Performed 190 and no Litigation Committee in october. Thank you. Deputy director. Any Public Comment on the directors report . Item nine. Review and approval of the meeting of october 18, 2017. Move to approve. Second. Theres a motion and second. Any Public Comment on the minutes . Are all commissioners in favor . Aye. Any opposed . The minutes are approved. Our next item, item d, discussion of annual performance evaluation for the director. Is there any Public Comment on prior to going to closed session . Seeing no public, is there a motion to convene a closed session . I make a motion to convene in closed session. Second. All commissioners in favor. Aye. Were now in closed session. Deputy City Attorney robb kapla. We met in closed discussion to discuss items 10 and 11 and move to reopen in open session. Thank you. Is there a motion to reconvene open session . Move to reconvene. Second. Motion and second. Were now in open session. Commissioners. Mission accomplished. So thank you for your patience on the review. We should be more efficient in getting them done and set a more regular schedule to get ahead of that. Thank you, thank you for your service and all your hard work. Thank you. So we are we done or . Move to adjourn. Next item, adjournment. Motion to adjourn . Move to adjourn. Motion to adjourn. Second, were now adjourned. It is 12 50 p. M. Thank you madam secretary. Thank you. So move. Second. All in favor say aye. Aye. Opposed . Item three, comment on the executive session. Is there comment on the Public Session . Were here and the public isnt. Can we put that in the minutes . All in favor say yai . Aye. I move to reconvene in open session. Second. All in favor say aye. Aye. Opposed . I move to not disclose anything discussed in closed session. Second. All in favor say aye. Aye. Opposed . Madame secretary, next item. Pledge of allegiance. I pledge of 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. Please be advised of the use of cell phones, pagers and similar Electronic Devices are prohibited at this meeting. Please be advised that the chairman ordered the removal from the meeting room of any person responsible for the ringing of or use of ale cell phone, pager or other similar soundproducing electronic device. Please be advised that a member of the public has up to three minutes to make pertinent Public Comments on each agenda item unless the Commission Adopts a shorter period on any item. There any Public Comments on items not listed on the agenda . I dont have any cards so if you have anything to say, please hit the mic. Seeing none, Public Comment is closed. Madame secretary . Item 9a, executive directors report. Good afternoon, members of the commission. Members of the public and port staff, im elaine forbes, the ports executive director. Id like first to update you all on the resiliency by design challenge. In may of 2017, this challenge, which is called the r. B. D. Challenge was kicked off with a call for innovative approaches to Climate Change. And this was really modeled after what happened in new york in the wake of hurricane sandy. The Rockefeller Foundation contributed a large amount of money, 4. 6 million to this design challenge. The design challenge, as i said, there was a call for Innovative Solutions from multidisciplinary teams and r. B. D. Received 50 submissions. On september 10, 10 teams were selected. Those teams are composed of local, national and international experts. For two months, the teams have studied Climate Change issues. This is a ninecounty bay area challenge. So these teams have been looking in the north bay, south bay and bay. On november 1, they were here in San Francisco and they toured the citys recommended options for sites which were isla creek and fishermans what are. Wharf. The tours included stakeholders from the bayview hunters point. There is additional outreach. There will be five to three implementable communitybased solutions presented on november 15. If you are interested, you can go to the website, resilientbayarea. Org. The ideas will be available for the public to comment for a few weeks. On december 8, r. B. D. Staff will then team up, design teams, with site selection. And then the more Detailed Design will begin and well keep you posted. This really offers an opportunity for us to learn about sea level rise. As you hear, all three sites are on port property. Crab season is open, im happy to announce. We will have crab for thanksgiving this year. We heard from mr. Collins of the Community Fishing association. There is an agreed upon price and the california can Public HealthDepartment Said that the commercial crab season can begin and it is expected to begin today and it will be here for the San Francisco fishing fleet and the region south of the Mendocino County line. As we know in recent years, theres been concern because of the dominic acid that has been occurring and we did see some of that near fort brag this year. Fort bragg this year. But the good winds prevailed and commercial crab season will begin. Also our own fish sales have begun in Fishermans Wharf so here in San Francisco, there should be a steady supply of good seafood this year. I would like to turn it over now to peter daly or mike nerny. They attended with our own president willie adams, the west cruise cruise in the west conference in seattle november 7 and 8. Mike, can you tell us about the conference . Thank you. Good afternoon, commissioners. My name is michael nerny, Marketing Manager in the maritime division. For a change, im not going to talk about retail fish sales. [laughter] i have a new topic today. Last week, as elaine said along with byron, retz and peter daly, i went to seattle, washington to attend the annual fall meeting of cruise the west, a Marketing Association of 10 west coast cruise ports from california, oregon, washington, British Columbia and hawaii. The president of cruise the west is chris chase from the port of los angeles and i am the secretarytreasure. The Association Works together to promote our region to cruiselines every year in march at the sea trade cruise global conference in florida. The main purpose of last weeks meeting was to plan for sea trade in 2018. Items such as the budget and member dues, booth arrangement at the Convention Hall and details for a customer reception. Also taking place in seattle last week was a postseason meeting of all the cruise lines doing business in alaska during the summer months and it was organized by Cruise Lines International association or clia. Cruise the west sponsored a reception together with clia for the cruise line executives and stakeholders which included Port Commission president willie adams and stephano borzane. While in seattle, byron, peter and i met with sign cruise, c. E. O. Of Holland America group and toured the companys newlyrenovated headquarters. We also met with Holland AmericaVice President bill sharp to discuss port and shore operations and growing the business in San Francisco. And we also toured the newly renovated pier 66, the bill street cruise terminal which, in 2018, will host norwegian bliss. The largest envelope vessel ever to sail in alaska, carrying 4,000 passengers and 2100 crew members. Norwegian bliss will visit San Francisco on her maiden call in october 2018. Commissioners, this concludes my report. Thank you, mikeful id like to speak about the impacts of the proposed tax bill being considered by the house of representatives and the senate. There is a nice handout that staff prepared about historic tax credits that is available to the commission and the public. As you know, there are two tax bills under consideration and both really have major consequences to the port. For two reasons. In house bill, federal historic tax credits would be eliminated as would private activity bonds. Federal historic tax credits are a major tool for historic rehabilitation of our finger peers. This would be fairly devastating to the future of our finger peers and to other Historic Buildings on port property. Per our staff estimate, we would have a direct loss of between 230 to 350 million and up to 1. 7 billion in public and private investment. The loss of private activity bonds would also be detrimental to us. It would increase our cost of borrowing for port projects like the james r. Herman cruise terminal. And seriously undermine the citys Affordable Housing efforts. We sold private activity bonds at, i believe, 3. 7 interest for our james r. Herman cruise terminal. If this had gone into effect, we would have needed to sell taxable bonds which would have increased our rate substantially, at least 100 basis points, at least. The senate bill is a little less bad. It reduces tax credits by 10 of rehabilitation cost and would eliminate historic tax credits for buildings cruxed after 1936. We have buildings like that. We project the impact to be between 130 and 175 million and an unknown loss of private investment. So this would impact really the world war ii era Historic Buildings at pier 70. They would no longer be eligible for historic tax credit under the senate bill. The senate bill does not eliminate private activity bonds, which is a good fact for us. Support staff is working closely with the Mayors Office and our city federal lobbyists to educate members of congress about how these tax bills would harm the port of San Francisco. Next the schedule of Port Commission meetings for 2018, id like to say that it is available and in the commission packets. Please note that we will be doing an audiovisual upgrade and, to this Port Commission hearing room and, as a result, well have meetings for february 27, march 13, march 27, those will be held in pier one while we get the Port Commission and the public a new system. And that concludes my report. There any Public Comment on any executive directors report . Being none, Public Comment is closed, madame secretary. Item on the consent calendar no. Sorry. Park commissioners report. Commissioner . Thank you. I just wanted to report that i actually just returned from a private personal cruise in europe where we stopped with my family in bars low na, va barcelona, valencia, livorno and rome and obviously i had a chance to experience all these other cruise ship terminals. Of course, while i cruised before so it is not the first time, but i had to say that i was absolutely reminded how beautiful and how nice our cruise ship terminal is relative to some of these other major cities in europe. Even barcelona, which is one of the busiest cruise ports along with greece in terms of the number of cruise ships that they can host. But many of the other cruise ships are obviously docking where the port is, even in valencia and monte carlo and they are in ugly neighborhoods and it wasnt a pleasant experience to get off the boat. And i would say just even the terminal itself in some places, even in monte carlo they try to have at least a nice terminal. But i have to say it is i think we have to remind ourselves and appreciate that we have a worldclass, beautiful facility when you walk out cruise ship terminal, you are in the best neighborhood of San Francisco for a for a tourist experience and i was just so appreciative, realising how ugly these other terminals were. Than commissioner katz . Nothing. So glamorous. Nothing to report. Commissioner brandon . Our cruise terminal used to be like that. [laughter] but now we have a nice, new cruise terminal and freeway is gone. We are very lucky. I have a few comments. Before we start, id like to have a moment of silence for the victims killed in texas in the church here recently. May they rest in peace. I did attend the reception after the west coast conference. The only reason i found out about it was because of stephano, the c. E. O. Of metro. I wasnt in the loop. But the maritime division. Once i did find out, i got a hold of mike nerny. He got on it right away. He registered me for the reception. I thought it was really good because i wear two hats to the Port Commission and the secretarytreasure of i. O. W. What i found funny is all the Cruise Companies were thanking their partner. But partner they didnt thank was labor. And i did mention to them that you sit up in your high offices but you arent the ones that load, unload the ships. Labors a part of beinging the process of loading and unloading the ships. So, were just as much of a stakeholder as everybody else and we were remiss in that mission in labor. One other thing i want to give a shoutout to sfgovtv. Thank you. Item 10a, requests authorization to award construction contract 2779a upgrades project. In the amount of 702,350 and 10 of the contract amount for unanticipated contingencies for a total authorization not to exceed 772,858. So moved. Second. There any Public Comment on 10a . I dont have any cards for anyone. Is there any Public Comment on 10a . Being none, Public Comment is closed. Colleagues, all in favor say aye . Aye. Opposed . Madame secretary, passed unanimous. Next item, please. Regarding responses for request for proposals for the lease and operation of the pier 70 shipyard located at pier 68 and 70 and sea wall at 349 near 20th street and illinois street, including dry dock eureka and Dry Dock Number two. Good afternoon, commissioners. Im jeff ballor, the project manager for the r. F. P. There we go. And, again, here to give you a brief presentation, professional presentation on the progress of the r. F. P. And the responses that the port received. As you recall, on july 11, the Port Commission authorized staff to issue the request for proposals for the operation and lease of the shipyard. The r. F. P. Was issued on october 15, 2017. The goal was to enter into a lease with an operator who has the experience and the Financial Capacity and capability and knowledge of west coast ship operations to bring back to life the shipyard. As set forth in the r. F. P. , the tenant must demonstrate a strategy to retain, modernize, operate this very important asset of the port for the life of the lease. And which presents the greatest opportunity to achieve and contribute in a substantial way to meeting the ports strategic objectives and goals. Following the takeback of the shipyard in february 2017, in the Settlement Agreement with b. A. E. , the port took several steps. We hired five former employees, the fab 5, who have done a tremendous job. We cant say enough about them. The port has undertaken some significant projects. Weve undertaken a 3 million electrical upgrade power grid separation project. Which will separate the shipyard from the adjoining developments. We currently anticipate that project being complete by april 2018. Construction of the new 19th street extension that will connect the shipyard with illinois street. Give more direct access to the shipyard. We anticipate that being completed by april 2018. And then were on our way to demolition removal of two structurally deficient buildings that will create an additional 20,000 square feet of yard space for the next operator. Thats currently under way and we anticipate the completion of that project by 2018. Dredging project to include dredging beneath dry dock two, wharf four east as well as paying for the support costs of testing, permitting, Management Fees along with deployment fees and management costs. The port is nearing final project partnership, a p. P. A. With the army corps of engineers to continue the dredging of the basin, which is the gateway, the driveway of the shipyard. As part of the r. F. P. , you had requested that port staff bring the short list of respondents to make brief presentations to the commission. We received one response. And that was from vigor. And i have their representive, Kellan Lancaster here, to make a brief presentation. Vigor is the largest ship and new vessel Fabrication Company in the Pacific Northwest and alaska and id ask kelen to come to the mic. President , Port Commission, thank you again for having me today. Im going to talk to you briefly about vigor, give you a highlevel overview and talk about some o