of you today out lines the terms under which the four chevron sub zone site would be operated and provides a chevron authority to operate its Foreign Trade zone sub zone site after under a grant of four. The proposed agreement is broadly identical to the agreement as the board recently concluded valero and phillips 66 at the agreement states chevron will be with to continue to continue operating the site in concordance with customs and Border Protection regulations. And all other local, state, and federal regulations. The women contains a broad indemnity from chevron to the San FranciscoPort Commission similar to the valero, phillips 66, expanders agreements. Includes a selfinsurance program, which received input from the city manager and the city attorney. In the 17 years, chevron has operated sub zone site, we are aware of no violations of ftc board or customs and Border Protection regulations, nor any violations to the Current Operations agreement with ftc number three. As background, the ftc program essentially a federal jobs and Economic Development program that encourages us companies to employ us labor to produce goods and services in the us rather than overseas. The Program Provides certain benefits to companies to incentivize the usbased activity including the referral reduction and elimination of federal customs duties and fees associated with the import, export, and manufacturing activities. These are fees that would normally go directly to the us federal treasury. The four active users of Foreign Trade number three seed a total of nearly 3 million in customs duties and fees in 2014 by operating within the ftc environment and that accommodation of all four of the active sites active in 2014. As a program does not allow chevron or other users of the ftc program to reduce or avoid payment of state and local taxes and does not take away any state or local regulatory control. Chevrons richmond sub zone is one of six ftd seventh they currently operate in the us. The other five chevrons refinery sites operate under the ftc Grant Authority of the ports of los angeles, Broward County florida, the state of hawaii, the mississippi coast Foreign Trade zone, and the Port Authority of new york and new jersey. Total of 66 refineries in 21 different states representing 29 Different Companies currently operates petroleum ftc sub zone sites in the us. Chevron employs over 3000 personnel at the richmond refinery site to refined blend store and distribute finished petroleum products. Unions representing these personnel include the united steelworkers, International Brotherhood of electrical workers International Brotherhood of boilermakers and International Union of Petroleum Industry workers. Chevron also has a project Labor Agreement with the contra costa building and Construction Trades Council further construction work on the current modernization project. In fact, this trade council put a letter of support on this sub zone agreement renewal, which i believe you have in your pocket and ive asked her copies if you need them. The Foreign Trade zone sub zone designation but chevron in a better position to retain jobs and compete with imports of finished petroleum products. It also competes with the other bay area refineries that operate ftc sub zones. Approximately 10 of the product chevron produces at the sub zone were exported last year, and this includes jet fuel that was consumed on International Flights by airlines of San Francisco and Oakland International airports and domestic flights as well, for that matter. The proposed operations would provide a term of five years with three options to extend for five years each. The agreement of terms and im sorry. The court, port will continue about weight chevrons performance to agree to terms and conformance to ftc board and customs regulations when deciding whether or not to grant the extensions. Chevron probably pays ftc number three 20,000 annual fee. The same is valero and phillips 66. This is going ghost mamaftd sub zone annual fees in the country. The port retains, however the right to increase its fee in the future and during the course of this agreement. With that, the port staff recommends the Port Commission approved this resolution, approving the renewed operation agreement with chevron and with that all can include my remarks and will be willing to take questions and comments from you. Thank you. Thank you. Is there any doubt that some other people here are they prepared to speak . Just introducing them i was just introducing them. Theyre here to answer any questions that they can address. If the Public Comment . I have had waddled my penis and doris mohammed. Anyone else wishing to speak, please also line up and come for. First, derek. Good afternoon on derek mohammed. An officer with the avenue w local target am here this afternoon as a concerned citizen. Great presentation, by the way. I am here to ask that you all reject this deal which is essentially a tax deal. In my humble opinion, believe its premature to grant this kind of deal without any research into what kind of money they plan to make and what kind of gift that they plan to give to the community that are impacted by those refineries. Until that is done, my request is that you reject this view. Thank you. Thank you. Next. Him and wire up my penis Richmond City council member. Im happy to report that before this meeting i had a conversation with joe the rents Senior Public Affairs for chevron, and he validated my concerns. The concerns that he validated was the fact that the city of richmond, and especially the city council was not made aware of this i chevron or by the city manager. Which is embarrassing to me. I was elected by the residents of richmond to represent them and when something this big slips by me its embarrassing. Especially since the people in richmond are waking up to the political process. We have concerned citizens were becoming more and more aware of what the responsibilities of the civic leaders, as well as the Business Leaders are. So, the city hasnt been informed. Residents have not been informed. This is an issue though of an impact on her city and our residents. The other concern is that this agreement is done without any authority from the city of richmond. So, its almost as if someone from richmond would decide on some policy here in San Francisco were the port of San Francisco and you not have any authority over whether it should happen or not. Im sure that you wouldnt appreciate that. So, the question is, why hasnt the port of oakland im sorry. The port of San Francisco im sorry, the port of richmond been involved with this but why hasnt there been communication . Also chevron has been doing Self Reporting on everything that has to do with this trade agreements. We know, in richmond, that chevron lacks in their ability to be forthright. They kept telling us that everything was hunkydory. Everything was up to speed, and then, we had a fire and he pleaded no contest to seven counts of criminal negligence. Now, is this the sort of people we want to be selfmonitoring their dealings . Also, the city of richmond had to contest property taxes from 2002 through 2012. I would request that we do a 90 day moratorium, and that during that time that the city and the residents of richmond have a chance to be informed and made aware of the trade agreement. Thank you. Thank you. Welcome to the side of the bay. Any further Public Comment . Seeing none, Public Comment is closed. To have a motion . Sunk some of second commissioners, this ms. Brandon. Thank you for the presentation it i guess ive concerns based on the discussion that just happened. To me it doesnt really sound like weve done her homework and communicate with all the necessary parties for bringing this to us. So not quite sure if you want to comment on the people who just commented and the letters that were received. But i do have concerns about moving forward with this. If youre commenting on that specifically, if he could touch on, perhaps, the notion of the 90 day moratorium that was just raised . Okay. One caveat all make we have a sub zone 400 sub zone was chevron for 17 years. So, i think its well known. We met with chevron. We talked to the city manager of richmond. Weve also talked to the port director of the port of richmond actually worked with the city of richmond to see we can use the Foreign Trade zone program and economic developer tool of other companies in richmond now or other companies that are considering coming into richmond. Going back to chevron, i would say this is been in place for 17 years. Essentially, its just a renewal of the operations agreement between ftc three and chevron, which just dictates the terms or continues it the terms, of how the agreement, or how the sub zone is going to be operated. The list to say, they will continue to operate according to the Foreign Trade zone Board Regulations, customs and regulations, and indemnify although its been in existence for 17 years, weve commissioners that have not been here for 17 years. So, i think this is a new process for most of them. So we still have concerns of why people are upset for concerns that we are doing this. Maybe you could speak to what our requirements are as a regulatory dough should be no for Foreign Trade zone where regulatory requirements are and what factors we can consider. Some of the factors we reasoned Public Comment were not allowed to consider. Maybe you could speak to that . As i pointed out in my remarks, which was to operate the Foreign Trade dont zone site as a public utility, although all comers into adding axis of the benefits to have access to them on a local basis here. Also, to treat them uniformly in this case, treat chevron like the other refinery sites that we have. Basically, we are required to oversee, administer, the program on a local basis here and help our users to have access to the benefits, several benefits. I dont know if that answers your question or address your concerns . Director at the brick if i could step in for a second on a couple issues. In terms of communication the port has done an extraordinary job in communicating to the city of richmond over the past year. In your package, youll notice the city of richmond economic moment department, which is a department of the city manager and department of the city of richmond, had a supplement to bay area businesses touting richmond as location to do business. In that supplement was a article that the city of richmond put in about the San FranciscoForeign Trade zone touting it as a weapon to use for Economic Development to attract more businesses to San Francisco. We have talked to the business city manager we talk to the port director. Jim in a Foreign Trade zone consultant roger peterson. Powerpoint presentation to the city of richmond Economic Development manager. We can send you a copy of it to anyone who wishes to see it. So, i respectfully say we have reached out to the city of richmond get the communications when the city of richmond is a different start. Thats not under our i think weve done an extraordinary job of letting the city know of these benefits to to jims point, the regarding equal benefit under the Foreign Trade zone act, we have to offer a look utility. So, if we do not act, the so Foreign Trade zone grant that is been a place for 17 years. We done numerous refineries and other activities, since then. If we dont act on this in 90 days it expires in two weeks. We were giving us of the Port Commission at the last Port Commission meeting that was asked by the commission to hold over until this meeting which we argue. Now that shortens the time frame to which we have to act it if we dont act theoretically then the benefits that the Foreign Trade zone grant would give to chevron will disappear. And theoretically we could be held responsible by the Foreign Trade zone for not adhering to our grant requirements, which if you take to the most further extreme, could be adjudicated as a Foreign Trade zone board which require mean 8000 a day penalty for the port of San Francisco. At the worst case. Regarding a possible delay this would not allow chevron to keep the benefits and it would subject liability of not adhering to our zone grant. So, if that is the direction of the commission is asking us to go forward with, i would ask that we approve the extension of the grant for a period of time so does not last the port into a vulnerability in terms with the federal government on this Foreign Trade zone board. Thank you, peter. Those very helpful to hear. I think i hear a number of different things. I think that we are the overseer of this license, licensee currently has been well, i guess im using the term but anyways im a maybe its im saying i think its been in place for 17 years and with particular purpose of this , there havent been any particular issue. What im hearing is that chevron does have its own set of issues on a local basis, which unfortunately, is outside of our ability to sort of comment on. I dont know that we can be held accountable for using this as a way to leverage whatever the other issues that are out in the community. What i do here is that we been intimate occasion with the city of richmond and the not with all the parties that be interested within the administration of the city of richmond. Which is unfortunate. I think that for those of us who dealt with Foreign Trade zones and notches here in similar scope, but some expense in terms of my trade experience in banking, the purpose of this, which is simply to allow goods to come in and to be processed and not to have to go through a whole customs process again. So, theres nothing illegitimate about the purpose of what theyre doing here. This is done by many many different manufacturers and we have a nap in the state the overseer. I think that its very unfortunate that there are issues that we are not party to that are being brought to us and im sure not sure where in a position to make a judgment call on these issues. I think that peters suggestion to move forward since we could be putting ourselves at liability by not, if we are in deadline, but to urge the parties to come together to resolve their issues separately, thats not really related to Foreign Trade zone directly is a totally separate issue. I think that we cannot put ourselves necessarily at risk in terms of if we would be subject to any fines on a daily basis. I dont know who it would reimburse us. Not sure chevron would be willing to step up to say they would. But i think we can put the port at risk and weave a fiduciary responsibility as a commission here in terms of protecting ourselves and as i said, i think were not in a posi