Transcripts For SFGTV 20150326

Lifting capacity this issue is becoming important to get what i indicated before which may cause the revenue to dip. We put in the lease that between now and the next 10 years both the port and b ae are going to collaborate the funding to replace that dry dock if possible. With the in intention when the lease goes into effect weve the possible solution of the existing dry dock. We equally addresses the issue of the existing side of power assistance. I believe a couple of Commission Meetings there was a discussion about the benefit of the shoreside assistance in terms of reduce pollution and making the air cleaner. In the new lease from the last time we came here in november we missed some Additional Information by requiring that bae would increase utilization of that shoreside system. The reason they have not been able to use the system to the rate we prefer was because the vessels that come have a different hooking mechanism. We encouraged and bae they will invest in looking at more connections to allow other vessels. We presented to you last time because we are trying to recapture what the port and city invested in the system which was i believe 5 million, and at that time, the projection was that if bae is able to charge by each kilowatt hours of power used by the vessels that have worked at the shipyard. That rate will help us recapture that investment. But because the utilization rate is not the level of it used to be, that level of power. The next business term that we are recommending in the lease is that more guarantee for utility cap for all utilities, that includes sewer, gas, Water Utilities including electrical power. Because as you know pier 70 is going through redevelopment and there is a need to upgrade the existing utilities and the utilities that are there until they are upgraded will have to be shared by the tenants. Because of udi in beginning to renovate the Historic Buildings, we need to move out of building one and two the current electrical power source that powers the shipyard. That power source that is capacity of 12 mega watts. So weve negotiated with bae that we are limiting them to the historic peak utilization that is 6. 5 mega watts. With 5. 5 available of that 6. 5 to the power system and the one mega watts would be for the rest of the shipyard. The remaining 5. 5 would be allocated to odi to allow them to continue to ramp up and put this historic into higher and better use. We equally put in the new lease what we are calling this line require repair and equipment. This extends to go to the existing building which are Port Properties as well as the equipment, the equipment of dry dock, the crane and transformers and all that make the shipyard run. The reason we are putting this line is we want to document the existing conditions of those building and equipment so we have a way to monitor the maintenance and repair that we are asking bae to be doing. So we ordered a study that was done by our engineering do department that look and document the conditions of the building at the shipyard as well as the equipment. In the lease we are putting conditions that bae would need to follow. That we divided the equipment and the building into two major categories. Those that we need to be addressed either way to address issues of life safety and to make sure the buildings are in better conditions and people are protected and those may take a little bit of time to get the repair and maintenance done. The next set of lease term is regarding expectations that i believe commissioner directed us last time to address. Ricky, i think these are pretty common. Maybe we can see if the commissioners have any question on at least on these. Are thesis the ones that the commissioner asked you to address. Its his last 2 points. Maybe if you can hit these. We made some improvements based on the feedback you gave us last time to the issue of Climate Change and the Sea Level Rise. We are providing protection for the port true what im indicating there is the issue of the self disclosure to let bae know Sea Level Rise and we want you to be cognizant of those conditions and the clause indicating that and the issue requesting them to put this mitigation measures in their master plan that we are requesting them to provide. There is one critical one that just came up which we did not discuss last november and that is before we could extend the lease 10 years into the lease, the option to extend, that they will need to enter into some flood mitigation plan that would indicate the address in Sea Level Rise. Before indicating that, when they do give us to notice to extend the lease, the chief engineer will undertake a study to determine if there is going to be flood risk. And if that risk exist they will be required to calling for mitigation plan and then we are able to increase the insurance as commissioner indicated last time we are able to get them to move the umbrella coverage from 5 million to 20 million. That concludes my report in the direction. Im sorry, its a very long complex lease. A lot of people worked on it. David roper is here to make sure we addressed this Historic Building and many people im leaving out. It a complex deal. Thank you. Is there Public Comment . I have a number of speakers. First bill dunbar, why dont you come to speak. Thank you, madam president. Bill clifford because he just retired. I can just skip it. Which job would you rather have . Im bill dunbar, general manager of San Francisco ship repair and executive director. I appreciate the opportunity to speak. We have had a long history with the port of San Francisco through bae and our legacy company. My second job out of college was south marine in ship repair. We appreciate the opportunity. Weve been successful with the port in our work and growing the repair business here. We have challenges ahead as ricky mentioned in marketing and being effective and efficient against our competitors to the north so we believe that through this lease we can meet the challenges and support both the ports interest as well as our interest in remaining in vital part of the maritime interest here. I also want to say thank you to the port staff who worked on this. It has taken quite a while to get this lease together and agreement on it and that is a testament to their work defending and upholding the ports interest in this as well. So thats all. I just want to say thank you and urge your support of this passage as well. I took out of order, i called for Public Comment before i had a motion. Is there a motion on this item . So moved. Second. Thank you. Next speakers, army morgan. Im army morgan. Im going to make it up to you and make it short. I was going to say make it impactful. Well, i just want to you know say we are on board with the approval of the lease for bae systems and the shipyard. You know they provide a lot of good union work for a lot of hardworking families in the bay area and like someone said earlier the costofliving is only going up in the bay area and we need to maintain these types of jobs. They employee about 60 of minorities and thats a positive as well. We support the bae systems and the engineers. Thats all i have to say. Thank you, mr. Morgan. And thank you for waiting for several other presentations. Next we have paul nixon. Hello, im with sea wag and been with others for more than 10 years. My position in sea wag was basically to be the refute representative of human powered boating and small boating. That issue did become a big issue with bae. The idea behind this issue was that the park, the dolphin club in 1870s had established that water was there and could be used for play and work and the people that generally work at the port would also swim and both in the bay and so this went on for many many years. And it was a principal there for swimming boating clubs. Comes 1999 and things begin to change and the possibility of using that traditional San Francisco idea and spreading it north and south came up. And we went to christy field and south and we got to mission creek, thanks to woods and her work there. And then we continued until we reached pretty much all the way to Candlestick Park with the blue greenway and the initiative that went on there. Then there came a problem. Bae said, wait a minute, do we want Recreational Boating so close to the dry dock . So i want to say for the several years bae and the people in the human powered boats, not motorized boating talked about this issue. We came to an agreement and it was a slow process. There were a lot of questions that i didnt have the answer to, no one had the answer to. We got the answers and i said david was very instrumental with all of this. When this issue comes up to you, its sort of a nonissue in a way because what was going to be a big problem for human power boating is not. We will be in the park. We have the park bond money to put into the the park and they have worked very well and all these people i want to thank them all for the work they did. And bae for discussing these issues with us. Thank you. Karen wood . Good afternoon, commissioners. Karina woods. I would like to say that we very much support this bae lease. We are looking forward to work with bae as you have seen on the maps and the changes that are happening on pier 70. I want to point out something that earlier speakers said around the warf and pier 39. We dont tv have the crowd of fisherman. Warf now but when its buildout. Bae is going to be squeezed. Parking is going away and we dont have decent transit yet. It is critical that we get your support for the water front transportation assessment and for implementation of improved transportation particularly transit and other nonsingle occupancy vehicles around that entire water front because pier 70 is goes to be in the same position, i hope in not too many more years as the northern water front with congestion and the inability of workers to get to work unless we can improve alternative means. Thank you. Thank you. That was the last of my speaker cards. Is there anyone else wishing to make Public Comment . Seeing none, Public Comment is closed. Colleagues, commissioner whoohoo . I would like to thank ricky and all the port staff for this presentation. It is a complex lease and situation and i want to say we want to appreciate some of the improvements that have been made since the last discussion in november. I appreciate that you listened to the commission and made modifications. I dont really have a lot of further questions on the technical details. I would echo again from what you heard from corrin and in terms of the transportation issues i guess which i have been harping on previous presentations today to understand and im not sure, but i guess it will also be on the shoulders of four cities that say look at pier 70 and as we look at everything as to the ability to have more transit and there will be parking but more limited parking and also what the infrastructure is building to make sure that water transport comes with the more density that we build down there, the water entrance transport that the infrastructure is being considered in all the factors and it wont be something we have to remedy. I hope this is a fore warning because obviously you can be armed that way and more prepared an hopefully thats something we can think about given the history and success of the northern water front and hope we can learn new lessons in terms of the industrial uses, its obviously residential and other commercial uses and hope that it will be a very vibrant neighborhood and i think its going to be very interesting texture for the city. I think the shipyard we are expecting it to sort of even though you may not think of it but it will be iconic for that neighborhood to be considered a valuable part of the community there. Commissioner murphy . Yes, thank you, ricky for your presentation and thanks staff for putting a nice report together. Also appreciate following up on the suggestions and changes that at our last Commission Meeting where the came up. I had a question, you talked a lot about the power system and are we still going to use the same power system running through that building on pier 39. There is an existing building there and its now like a generator or are we changing that or doing new infrastructure for power, thats my question . Yes, the answer will be twofold. What we are doing in the interim in the time being nebraska until we do the public improvement. The time will be building 1 and 2 and odi will have their own power and the city will have their own power. In the longterm when the city starts moving forward the utilities will be addressed including the increasing of the electrical power. I understand. Also, i think it was commissioner brandon asked for improvements on the entrance. That looks pretty neat the way, thats the final skep sketch of the entrance . Yes. Those are the concept drawings for the proposed improvements that bae will take on that time oovm thats all the questions i have. Commissioner adams . I appreciate the presentation. Dorene, you keep pounding that drum. There was in the news that there was some Racial Discrimination cases down at bae and Channel Seven and myself and director brandon we beat of director daily and morris because we wanted some answers. Bill, i know you invited me down there. I wanted to come down there. They were having racial problems, im hoping things are cleared up. Workers are workers and i expect everybody to be treated with decency and respect. I heard about the lawsuits. Im hoping that those thing have been cleared up and people are being treated down there with dignity and respect because those are good paying jobs and all citizens of the city want to be able to go down there and work. I havent heard anything from morris and peter daily about it. Im going to support this but im hoping these situations are behind us and i know the commissioners were disturbed about that. Im not going to im going to speak my mind. I want people to be respected out there. I dont care what color they are. Men and women, lgbt if they were treated differently, i want to make sure everybody is getting their fair share. Thank you for the report. I had a couple questions. One, the phrasing of how things will get worked out with the proposal and that change in tenants at pier 70. I guess one concern that i have and this often comes up in the city is when we have housing and others coming into area that had been more industrial. I just wanted under item 15, the proposal for Good Neighbor coordination. I appreciate the coordination there but i think it bears noting that there will be this influx of new uses and businesses there that we have had ship repair there from the start and as far as city is taking into account the ship repair after and how its designing their efforts on the site. Again, i just want to make sure that as you talk about working together to develop a Good Neighbor strategy, i do want to highlight that weve had ship repair there first. So, unlike some neighbors where often industries are pushed out as new neighbors come in and they want their quiet neighborhoods. It maybe something we work with the developer on pier 70 to note the document they prepare for buyers particularly rentals of residential units that it is acknowledged that there will be some policies put into place and that this repair is going on and well have a long term lease there. Its a word of caution, advice and lawyer coming out of me every once in a while. The other question i have in terms of the efforts to work with bae for the dry dock replacement, the fund, does that include our providing any funding on that or just working with them on that or if we are having to put in any funding will there be a cap on the cost . Our funding on the table is exploration because the part of the equipment. Its an option that is only table that if its funding or bae if they have the wherewithal to fund it but the main thing is we want the dry dock to be replaced. Great question, the dry dock exist because the floating dry dock is there. Without the dry dock you dont have ship repair. The dry dock will have a finite life. We think it will last throughout the life of the lease. But at some point in time its not going to be able to handle the modern ships. I think the point in the agreement is that we want to explore early on options for new dry docks. The bigger marine who opened the shipyard in portland went to china and had one made for 70 million and they financed it through their own private equity. Bae is a multimillion dollar company. We got eureka through federal administration through pels oh back in the day. We are looking at all options. The shipyard provides for Maritime Administration and us navy and other cargo it of National Interest to get the dry dock for california. There is no commitment on i either side. We are looking into that going forward. That led to my question is there any cap on that cost . We have not been able to provide a penny. We are looking at the government surplus assets. That would be our first tact to see if we can get some premoney from the federal government to benefit the city. In short of that, there are a lot of ideas between the bae to ensure investments going forward. In my last question is combined, i guess i will be able to channel. Its my understanding that shes been briefed on this and aware of the Community Benefits package and the beautification effort and supportive . Yeah, every indication that shes given us has been supportive of the bae agreement. I have not heard from her otherwise. Shes aware of the beautification efforts that have been done. I dont know specifically. I thought that was brought up by the commissioner whoohoo of the commission. I thought that was from the shipyard and ba e has done a good job of putting together the master plan. He is the housing across the shipyard and done a nice way to blend the shipyard. To answer your question, i assume commissioner brandon knows and i dont know if shes been briefed on that and she got the commission package. I think she left town before the package came out. I dont know that shes been briefed on this specifically. Along those lines, what will be done instead of the on going monitoring with the beautification, is there a language in the lease that will allow us to ensure that it is being followed and update is needed and kept up . A great question. Ricky and i talked about that today. Yeah, the concept drawing that you see in front of you. Bae is vetted to get an improved on construction that is on going or completed. That is what the public will see when they come to the Tranquil Park and to the shipyard. That plan will be moving forward in that and hopefully within the 2 years when it is under way. We