kimberly brandon here. commissioner gail gilman present. commissioner stephen lee here. vice president willie adams will be absent today and commissioner ed harrington is on his way to the san francisco port commission acknowledges that we are on the unceded ancestral homeland of the ramaytush ohlone, who are the original inhabitants of the san francisco peninsula as the indigenous stewards of this land and in accordance with their traditions, the ramaytush ohlone have never ceded lost nor forgotten their responsibilities as the caretakers of this place, as well as for peoples who reside in their traditional territory. we recognize that we benefit from living and working on their traditional homeland. we wish to pay our respects by acknowledging the ancestors, elders and relatives of the romantic ohlone community and by affirming their sovereign rights as first peoples. item two is

the approval of minutes for the november 14th, 2023, port commission meeting. so moved. second. we have a motion and a second. all in favor? aye. aye. any opposed? motion passes unanimously the minutes of the november 14th, 2023, meeting are adopted. item three is public comment on executive session on. we will now take public comment on executive session. seeing none in the room. do we have anyone on the phone? there are no callers for public comment. for callers on the line, please dial star three. if you wish to make public comment. the system will let you know when your line is open. others will wait on mute until their line is open. comments will be limited to three minutes per person. the queue is now open. please dial star three if you wish to make public comment. thank you.

public comment is closed. next item please. item four is executive session and there are three executive session items. one public employee hiring and two conferences with real property negotiator as agendized . can i have a motion to go into closed session? i so move. second. we have a motion and a second. all in favor? aye. aye. motion passes >> one nation under gott,

indivisible, with liberty and justice for all. >> use of cell phones and other sound devices are prohibited during the public. a member of public have up to three minutes to state themselves. public comment must be in consent to the agenda items. the commission will take in public comment. for remote public comment dial 14156550001 and enter access code 26623575367-pound pound. then dial 53 to raise your hand

for items discussed. if you're we watching this meeting on sg goff tv, there is a slight delay. item 8 is items not listed on the agenda. >> is there any public comment or items not listed on the agenda? seeing none in the room, do we have anyone on the phone? >> clerk: there are no callers for comment at this time. >> thank you, public comment is closed. >> item 8 executive directors report. >> i could put the slide deck up police. good afternoon, mama diagram

brez i'm elaine forbes, the executive director. today i would like to spend time in the report looking at this yearly 2023 and kind of taking stock of what we've accomplished. we have a lot on our plate and with we've 4 a lot to meet mission and commission strategic plan. i would like to talk about what we'll come up in january for 2024 but to give a signal going forward. i'm first and foremost really excited to present this information on behalf of port staff. we did a great job. we went really first and foremost hard on the commissionn making the port a great place to be with the clean, safe and vibrant planning and you'll see that came through and made a huge difference. staff has worked hard on

planning, execution, working with other city departments. there has been real effort to get interinvestigations on the ground and they have gone above and beyond hitting above our weight here at the port of san francisco. i would also like to attribute a lot of the success to commission leadership. we have the gift of a strong commission. your strategic drr you have diverse interest in understanding. you're transparent and model accountability in excellence and that comes through through our leadership team into port staff. i can't thank you enough for that. i could talk about each of you but there is a lot to present today. to say that we're thankful for the strong commission that we have. i would like to get to the data to look at the numbers. we have some very positive numbers. as you can see, we've made a huge impact this year. we welcome visitors across our

waterfront, especially at major attractions. commissioner's whatever, pier 39. crews right away first and foremost of the pandemic came back safely and that has persisted and year' seeing bigger years here and this year we had 115 crews called. 375,000 passengers. this creates jobs for long shore, provisioning, small businesses and restaurants et cetera. i've had many tell me that cruise passengers made a big difference in the past year. we've also continued to receive granlts outside funding sources. for key improvements that we need to make, totaling $81.5 million. a banner year in resources from other sources and getting our state and federal and local delegations to care about our

investments. we earned $125 million. $28 million this year. and our fund balance is above pre-covid levels at $156 million and that's a strong position. we awarded 6 o% of our contracts to local small businesses. always looking at prosperity in the way our economics can bring into us and contribute to this great waterfront. on economic recovery, our first and foundational mission since covid has been to make the port a great place to be, that attracts people. we have targeted all funds towards safe community vibrance. we've understood this is guiding principles for economic recovery. some things to highlight, we completed the waterfront land use plan. we have see ceqa documents, an active plan. this is six years of effort.

three on planning, three on delay. we came through with some of the most complex events, apec, the third annual and fabulous event that keeps growing. pop-ups on plaza. we continue to work to bring people here to show what beautiful promenades and public facilities we have and it's showing. the numbers are here for us. i want to speak about southern waterfront activation. southern waterfront is a jewel in our necklace of public places. we need to remember that and continue to seek to improve the properties so we make meaningful contribution to the area. we aim to make it a destination and we've made progress this yore. we had rec and park bringing people in to the center center. this is the second time of the

music festival at pier 8 o. it's an exciting festival. building 49 activation is moving for the park. this will be an important public amenity and we've done a lot of exempts in krenco park. it took a white to figure out how to pay for it baw it's a great facility due to all that work for the community design. to the wharve. as you know, the what are of tells a story of a fishing visit and we're making it revitalized. restaurants have struggled. many reopened but many have not. there are other issues post covid, homelessness, kroim and unlicensed vending. we worked hard to make this a successful public complais and this year we gave a boost,

$2.2 million grant for fisherman's warve has worked well. there are pier parties and trolley dances that people want to see. bringing the scar star wheel to the triangle parking lots had been a wonderful success. we're waiting to see what the public and neighbors thought of it. we hope it's a future success. in addition to being a great attraction and beautiful, it helps us with the site conditions. it works on regulation of site with the queuing and other opportunities and helps us address unlicensed vending. we're also going it make investments in off the boat fish sales. we need facilities bet for ever the public. you'll a see is that implemented in 2024. the sole source fisherman's what

whataref. we have it set up to fill the vacant restaurants. it's a key facility management strategy. we're working hard in that regard. that brings me right to it. you've helped us in the post covid environment figure out how to deal with the dig changes in our real estate portfolio. the first was leasing. we knew it wouldn't be successful after covid so we now have the contracts in place and the solutions on how we're going to broker, bringal restaurants

to you that come up to the top and negotiate the leases. chrisman and wakefield and we have a successful plan for piers 33.5, the butterfly restaurant, pb and collecto's we hope that these -- we get other successful opportunities for this commission. we have approach in the contracts in places and 2024 we'll see the strategy working for us. on construction and development, our engineering team has been hard at work. we started to design 15 projects this year including piers 96 wind power prep and piers 52 boat launch and more. the designs first and foremost we'll need to spend the funding

that we have to do infrastructure improvements to the nern rescue funds. and we have other projects in which we have funding and we want to move long. this helps us improve our sites. we have the redevelopment of our land moving forward. our sites, the amazing mission rock project that continues to expel during covid. we received three of the four vertical building certifications of pansy. occupancy. the project has recent leasing successes. five retail tenants plus office space of 30,000 square feet at building a. we're proud that this project has continued to move forward during covid. it's one of the few in the city

under construction so we're proud. pier 70, developers executed nine lease agreements including a brewery, bakery and others. it is expected to begin opening in 2024. okay. mission number 2, after making the port a good place to be and clean, safe and vibrant is maintaining our facilities. our operating budget is projected to be very constrained. we are not projected to have adequate investments to maintain our facilities. and we can't accept this outcome because our facilities is the asset at that we're maintaining and i -- commissioners and wonderful staff has done exceptional advocacy work to earn what we call opm other people's money. because there is city, state and federal interest in our success and maritime facilities.

that coming through. funding from our state and federal partners is into the tune of 18 -- $81.5 million. 18 would have been a good year in the past but we're at 81.5. that includes freight, infrastructure and awards of $21.5 million for pier 80-96 modernization to make the facilities modern and resilient. this year we got state legislation to support the commission's plan for a public/private partnership on piers 30/32 to provide benefits and infrastructure improvements. resilience! it's a big -- 2023 has been a

huge year for resilience and 2024 will be bigger. we achieved a major, major milestone which is the release of the draft plan coming in january. this proposal will be a multimillion dollar plan and if approved by congress and the city will address coastal and provide flood risks to the shoreline. this is a major step for partnerships to stabilize the shoreline. the federal government would pay 65% of the costs of the final recommended plan. we've done resilient pilot prossments like the living seawall and it's been good to test designing with nature concepts. this is something that the seawall program offers to improve by water quality. there is so much news coming

forward out of resilience including a federal interest in raising our beloved ferry building and thinking about what that will cost and how to accomplish that in this urban rel. so it's a huge undertaking and it's wonderful that the federal government has interest and we can move it along with the city because it will take time 20 do it right. to equity, we have secured parks legislation to add an additional 2 airings this year. 12 acres are coming on line next year with the new park -- the bayfront park which will be a wonderful addition to our parks network. to our equity program. we're really doing a great job this yore providing opportunities to young people that were sought through. organized well, intentional, and just really a great job that

staff dl including the rise tide summer internship program. this is the second year. it's a mentorship and internship program, it's a partnership with the state university maritime academy and the philip high school provide 11th grader students with a week-long experience and they immersed themselves in the culture of the maritime campus and had a five week paid internship at the port. it was a wonderful program and i'm proud of it. pier 80 during the week-long event. 40 kids per day participated in the inspire learning program. we had the south beesm yacht club sailing program. this is a partnership.

it's sponsored six students to participate in the sailing program. in the equity area we've accomplished a lot too internally. i believe a culture shift is underway. that tells me so. it's really because of your hard work of thinking offer a vision of an antiracist organization and what that might look like that weigh began this long journey of cultural change. and it's had major opportunities in terms ofl improving transparency, improving clarity and openness of decision making. getting rid of hierarchy in ways in which we can do in thinking about and being intentional about our workplace and what we

offer in terms of promotive opportunities, in terms of training, it mean rees sourcing our h.r. department. it means creating an h.r. department that provides services to employees, not just compliance related to our public contracts. and it involves psychological safety which is creating spaces where people actually get it know each other better. i want to share that i just read something in the harvard review that looks at employee satisfaction. the think that is most associated with work performance is affirmative heans to a question "-- teens i question "i have a friend at work." that's the highest association to work performance. we're intentionally getting to know one another better, supporting each other and

understanding the work that we face and spending a good amount of time in understanding our mission. all of these things are making the place a much more exciting place to work and i will say port staff loves the port. they take care of this organization and they're our best asset, but they are a skilled group of people with a range of skills that understand how to take care of this complex little city -- port city here. it's extraordinarily important that our staff [indiscernible] in closing -- i think i missed no, i think i got it all. in closing, we have a report and this report talks about all of the impacts of the various areas in far, far more detail.

i want to say that we could not have achieved so many important outdhoms year without the commission support. i also want to mention that our port leadership team, our chief operating officer, division directors, human resources director, commission affairs manager, our legal staff. our general council really it's the best leadership team a director could ask for. i want to thank each of them for this work and i hope everyone has a look at the impact report. and i'm excited to see what we publish next year. thank you commissioner. >> thank you. is there any public comment on the executive director's report? seeing none, do we have anyone

on phone? >> clerk: there are no other comments at this time. commissioner lee. >> lee: this is a great report. i've only been here a year and a half, i guess, and it's amazing how everything gets done and how everything is so self-contained. it's great that what we've done so far in 2024, looking for what the sky wheel coming in gives a big opportunity for small businesses to have incentive to come over. i think now days, we've been looking at rebuilding our economy based on prok. product but our product has to be based on experience. the sky wheel, i want to work on creating a sale and fish for the boaters. especially when we lost our

outdoor restaurants. we were pushing the craft sales from the restaurant and we don't have anyone complaining that the fishermen are taking away our business. we should be supporting them. i see the piers that need to be repaired. it should be a tribute to our history. fishing and shipping out fresh fish. so that and just, again, the overall experience of the port and keeping it clean. i know that creating the experience more, small business entrepreneurs will come in and lease the properties from us. i guess we just have to be patient. great report. i'm glad i'm here. i kind of accomplished what i coined ever set out to do is help the port with their small

business assess. so thank you. >> commissioner harrington. >> thank you madam press. all kinds of exciting things and it's only a few months it seems. i'm still learning but thanks so much. i am particularly looking forward to seeing the army corps of engineer work and putting that in movement. a couple of things the $2.2 million grant for the fisherman's whatever could we talk about where we are with that can make a difference on the discussion. i was reading about the fbi

investigation. it's clear that the staff here were trained and managed in a way. that allowed someone to say that's not white and i'm going to do something about that. that starts with the person in charge and all the way down the chain of command that there is a place to talk about how things are supposed to be and it mawks a feuj difference in terms of people as respect to us and the ability to believe and trust in us. thank you very much for that. >> thank you. >> elaine, thank you for a great report and illustrating all of the hard work -- i want to thank you you, your team and maintenance crew, pier 50 and all the staff. i drive the embarcadero now three days a way and it looks phenomenal. and we are doing such a great

job. it's so exciting about the crews and all the passengers. and also the success we've had with our equity work. it's hard to set -- i love that term "tone at the top" to do that work. but i've been on commission for seven years -- almost seven. six. [laughter] entering my 7th year i see a shift in change both at the top in the conversation and how it's showing up in our work. the chief celebrated our improvement here. would he see it lead out into other activities from our contracting to the celebrations to the east exprams i think it's great to illustrate for the public because we're part of the public trust.

we are giving back to the public and ensuring that the trust and use represents the public interest and not a privatized solution. i within the to thank you you and your team for all your hard work particularly around the equity programs and the youth programming from the maritime program and the phenomenal program that food wise is doing for young adults. thank you for your leadership on all those fronts. >> thank you. >> k. brandon: thank you. elaine, great report. you'd think with all you've talked about, it all happened last year and the fact that we have just great leadership and we are at pre-pandemic levels across the board is phenomenal.

the amount of people coming to the waterfront, our balance sheets, our tenants are happy. we have an incredible staff and i want to thank all of you for everything you did this year because it was a challenging year, a very challenging year with a lot thrown at us over and over. so really appreciate all of you and everything you've accomplished in 2023 and definitely looking forward to 2024. thank you. next item, please. >> clerk: item 10, consent calendar. for callers who wish to make public comments dial *3 to raise your hand. 10-a to accept and expend a $9,000,000.607000 grant implemented by the u.s. department of transportation maritime administration for the

street infrastructure improvement project for improvements. this is resolution 2352. item 10 b request approval of the operating improvement. isoflex usa granting authority to operate in locations at 1801 lum bard street san francisco, california usage drich site for a term of five years with one option to extend for four years and outlining conditions for the operation offer the usage-driven site. item 10-c for the joint ventures commission bay ferry landing project to extend the project term through june 16th, 2026. this is resolution 2354.

>> k. brandon: thank you. >> i mac a motion to move the consent agenda. >> agenda. >> second. >> k. brandon: we'll now take public comment. is there any public comment in the room? seeing none, do we have anyone on the phone? >> clerk: there are no callers for public comment at this time. >> k. brandon: thank you, public comment and closed. we have a motion and a second. all those in favor. any opposed? motion passes unanimously. resolution 2352, 2353, and 2354 are adopted. >> clerk: 11-a is an informational report related to one acceptance of horizontal improvements. two proposed amendment to the development agreements between the port and pier 70 llc and

three, the overall status of phase 1 pier 70, 28-acre site project roughly bound by 20th street to the north, san francisco by to the east, 22 street to the south and 28-acre site. for quheurls wish to make public comments press *3 to raise your hand to comment. >> good afternoon, i'm christina the project manager for the port real estate division. with me here today with josh keane and paul and from brookfield properties. the main purpose of today's presentation to share with you a big milestone for pier 70 project the completion and pro he proposed acceptance serving phase one of the project. i'll start off with the

background and brief update of the status before turning it over to paul. i'll start off with a quick overview of the pier 7 o districts. pier 70 special use district was approved by the port and city back in 2017. outlined in blue on the map it em capacities 35 acres including the brookfield site, parcels k north and south on illinois street and the 22 street. at full build-out it will include 3,000 residential units. nine acres of new parks and open space. and up to 500,000 square feet of retail and light industrial uses. next an overview of phase 1 of

the 28-acre site. it's governed by a disposition and development vehement or dba brookfield. it will be developed in the three phases at phase 1 which is the focus of today's presentation and outlined in blue on the map here will include up to 600 residential units, 460,000 square feet of office. 3.5 acres of parks and open pace and also repale for light industrial uses. since the project was approved in 2017, we've reached the number of important phase 1 milestones for the project. brookfield completed site preparation and construction of horizontal improvements with the expechtion parks and have achieved a 20% lbe participation for exceeding the goal of 17%. brookfield completed the rehab of historic building 12 in 2022

and actively leasing the space. brookfield has signed several leases including five with women-owned businesses. brookfield has been activating the space with special events. finally brookfield and its facilities have completed design review for two of the vertical parcels a&e two as well as the phase 1 parks that they intend to build with adjacent vertical development. next an update on vertical development at this site. with the completion of building 12 in 2022, there are six remaining buildings in phase 1 including two office projects. parcel a and building two show on blue on map. one market-rate rental shown at maryland and 22nd street.

parcel c-2 b and parcel d at maryland and 21st and there ask parcel c-2 a in yellow across the street from building 12 can. under the dba, brookfield has the option to purchase or lease all of these remaining vertical parcels except c 2-a which is 100 percent affordable project. this has been delayed due to the economic impacts of the pandemic. in addition, the project is in a period ever down market delay which was triggered in 2021 by the appraised value of e-2 which came in lower on the threshold value in the dba. the timeframes for brookfield to perform time sensitive matters including closing escrow is on hold until the market no longer

exist bus would he see signs ever growing. of building. brookfield is showing an up tick of building. acceptance of the streets is anticipated early next year by the city and we believe that will increase the marketability of the vertical parse sells. the port in brookfield king street properties have been negotiating a long-term lease for parcel a which we hope to bring to the commission for approval early next yore. and finally should parcel a move forward next year, the impact fees that will be paid by the developer of parcel a will be used used to fund a loan for parcel c-2-a so that project can move forward. with that, i'll turn the presentation over to my

colleague paul to discuss phase 1 of the infrastructure. >> thank you, christine, thank you director and commissioners for having me here today. you know, despite the down market, i don't want to underscore the importance of this project. this a huge milestone for pier 70 as we accept the infrastructure of the streets that are built and invite the public to come and see them. we've built them from beautiful landscapes here. so this is kind oif very brief overview of the accept trance project. we'll come back and ask the commission to take a number of actions related to the accept trance of the work infrastructure. with that, will be amendments to the dba and improving the projects mmap. to get here, there is a number

of due diligence to be done by both the city and the port to allow this to be ready to be accepted. the city goes to the noc process. a completion process where they make sure all the infrastructure is bullet correct cli and utilitial is correct. that was achieved a year ago. we are -- the port process is outlined in the dba and we approved the developers request for an fop and we anticipate that will happen next month before the port hearing. the approval and your approval for next month will be approved with conditions. so, outlining some of the comution's role in the accept trance process, trr steps you

have to take. there are findings that say that the improvements are functional and constructed accordance with the regulatory requirements. the port owned accept trance items -- owned improvements themselves and in doing so you'll dedicate them for public use and assets. dedicated for streetscape and sidewalk purposes. here is a summarized list of some of the items. there are special paving -- the way it work asks that the streets -- public works in the city will accept the standard infrastructure. anything that is above and beyond that is non-standard will be subject to the port. there is special paving throughout the site. custom furch including benches,

bike racks and bollards. trees will be maintained by public works. building 15 spraying which spans 22nd street. and the northern block of louisiana street which was too narrow to meet city standards. the port will accept ownership and maintenance for most of the infrastructure on that one block. everything really except the street lights, conduit, third party utility conduit and i think the stop sign and paint stenciled on the road. and so, there is more actions we have to do and associated with this. that includes the mmap. that's i master major encroachment mechanic tism to allow them into a permit and the

port will take on that permit. the dba amendment will allow developer to maintain the items. due to the down market delay and the delay in kind of moving forward vertical rement, we don't have revenue supported for the development, we'll continue it maintain that infrastructure for the future. you'll grant the executive director authority including accepting deferred infrastructure. improving the mmep attachments. can and releasing acceptance improvement from the master lease and finally you have recommendations that they improve and accept the items. dedicate those improvements for public use and approve the major master encroachment.

we're -- we'll be here in a month for the actual acceptance item. and then there will be a follow-up action at the board for next year in probably february or march of next year. that concludes our presentation. before i wrap up, i want to acknowledge a couple of staff members who worked so hard on this project. annette jackson has been instrumental in moving this forward until a number of documents and [indiscernible] couldn't be here today who has spearheaded engineering offer this infrastructure. and we have additional slides available. getting the details of what some of the infrastructure that we're accepting if you're interested. with that, i'll open it up for comments. thank you very much.

>> k. brandon: is there any public comment in the room? do we have anyone on the phones? >> there are no callers for public comment at this time. >> k. brandon: thank you, public comment is closed. commissioner harrington willing. >> it's amazing that they've worked on this and other projects to keep things going and i'm grateful and impressed with all that. a couple of questions. the down market delay that triggered the tolling and the tolling project, i'm fairly new year, can you tuck about that or send me something to talk about what triggers it and how long has it happened. what stops the tolling and how that works. >> we can follow up with additional information. but essentially what happened is there is kind of threshold values for each parcel that are

set in the dba and adjusted annually. if an appraisal of a parcel comes in below that value, that's the down market for the project. and then basically what happens is annually you can test to see if the down market is there or not. if it is still in down market, you can test again in a year. there is kind of a cap, if you will, on the dba that the down market cannot extend beyond five years. we're two years in. hopefully in a year we'll test better. if not, the outside date is one year and at that time, essentially what happens is the developer has to waive the delay and they're supposed come in with changes. they can make other changes to allow it to move forward.

>> an annual thing with the five-year cap. >> yes. >> the whole idea of port accept trance of a variety of different improvements. i'm understanding that the developer will take care of those for now. at some point, the port has to staff up to take care of those. is that the plan? >> either the port has to staff up or the port can contract out the work, but yes, it will become a port obligation and port staff will do it or we'll contract out or a combination thereof. >> it seems like it's happening on a variety of different projects going on now. collectively that becomes a big maintenance effort for the port. >> yes. >> harrington: it will be interesting to see what what plan is as we go through that. >> i will say that we do our best to have city-accepted assets. some of these are non-disd and to the best of our capacity we

could not get the city to accept them. those are the few streets and utilities we are taking on. >> we try hard. >> the city has a basic policy that city staff should do whatever city staff can do and contract out onliful it's possible. >> k. brandon: commissioner gilman. >> thank you. i have a question long those lines. did we coordinate with the developer for the special assets to ensure like the tiling, for example, on the sidewalk is not made of a material or an aspect that in 25 years we can only find that from a vendor in vienna or something like that. since we're going to own these assets and have to maintain them, what the clab race with the vertical to make sure they're not cost prohibited in the future.

>> we have close collaboration with the developer. they're built out of high quality materials. the master developer and the general contract -- hires the general contractor and they review submittals for everything put out there. we have ourening nearing staff all the set disciplines that are moving. >> thank you. >> k. brandon: commissioner moon. >> i'm curious, is there any talk or maybe i missed this, what's the support situation? is there a supermarket there small mom and pop vawnts. there is so much space that like they do in mission bay, they

have a courtyard with surrounding businesses, supermarket or small congress ri store. is that in the plan for them at all? >> i'm going to ask jen from brookfield properties to answer that question. >> good afternoon. i'm tim with brookfield properties. it's i great question and always been our hope and dream for building 12 to have a grocery store as part of that historic building we have a few options. the adage is grocery stores follow the rooftops. until there is more housing development we can move the vertical development there. that will be something in a lighter phase of the project. we are working on ways to continue leasing throughout the space and we're having pretty good success. >> i know it's going to be a

while before you fill it up. i think preplanning saves a lot of money especially if you have a site in mind because you have to bring the electrical and power. there is a lot of prep work and if you can just make it turnkey for any person to go in and get set up within six months, you'll get so much more opportunity and it will support the people that are living and working in the area. i think that's something that should be on the table. >> our design of building 12 which port staff was involved in was very much thought to include that. so there is one specific corner of building 12 that i'll explain. >> i would like to see that. third street, there is limited amount of restaurants there. it would be great to have

something there. >> thank you. >> thank you. >> k. brandon: thank you. i think a few of my questions have been answered. especially about the down market delay and next steps. it seems like there is very little activity out there now. i'm wondering why we're doing this now. why are we accepting this now? don't we usually do this like when we have a full project or when everything comes together? i'm wondering why are we taking on this liability now? >> part of it is contractually we're obligated to take it on for the dba. i think part of it is -- >> now? >> we're contractual. >> the dba says we have to take it on now. >> once it's completed, we have a certain amount of time to accept it. but i think we're also look loog at it from the perspective this

is what we have to doll to build the momentum. if the streets and infrastructure are not accept, the structure is not open. for building 12 tenants to open, the streets have to be open. there is the liability part of it but i think it's a huge smile stone in that it will open up the site and allow people to visit. >> k. brandon: so people cannot use the streets right now until we accept it. >> correct. >> okay. that makes sense. thank you very much for presentation. looking forward to hearing more about this project and moving forward hopefully you know the mark will turn and we can actually get the shovels back in the ground. thank you. >> clerk: 11-d is informational presentation on piers 30/32 and

piers located at embarcadero. please dial *3 to raise your hand to comment. >> hello commissioners and president brandon. i'm join by gosh keane and david the deputy director of planning and environment as well as deputy blout and clark miller from strada group.

>> today's presentation is a project update as well as an update on the term sheet which we intend to bring back in january for approval. i'll touch on some of the terms and some we'll follow up with in january. i also want to give an update on a key milestone which is the passage of sb 273. without it, which we would not be here today. i'm excited to talk about that as well. before i jump into the presentation, i want to give a brief overview on the process timeline. generally at the top in the first row is negotiation of a term stheet that we're going through with a negotiating agreement in ena and that allows us to negotiate a term sheet which is what i'll touch on today and we'll return in january to discuss more. that will allow us to move forward to legislative approval of the term sheet and the board of supervisors approval of the term sheet as well as the feasibility resolution. expfer we enter into transaction documents themselves selves

leases and other agreements. there is extensive community engagement and engagement with state eight sis overseeing the area and that will eventually lead us to both port commission and board approval of the tran action documents themselves which are detailed contracts. giving the overview of development and various terms. but the term sheet which we're working on right now is a high level overview of basic terms. i'll push on some and return in january. right now we're negotiating the term sheet. i'll a explain where we've been because some of the steps have taken longer than planned and i'll he get to why. some additional background, our original goals for this were to preserve expim prove the existing maritime uses piers 30/32 is a critical port resource but needs extensive

improvements to survive into the future. i think that was the leading goal here is to rehabilitate piers 30/32 and activate that space along the waterfront. we wanted to upgrade that infrastructure to be resilience for the next hundred years including both sides and sea level rise. we want to include public trust and public oriented uses while keeping in mind the need to generate revenue and create a financially feasible project. a little bit of background on where we've been. the port issued an rfp request for proposals in 2019. received three proposals and the commission authorized staff to work toward an ena to allow us to negotiate with strada that

scored the highest of the proposals in 2020. there has been extensive community outreach since then to bring that initial proposal to both the community and state agencies overseeing the area. we'll talk about how that impacted the proposal. but that leads up to the passage of sb 273. a little bit about outreach. dozens of meetings with bcec and the state planning commission with the port staff and the developer. we met many times with the adviser committee and the developer held outside stakeholder engagement meetings. these two lines ever community outreach with the state agency and community led to design modifications. i'll talk about where we are now a little later. the biggest update is the

passage of sb 273. it was introduced by senator wiener and cosponsored by haney and tang. this allowed the city to permit the project through its own project. it's state authorization to move the projects forward ensuring it was consistent with the different state trust and other doctrines. without that, we would not be here today. that will approval in september allowed us to move the project forward. to get there, there were modifications and sb 273 includes the modifications. first, i want to talk about where we are now, the current project concept. we're looking at a 2 to 3 phase, phases 1 to 2 to go together or separate. it's two residential buildings with approximately 15%

inclusionary afford nl housing and land on that site will be dedicated to 100 percent affordable housing building that will be constructed as financing is available. the next phase, phase 3 is the demolition of the existing piers and reconstruction of existing pier. that will include strengthening of the seawall for project site. an aquatic center that you can see in the foreground with a pool as well as a deep water bert for crews and emergency exit purposes. phase 1 and 2 buildings include 619 units of housing, 92 on site bmr units. retail, community space this will be develop together.

depending on how many units can be brought on at one time at that specific site. affordable site, if you look, there is the tower which would be phase 1 and the mid-rise building on the left is phase 2. affordable site is in between the water mark in the background and the tower. that's 100 percent affordable site including 94 units. that brings to us 25% affordable which is what was included in the original proposal. still meeting that target from 2020 which we had a big accomplishment given all changes in the market over the last few years. these three is the demolition of the existing piers 30/32 and reconstruction of a new resilient pier. the seawall will be strengthened with i pool and deep water berth

and 375,000 square feet ever space. that will be within the existing footprint of the building on the first floor. and 70,000 square feet of retail mostly in a market hall on the embarcadero and it will include accommodations for rent. finally there would be major investments in the port's assets specifically piers 30/32. projected cost of that at construction is around $460 million. that's before any of the vertical improvements on top of the pier. there is a major infrastructure component. this is a very big asset for the port. that has a big price tag. all of that would be included within the project. at the end of the leases, everything would revert to the port including both infrastructure and the

[indiscernible] improvement. to touch on those changes i mention, these were the results of both community input and input from state agencies including bcdc and state land. the project will be delivered in up to three phases rather than a single phase. i three there are two reasoners in. first is construction feasibility, trying to do both sides of the embarcadero at the same time creates challenges both in terms of bringing crews on site, and bringing equipment and closures to the road. the other component is maximizing public sources for the project. we anticipate using a cfd/ifd on both sites to fun the infrastructure improvementses. that the be a major source of the $415 million bill will come from the cft/ifd. we can stabilize that and gain

the veilleux there rather than reaching into the future. it will provides equity for the early io investments. second change is a reduction scale phases 1 and 2. you can see the original rendering. you can see the residential in the background, it's a larger -- it resulted in 713 units. the final change is there were two piers, there is now one pier with the large market hall. more of embarcadero facing frontage is active retail, the pool is an aquatic are off the embarcaderos. changes to phases 1 and 2 again

175,000 square feet less. 137 units less and much less of the site is about 105 bookmark. more retail on the site and more open space as well. you can see from the picture here going from two piers to one, the market hall is on the left here and the right picture, you can see everything on the embarcadero is in that building pretty much and aquatic center and pool are closer to the street. the next step is the term sheet will return in january. we'll ask approval of the term sheet. some of the terms remain under negotiation and we'll return in january to discuss those. some of the key things covered in the term sheet are uses

themselves. also phasing, scheduled performance, financial terms and structure of the deal and the project dei plan. so the financing as i mentioned earlier, we had using cfd and ifd. a key thing here is that even with those sources, the project still shows 125 million-dollar gap infrastructure gap on the piers to balance. we're going to monitor this moving forward. our hope is that the market improves and that closes the gap itself. i think that is potential path to close that gap, however, we are looking at other sources. some of the sources that we're seeing used across the city are changing impact fees either adjusting them or delaying their collection to impact.

capturing more tax increments. adjusting the transfer taxes and we could identify federal or state funding for infrastructure. one of which recently received already to close back out. the next term is just to deal with the structure its self. we expect to have a weak disposition. there is a potential for master lease license. and separate ground leases. there are four ground leasings. the piers lease would be 66 years. the ground lease would be 99 years. the next component in the term sheet is the dei plan.

this covers different equity and inclusion initiative as part of the project. i think the first and most unique for the project is swimming water sports access to the pool and will be managed by an outside source particularly focus on youth and young children. they're looking to target the people to structure leases in way way that ensures success. looking to find an affordable housing partner withal emphasis on bipoc leadership and

participation goals as part of transaction documents and developer plans to keep the project under project labor agreement governing labor rules for the project and they also intend to work with city build on a pipeline program to help bring people in to work on the project and have the skills necessary to build a career in construction. additional terms, we'll return in january to discuss these. the ground lease is rent in terms of payment performance schedule and the port's participation in project profit. we'll return in january with some additional information and request approval of the term sheet. this will allow us to bring it to the board of supervisors who

will endorse the term sheet and find the project physically feasible. we're working with a consultant on that report. board approval allows the developer to submit evaluation to the planning department and us to continue to move forward. i will open things up for questions. >> k. brandon: i want to thank you for the presentation. we'll now open it up to public comment. is there any public comment? katie rodel. >> good afternoon president

brandon and commissioners. i'm katie liddell and i've lived across from this site for almost 30 years. i am the co-chair of the board's northern advisory committee and i founded one of the local neighborhood associations so i'm familiar with the territory. the reason i'm here today is to actually tell you what a great job strada has done of community outreach. it hasn't been easy. there have been loud objections to some parts of the project. but strada has listened and has made many changes accordingly. they redesigned the housing and seawall at 330 to remove 137 units. and improved corridorred. they held numerous meetings with roas and had zoom and telephone office hours so people could

call in on a weekly basis and ask questions. it's my understanding the bcdc did a lot of work on this and i know that the developer made a number of significant concessions at the request of the bcdc. they changed the project from two piers to one and added 40,000 square feet for a market hall to ensure continuous public access. the project is a first proposedder in site to balance financial self-sufficiency, support maritime activity, public access. as co-chair of the nac, i witnessed the favorable reception from the public for this revised plan at one of our meetings. the retention of the deep water berth and strengthsen the seawall are gifts on top of

everything else. at a time at rising sea levels where resiliency has to be part of the funding picture, we need to have focus on getting something done. it's been 20 plus years of failed efforts. i know. i've been there the whole time. lastly and as long as a long-time resident of this neighborhood and one who is hand-on involved, i can tell you we're desperate to fill in this spot on the bay with a welcoming recreational commercial area. this neighborhood has fewer public parks and open space thanks many other parts of the city. we need this project. and we have the best developer to deliver it. commissioners, i urge you to support this project. thank you. >> k. brandon: thank you.

[indiscernible] and then greg hardiman. >> good afternoon commissioners and staff. thank you for the opportunity to offer public comment. i'm eddie reyes and i'm a native sphraksen and a proud ironworker for over 40 yers and i'm an officer on the san francisco building trades council and president of ironworkers local 377 here in san francisco. we're glad to see the process moving forward to realize the development of piers 30/32 and seawall lot 340. the project will privately finance 400 million in public infrastructure which will help us address rising sea levels and it will add resiliency to the port and the city besides strengthening work. all of these important investments will create good union careers and construction

and opportunities for local apprentices. thank you for your time. >> k. brandon: thank you. >> good afternoon commissioners and staff. i'm greg hardiman. in addition to being a san francisco native, i represent the trades council and the international [indiscernible] local 8. we'reo' thrilled to hear the progress of the pirs 3032. we have a long history of working with strada in the city. and their proposal to reimagine the revitalize the port space is ambitious and some might characterize its risky. but like stadia, the trades are a place to innovate. for the worth, this is a great opportunity to bring in revenue via long term ground lease and

trust funds for other needs. thing at vaition of the embarcadero will bring jobs after our members are long gone. something we can get behind. thanks for this time. we look forward to working with you closely on this project in the near future. >> k. brandon: thank you. is there any more public comment in the room? if not, do we have anyone on the phones? >> clerk: there are no callers for public comment at this time. >> k. brandon: thank you. public comment is closed. commissioner gilman. >> thank you so much for this presentation. i'm so excited to see this project move forward. the piers need to be redeveloped and this is exciting. i have a couple of questions and maybe strada is better to ans them. they're about project design and concept. my first question is on the

seawall to be develop first. i want to make sure i understand this. right now what we think the timeline is going to be and it seems like we're going to see the residential developments in phases with those having on site bmrs. jesse, have you thought about when you're going to target those at? i'm curious what you're thinking of about the bmr units. >> thank you for the question. i'm jesse blout with strada. great to be here after a few years of slogging away. i'm excited to move forward on the project. we have an overall affordability of 25%. some of that is satisfied with the stand alone affordable development then we had 15% at a non-inclusionary bases which is part of the process for qualifying for state housing

density bonus which we intend to do in this project. the average affordability i believe -- the affordability is at 60% income. >> i piros that. and then so, can you -- i was concerned there is not a timeline for the affordable parcel. i could imagine building the units you rent up and we're still looking at an empty lot five years down the road. can you explain your pln for that parcel? >> it starts with collecting a partner for that parcel. we intentionally did not go into an affordable partner. we selected one articulated in the proposal and intend to do that a collaborative effort with

the port. there is no reason we couldn't start the process with that partner to try to secure predevelopment funding to move that project along. i think we wanted to make clear in full transparency that the parcel itself doesn't have all the sources identified. and obviously with the phase 3 and all of the jobs -- it's an obvious source to fund the gap. given the timing of that, we would want to go forward and try to seek additional sources. as you know from other projects, we've been successful with our affordable partners? getting state money and other sources when they are available. so there is no reason we wouldn't try to do that here and put our sweat equity into helping that process along. but we also didn't want to say

the timing is guaranteed because it is relying on out identify sources. >> i super appreciate that. we're excited about this. and hopefully you can select a partner sooner rather than later to have them in the beginning stages. we've seen a lot of success in san francisco and also in mission bay. the first building that went up was 100 percent supportive housing and all buildings came in around it. i think there is a danger when you are build a new community or parcel if you build the market rate first and leave the affordable for the last, it can have unintended consequences. i wanted to encourage that. i hope on that front, i'm super excited that you're having an pla for the site. will that drive up costs? i was curious what the thinking was on that.

>> that's a policy matter for the city, the port and other participants in that discussion to hammer out. we'll leave that up to the powers that be on that issue. >> okay. and then i have two more questions. i don't know. it's not the market hall -- i was just curious and i know this is -- this isn't opening tomorrow, but i'm curious if there are market studies done. we've seen a point in time during the pandemic but we've seen struggles here at market hall and weave he seen several bipoc businesses brought in pre-pandemic and not make it through the pandemic. it might be premature but maybe at a later day, i would love to hear the strategy for the market

hall and how do have the small bipoc component because we've seen mixed success at the property we're sitting in. >> we'd be happy to come back. we have a lot of conviction that the market hallal is viable in this location. and one good example of why we're reinforcing that confidence is we've had inpound interest from national market hall operators expressing interest in the site. you can imagine probably some around the world with these particular brand, not to say that we're necessarily interested in moving forward with any of those at this time. but it is i think an indication of the potential demand for this location. part of the reason we're excited about it is with the cruise berth, you have built-in demand

when you have several thousand people coming off and on a ship. we're basically funneling people along the promenade and there will be entrepreneurial spaces for smaller entrepreneurs and through the market hall. we think that brings an additional level of demand we wouldn't otherwise count on in san francisco. along with the fact that it's a little bit of a food desert in this location along the waterfront and you have the sports patron traffic coming along the embarcadero. those factors combine with i think when you have high quality design like we're intending. we're going to have strong nand. but we'll be happy to come back as we get further into it. >> i know a lot of it it is prem tour. the non-profit to run at quadic center, i think it's at mission

bay with the parks, we've seen non-profit groups to operate these. >> we're -- to be honest, we're having conversations with partners that are non-profit partners. yiem, boys and girls grn ymca and boys and girls clubs and non-profits specific to this facility. both options are on the table and viable. no matter what, we intend to have partnerships with those organizations that to this incredible work in the community. and frankly, regionally, one thing to point out is i think in the conversations with state lands was really reinforced that this needed to be a regional benefit that we should be bringing kids from cross the bay to be involved in this facility. we think there is opportunity for regional partnerships as well. >> thank you. that concludes my questions.

>> k. brandon: thank you. commissioner lee. >> lee: well, i think most of my questions have been answered bus i was curious about the marketplace and if we could cope it local, get the local options first. i've dealt with airports how the airport has all these concessions and they have big companies coming in and eventually the rents are so high, it kind of squeezes out the small business guy. i would like to keep it local if possible. obviously there is a certain amount of overhead you have to cover. but i'm looking at that end. and i guess you're going to keep it small like maybe a thousand square feet units. if they want more, you can add more. i would like to wait and see. two more years at least get

started. that's all i have. >> k. brandon: commissioner harrington. >> harrington: thanks for the presentation. as one person said and many will say we're stick of 30-/32 sitting there. we'll be grad to see that. it's stunning to have people coming in. i'm sure there will be people coming back and say we hate it anyway, but so far so good. my questions go around timing and risk. i did like in the staff report while the developer and staff have not identified the mix to close the # 25 million-dollar gap, the team feels confident it of it will secure that well ahead of the project. what does that look like? >> we'll return with the schedule of performance next month but we're a few years away

from the construction of the piers. this is another piece of the phasing as it gives us more time to identify funds and see what happens with the market for the piers to move forward. if the market improves, and that becomes financially feasible on its own, we don't need those additional public subsidies so close that gap. 125 of the 400 plus million dollars infrastructure needs. but if would he don't, we have time to work through any approvals we need. we've seen the city is moving on, impact fees and transfer tax. we will see see what happens while we negotiate the transaction documents to identify those. the goal is in the next couple of years we'll have sog somethingfiscally feasible to mr forward whether it's grants or tax subsidies.

i think we wouldn't want to get to the stage where we are ready to construct the piers and haven't identified those sources. we're giving ourselves time to do that. i think the hope is that we do it sooner rather than late shall, but we feel confident in the next few years because we're looking at five plus year window before construction on the pier starts. >> i guess what makes bee nervous is this is emphasizing the things that are relatively straight forward in terms of housing and the things that are difficult are ones continuing to be difficult. i know you've put a variety of things in the language about well if this doesn't happen and this is contingencies. again, we're looking at the housing being done in the next -- how many years? >> i think likely have to transaction action documents

2025, 2026 and construction a couple of years on housing. probably state 2030 we're looking at completion of that. we're still even completion of that we're several years away. and as you said, things happen over that time. in january we'll return to talk about financial truck tours here to ensure that it's in alignment that the entire project is moving forward successfully. i will defer some of that for january. >> so, we're saying maybe housing by 2030? >> we'll come back in january with the final schedule performance. >> i would love to see if that happens in 2030, we have a pier in 2035 -- >> and that will be part of the january presentation is that detailed schedule performance

with outside dates. part of the reason i'm being vague here is we're still negotiating the exact dates. we'll come back in january with exact dates and present that. >> harrington: is the plan now to finish the housing before you start the piers? or is there something happen happening at the piers? >> i think that's part of the negotiation. if the opportunity presents itself to work on the piers through some major grants, i think everyone would jump on that opportunity. >> harrington: my other question is simple, in scuks about the deep water berth was the wording in there. i think jesse and in the pictures it shows cruise ships. is this in competition with our terminal?

>> i think it's a complement to the -- >> it's adding an additional berth. it's one in transit. and we desperately neat berthing. we don't want to turn a ship away. this is electrified berthing. so that's good there. >> k. brandon: thank you for that report. i think most of my questions are answered and more questions will be answered in january. we'll learn more in january. but really, like katie said, i've seen everybody at the site. i really hope that strada is committed to a successful project on the warf and the --

wharf and the seawall. i hope we don't just have more housing and nothing on the wharf side. i hope we're committed to a successful project because it will be very exciting if you can complete it -- very exciting. so lots more to come in january. thank you. next item please. >> clerk: 11-c an informationallal presentation on proposal to amend l-16997, young men's christian association of san francisco for building 49 49 locate. 49. raise your hand to comment. >> jamie hurley with port real estate and development.

i'm here with a brief informational presentation regarding proamsal to amend the port's lease with the ymca of san francisco located at illinois street. just to give you a brief project overview, this lease was approved by the port commission can board of supervisors earlier this year and executed with a lease commencement date of august first of this year. the master tenant is the ymca of san francisco. there are also two subtenants both small local businesses dogpatch paddle and daily driver. the port's objectives include the preservation and rehabilitation of building 49 as 49providing enhanced activation

ever crane cove park. just to summarize some of the key existing lease terms, the lease has an initial term of 10 years and a total term up to 34 years including all extension options. it requires a minimum capital investment into the building by the ymca for $5 million with current estimates from the ymca closer to $6 million. it also requires the ymca to assume all maintenance and repair obligations for the butding including for the public restrooms which comes with an associated rent credit and it includes structural improvements and upgrades to the building with rent credits up to $5,000. so in terms of why we are a here and the need to amend the lease.

the proposed lease amendments will provide for a revised seismic scope which has been designed in consultation with port engineering staff. to meet the seismic and structural code requirements at a significantly lower cost while still providing for a seismically upgraded facility. this change to the project scope is necessary in order to bring the project back into financial feasibility and ensure successful project delivery. some additional lease changes that i wanted to highlight in addition to the change to the seismic scope, the lease would include following changes to account for delays associated to the need to re-think and redesign the seismic scope. these include elimination of the port's allegation for up to 50%

of the cost for the work or a maximum of $500,000. it would extend the outside rent commencement date from july 1 to october first of 2024. an additional three months. and then it would require the ymca to open the public restrooms no later than july first 2024 or upon powpsy of thf the tenant if that occurs prior to july 21st. in terms of immediate next steps, port staff plans to bring the lease back to the port commission for your approval at juror january 23rd meeting and upon approval to move into the approval process with the board of supervisors in february. in the meantime, the ymca remains committed to the project and is proceeding with final design and preaching for

resitting of their building permit application accordingly and they expect the building will be fully open ask occupied early next fall with partial occupancy as early as june. them is a rendering and a reminder of the big picture in terms of what we're trying to publish with this project. i want to thank the ymca team, several members of which are here today for their on going partnership and commitment to this project. that concludes my presentation. >> k. brandon: we'll now open it to public comment. any public comment in the room? seeing none, do we have any public comment on the phone schrk rk clrk clsh there are no callers for public comment at this time.

>> k. brandon: public comment is closed. commissioner lee. >> lee: the ymca is sump a great organization and a good partner. i don't have any problems with a reasonable extent. but we want to support you. at least i do. i have no other questions. >> k. brandon: thawferg, commissionerrer harrington. >> harrington: it makes sense, the world is changing and we have to adapt. i'm interested, were we asking for the gold standard and now we're doing silver? we're doing seismic but how does that work? >> great question. it was never going to be a full seismic upgrade, a full code required seismic upgrade. that's why you see it referred to in the staff report and here it referred to as a voluntary seismic upgrade. it was -- if the gold standard

is the full, you know, this was not bad to begin with and it was always going to be voluntary. but the new approach is significantly, you know reduced in terms of scope. but it would still provide for an up graded facility as compared to its current condition. >> it provides to whatever the current regulations are and all that. >> correct. it would meet the code requirements for an existing building. >> a couple of months ago we did an information and accept trance. is there any reason we're doing this in two steps? >> we considered doing it that way. and i think -- >> the main reason is there is an actual lease that needs to be negotiated and restated. the approval of the lease, we're

there conceptually but we don't have the document in front of you. >> thanks. >> k. brandon: thank you, commissioner gilman. >> g. gilman: i'm super supportive and hopefully this comes back as a consent item. we're excited to see this happen at this location and have the ymca flourish. thank you. >> thank you jamie. why can't we vote on this now? this board will come back in january. thank you. >> clerk: 12-a is informational presentation for request for proposal for contracts for details for programs and embarcadero early projects. if you call for comment, dial *3 to raise your hand to comment.

>> good afternoon. i'm steven real i'm with the deputy program manager for engineering and project delivery. this is an informational item on the wrp's untent to issuen rff for design services for wrmp for embarcadero project. i'm joined by the administrator and elizabeth tut procurement manager. wrt early projects with the goal of deching implemental projects that reduce earthquake risk and near term flood risk. to deliver these projects, wrp defined a process that includes

planning, predesign, detailed design, construction and close-out phases with support from the ch-2-m management projects. 22 projects were identified. seven have been advanced from the predesign phase and we're seeking new contracts for predesign and detailed design and provide design support for six of the projects. this map shows the 23 potential projects initially identified and six projects that will be included in these new contracts. projects are the whart j-9 replacement project. the earthquake safety project. pier 9 earthquake safety project and earthquake reliability project. and the piers 24.5 and 28½

earthquake safety project. contract 1 as proposed is the downtown project. this incorporates this building earthquake improvement project. this intend to improve coastal flood defenses and earthquake safety between piers 5 and 22½. contract design services include coastal flood defenses, marine structure strengthening, roadway and public space improvements. utility and drainage improvements. the anticipated contract duration is search years and the estimated cost is $5.9 million. contract two and there is a mistake on title. this is the southern embarcadero coastal resilience project. this contract will develop designs to strengthen and will

replace the see wall and bulkhead to improve earthquake safety ask support the pier redevelopment. the scope includes pier 30/32 design and marine structure and replacement. roadway and public space improvements and utility and drainage improvements. the anticipated duration is seven years and the estimate is 9 million-dollar. contract 3, is the wharf j 9 to row place j-9 and improve for earthquake safety and coastal flood defense. phase 1 of this project is being delivered early with the floats and temporary installation for the floating berth going out

forbid shortly. it will have berthing facilities and utility and drainage improvements. anticipated duration is 6 years and estimate is $6 million. contract 4 is for a sea earthquake safety improvements at various locations including 9, 15, 24½ and 28½. pier and building seismic joints and retrofitting and utility service improvements. expected contract duration is six years and the estimate is $4 million. to procure these services staff intends to issue a single rfp to prequalified pool established by resolution 2268 on december

13th, 2022. it was used for the pier 50 improvement project solicitation and consists of seven firms, contracts awarded from this pool carry a rating bonus of 20% minimum. an approve panel will score on the written proposals and grade on the approach to the work. experience and qualifications. firms may propose on one or more of the contracts and ranking will be established for each of the contracts. negotiations will commence first with the highest ranked firm for contract one and contract two and so forth. the firms will only be awarded one contract each can can. and so if a firmal is awarded contract one, their name will be removed from the list for contracts two and three and four.

anticipated schedule is to advertise early next year to request award for the commission meeting in april of 2024 and start the contracts as early as may if we can conclude negotiations. contracts are primarily funded by the 2018 seawall g.o. bonds for the resilience project funded by forth-coming coastal conservancy grant. this concludes my presentation. carlos, elizabeth and i are available to answer questions. thank you. >> k. brandon: thank you. we'll now open it up for public comment. any public comment in the room? do we have anyone on the phone? >> clerk: there are no callers coming in at this time. >> k. brandon: thank.

commissioner lee. >> lee: basically all these engineers basically the same thing. it depends on their expertise i would assume. do you put any weight value on their kind of final design? like there is always that, you know, you fix the pier, fix the structure and the overall look for the public. do you weigh in on that or the actual work? what is your point of scale? >> it's qualification, selection. based on experience and prior contracts, staffing proposed, staff experience and commitments of the amount of time the staff can provide on the contract. and their approach to the work. so there is a series of questions that each respondent provides answers to and those are reviewed by the panels.

they're evaluated by the panel and scored. >> lee: any final design like, you know, other than the actual fixing the structure, is there any points for creative design or anything? is it strictly engines nearing? >> that's not strictly engineering. the quality of public space design will be an important component in the evaluation for these projects. some of them are more upon than others. downtown coastal resilience project, embarcadero will require high queult design. quality design. >> lee: do we get to see? do you make the final decision in or do we get to see kind of

the design, as they say? >> there is no design. the design will be developed by the firms. this is a qualification-based selection. the cmd approve the panel will dot evaluation and cmd will oversee the score examining provide the ranking, we'll negotiate with the highest-ranked firms and come we'll come to the commission to seek authorization though award the contract. that's when you see who the firms. >> lee: and work with them. okay. thank. i mean sounds pretty routine. as you know, we want to create this environment after the structures are finished to entice more people to come to the port. i'm more leaning on that part can.

>> it's incredibly important. the waterfront is an amazing space right now and these projects will make it even more so. >> k. brandon: commissioner. >> i get why we want to spread these out. we have more work for different firms and less risk but i want to manage expectations. some of these firms in their joint ventures have like 30 different firms related to that. and one of these projects is $4 million. they're not going to get that money. i always hate when we kind of make it siem like we're going t- make it seem like we're gb to distribute it to local firms and

they don't get it. as part of the presentation, do the firms have to say we'll work with all these? or do they say for this project we're only going to work with 10 or 20 or not all 30. >> they break it down if their proposal. right now they're prequalified with a host of sub consultants. they propose on this particular contract. they will include the disciplines -- it's a mix ever disciplines that they see are best fit and they'll make the commitment in their proposal and the contract is signed and there is ability to manage sub-consultants during the contract. if work scope change and sometimes that happens. >> when they apply to get in the as-needed pool, they did not make promises to all the subs. they said if the work applies,

you might get part of this, but you might not. what is the expectation out there in the community? >> i was not involved in the creation of the pool for that solicitation. it was an engineerings-needed contract solicitation. there is no predesigned scope of work. i imagine there are not specific commitments to how much work each firm would get. these are new opportunities. when had that solicitation went out to create that prequalified pool, it was known we'd bring new opportunities and those new opportunities would have their own scopes of work and each firm would tailor the sub-consultants they bring and put on that contract based on the scope. >> when these come back in april or whatever, you'll have a list of the real mix of firms that will be working on the project at that time.

>> yes, correct. >> all right, thank you. >> k. brandon: thank you, commissioner gilman. >> g. gilman: i think my questions were answered. thank you. >> k. brandon: mine were also. it's an interesting -- i think it's great that we're trying to use a lot of firms and give them opportunities, but then it's like you can only win one contract. so one contract we may have the third best versus the first best. it's like what is the fair way to do this, but i guess this is it. >> one of the benefits is this is a lot of work. and so there are capacity issues with firms to try to do all this work at once. this is one way to help out because we want to have these projects on time and move together. this is -- we think this will

help with that and we note that these seven prequalified firms and they're all good firms. >> k. brandon: so when we bring more projects on line and we use the same pool, will they be able to -- >> yes. >> k. brandon: ply or even though they have a contract, they'll be able to apply for new contracts in the future? >> yes. >> k. brandon: okay. thank you. >> thank you. >> k. brandon: so this will be back in january? or this is it? just the information? >> the commission needs to take action. >> you'll take action when we come to request authorization to award. in april. >> thank you for that clarification. not on this item, but when the individual contracts are

prepared. >> so when you come back for authorization, you're going to come back with the one that was selected, not first second or third. you come back with who is selected for each? >> we'll detail the process, evaluation and selections and seek the authorization to award. >> k. brandon: thank you. >> but it will be a less intensive process if the pool is prequalified. [indiscernible] >> when the firms apply to the prequalified pool, they submitted the stack of qualifications, all of their experience and they were evaluated by cmd approved panel at that time. they met a minimum score that was established to get into that pool. now they can focus on the scope of work ask their approach to the scope of work.

they don't have to resubmit qualification ts. qualifications. >> i'm guessing some may not bid on 17 because it may not be what they do. there may be only one person that wants that. >> the idea of getting from here to award in april is warp speed in the city because it never happens. >> very true. >> if you get all projects selected, they can move simultaneously. >> they can move simultaneously. some of the projects will move more quickly. the earthquake retrofit will move quickly. we're working on the phasing approaches and design. >> just regarding -- and this may be -- but during the budget

cycle within the next couple of months, you're going to show us where we are with funding from the bond? what is committed and whether is left over? >> i'm nate, during february both hearing dates we're provides information on spending to date on the harbor fund and the joeio bond. geobhond. this approach to creating a pool has created advantages that you highlighted tonight. these contracts were envisioned at that time where we mentioned the possibility of using the pool for resilience work. we really benefit from the wide net we cast in the beginning of the process and now we need to take advantage of the speed. it's a knew approach for us but

we're excited about the possibilities. >> thank you. >> thank you. >> k. brandon: thank you, steven. next item, please. >> item 12-b informational presentation regarding the professional services contract with ch 2 m hill engineers, inc. for environmental services program. for callers wishing to make comments, press *3. >> madam president, commissioners, director forbes, members of the public and port staff, i appreciate the opportunity to present on this item. here to talk about the major contract that has supported development of the waterfront resilience program contract with hill engineers that was entered

in 1217, we're reaching the end of -- 2017. we're reaching the end of this contract. this is an overview of how we used the approximately $60 million in that contract. we wanted to present this in anticipation of coming back to the port commission in the first quarter of next year. year to talk about a new competitive solicitation for management services. i want to being knowledge carla, our program administrator. steven wheel, deputy director of engineer examining project delivery. from ch we have patrick king who is the contract executive. darrin wilson the program manager and [indiscernible] perez the assistant program manager. i wanted to introduce those folks. just a personal note, it has

been a trip down memory lane tonight with piers 30/32 in particular i tried and failed twice at that site. i was happy to hear about the progress on pier 70 and it's so impressive that staff is doing. if i can move to the next slide, please. can i advance -- i think i can advance on my own. this is a brief overview of the presentation. i'll start with program background. dig into the details about the original contract, the amendment, deliverables that would he saw over the course of the contract. talk about the contract controls and remaining contract capacity and end with next steps.

so the reason i within the to start with some become ground about the resilience program is really that when we started, we had a set of assumptions about what the program would be. and through the work we've done with this contract, those assumptions change pretty significantly. in 2016, steven wheel led an effort which was the first study of the embarcadero seawall a study based on existing data and that led to a citywide understanding of the need to replace or stabilize the seawall. to start with the first phase to look at potentially a couple of segments of the seawall, maybe a half mile to two-thirds of a mile. and led to the contracts that we're talking about tonight as the vehicle to sort of deliver that first phase of work.

in 2018, shortly after we entered the contracts and pretty important things happened for the waterfront resilience program that are foundational. our congressional delegation helped us get an authorization in the water resources development act for a general investigation of coastal flood risk. one of two coastal flood risk studies nationally awarded that year. that was followed by entering into a feasibility cost-sharing agreement with the army corps of engineers to execute a three-year 3 million-dollar study. voters were very generous and proposition a and passed it by an 83-17% margin.

forbes extended the work on earthquake safety and flood safety waterfront-wide. to a 7½ mile stretch of our jurisdiction. this is the highest level summary of changes and assumptions. we started looking at three miles of the waterfront, we're now looking at 7½ miles. right before the bond, there was the thought that we were more focused on sort of the earthquake piece of things and that we would be potentially developing a stable foundation which we would then later adapt to address sea level rise. we've come to an understanding that the high cost of stabilizing the seawall, the significant disruption associated with that work, the tiling of sea level rise argues for stabilizing the seawall and

elevating the shorelines at the same time. which led us to move away from that concept of one to two segments of seawall from the early projects that were just presented on. so, not if i could dig into some of the contract details. this is the original scope. i was looking at a focus plans phase about two and a half years to conduct a risk assessment, do planning work and get into design of those one to two projects and extend through final design. in 2019, we had done a bit of work with the army corps of engineers and had come to an understanding with the 7½ mile look, the complexity of the infrastructure and complexity of dealing with the seismic and flood risk that this study was not going to be a three-year

effort but i 7-year effort and effort.we added important scopes focused on support and workforce development. we'll come back to the commission to present some of that work at a later date. we made some over adjustments to the scope and the commission authorized that 2019 amendment. now i would like to dig into some of the key deliverables and some of the achievements in the past close to 7 years starting with the multi-hazard risk assessment. this is amazing work. it looked at soil conditions, complexity underground, all of the infrastructure systems. it modeled earthquake and flood risk to all of the port

facilities along this stretch and city infrastructure and has sort of set the found edition for the work that has come later. those on the embarcadero early projects and in the flood study. when we come back to present the work in the flood study, we'll try to tell story why this work is for draft recommendation. it's been invaluable to the port. i'm not going to spend a lot of time on the early projects because steve just presented on this, but it was quite a bit of planning work presented in late 2021. and then we've spent considerable time over the past six years doing public engagements and planning and i'm impressed with the public outreach. if you go to the port's website, we've documented what we heard from the public.

they were heard by neighborhoods. that allows to us reiterate what we've heard and how it formed the development of the program. last time woarp occupant was with the draft waterfront adaptation strategies in late 2022. which we then used in army corps process. the highlights from the contracts, we have initial cmb participation rate for lbe firms. 21%, we achieved a 28% participation rate. dr. forbes talked about the fema award for the downtown coastal project. grant writing took place under this contract. we're getting some of the deliverables and lbe support and

come to the port commission on those items and started to think about how we're infusing this work with an equity perspective scnt with the plan. this slide talks about some of the awards that have been given. for communications work, historic preservation work and resilience work. i think what it really reflects is the quality of the work that we've received under this contract. we talk a lot about partnerships with development partners at the port. we enter into the public/private partnerships and we're pretty small team in the resilience program. we have nine staff and we rely on consultant support to develop the program. and so that is required developing a partnership with the consultant team and i will

say about the people who worked on the contract that they're committed to this work with the idea of helping san francisco be more resilient to the risks. so i wanted to move into contract controls. this is a task order-based contract. it's very similar to the engineering as-needed contracts discussed earlier. we have to request new tasks and we go through a scoping effort and looking at the cost to produce the work. that's reviewed at several levels. carlos reviews it first and it goes to finance and administration and ultimately to me. and then when we receive deliverables under the contract, it goes through that same set of reviews.

the other thing i want to mention here which is talked about in the staff report is that one of the sub-consultants on the contract is rdj services. members of the public and maybe commissioners have read in like likelihood that the executive for that firm was indicted and as part of the contract controls, we consulted with the city attorney and issued a stop work order on any work from rdj services. i wanted to highlight that in the presentation. and move to remaining contract capacity. we've got funding to continue the army corps work. we'll be out in the public in a robust way over the course of this spring getting public comment on the draft plan that we've developed with the army corps work. financing work on preliminary

design to set up the projects that steve is putting out to bid now. and we expect that this will get us through about june of 2024. so, i don't see a way to extend this team much beyond that point. next steps, got a lot of work ahead of us. i mentioned public engagement on the draft plan, that's going to continue beyond june. that's a process where we're going to eventually enter into design of the first phases of army corps work. we have to complete the feasibility study with the corps through the end of 2025 and into 2026. there is a need to advance further projects -- early projects under proposition a and subsequent funding we may get from the city. importantly as you'll see with

the army -- cost of the army corps proposal we'll need come up with funding plan to match the federal funding. and design. design of the first one or two phases of the army corps projects. i'll mention one thing is that we've heard in the city engagement a lot of interest among city departments in being involved in that design process. we know and love this waterfront. we'll come back and as we put together that scope, we'll come back to seek your authorization to advertise for those services and that concludes my presentation. i'm here to answer any questions that you may have and hear public comment. >> k. brandon: is there any

public comment in the room? do we have anyone on the phone? >> clerk: no callers for public comment at this time. >> k. brandon: thank you. olympic comment is closed. commissioner harrington. >> thank you madam present and brad for that report. this is a 55 million-dollar contract for how many years? >> for 150 years. it started shy -- 10 years. shy of $40 million contract and shy of $60 million. >> how long? >> it will end up being about 7 years. >> when you look forward to the next contract, do you have any idea about cost in terms of what you're looking at? >> we need many more senior management discussions. we need to figure out the length of that contract and so i don't have those answers today. >> okay. i was trying to put together page -- slide 9 and # slide 19.

23u look at slide 9, planning had 38 million. preliminary design at 13 million, there is 5 million left. final design in construction is 7.6. is that equivalent to the 28 million we're looking at or is that different? >> some of that will be covered in the contract. there was 9 during construction support. >> detail design was always meant for the other contracts. what you're looking at there is program management services. this is value engineering, third-party cost stilting. party rerues. >> this part will have to be if

the next contract to manage the people that we just talked about. >> and in the interim, that's no fault of staff. in the interim, that will fall to staff. if we need a bit of spik support, we'll go to our engineering as-needed support. >> okay. thank you. >> k. brandon: commissioner gilman. >> brad, thank you so much. i have no technical questions about this report. i have an observation. i love this idea of telling the story. the public doesn't understand why this would cost close to 50 or 60 million. i think it would be -- i think what you presented was so interesting. i think the website when we go back to the northern and

southern council, that narrative to me is important. that narrative how we use the funds is important. i hope we can lone in from a communications perspective to break it down for the public. there is always a huge disconnect in everything that we do as a government the entity. i hear it all the time. i think this was striking and i wanted to thank you for that. i know we can give some narratives on the website on how we're using the fund. >> thank you for that comment. putting this together required thinking back to 2017 and thinking about how the program changed over time. and so i think it helped us to start to develop that narrative you're talking about, commissioner.

>> k. brandon: commissioner. >> i don't have any real questions. like commissioner gilman, 39 million. i complain when my contractor charges me 100,000. i hope we keep tabs on the expense and there is a lot of times people drag things out. i think for the public sense, we need to be transparent how this money is spent. it's a lot of money. it's crazy. that's all the questions i have. >> it's a long-term multi-billion dollar project. >> i know. >> k. brandon: it's incredible all that we've accomplished over the last six, seven years from where we started to where we are now. i want to congratulate brad and the entire team for gets us to where we are because i mean, i think we're light years ahead of a lot of cities across the nation in terms of

[indiscernible] and what we're doing to tackle it. i want to tell you how much i appreciate all the work that has gone into this and where you're leading us. my question is going to be around the solicitation and what we're looking for and i'm sure you'll come back with us and tell us where we go from here. thank you so much for getting us to where we are today. >> thank you very much. >> k. brandon: next item please. >> i recorded a request regarding the $2.2 million grant for the community benefits district. what have we done with the funds and what are the been fits? i recorded we'll be bringing the detailed performance schedule related to piers 30/32 in

january. is there other new business? >> k. brandon: no other new business? thank you. do i have a motion to adjourn? >> i make a motion to adjourn our last meeting of 2023. >> k. brandon: all those in favor. any opposed? the meeting is adjourned at 5:50 p.m. >> thank you. music moofk histoy

african-americans migrated to the san francisco bay area, but bayview hunter's point to work as part of the ship yarding culture and tradition. that is how the black community got its root in this incredible city. a lot migrated to work at the hunter's point shipyard and on the water front >> my family came to san francisco lead my by my great grand mother in 1941. she came like most of the

african americans out of the south to the bay area to work in the shipyards during the second world war. overnight years, we people prospered, homeowners it was thriving for the african-american community. where bayview became the center points for african-american homeownership. >> with the shipyard closing, a lot of jobs left and with the maritime shipping leaving throughout the state. african-americans moved out of san francisco, which was the population is 4% or less of african-americans where 20 years ago it may have been 20%. here the port of san francisco we tried to create many opportunities for are african-americans to participate in contracting in development and jobs. i'm kay book the founder of

coffee company. recently opened the flagship coffee shop. this is a full circle for mow to have opened a new cafe here at the port. also like being welcomed back home again. >> port is the first place they was able to bid and win an opinion contract as a small business owner. when we think about the business of the port, and the maritime, right, that history is really continuing to extend itself in the way they engage with black businesses, black people and other diverse communities that are situated along the waterfront and as we move inward. >> we are looking now at the port of rejuvenating the community. bringing back a kind of economic sip lutz so that the people can go back to the lives they were so well adopted to and building

homes and creating families and having churches that were filled. >> i toured crane cove park it is absolutely amazing. this will be a wonderful addition to san francisco. >> i think it is amazing after having conversations with folk who is live in the community and have been excited and waiting for this p to be realized for years, walking around, seeings the connections to history. the opportunity for folks to utilize the water here is going to be an amazing opportunity for all the families and community and i can't wait for the diversity of opportunity we will see here. >> i'm in the crowd and i'm the owner and founder of spin out fit knows. port reached out to me recently and said they would love to spin out fitness a per of this plan going to 2025. that will be the beginning of you know, this redevelopment of this southern part of san francisco.

which is going to be a fantastic. i'm excited about that. >> mission rock is 13 years of city planning and community input to transform a surface parking lot south of the park to a new neighborhood. it will transfurthermore this area into 1200 homes 40% will be affordable and this is something this we are all excited and proud of. >> having been in the industry for 17 years and seeing a lack of diversity when i joined the port, that was the first thing that i saw that there is a lot of diversity and leadership from the commission. and down through the executive team and then throughout our port. director forbes, commission they have done a good job of making sure the port team reflects not only the city but the people of san francisco and those who

visit our water front >> the community. city and private cities working together we with bring the port back to the economic stimulus for people who live here. >> it is important that -- everyone have a role at the port of san francisco and everybody feels welcome >> >> >> my name is alex sinclair of willow on the green in san francisco. we are the only british tea shop on the west coast and focused on high quality luxury goods from the u.k. and we have teas and

baked goods. we came up with the name because willow is made with baskets and the parklett, a willow green and that is a picnic in the park. i have come up with the idea because i have lived in the neighborhood for a year. seven years ago we had a tea shop. during covid we needed to have a new flavor and rejuvenate the business. we are between two beautiful businesses. i realized with the shop opening next to the bakery, we had a beautiful tea shop in the area. we started with british teas and want to support local tea makers in the local area. and once you

have cheese and biscuits need tea and jam and lemon curd and chocolate and all of these parts basically imported from the u.k. our most popular products come from wales. it's an extra cheddar and next popular product is a jam made with alpine strawberry. so you get a taste of a nice strawberry. this is about supporting cheese makers and business in the area and women-owned businesses around the world and always want to support the community. we support concerts, we support charities and come to the aid to those in need such as the british society and the san

francisco society and the -- >> if you have never had british cheese, i recommend you come in on weekend. all of our staff are highly knowledgeable of all of our products and we are really passionate about what we do here and gives you a chance to explore our culture and food and our values. i encourage you to come to the inner sunset with a beautiful park to be young and academy of sciences here. come to the shop. we have beautiful baskets and blankets so you can enjoy this wonderful nature and you can support these wonderful businesses out here. >>

to introduce our discussion this afternoon, please welcome to the stage the honorable london breed , mayor of san francisco. so