and licensing in so for san francisco only licenses medical cannabis dispensaries currently but the san francisco cannabis task force is going to be submitting recommendations to the board of sups next month for january 9th to adopt the licensing categories as proposed in the a u ma with respect to land use and zoning so the zoning will be independence on the types of businesses you want to get licensed echelons has public safety impacts electronic devices is prohibited. set all to vibrate or turn the device completely off. access to credit cards services the retails businesses will impose a different cultivation and manufacturing requiring the armed guards and zion rules odor from plants and the preparedness of solvents might dictate heavy traveled

commercial district for manufacturers and licensing deliveries can be a streamlined procedures given the land use impacts given the storefront we were able to practicing pass the appropriate legislation to allow for that the other thing to keep in mind in terms of zoning even if we don't compose the task on the number of licenses that the city will ultimately award the zoning detects impose those caps rights so stacey the local caps is unnecessary and for local land uses that be capped by the inventory of the properly zoned paralyze from my conversations with the real estate brokers in the bay area be vacancies rates are between one and 3 percent cannabis are not competing with each other to get those parcels

that are properly zoned. >> proximity to schools daycare, however, this can be adjusted giving the local jurisdictions to get on patterns of pedestrian traffic for example, if a business is located within the 6 hundred foot radius but not assessable to the students or pedestrian from the business is greater than 6 hundred feet could the zoning authority to have a buffer zones or granted variances. >> so mr. butler. >> we have traversed quite a bit of tdm and we are here to really understand how this might effect our constituents i think

that you're the right people to be working on the protective chaos it is ensued but we're not to be involved we need you to get to our work product before we can do our job and so i think that for our commission and in the interest of time that this is interesting history but and kind of ground work but not for you guess other than if you're a student of this area they can learn about that elsewhere we want to be sure we stay on our mission here with our presentation tonight so we can all get back to diner you know in a timely fashion so what can we do to help you what do you need us to know before you've got a lot of work before we ever get involved the licensing is

irrelevant to us where - when should we engage with you again in a time in the future when we've gotten to a place there is actionable things right now on you guys it is interesting but we're not effected you know. >> i have a question the city didn't pass any regulations state law about apply didn't has nothing to do with the city didn't pass regulatory scombrooen i what is look like

please clarify hue how do you do that? let's say this is a a city and county so san francisco. >> yeah. san francisco. >> give us san francisco how how do you do that? what are the time elements and like we should be expecting what is the city explain to us where we are in the process in the city and county of san francisco and to what extent you said. >> yeah. >> equip the home cultivation. >> not what the city will do i mean first of all, to clarify i don't think the state is just a default law the state regulates throughout the state and have to have a state license you have a local license or even a local city of san francisco license

businesses has to have a state of california license and comply with the state reservation my understanding and you might know san francisco will come up with a license to license the businesses and will device their scheme in - when the state listening is in effect they'll have a license for medical businesses. >> who is that. >> the board of sups will adopt. >> but the board of supervisors who in our city government. >> the recommendations were made by the san francisco legalization task force that is part of city they're making the recommendations before the board of sups next month. >> are you members of that task force. >> someone from my organization is. >> and do small business have

a representative on the task force and we have two representatives on the task force not from our office by members of the business communities but just also to maybe provides a little bit more clarification so the task force will make recommendations and the board of supervisors will work with that department whether work with the departments may have clear opinions about what may we they may want to create the regulatory structure for both the work that minica and i are doing trying to understand the landscape of the small business opportunities and can we provide some of that information as well we're creating help inform communicate that as the regulatory structures are being developed so there will be quickly working

with those timelines once the legislation has been introduced so part of this is to help you kind of understand sort of the scope so when the time we're not has to do with quickly bring you up to speed on the considerations of the complexity that are going to be given because listening to all the legal the ownership structure and highway that may affect in addition to all the different business opportunities - this will effect dpw if dpw that will probably be the primary entity that has the permit to operate and also the control so, so i think once those things are beginning to be figured out it

will happen very quickly. >> okay. it is sufficient for us to know there's complexity but we don't need quite as much detail that's for about the task force not what we're here for . >> yes. >> and then the elephant in the room financial you know can't assess capital well credit things this is the one thing that i did bank overall medical marijuana at any bank and had to close out their accounts or close down any business i've been watching carefully what is going on in colorado and washington and this is an all cash business in colorado they go to the city and county of denver and pay their taxed in cash you laugh but that's starting to be a

problem they start their own bank and they were shut down and in washington i'm hearing horror stories about people keeping money in their car and getting stolen and stuff this is something we need to address. i know the state board of equalization i've talked about with fiona moss they'll have to come and handle all that cash how do you do that where is it going to that is something and not up for discussion now but something that the task force needs to think about so i'm watching that is going on in colonel i voted yes on this i'm a all for this and as being a

banker if anyone is watching - i mean, i had to close out the accounts they know who they were that bummed me out as a banker they remember good customers had this is something he hear about the schools i know about that because from the medical marijuana communities how to bank those people because without that urge to have a lot of issues and right now, i'm seeing a lot of issues even in the medical so >> you're not going to get argument unfortunately an issue that needs congressional issue and the federal regulators are federal officials without a concerted effort in washington not getting that kind of changes and open up to the rest of the

industry in my opinion whatever you do at the state level have to address that impact. >> kwhief solution. >> it's all cash. >> i'm watching colorado it is an all cash business no way around it. >> there are so the deputy of treasurer issued in 2013 or 67 that along with the what is then network put out networks hey we recognize banks that point to bank the business if you want to bank the business here's the guidelines to bank this business it gives us a safe harbor under the a ma laws no, not enough to have the banks take on that was not good enough we need to have the department of treasurer and

have safe harbors carved out for status of women businesses simple as that and no others solution. >> i just wanted to quickly add to what commissioner president dwight say why not care about this now the presentation was very sdmraltd but i think underlying their discussions certainly with the commission that many dictate what size and teaches businesses allowed for businesses to thrive in the business the enclosure of what loopholes categories allows the small businesses to exist is important you know and if there's a voice for that within the city i assume part of this commission to get in there and say when you're looking at this is in the city of san francisco we want small arcs and businesses to play a role and needs to look like this and the rules for them to practical do

that. >> and the reason he drove under sacramento i no longer live in 70 in san francisco was base feel you guys are the only small business commission in the country so you have a voice you're able to speak to states laughter's and say if you device those rules where the money comes from and how many businesses that effects our citizens and existing businesses already here that gone through a lot of heart attacks and cannot go in and say we'll devest you of this portion of the business that's unjust 0 my hope to hope you'll take up the issues not only with the board of sups but also with your state legislators this is not okay. >> good that's the thing we needed to hear so thank you.

>> commissioners. >> hi, thank you for your presentation i have two questions and defer to staff if they can answer one you've preserve this effecting i have a lot of constituents that are smoke shop retail uses and their scattered this might effect them could this effect the tobacco listeners and for constituents that are you know in that industry but want to move you know into the medical marijuana and adult use industry or just constituents in general what part in the process is interest the best part informative public comment regarding people around in their listening process. >> on the first question the question answer is no is

shouldn't have impact and on the second question they should be engaged with one what the rules will look like for san francisco if their opening a business in san francisco they're in the employment place and the rules and gave me in the state law process as well as the draft to make sure they fits the qualification and be able to comply this is a pirate initial lvns that goes to existing acts that are compliance within the city of san francisco and then when like after that the initial listening up, up. >> regina he assume the task force are pubically noticed. >> their pubically noticed and i think - but, but should be engaged and . >> took to provide us with information as well because as we start to look at the

different business categories so any current businesses selling tobacco or alcohol can't be adult cannabis from the business wants to make that transition those are the things we fled to know about but again, if you have representatives it would be gay for them commissioner president dwight said to go to the task force meeting if their recent to do so. >> that is where that will be dealt with a lot of stuff that needs tobacco sort of out there question will be involved in here not that we don't want to know about that that's why we have representatives because we have other things to attend to so - >> any other comments. >> i do. >> commissioner tour-sarkissian. >> i'll be interested in getting our thoughts at least put them down and send them for

the commission as to what that commission should be looking at that would be i appreciate the fact you came from sacramento and want to benefit from our thoughts and see what you think we should be looking at in terms of the regulations that are shaped so. >> happy to provide that in writing. >> yeah. i agree with sdmen. >> that was a lot of information and cannot remember all of them if you can send us to the director we can take into account that. >> absolutely. >> thank you. >> okay commissioners any other questions. >> okay. >> open up for public comment

anyone wish to comment on item number item. >> make our way up any speaker cards for item 3. >> yes. speaker cards (calling names) and if anyone else wishes to speak fill out a speaker card and one second let me get this - >> okay. go ahead. >> public comment is 3 minutes and just a reminder you'll hear a gong two and a half minutes and appreciate it. >> thank you for your time so this is two reasons this commission should be interested in cannabis i'm sorry i'm recovering from a colds is tax revenue and jobs i had up to 45 people headache in san francisco investing in a

new company and spent a lot of time in the cannabis industry co-founder the cannabis manufacturing you motivator not know what that means in that a manufactured cannabis product that start as a plant and now a oil this oil helps people crone disease amongst other things we want to stay in san francisco and need the city of san francisco to act to allow us to get a permit we can illegal be here in not we'll have to move we can be one plus people because interested and demand from patrons for the products we're one of many types of cannabis manufacturing businesses eatables and during the course manufacturers and oil creams basins their owl manufacturers products to make the passage i showed you

requires if we employ the scientists and people with pack boxes and make deliveries? wide range of jacobs that can be in san francisco we employ people and want to stay here there are other people that have companies in similar positions it is just difficult to get things through city hall we need every advocate that is interested in creating jobs. >> are you attending the task force meeting. >> yes. my co-founder the scientists we're involved in the task force and we're also members of the manufacturing committee for the california cannabis industry working with the state of health working with the manufacturers. >> you're the expert we need

thank you very much. >> being and thank you for your time i understand that is getting late try to keep this brief want to irate what my colleague said i'm aaron flynn a fouvend member the california growers we're a nine hundred member organization statewide and run the chapter of the california growers association i'm hoping that i can give you you guys sight one and 10 members in san francisco prominently into the non-restricted retail side of cannabis bus so you're hearing a little bit the fact you don't need the local organization under the adult act why think anyone is there any understanding that san francisco is not going to pass local

regulation san francisco already has regulations for the retail side of the cannabis industry and there are - it is absolutely moving forward with passing regulations for the non-retail side that the calculator varieties and manufacturers and trornts if we don't have that regulatory structure by 2018 those businesses that equivocate in san francisco will fall behind that in the listening process for the state the state is going to be looking at blaze that are regulating and essentially wait until they begin to you know if we come with an application as a business to the state and those local regulations are not created we'll likely fall behind this process we anticipate even on the cultivation through 9 pulling there is probably one and 15 to one and thirty

different consular sites in the city of san francisco employing 3 to 10 people those are low blue-collar and manufacturing jobs that are often limited leaving the city so rapid starting wage for month is $20 an hour and as those businesses ton to grow and continue to expanded if this local regulation if combo play by summertime or maybe a little bit later they'll have to move to other communities and cities that have the local structure again, you guys really come into play advocating for a speedy rapid you know movement towards structure so the businesses don't have to shut down and the businesses are not lofty. >> thank you.

>> i run a family owned clarifying services in san francisco. >> before i make my point i want to give you a little bit of background on myself i was born at san francisco children and went to elementary school and my father owns a dental office that serves the community for thirty years now i'm contributed to the legacy being a reliable employer i'm born in a different generation so my dream is to have a successful cannabis business in right city i was born and raised in

right now, i'm educating their needs to be education on this planets and substance; right? >> i also provide other educational opportunities through another organization that i co-founder and a women of color organization for women in claims that want to start small businesses we educate how to start a small business in cannabis and because self-sufficient shareholders in this industry the issues we're facing not that many informational spaces for us the clustering along the eastern part of city makes it difficult to be able to find a one space that can put my car into; right? and also like driving out to the western part of city kind of cuts into delivery time

this industry is unique so also let me say that by staying saying i worked in the neighborhood for 6 years doing case management with the youth that are incarcerated and public safety work mostly around policing so i've seen how people of color especially my communities have been criminalized by this plant so establishing a clear and supportive communities so for cannabis and for our support is a act of restored justice in the city to make sure that people like myself that had a brother that was incarcerate for cannabis we'll find a place in a legal industry and be able to earn money in a very legitimate way so thank you for your time >> thank you. >> next. >> hi

my name is camille thank you guys for begging being here and starting this organization i'm a small business owner myself and small business changes lives for the better i represent the betty project we're a new operation looking for a brick-and-mortar currently hoping to follow all the laws and i'm just here representing them i want to tell you about how it effected any life having being an employee of theirs i was able to quit any york bernie sanders and getting into this industry full-time. >> saved money and start my own small business on the side i do ceramics and it is unbelievable how much the cannabis industry is changing

lots of lives here in san francisco and i pretty much wanted to representative the betty project we're a great local grow company looking to be a retail and i'm really, really confident that our company will grow bigger with you guys help so thank you so much for staying late to hear us. >> thank you. next speaker. >> good evening my name is dominique and although i don't own a cannabis business i do consulting for people once you're in the business or part of industry i have taken regina on a local san francisco cannabis tour where they were able to saying

see local industries within the city many of them are speaking in front of you don't tonight and like to extend to anyone on the commission if you're interested please reach out to us and like to have you or all of you to come on the tour to see the local cannabis industry it's jobs and facilities and the tax that are all there that the city really is not appreciating or validating thank you. >> thank you next. >> my name is kevin a local affirm maker he travel the communities to bayview hunters point and similar communities that are doing war on drugs in constant conversations about the opportunities that presentism

with this new industry amongst us and like to get more information and direction to sort of take back to the community as it relates to get in this industry to help deal with the things that have been represent rationed as it relates to the criminalization of those communities so if there is any further information i can get to take back as i sort of we sort of navigate through this new industry that has been legalized and was lay out the rules and regulations be mindful those communities that are high in employment and criminalization can this can have a positive impact on community that are desperate needs of jobs and opportunities i want to put that out there and hopefully, we'll continue this conversation and elect and good afternoon and to

the communities. >> great. thank you very much. >> evening i'm jesse on the san francisco legalization task force thank you for the commissioners to hearing this and for participating in the task force and appreciate our input. >> thank you very much. >> anyone wish to comment to comment on this item seeing none, public comment is closed. let me say the commission acknowledges the business opportunities in this area and we're excited to participate the rule of law is important and many any endear the faster to resolution on the rule of law ♪ new area the better so all businesses can get on what their business in an environment of certainty rather than uncertainty that's - we have no quarterly whatsoever with that the commission will follow the

lead presenting of the task force so the working group is the task force not the commission so we appreciate the education as it relates to the business issues that we deal with here the jobs, tax revenues obviously ambassador more than opportunities for entrepreneurs is and small business owners so we are very mindful and engaged in the task force activities so we appreciate all of you coming out this evening to voice our support for in emerging industrial we'll do the best we can to make sure that you get the firmer sounds like appreciateable foundation on which to build our business going forward >> commissioners. >> for any of you, you filed

out the speaker cards please take mini cans business card if you doesn't fill out a speaker cards and we'll continue this conversation as the task force does its work to do was it needs to do to inform our supervisors and the other legislative players that be ultimately be making the laws that the city and county will enact on its part with the state and federal government are establishing themselves and i believe that. >> i want to say i want to say thank you to the presenters and to all of you entrepreneurs out there obviously a huge learning process for all of us we need to work together to make sure it is fair for everyone so let's just

keep all of us working on this to make it a great industry that employees a lot of people in the city and we'll just keep moving forward. >> i heard a number of speakers that touched on issues that face all the city not only the city but the availability to put a place for the business and wage and tax issues are unique to our city and county and some are for generally just the state of affairs in the state of california and the united states so we're all in as small business owners no matter what industry we're in dealing with many of those issues those are just the issues of being a small business owner so we have kin rids spirit whether we're in the specific industry or not i'm in the garment manufacturing business that's a tough one. >> i'd like to say this

process is very helpful with the commission and i appreciate the fact that the director is involved in the process we will eventually have to deal with the laws that come before us so it is a good thing that we're educated exposed to the issue and this is a good forum for people to express themselves i think that is a good thing also, because we're seeing the shaping of the new industry we taught to be involved in every step of the way and be able to voice our opinion and allow others to express themselves before us. >> of course. >> all right. any other conversions comments. >> no action required on this item. >> no. >> great actual all for coming out, i appreciate it.

>> next item, please. >> item number 8. >> approve the minutes action item the minutes that are for consideration november 28th, draft minutes november 14th draft minutes and february 22, 2016, and april 2015 and draft minutes and then the december 18, 2015, draft special meeting minutes. >> as i understand the last of the minutes that so we'll be all caught up to date as this approval. >> we'll be completely caught up to date. >> congratulations a hurricane task.

>> thank you minica for making sure that happens so a motion. >> i motion we approve the november 28th, november 14th be february 22, 2016, minutes and the april 27th march 23 and the other minutes and i second. >> okay. all in favor, say i. >> i. >> opposed? okay that item passes 6 to store one absent okay. >> item 9. >> item 9 director's report update on the office of the small business commission and the assistance center the department policy and legislative matters and announcements in the mayor and announcements for the san francisco small business activities. >> commissioners, i will try to be high on a hill it calls to me i'll hit on the key essential things i want you to know about under my report and the

remainder you have to take with you to read with the legacy business the rrules and regulat in any items have come up with the rules and regulations so until we have a really good solid product i think that will not have additional questions which i hope to have all of that solved by the january meeting that's why we have not heard them the business assistants grant is thus, the 15 to that's the deadline currently we have about 15 applications in we've done communications with the 64 businesses now legacy businesses as of tonight with e-mails and phone calls and written complungz that is rimdz them of the filing deadline and then rick and i are about to

final list the selection to issue the contexts for those not registering with the business assistance grant or the rental stabilization grant with the business owners to issue them the checks 1650 mission street the small site we'll be working with with the san francisco small business development center it houses the program the legacy business program and will have a satellite assistance center position the department of real estate has informed us they have to push out their timeline with the construction weeks ago looking late april possible early may for the completion 100 mission street which is the old goodwill site which is where a they'll be ground floor retail

and residential on the corner at 11 and mission we're going to be building a new building which will house dbi and dpw, planning, and some other smaller entities all in one location on the second floor is a large permit center and i've put in our packets not the final version but a copy of its not the final version we've made changes i want you to know that the office of the small business commission is going to have space in the permit center we're there to help to vice the businesses especially with additional questions non-related to dbi and planning. >> so is that - and satellite and having that will be a good

opportunity to figure out how to have an offsite needs. >> will you continue to have your main office here. >> yes. so just to let you know that is exciting we hard working to insure a presence there i'm pleased we do. >> we'll see i mean, maybe that do we have the staffing we definitely have the staffing. >> by having a satellite office eliminates the ability to tag things here because the body is away so they can't fill if you know here so the question can we reliably staff that remote location given the

demands of the general office retirements. >> we'll need to figured out there will be businesses we don't want to send to the permit center to get advice but the value will be that we will be able to have dpw planning right now there to have discussions and, of course, the aspect position will definitely be located that will be their permanent site we'll definitely be able to manage having the - right now they're giving us 3 spaces that includes the aspect position and the mayor has issued his budget direction the city is still projecting status for the next couple of years even in the economic boom because of the pension obligation 0 or so the agency 2k3w59d departments with oewd is

a 3 percent general plan decrease a similar instruction that that in the past last year so i've worked with the financial advisors to figure out what we need to do to have minimum impact but there will be for at least the next few years no new positions not a hiring freeze but no new positions then i've priority you a list of legislation that has been referred to the commission supervisor yee has introduced legislation eliminating some business tax fees so that was introduced last week and we got it on friday so i'll be take a look at that.

>> there's been intern controls introduced around an intern moratorium around greg cannabis in pdr space because there's is some concern about the amount of pdr space that is held off the market in anticipation for this industry and that is now not moving forward fast because of the concerns of the cannabis growers that is being discussed we are also seeing that some department of human services making sure the medical marijuana is conditional use those are those right now, we're

having individuals coming into the assistance center asking questions how to navigate the fact that proposition 64 has passed can be they do currently the only thing is the legal structure open a medical cannabis dispensaries that's the only licensed structure we have in place right now so but we will be you know minica and i are working closely with the task force and with the business communities to figure out what we need to do moving forward. >> incidentally a lot of talk ultimately growing activities inside the city's expensive like ourselves not if you running an urban winery you don't grow your grapes in downtown san francisco

more likely that the raw product will be brought into the city and processed as for beer and wine and others types of things this is - there's a bunch of people studying the economics the other thing i live near what i'll say a 5 thousand square feet debris operation and the impact on the neighborhood is non-trivial it is intense the sovereign is a very good operator hesitate installed state of the art suppression equipment for the aroma did work when our down winds from that place one one thoughtless feet. >> i know what you're talking about. >> you feel your consuming and

a tremendous amount of resistance we need to get prepared a lot of neighbors and this is not speculative you go on the tour with this fellow and go to the grow operations you'll smell that it is intense. >> right and both minica and i did the tour if if you're interested. >> it is not like a brewery that is a grow operation it is in operation 24/7 so. >> so know i think there are broader policy questions to be looking at in terms of the best sectors what is more akin to san francisco and i think on the retail side there is a lot of nuances and things to be given consideration to and i think via it, of course, whatever we do,

we need to be sensitive to this business with the pdrs and the demands for pdr space not only on the cultivation been on the manufacturing side you know we don't want to have this sorts of overtake what we've spent what almost 10 years with sfmade and building up our local manufacturing so. >> to the extent it is manufacturing sfmade we don't discriminate one 1915 medicaid waivers type over another the issue with the cannabis industry that will be venture free is like tech we also use the words tech or tech it is not tech venture capital enterprises that derive the cost of labor and reality they're willing to extend more for whatever

industry a tax or cannabis a new industry that many of the venture firms they see this greenfield opportunities no pun intentional but that is what the cannabis industry is facing the same issues that any industry is facing. >> yep. >> so and then eave i'm not going into it in great detail equip about some of the major policy issues weeping we'll be working on for 2017 i didn't put this in your reports but forgot to put in the article the change for article 7 you received a very brief presentation a couple of months ago from the planning code taking outside the definition and putting them in article 1 so one section in the planning code that has all the definitions that is continues

so i keep reporting out when the next hearing before the planning commission so to help you anticipate when that legislation will be coming back before you so that's continues to the beginning of january and oh, february excuse me - thank you. >> so that's it and that's it for my report. >> great i want to say and at the last meeting of this year that the use to use affordable terms a much greater quarter richard such done a fantastic job of petting the legacy business program on the map we were undually criticized for being slow in the uptake and we had to have staffing we hired you and you've done a lot of

work thank you very much and minica it's been an absolute pleasure to have you on the team we went without it is fantastic so thank you for your efforts as well. >> and we're oath to a great fetish and great starts any public comment that want to comment on the director's report seeing none, public comment is closed. next item, please. >> item number ten commissioners report. >> i have nothing to reports anyone else. >> i wanted to report that. >> yes. at the telegraph hill differentials meeting they called me out with a great amount of thanks with the small business commission and how much they appreciate the legacy business so i wanted to communicate that we were that was called out as a very

important. >> thank you thised positively. >> for 2016 and a quick announcement working with chinatown's community now how expanding an existing shuttle bus we'll be taking people that park for little money golden gateway for the chinatown sea we will now with collaboration do the same for mertle beach a weekend program and really be helpful to the businesses. >> any other commissioner reports. >> i have a comment. >> yes. >> i personally in the last quarter enjoyed immensely the legacy business especially the richard work like the fact that it is thorough, that is well presented and like the supporting documents i think we

should - that's a tough work and a lot of files i personally thank him for the good reflection on the commission and also thank you for your good work you're doing if so very good for us such a good team and, of course, the directors (laughter). >> sustaining the quality and so thank you for your force any other director's report or comments any. >> i'm sorry to join you to saying all staff for good work and especially with richard and minica two things we got beat up earlier this year by - was legacy business and then the minutes now we're caught on the minutes. >> richard and the legacy business now we'll be going into the funding parting the prop j

that is important and something on the legacy but thank you to everybody it was a team efforts everybody up here and the staff and everybody so. >> any anyone wish to comment that want to comment on the commissioners report public comment is closed. >> leveling new business. >> really quick under legacy business everywhere i go people think they need money and want to know how to apply to be a legacy business i tell them you, you can apply to be a legacy business we're working on some outreach i like to continue that and bring that sooner than later after today last week, i was approached by the a couple of

businesses we don't need the money but how do we apply we don't want to apply we don't need the money he tell them apply we need to build that up and work outside of this with other businesses but in the new year really, really work on that. >> for the planning meeting discuss how we amplify your celebration of legacy businesses it is clear this session has been a forum people know we're having a celebration and show up i mean today, the number of people speaking son on behalf of the gym so i think that we should promote about the activity here but figure out how to have an annual birthday party for legacy businesses it will be great to have a reception everybody can come together to celebrate their legacy business

we can talk about that later. >> i have new business. >> regina talked about it i've been working with the planning department for many months on their proposal to eliminate section 7 did neighborhood commercial code and replace that with section one hundred given the extensive and substantial changes that are being promoted now some of the new definitions and the new section one hundred are not necessarily the same as what in their replacing and added presents that is very confusing and hard to understand for those comparison is we as a commission and public can understand the ramification for the mcds so i'm requesting that

our staff be provided with a document that clearly spells outs any thoughts changes that may have an impact on the mcds because there are actually quite a few of the this about have profound impacts think mcds so everyone needs to know more about this not just a minor little thing. >> when will this be affected. >> they'll hear it to the planning commission the first time in february it has a lot of problems. >> okay. >> they keep pushing the date further and further back i'm personally appreciative because i've been looking at hundreds and hundreds of pages for months and months and months the thing the planning code is you can change one section but made 2406r be referenced in yet

another area we need to thinks that fact and make sure we're cool with what is proposed. >> okay. >> should we ask them to come and do a presentation. >> let's have staff do it first. >> if we can get some kind of a donate that shows what is before what it is now and another column that says what, if any changes that would be helpful for all of us. >> we modesty another new business item on that topic we meet want to think about if we have some subjected guidelines to present at the commission for the people so they're addressing us in areas that are perry amenity to your jurisdiction tonight was a presentation that

was important but no slides no idea where it was going and whether that was going to end any time soon so i was compelled to say look i mean great but we need to stay on task here and so rather than and that's the job i'm going to make sure that we're the presentations are useful for us and that our commissions work okay so we're not waste of time with the presenters, the recipients or the audience all right. so i think that it is environmentally poor if someone makes a presentation that they have slides okay because i want to know what slides we're on and whether or not we're on slide number ten of one hundred or 10 of 15 and

attendant i think we're on 10 of one hundred we had to stop so i think that should be tables for someone making a presentation. >> usually we have but krooks we don't and it causes a situation that is uncomfortable and not in my way meant to be rude it was interesting before the commentary end so they didn't hear what public comment had to say that was as important to hear public comment. anyway, i think that is important to acknowledge the task force itself is working on the flails details we will ultimately be engaged in the task force not that i i don't want to know about it we're engaged in a place the engagement is meaningful okay. so maybe if we can just have a

some guidelines we give people before they presents likewise and people that do it all the time write down the notes they read they're not to the point it is nervous racking to stand up in front of folks any the new busy any members of the public that want to comment on new businesses business seeing none, public comment is closed. final item please. sfgovtv could you show the slides just a reminder in this last meeting of the calendar year the existing business. and it is the official forum to voice your concerns regarding policies and projects and issues that effect the economic vitality of the small businesses in the county of san francisco.

so if you need assistance with small business matters start here. if you have questions about small business commission please vital the office of the small business commission by telephone or online >> thank you next item, please. >> final item the final item is adjournment i motion to adjourn. >> second >> opposed? in favor. >> i. >> the gavel. >> oh, the gavel mdm. clerk

go? >> call to order. roll call commissioner adams, here. brandon, here. kounalakis, here. katz >> she will be here. we have a quorum. >> approval of the minutes. >> moved and seconded. >> >> second. all those in favor say, aye. >>[chorus of ayes] opposed? >> this will be delayed until the next meeting. there are no minutes. >> okay. that's fine. we will go to public comment on executive session. any public comment on executive session? seeing none, public comment is closed. mdm. clerk >> executive session. >> moved and seconded.

>> all those in favor say, aye. >>[chorus of ayes] opposed? we are now in executive session 5 min. after 2 pm. >> >>[closed session] >> item 5 reconvene in open session. >> i moved to reconvene in open session >> >> second. >> all those in favor say, aye. >>[chorus of ayes] opposed? >> i move not to disclose anything in close session >> second. >> b weber >>[chorus of ayes] opposed? >> next item. >> pledge of allegiance. >> >>[pleage of allegiance] >> mdm. clerk >>

>> item 7 announcements could please be advised somebody's telephone prices are prohibited at this meeting the chair may order the removal from the meeting room many person responsible for the ringing or use of a cell phone and pager or other similar sound producing electronic device. please, be advised a member of the public has up to 3 min. to make pertinent public comment on each item, each agenda item, unless the port commission adopts the short period of time on any item. item 8 of the comments not listed on the agenda. >> is there any public comment on any items not listed on the agenda we seeing none, public comment is closed. mdm. clerk next item >>

>> item 9 executive director support >> good afternoon. i'm elaine forbes executive director of the port of san francisco and my first item to report is on november 19 one of our very own commissioners, vice president commissioner brandon received a very prestigious award from the san francisco naacp for professional and excellence achievement professional and business achievements. the san francisco naacp is committed to pursuing diversity and reaching the next generation of civil rights leaders. it's really no surprise to me that commissioner brandon received this award. for those of you watched the commission closely, you know how howard commissioner brandon works to ensure our own contracts accrue to local businesses here in san francisco following the spirit of the obe speed is to show what also works very hard to see that our port activities

connect closely with the neighborhood. the neighborhoods here in san francisco. she also mentors port staff. so i am sure that what you do here on the commission goes on to the other aspects of your business life. we are very very proud of you to director actively honoring you today can we want to express our appreciation and we also want to express the appreciation of the larger city family. so i've a proclamation from pres. lyndon brinkman i'm going to bring it over to because president adams is going to help me. >> the city and county of san francisco proclamation in recognition of the san francisco naacp professional and business awards tuesday,

december 13 2016 whereas the city and county of san francisco traditionally recognizes individuals who have demonstrated a strong commitment to excellence and made a positive difference in the lives of san franciscans. i am pleased to recognize kimberly brandon vice president of the san francisco port commission and wealth management morgan stanley senior vice president and whereas the commissioner brandon's leadership the port of san francisco has been instrumental in fostering international trade relationships with sisters reports which including participation in delegation to the people's republic of china, vietnam, argentina, chile, ghana, and mexico. whereas, and eight of of san francisco has dedicated her career to social justice and economic empowerment commissioner brandon always prioritizes our

cities underrepresented communities, citywide community outreach efforts, including promoting diversity staff time and contracting to ensure the port is represented of the city and county of san francisco and whereas commissioner brandon's years of experience in celebrating diversity and advance the quality for our city residents especially in underserved communities, makes her a model residents an exceptional recipient of honor from the naacp and whereas by bringing countless good ideas to like commissioner brandon has been committed and dedicated to addressing the and doubt naacp's mission to ensure that political educational social and economic equality for everyone she is an unsung hero who was worked tirelessly to improve our diverse communities and our cities now therefore on behalf of the city and county of san francisco i,

london breed president of the san francisco board of supervisors do hereby recognize the breath of her career and on behalf of the san francisco branch of the and of all acp and the entire city, london breed president of san francisco board of supervisors on tuesday, december 13, 2016 kimberly renne next there will be a 20 year commissioner by the longest-serving commissioners in san francisco. a true hero. >>[applause] >> commissioner finn and would

you like to say a few words queen >> no. >>[laughing] i'm at a loss for words. >> okay. >> i'm going to get it together. anybody that knows me knows that i don't like to the limelight i don't like direct recognition. i do it what i do because i do it for my heart. so i really appreciate it. thank you. >> you are welcome. >>[applause] >> commissioner kounalakis >> it so your work is so important to our city. the , you do a wonderful job commissioner using your experience and your knowledge and almost 20 years of experience on this commission

to deal with very complex and important issues that come before us to read their basis. so bravo to you and thank you for your service and to be continued during >> thank you >> i would like to say that when i came onto the commission five years ago commissioner brandon reached out to me and a partner lifelong partner tim is here today and kim is a lady that works very diligently. 20 years of experience. she's an inspiration to this commission she speaks very highly and one of her goals was the development of the southern waterfront and now that it starting to take place: i think about someone who put in almost 20 years on the commission you went through 3-4 mayors and she is constantly delivering i think she's very solid and very committed to what she believes in. this year when i went to

through the process of ad hoc committee when we were looking for a new port director, kim right partner, she gave up her whole summer like i did, in the pursuit of excellence to find a good director for this port tomorrow for this community and for the people and i can only think of for her friendship and loyalty and she's very honest with me and as you all can see, that i'm really outnumbered i have for women commissioners and eight port directors avail number and maybe that's a good bounce but i just want to say thank you and it's okay to keep me on top of my game. i just want to say, timidly, so proud of you. thank you. it's just sure service. it just so many people that benefited from that in our latest deal with [inaudible] and hopefully when i get up and running that are being district 10 not be of close to 100-125 jobs in the

community, for district 10 resident. just maybe we will take guns and we will take bothers in the negative things that a lot of these communities and we will be able to provide jobs and its kimberly brandon her vision and pursuing and making sure we provide jobs and economic empowerment for the community. thank you. >> thank you >> thank you we know we don't like to be the limelight because we found about this on accident. >>[laughing] we are glad to do this retroactively. congratulations. >> thank you >> next item is regarding monofilament fishing line stations. i want to let everyone know on november 21 the port have a small president with activist judy arvind she's a filmmaker known for the

telegraph hill. here to celebrate the monofilament fishing recycling stations that we installed at key locations along port property. while it's a small effort it's very important to wildlife year. the fishing line recycling stations will help keep our wildlife safe and all residents to continue the use the port as a recreational fishing venue. i'm very proud of the environmental stewardship of this port and this is just one small example of the work we do get so huge thank you to tom carter, tim felton, and kristin--enter maintenance division that actually manufactured the recycling stations themselves. the next item is to provide some good news to the port commission and the public relative to our national park service term sheet get on november 29 04 board of supervisors endorsed the term sheet for agreement between the board of san francisco national park service for a 30 year operative agreement and to 10 year renewals to invest and improve piers 31, 33. as you know using this project and you sent it along to the board of

supervisors endorsement is a key milestone in the multi-year effort. the goal is to keep alcatraz on port property and develop a much higher caliber facility for the public and we are now well on our way. we expect to be back mid-2017 with two leases for you your review. and special thanks to byron mark rebecca-j edwards and rona center we keep along and progress is swift. i now would like to ping your attention to bae ship repair. bae san francisco san francisco ship repair has been a port tenant since 2005. in 2015 this port commission approved a 20 year lease extension get since 25 bae has performed well for us and ship repair has been very important business line for the port and we've extended drydock two, insured shoreside power to

reduce pollution to bae is a large company and they operate major shipyards in norfolk virginia and san diego. recently there've been some market changes which have made bae less competitive and less profitable here in san francisco. notably in portland they opened a new shipyard. as a result bae has become not profitable and has reached an agreement to sell other san francisco operation to leah moraine. leah is a small company with the facilities in bellingham and tacoma washington. they do have a 20 year record can they have a very good reputation and they believe because they are a small, neither be able to win federal contracts that bae cannot win due to federal subsides and their overhead is

substantially lower than bae as a small company. so they believe that they will not experience the headwinds that bae faced your at the shipyard. they also will honor all the terms of the bae lease and all the collective bargaining units that are in place for the workers. port staff is reviewing the purchase sale agreement doing due diligence now and will keep the port commission and the public abreast of our progress, but we are excited about this new chapter in san francisco ship repair. okay. now that brings me to the california association of port authorities annual meeting that was held november 29 at i attended a meeting with peter dailey and i want to let the public and the port commission note that west coast directors met that day to talk what the priorities of port and ensure we are rowing in the same direction. one of the key things that capitalism went for california ports is

creating a narrative all the benefits that the ports by to the economy and streamlining the legislative request both at the state and federal level. it was a very twofold meeting and it's very meaningful to have our port rep represented among this group to be sure that were lobbying in our interest. okay. now at this time the port commission would like to recognize and congratulate carolyn corrigan the president of blue and gold fleet. carolyn is retiring at the end of this month after a 40 year career in the san francisco eight maritime industry. gold fleet is the largest passenger belt vessel operator in california caring pre-point 7 million passengers this year with 97% on-time arrival. i wonder if there's any other

public transportation facility that could mark those kinds of on-time percentages. carolyn was raised in new york but then she settled in the bay area. she is someone who worked her way through the ranks. she began with crowley maritime initially answering phones and she was soon loaded to a dispatcher. she correlated vessel movements organizing crews supervised maintenance and ensured all the boats ran on time. she joined blue and gold in 1997 when they acquired much of crowley ferri and tour boat fleet as well as key staff. in 2012 as she became president of blue and gold fleet after working her way through the ranks under her leadership blue and gold operates ferry services for cities such as opened out of meeting and a ladle as was the water emergency transportation

authority. carolyn is an absolute pleasure to work with you she loves the industry. she is a fierce woman in the maritime industry which is always great to see and she is a true friend of the port we will miss her terribly and i would like to please congratulate her and we have this okay with blue and gold ribbon. >>[applause] >> carolyn, i let a couple talk and i'm going to save the best for last. that will be held in good then veronica than anybody else that was to speak to i think that is monique moyer back there? x executive. hello, bonnie. she's the one i raised her hand. welcome, monique. ellen? >> good afternoon on ellen

johnck cochair of the maritime commerce committee and am pleased to bring some words of tribute from the maritime commerce advisory committee as was my own personal thoughts about carolyn. this is a great day for maritime with the recognition of kimberly. i think that is wonderful and now carolyn. you know, when carolyn i think of you and we think so many people maybe have a stereotype of the maritime industry get a lot of hard scape infrastructure metal con concrete, wood, hard lines but there's a big heart on the waterfront. and a lot of charm and you are the embodiment of that. that is my first thought. of course, my second, you mentioned in your remarks, the superior performance of the company. the customer service

and your dedication to the public and say, we are going to run these votes on time and we are going to deliver a great product which only the port is basking in. the port can only reflect the glory and the shine of that operation. then i want to thank you for your dedication and constant attendance at the and cac. your such keen insight and intelligence and she was there ever sale and when we had to the board of supervisors are couple years ago and you have just been there all the time giving the strength and vigor to our whole maritime industry. so i want to thank you. i'm going to miss you so i hope we see you up and down the embarcadero. thanks so much. thank you. >> thank you, alan. veronica? >> mr. pres. members of the

commission veronica sanchez offering words of appreciation and thanks on behalf of of the master mates and pilots and i think i can speak on this one for my sister marina on behalf of the ibu was having their holiday party today. they can't be here to join you. you have heard about these statistics on legal and gold standing in terms of number of passengers and it carries and its on-time rates, but i would like to add another important statistic in that under carolyn's tenure at blue and gold, it is now one of the largest union operators at the port of san francisco. the mmp alone has 175 employees right now at blue and gold and in addition-that ranges from captains to the customer service reps to the people that

work in the box office and of course our sister union the ibu has the deck hands. as a speak with our members they unanimously say new and gold is a union company today because of carolyn oregon because of her persistence commitment to providing employees the best station and wages and they 08 lot of gratitude to her. additionally, the crews will say that there are a lot of guys and women who owe their jobs to carolyn because she stands for giving people a second chance which i call that the spirit the embodiment of which-was always about. giving people a second chance at a motion, she is always setting her own example of moving up the ranks of the company from dispatcher to president, she is set that example and so now we have deck hands, people started

as the cancer no captains that has promoted the most diverse workforces of people of color that i've seen on this waterfront. so carolyn has been there as a problem solver for our cruise, as a compassionate person. they respect her and if you know something about maritime, the crews they don't respect a lot of people. >>[laughing] especially the captains once they're in our wheelhouse. they are in charge with a respect carolyn and are very very grateful. finally, i want to add add my personal thank you and appreciation to her because i had the privilege of working with her for many of those years and when i was at the port i would remember the cup that phone and saying we need up over a public tour to

promote the waterfront and she was always there without boat or just to listen and to be there when we needed to advocate or we need a letter of support. so thank you very much. >> thank you. i think i see our former port director, monique moyer could welcome. >>good afternoon pres. adams vp renne commissioner, welcomed the things my first commission meeting with you and is honored to be on this side of the dais. thank you for having me. dir. forbes it's great to be back. first of all congratulations commissioner brandon. outstanding really well deserved. i to come today to honor and say thank you to my friend carolyn from blue and gold you for some great things about her purse from a vein than from veronica and of course from our always president

: and we are wearing red for good luck for you but always but good luck for you in your next event. the waterfront as we all know is full of big personalities. it's also full of quite confident small personalities. i would pick carolyn in the latter. she is someone who has quietly gone about her business and gone about it extraordinarily well for four decades. are we announcing a quick okay, good for many decades. and has been a great honor to everyone. really glad veronica mentions her partnership with her employees and her colleagues but she has really moved the needle forward. she has been there for the port over and over again to every situation that has been called upon whether it is been for fun on fleet week or for fun on the america's cup or whether it has been for tragedy which i won't go into or whether it just in response to a strike at bart or

impact on the bay bridge. those are really long gruesome hours but i have to say always found comfort when i would see carolyn go marching by my office day after day very quiet pursuit of good health and exercise and probably the key to keeping her good cool calm. so i echo the sentiments of the speakers went before me in all that she is contributed and carolyn it's been such an honor and privilege to work with you. i think you for all you did for me personally. all that you did for port tenants and all that you did for the port sap but also that you did for the bay maritime community. so i wish you happy sales, strong winds behind you and blue sky in front. good luck. >> is there anymore public comment? please, dana come up. >> i just want to take the opportunity to salute these two women of the waterfront. the mission or brandon and carolyn.

commissioner brandon, you been the beacon that is really guided the port for all the improvements and transformation of the southern waterfront the open spaces and the jobs. just the way the community and the port commission of and able to work together over the years having been there to watch you and to be guided by you just want to express my appreciation for all that you put into your job here over the years and carolyn, i don't think i can exceed anything that's been described for all your contributions. all i can say is that in her retirement really glad you're staying on the waterfront plan working group. and you will keep teaching us. so thank you very much. >> commissioners, and port sap, i hope you will indulge me. i've written a little ode to carolyn. cheers to carolyn as she gets ready to retire.

it's been 43 years and maritime industry since he was first hired. who would've known that boats in the water would capture her heart. was a job of secretary and dispatcher where she got her start. from red and white fleet to blue and gold, carolyn continued to learn and thrive working in a man's world made her, alive. she's a feisty determined and strong little gal. i'm so very proud to call her my pal. i laugh and sunny disposition can light up a room could however don't cross her that she does not forgive and forget soon. with great respect i will bid her ado. she always brought to light a new perspective a new point of view. carolyn loved the boats, the water and her hard-working crew. yes, she also loved the glass of chardonnay or two. it's a testament to carolyn towns and her dedication i do tell. we will miss her great sense of humor and sharing

speeches under her watch new and gold is performed extremely well. it's a testament to carolyn or talents and her dedication i do tell. we will all miss her great sense of humor and sharing it laugh or two. traveling walking and enjoying her grandkids is now what she's destined to do. so glad we had the opportunity to work together over the years. i offer my heartfelt congratulations in front of your peers. in joint of this new exciting chapter of your life it may be good filled with good health, happiness and not an ounce of strike. congratulations. >>good afternoon commissioners to j edward senior property management carolyn, have the real estate division i can't tell you how many times we've had to give you a call with not

always the best news and sometimes that's part of her job and you take it so graceful. you've always understood is that there listens . you offer good counsel view helped us to solve problems. way to partner in every way for the port, for the community could you serve on the sustainability community which i chaired for the fisherman's wharf community benefit district you should've the countless events. social events. you have such a great team with you. every time we interact with your organization, we really positive experiences and we are going to miss that. there's no replacing that no matter what you do and thank you so much for everything you brought to the port to the city of san francisco and to our organization. >> is there any more public comment read i'm kind of looking straight ahead but am wondering if the new president of blue and gold is he going to say anything? i'm calling him out. >>[laughing]

>> thanks, commission. so we had quite a few events for carolyn over the last few weeks. wishing her fun farewells and i think said this last week when we were having a little get together for her. from my standpoint, i hope people that only a that a similar upbringing through the company starting and working my way up and so carolyn and her boss made the decision to put me in charge and i think her so much for that and the trust she put in my-the faith in the two leading organization going forward. big shoes to fill. carolyn, you have been a mentor, a friend, an educator for every day that i've known you. i told you last week i only had two bosses at blue and go. first one is my father. the second one is obviously mice

appeared thank you so much. it's been a wonderful ride and blue and gold suite is really on the correct course because of you and i can only just hope i can steer the course correctly going forward. >> thank you. any more public comment? if not public comment is closed. the woman of the hour, carolyn. >> so i will a commissioner danaj don't really like public speaking. i just want to-i just over 10 say thank you so much to the ports. this denigrates career. i love the waterfront. i work with wonderful people. that is can do his next optional job i've no doubt. i think that working with the port i think we've always thought of us working together to an end and i think that's why we've worked really well together. i feel like i've been so lucky. i've worked with such wonderful people in such a wonderfully industry. thank you very much. >> commissioners, any comments?

>>[applause] >> so i am the newest member as you know but it sounds like you're going to be staying involved in the waterfront group so that's great news and i will be looking forward to seeing you around in your retirement. thank you for your service. >> i just want to say congratulations and you will definitely be missed. good luck on your retirement. >> clearly, carolyn you're retiring in a blaze of glory and clearly we all oh you a debt of gratitude 43 years is a long time. i do know if we can ever say thank you but i'm glad were all alive today to be able to say that to you. thank you so much for all you have done and the true test of a leader they leave other behind it will to carry on and pat will carry that torch. he has it and i know you'll always be around if we need you for advice and stuff like that. you may retire

but you will never retire from being involved in this port and the waterfront. this is your life and a lot of wisdom and we will always call upon you for your wisdom and your insight and please enjoy your family. just once again, thank you so much for everything that you have done. we appreciate it. thank you. >> okay. the last item is the schedule of the port commission meetings for 2017. i want to call out that it's attached to the agenda and list all of our 2017 meetings. please take a look and plan accordingly. that concludes my report. thank you. >> thanks. any public comment on the executive directors report? seeing none, public comment is closed. mdm. clerk next item >> item 9b port commissioners report >> i would like to start off. either heavy heart today. it's a tragedy [inaudible] the ghost

ship warehouse in oakland with 36 young people lost their lives. there were staff members and part of the staff family that had friends that died in the fire. i think about myself that i've lived a lot of my life but a lot of those young people were just beginning to live their lives. last week sen. feinstein presented a resolution 637 about the loss of those 36 lives and our prayers and hearts go out to the family. mayor libby spencer avenue in the city of oakland said there is no time to blame which is sad to know it's more than them grades than people. so as we reflect when we adjourned we will adjourn in

the memories unless my colleagues have something to say like of a moment of silence for the 36 victims perished in the fire on december 2. >> >>[moment of silence] >> may they rest in peace. i will finish my report and i make it brief. then i'll yield to my fellow commissioners if they have something to say. november 21 we had congressman jared huffman. the port. we were glad to have him. we had bread listen, steve and director forbes and daily and congressman hoffman wanted to

know what we were doing with sea level rise and port sapping presentation and he was really interested, have a lot of input to say about that good you made it clear that the port is under reader poses jurors that he will work with leader allows eight and congressman-having to do what we can do. i think brad and steve did a great job of explaining and showing him what can happen with sea level rise if we don't get out front. then we had an opportunity to take them out on a tug we showed him the waterfront and he gave his input. he also talked about is getting going after more grants that he wants to support the port of sport san francisco pier 80 and congressman hoffman is an environmentalist. so we really cares about the environment and things like that. it was just really good to have him here. so i'm hoping in the spring when director

forums since adulteration with the chamber back to washington dc that we will lobby on our issues and he understood that. i think we have to continue to invite our congressional delegation i know director forbes has an invite out to incoming us sen. kamala harris and others to come down to our port so they can understand the importance of of the port of san francisco in this region and how we need this money. we don't know when this new government takes place what is going to happen. but one thing that has been said is they may cut back on grants for sanctuary cities. we are century city and we make no apologies about that. so is la and a lot of place. we are hoping there's a lot of rhetoric being said but we need the funding for our port for sea level rise and even though it might be 2 billion if it was a disaster and we do nothing about it may be looking at

seven or $8 billion. we need 3-4 things on that list and we need to go after it. i just want to update you on what we are doing as a commission. we are time to be proactive when not sitting around to install lori for cells could the port of stephen has to keep moving forward. recently met with the port of oakland. we had lunch. director forbes chris light of the port director from there the president of the port commissioner and the vice president and myself and leslie katz. leslie started that and we even talked about looking at san francisco in oakland as a region because were not in straight competition will get they are a container port were more of a boutique report that has all type of things but we have to look at our interest in northern california. so as i said i don't know what the dynamics of the politics are going to play out in washington but i know that for this region we have to go out and take care of the things that are vital to the port of san francisco and we need to infrastructure with the sea level rise, tiger

grandson whatever we need to do to help our piers that a phone in and look after this review we even talked about maybe at some point to in a joint port commission meeting with the port of oakland and the port of san francisco and not looking at each other as competitors but looking at each other as trying to be on the same page to move forward to a friend and maybe director forbes and director-out of open baby they can sit down with the new secretary of treasury determinant, alain troutt and talk about our issues that are important to northern california. we've got to be very song about that eight no apologies. we have to keep the look after our port. colleagues, commissioner danaj or commissioner kounalakis? >> in the essence of time i will leave my raise my >> okay. mdm. clerk next item

>> items on the consent calendar 10 a request approval three amendment the 2016 port building code resolution number 16-45. 10 b request authorization for the port executive director to enter into a memorandum of understanding with the san francisco they water emergency transit authority for the planning and particularly of the missionaries very limited resolution number 16-46. item 10 c request authorization to advertise for competitive bids for construction contract number 2784 b. 23 roof repair project, resolution number 16-47. >> moved and seconded. >> >> second. >> any people look on 1645, 1646, six and 47 seeing none,

public comment is closed. colleagues, the favor all those in favor say, aye. >>[chorus of ayes] opposed? speak speak mdm. clerk that passive. next item >> >> item 11 a information presentation proposed 2017 state and federal legislative priorities. >> good afternoon commissioners. port special projects manager. i am here today in follow-up to our presentation of september 27 two layout the port propose legislative priorities for the coming of both federal and state. as an update as i mentioned we were here in september and ran through some

more recent questions as well as what we are looking for prospectively. in the interim also we had the port federal lobbyists--and lori-come out and spend a day with staff going over there is things at the federal level and how we can move forward and help us craft our propose legislative agenda. pres. adams as he mentioned congressman jared huffman was out in november and [inaudible] minority leader congresswoman nancy pelosi. lord edmondson out for meeting with the port to review our activities we are looking forward for at the federal level. starting with our state primaries, proposed a priorities, our focus is really on the seawall and sea level rise. there is for some history in california california has shown itself to be a leader in recognizing climate change three piece of legislation.

recently fitting greenhouse gas emissions targets new transportation policies and cap and trade. also greenhouse gases and setting additional targets out for 2030. the port has an existing ifp powers going back to 25 ip meeting infrastructure financing this. in 25 we sought successfully to set up these districts to allow us to capture tax increment [inaudible] like property tax in order to support his work preservation and infrastructure development for the port's assets. in 2010 we successfully sought extended powers for the pure pier 70 took associate at the moment capturing the state state increment to the pedestrian [inaudible] works out to be a quarter on the dollar. the project we are looking at for

the seawall two-$5 billion for to adapt to sea level rise. should such a big number. i think everyone eight knowledges 20 efforts at the federal level, state-level and local level. so in pursuing the state share of tax increment california really has a chance here to become a leader in climate adaptation not just in recognizing sea level rise as we go out this would be the first urban area that has current flood risk that we would asking the state to step in and have an infrastructure financing district that is the seawall itself is an eligible use. so this is really our targeted its new legislation going to the to sacramento and going this year. the idea would be that was piers 70 legislation to capture the states increment on--and

recognizing that this is such a big investment by the state to show local commitment we would be reporting to the california natural resources agency for oversight. really what we are looking at here to generate the tax and commenced be port the moment project we have several but really mission rockets went to the primary generator and nominal dollars, the contribution is estimated to be $213 million. potentially very big contribution it however it is based on the growth of tax increments we need to do it quickly otherwise be ace year where we start from will lose ground if the development proceeds to far before we are able to get started on this process. so to get their these are the steps were looking at.

when he to find an author someone who's willing to carry a bill for us. we do expect that the state lands commission and bcdc are going to want to be actively engaged with us. we are expecting to conduct a robust fiscal analysis to demonstrate the cost of doing nothing is higher than the cost of the state weighing in and contributing the state share of--. coming in generate a set of briefings of those agencies the governor's office and then key legislative staff. committee staff in sacramento, legislative staff and give them a full tour of the seawall and let them know what were up to. give them the full breath of our efforts over the level rising sea level adaptation. so that's the seeing none, that's most of our push we do other things going on. earthquakes are not just for san francisco. we are hoping there will be a seismic safety bond that could be applicable to our sea level

seawall which is really a piece of resiliency infrastructure not just sea level rise but seismic resilience as well. mission bay ferry landing ivory of the mayor's office. we have two sources of funds we are chasing after there. the first in partnership with the water emergency transit agency could three funds that are funds designed to believe really pressure from the bay area's bridge systems. so the exam we can divert passengers to fairies that is lessening that pressure and we think we ever could project there a good argument there. decapitate funds are designed to reduce greenhouse gas emissions. we are looking to do the same, take cars off the road get people on fairies. lastly, we have a housekeeping bill for the housing some technical amendment would like to take to sacramento in this next cycle.

moving on to the proposed federal agenda, the united states army corps of engineers is really we are looking to for the big pot of money. they've got a lot good it is a lengthy process, though, to get general investigation funding. there are four steps. you have to get authorization to study the problem. then you have to go ask for money to store the problem. then you have to get authorization to construct a fix and then you have to go ask for money to construct a fix in these legislation the authorizing these allegedly used to roll out every seven years. as you can imagine to get anything done your talk about a two decade, timeframe. congress has start to speed this up more hopeful we are hopeful were back on track for every two years. that sort of the pace of things. there is also smaller part of funds that dealt its discretion to the local army corps of engineers

commander the continuing authority programs are we on one underweight of those as well get one with a local district for the seawall. so that is the process we are engaged in exactly the prospect where we are with our continued authorities. we are one of three projects that the army corp. of engineers just cannot in november with a report saying, yes, they agree there's a federal [inaudible] it's where to save the federal government more money than it will cost them if they execute this project on our behalf. so we are moving forward with them to conduct a formal study and figure out what the project will look like. in terms of the big big pot of funds, the seawall general investigation, that force the process i talked about them a the first of getting authority to study it for so we have windows already. was a broader army corps study from sometime back that satisfies that requirement. next up would be getting funding to study the problem

and those anytime there's new money coming for a new project they call that a new start in the army corps. they're very hard to get. so without any certainty about windows funds might come online in the army course spanning three years to study a problem, though port is looking to sell fund that study move through the process and accelerated rate and it doesn't say this that much money [inaudible] but really to engage with them to make sure their review process that they can take what we can and mighty end of the day and accept it as it is and allowed to move to the next phase which would be to get into that next water bill to authorize the construction does. that is really the plan to be able to be ready for 2018 or 2020. that is the second bullet point. the first expedite review of the feasibility study that's working with a core on these other agreement that the state

facilitate their being able to accept what we hand in. other source of federal funds to help contribute to the seawall issue. national park service and the internal revenue service. this has to do with historic tax credits intelligibly to build the seawall. fema has a couple different sources of funding that allow for work on seismic hazards and reducing the amount of risk in seismic infrastructure. department of homeland security office of infrastructure and that's new to us. we are looking into. the name sounds promising and a department of chance rotation has the ability to low interest loans should we need those to lastly don't port of the federal agenda agenda were proposing date this have to do with a superior central basin oscar batson so present on that in a minute. we have another pier removal project that if you recall there moving pier 36

to facilitate a larger development project could give another one in the hopper with the court but $27 million is what we are asking for and we can advance that as far as we can. we are hopeful we can get funding for the project. your client for tiger funds for the mission bay ferry landing and federal source and another grant source. the fast lane program which beach about the southern waterfront eco-industrial park cargo weight is what were targeting there to help facilitate moving a freight goods in the southern waterfront. then the port security grants which we have made our preference known that those state port only grants and they don't get diluted by being folded into a larger pot of funds. that's the proposed agenda as we put together. since the last meeting here. the next step would be to get your input make any adjustments. then take the product of that to the mayors state and federal

legislation committee which meets tomorrow. so we are hoping-happy with what we presented and we can integrate your feedback quickly. thank you very much. >> thank you, brad. any public comment on 11 a? any public comment seeing none, public comment is closed. colleagues? >> this is really-sorry about that. i'm going to try not to touch that. this is really helpful to have this kind of an overview and understanding what the priorities are what we are working on in terms of our activity and advocating for issues with state and federal government. so thank you for preparing it and i think would be great if we had some kind of-

if not even quarterly update to all these things. doesn't have to take a long time but i think it's incredibly important and very helpful critically for the seawall project could my one kind of question just my own understanding is how exactly does our teamwork with the city team on advocacy? are you meeting with him regularly? is it more of an informal conversation? when there are questions like figuring out who offers legislation at the state level? ifd, is that our responsibility? do they do it quick to the lobbyists? how do sort of work together? >> will we stay in close committee sure the mayors office. they have a staff specifically for state and federal issues and they are the owners of the cities loving

contractor state lobbying. generally for something like working looking for an author we would work through the mayors office consult with cpap ideas run it, consult with their lobbies generally to the mayors of the we do talk to them directed from time to time. usually, it's connected with the mayors office. >> okay. >> does that- >> it does. i will make sure were firing on also there's an maximizing the expertise here but also the members of the commission to get out and about in the community and i certainly know that as a commissioner and as a citizen of the friend, these things are so incredibly important that if i've have the opportunity to engage and to add my support

for the things that the city is doing i certainly would be more than willing to do that so again it starts with being informed but i also just want to make sure particularly with the seawall that we are in particularly in light of the current political environment that is so uncertain that we are using all of our capabilities that we have our disposal to work on what's going to be very challenging but critical piece of infrastructure for san francisco. >> commissioner brandon >> brad benson peschel project we would like to take you up on that offer. the ask

particularly at the state level for the state chair of tax increment the seawall is a big ask and california can be a leader in this but we are getting need your help in communicating that message on a. so thank you for the offer. >> i think we will all agree to help you in whatever we can because it's so important. thank you so much for this briefing. i agree with everything commissioner kounalakis said that this such valuable information not only us but the public knows what it is were looking for and what we need and can help us. i think the priorities laid out here are really good ones and now that we are all aware of them i think we can all work together to also make sure we can get funding for these projects. so thank you. >> thank you. >> commissioner katz >> want to thank you both. issues near and dear to my heart and i agree with my colleagues. we certainly want to do whatever we can to be of assistance and help us as were out and about. i also think is

really helpful having this report and perhaps i know not to put more on your plates but perhaps you could get an update x quarter on sort of where things stand, where we are with these various matters and then lastly as i look at the heavy lifting that's going to be needed with the seawall and given that it has such a significant impact positive if we do it right, negative if it is not, on a lot of the companies that have now located in the south of market area but wonder if there's some opportunities to also i know this not part of the legislative agenda but it does bring up the need to look at various funding sources and i wonder if there are some others that we might joke to public by

the partnership kind of concept to get some more support from some of the headquarters that will be based there they'll be benefiting from our efforts to shore up the seawall there will have such a significant impact for them. you might want to get them in roles in both our legislative advocacy efforts and see if there may be some ways it might help with additional money. >> i know you guys been coming quarterly and thank you very much. clearly we know you guys didn't dig down into the corps of engineers for some money because they're going to have to hope us that this is some health code heavy lifting we also may need upon done alone but also the public that's your guy that's always been a certainly very helpful being advocates for talking to everybody and towing them in ringing the drum we need to be like paul revere, ringing that bell that says it's coming to live get ready i just want to say thank you i look forward like three months like scott about this helps us, too. i appreciate. very well done.

mdm. clerk next item >> >> item 12 a request authorizing the executive director to enter into a project partnership agreement with the united states army corps of engineers for dredging of the central basin providing access to united states army corps of engineers for that purpose and waiting applicable competitive bidding and contract requirements subject to approval of the board of supervisors. resolution number 16-48 >> good afternoon again commissioned special projects manager. i am here to discuss the agreement with army corps of engineers which will allow us to at long last move the central basin project forward. just for the broader audience

really quickly the pier 70 shipyard is the longest continuous operating shipyard on the west coast. it employs 250 skilled jobs, 10 maritime labor unions. it's a great picture the very ship turned out 1885 there was just 20 years after the assassination of abraham lincoln. the central basin itself, it is the driveway to the dry dock and navigational point of entry. 32 feet is the depth is been dredged a couple times but not very top difficult memory often because it difficult to dredge. currently has 26 feet and some spots more shallow than that. it does limit the size and type of vessel that can be accepted at the shipyard. it is a detriment to business. dredging

in overtime not economical. it's just not something that the shipyard tenant has been able to take onto their books. neither has the port really. it is not itself part of a channel but it's adjacent to a federal channel. so how we get started with this. the conjoint authorities program which i mentioned on the legislative agenda. that is a couple of different small programs that miguel is delegated to the district get the 107 program has you with navigation. and 2009 i wrote for then a second director on the boy at the first letter of request for assistance to the army corps of engineers under this program and soap we are pretty far into it. it started just under the first years of the obama administration. talk about two years about the initial federal interest determination where they decided that it really is worth more to the federal government to undertake this project and it is to not do so. in 2011 we exceeded the

cautionary agreement and those two years were promised not appropriate any money to get to give united with the funding comes from every year there are 7-8 of these cap programs funded at the national level and then we just queue up with other projects a competitive process is taken that long for us to get to the top of the cube get ready to get fun. there's a couple years where they just did not fund it at all. to get some idea of that last year congress appropriated $4.5 million for the whole country for everyone of these in the country and ours alone is over 6 million. the digital project which the army corps produces where 50 different alternatives where they could read this, what death they could judge it whether the misposted savanna robust process. the upside of it taken so long they're very thorough during that time. what they

selected was about a $9 million dredge it down to 32 feet and at the end of the day they determined that every dollar they spend it's worth $2.87 back to the federal government. that's the dredge footprint that's what we are looking at. you can see some of the high spots. you mentioned that ship moved all the way up to the north there so that it could come straight into the dry dock it runs out of room. we are here today because to make this happen we are down to the very last agreement that we need to execute. it's called project partnership agreement and we have been accelerating the authorize agent profit process with the board of supervisor so that we can properly book and despite it started under the obama administration we have

the authority to execute it before the obama administration is officially over. what we are required to do is give a 25% match for the initial deepening dredged to get it down to 32 feet. after that we make another small contribution for 10% of the initial dredge, and with that the federal government takes over the channel. essentially federalize as it gets rolled into their standard >> no. spiel and him and upper books forever market there's few things that to commit to that are pretty standard they want to make sure the shipyard is so going to be there. they can be judging the channel. easy for us to say yes to. there's any asthma is there that are discovered along the way we need to take care of those and again not a problem. the dredging has gone to all the same processes that all the rest of our drudging does. the sediment is thoroughly sampled. we know it's there. it's been dredged before. we don't expect anything unusual. what we get out of it. drudges 232 feet are

optimal to the show but they take the dredging off our books. and that 30 year value of this it's about $20 million. the initial dredge is not million but essentially the annualized cost of maintaining at that depth is about $400,000 trip so that's not ours anymore. indefinitely. if the value of this project that's taken a long time to get here and while we are trying to accelerate it to make sure it gets there. speaking of acceleration we introduced that the board. it was has got no no vote. you can to the board of supervisors earlier unanimously approved were waking waiting for the signature pending your approval your willful authority to issue and from there we headed back to the army come corps of engineers and help them to accelerate so that the it gets

executed by the top officer of the army corps prior to january 20. lastly, we are pretty familiar with stretching here at the port this is leftover from the board slide when it says we are waiving the environmental code by ordinance causes him concern but really is to reiterate all the permitting all the rage. regulation consumes a lot. so i thought the standard processes that we go through when we dredge. it's been thoroughly tested. the army corps is taken on-added the ceqa issues who we are ready to go. been working on this for a long bit of a delighted to answer the questions we have. i also understand if you don't have any also. thanks. >> so moved >> second. >> is there any public comment on resolution 1648? >>[laughing] >>[inaudible]

[off mic] >> i want the public record to reflect that this is a once a congratulations to the staff are working on this. not just since 2009. ellen johnck cochair of the maritime committee but before you came we can't start: the army corps of engineers attention to the dredging needs in the central basin. so i am just absolutely thrilled that this is reached the pinnacle of where it is today. does it so tough as you said, so talk to get this money for this kind of project. so congratulations. thank you and i heartily endorse this agreement >> thank you is there any more public comment on 1648? seeing none, public comment is closed. commissioner katz >> great presentation. thank

you. i've a lot of hard work went into it. look for to seeing the results. >> commissioner duran >> congratulations to everyone involved in this but this is absolutely wonderful and hopefully we can find more funding like this. >> commissioner kounalakis >> i agree. it's tremendous. ellen you said is a great day for maritime syndicate this is terrific news so thank you for all your hard work and what a great boon for the port and the city. >> only thing i can say, great work, guys. thank you. colleagues, all those in favor say, aye. >>[chorus of ayes] opposed? resolution passed six and 48 has enormously bedeviled mdm. clerk next item >> >> item 13 a informational

presentation on contact to suck 27 six with conceptual repair project at pier 31 >> good afternoon pres. adams and fellow commissioners. my name is wendy proctor senior architect of the port of san francisco budget management at pier 31 within structural repair project. i'm here today to provide an update on the project and to advise you on a budget and time index due to additional anticipated critical repairs. this project we bill gates 898-year-old asset important resource to the embarcadero distort district. the project supports us to do clinical renewal. the notice to proceed i'm sorry this underutilized site will soon house the department of elections national park service and continue to have public

parking. the notice proceeds the project was part seven of 2016 substantial completion is planned to be october 2 with final completion on december 1. we are anticipating that substantial completion be closer to december 23. during construction the number of anticipated critical repairs were found which is impacting the budget in the schedule and at this time the project is 95% complete get the current anticipated substantial completion will be december 23 weather permitting. we are expending a lot of rain at this time. these are the existing conditions. the facility of status moved 70 years ago in 1946. the shed superstructure has suffered significant deterioration from extended water intrusion and was-in early 2009. port maintenance installed at that time port engineered shoring which held

the building in place until the repair project was able to commence the project is providing living wage jobs for san francisco local business enterprise did the project supports our strategic plan goal livability. the general contractor robot construction from entry of the project subcontractors performing roofing, window and structural repair work or certified lb contractors located in the ninth ward 924 zip code area providing 87% local participation of the contract amount. the percentage amount will increase once a project is complete. it's worth noting prior to this project well but contractors for this project successfully treated three other port projects on-time and on budget. some examples of the

additional undersea and dry rot. we had a number of additional beings ledgers pose the required of repair and replacement. once the deck was uncovered a number of these were additional to what was observed during this site investigation was found. special ordering of materials impact the schedule additional materials and associated eber also impact the cost. in this photo you can see this project is using best practices for construction which the port goal is sustainability the contractor is reusing wood that are still in good condition on the roof deck. and also that reduces construction waste and then with members in good condition but cannot be reused are being made available to lumbar recyclers. some of the work that is causing that was found was trust repairs and this is one of the subcontractors that the local lb doing that trust repair work

on site. so we have one major trusts repair design and we had three additional trust repairs. this drawing is the document that's been used by our construction management team is doing a fantastic job tracking very diligently each member that was part of the contract and what was additional to the contract so that we are working very collaboratively with the contractor to track what is additional words per contract giving credit where due so that were really minimizing the additional cost and time. in short we have about 43 additional beings, 12 additional columns, and 10 additional diagonal braces that were found the unanticipated design. also once the roofing was material was removed we

found that the deck surface was much more uneven than we had ever seen on any other project that we had done before. with the port due to the extended time between the last roofing and this roofing. so that required we put in sparrow which is the photo in the upper left-hand corner. not deck, retrofit board which provides a leveling service to put a new roof on. so that was an additional cost material. once the roofing material was removed we found some various concrete had stalled and that picture inverted corner where it had to be repaired and then in the lower left-hand corner there was some signs that were hung off the back of the building that had sort of split the concrete little bit. i required repair. then once the

roofing material was removed we found an expansion joint that wasn't readily observable and that required a special detail which will be custom-made. it was also not on the original drawing. once the roofing material was removed we also found that the was dry rot on the two towers that flank each side of the arch on the roof side of those towers. so we had to rebuild the backs of those repair the deck underneath it. we also have rerouted the water so it won't settle there anymore. then in pier 29.5 due to some settlement in that area have a gap that was revealed that had to be filled in with a custom cut boards then inside pier 29 underneath that we

found more columns to be out of plumb than we had originally anticipated. so a detailed to stabilize those in place we can continue to use that facility for public parking. is going in.. then, last week when we removed the roofing material hopefully that picture in the upper right-hand corners of large enough size that you can see that once there was taken off it reveals there's a large exciting area. when we investigated was underneath that we saw that one of the trusses inside pier 29 had been run into a piece of equipment and bent the metal bar and separated it from its trusts. the bre was sagging incident was under the area where we were doing the roofing work because we have to go beyond the expansion joint, that area needs to be repaired. so all this kind of will by little added a little time, as little bit of material, labor special ordering required. so the

project is near completion and the contractor's been very collaborative with us and due to this on for scene work it's anticipated we will be completing the work at the end of december weather permitting. our additional costs are approximately 4.7 over the 10% contingency and then after the final determination of our budget and schedule we will be returning to you with a request for an extension of time, beyond the 10% and an additional increase of contact cost. if there's any questions am happy to answer them. >> thank you is there any public comment on 13 a? any comment on the 13 a? up if not public comment is closed.. commissioner supanich >> thank you for your report

to i know when we first did this week-how close was the next bidder or thethis is between the beds when we received this one? i know we asked if this could come in on time and under budget. so i am just wondering, if we have selected another bidder, if there was some close proximately with this to be an issue? >> yes. absolutely. because the contractors bidding on the contract documents. the contractor will always generally -they won't give their work away for free. these are uncovered conditions that were not in the contract documents. so if there's additional ledger being and so forth that i think you know it's discovered because the deck is being removed, there was no way that

that would be a bidding issue. that would be a contractor side. >> to answer your first question neither wendy or i remember how the bids come in on pier 31 terms of the pricing of the second place bidder but we can provide that information to you. >> so the total change orders are ignorant 6 to 3000? 863,000? >> we have a total change order process to date of 500 city three-yes. we will have an additional 300,000 approximate. >> this is because of what we did not foresee? >> correct. very difficult when we go into the facility 20 is paid every repair because often especially with the roofing when you take the

material off you are seeing-we can take the roof off to do the investigation member doing the design. so the contractor doesn't-there's usually the concrete is following revealed or additional dry rot is a most always revealed. >> thank you >> commissioner kounalakis >> thank you great report. can i ask you something. on your summary of the history of this, the shed was red tagged in 2009. does replacing the roof change the status of the shed been red tagged or is it other things as well? >> often roof is the mind with a structural repair project because the age of our facilities. not all of them. like the one at pier 23 that's on the agenda today also is writing 36 facility and it doesn't have the level of water intrusion because was roofed in 1976 or so. so this one along

with pier 33 we did 10 years ago, those projects have to go hand in hand the structural repairs because they are all wood structures and so they tend to have areas where the said confluence of horizontal over vertical where water will sit and get in there and it will be dry rot >> in answer to question a woman will remove the red tag. >> so this will end up to earn income fairly soon >> yes. there's already a leasing plan could wendy went through some of the future tenants, the department of elections which is a city agency. national park service and there may be other tenants as well. >> the public parking will be back in place imminently. it should be in place by the 19th of this month. >> thank you >> commissioner katz >> thank you it was

disheartening when we see the change orders exceeding what we anticipated but certainly understandable. i have a question you might not be the right person to answer this but perhaps for future it just occurred to me when we select a bidder on these projects do we have a way of determining how they charge us on the change orders? in other words often are projects do see increased trust because these are such old buildings and is only hidden surprises. i know we were often selected a lower bidder but do we have any way of corralling him how much we get charged when unforeseen circumstances increase the cost? >> what we do do is we have a way of getting the contract which we did on this project. we provided a allowance amount for unforeseen-specific for on

pursing dry rot and we try to it is paid reasonable amount for that. that is-when we negotiated the additional amounts of dry rot beyond when we exceeded that amount exceeded for this project we had an allowance of $150,000 specific to dry rot repair. when we exceeded that amount those continued dry rot repairs were negotiated at that rate which is a better rate than would be it was a straight change order based on the contracting that's used. >> that answers my question. perfect. thank you. it's exciting we will be having this back online soon. ps >> i just want to say thank you very much. appreciate it. thank you. mdm. clerk next item >> item 14 a informational

presentation on the port 10 year capital plan for fiscal year 2018 through 2027. >> good afternoon commissioners. dir. forbes and i'm amanda hirsch capital manager at the port here to present on the update to the 10 year capital plan. like the rest of the city the port updates the tenure plan every two years. so before you today as an informational item will come back to and seek approval on january 10 with your approval it will be integrated into the citywide plan which ultimately goes to the board of supervisors for approval. before i look ahead to the coming 10 years, take a brief moment to go over some capital cushions from the two years between this and the prior plan. it's excitingly, we've had things with the

commission's approval largest capital budget ever at the depart which is been largely contributed to the port surplus revenue towards capital improvements. we have also have approval on the first ifd for the port which it will help to puzzle facilitate relocation of pier 70 which is historic public image. other, shouldn't include work on the historic pier 35 will cut building and shed including work on two elevators and addressing water intrusion there. as we see a picture here promote the with the opening of the bayview gateway project made possible largely with general obligation bond dollars for the parks improvements. now looking at to

the coming 10 years, the capital plan is divided into two main categories of needed state of good repair and enhancements. on the state of good repair site, there are three main categories get the backlog, which represents deferred window work, the riddles which are the work that ideally would happen over the coming 10 years, and a category for one-time costs will be captured the compliance issues and non-cyclical means. if we look at those combined in the light blue column here we see the tenure state of good repair need for the port is projected about $1.5 billion. that is down from 1.6 billion in the prior plan. changes come from a few different factors. one is work completed by the port import tenants. the other updated cost estimates from her engineering determine which can increase or increase decrease costs for passive in and find the passage of time get the renewal project for injunctive years of those do not happen they move into the backlog and costs are escalated annually that they were as late at 5% each year inconsistent with the city's capital plan. then we look at-turned to the other half of the heat equation we

look at enhancements. the enhancements similarly have broken into three categories here. there's the seawall resiliency project which i'll touch on a bit more in the . broader enhancements to port facilities as well as conditional seismic conditional size that may or may not be required to deny whether a change major rehabilitation which would trigger new building code requirements. if we include that number the total enhancement need is about $1.8 billion. that's a decent change from the prior plan again for three reasons get updated cost estimates reflected here include things like development projects which are now in vision to spend more and make greater enhancements. there's an increase there. also the newly identified needs which i will touch on a bit more in the next life in the passage of time and simply the cost of doing business increasing over time. if we take the enhancement made in state of good repair need together and include that potential conditional seismic need we get to a total grand total of about $3.3 billion need over the next 10 years.

looking weekly a bit more those newly identified needs in the plan. this capital plan first time we've incorporated value associate with the resiliency project. added $500 for the eight-tenure project to significantly improve the way safety and performance of the embarcadero seawall provide your time club protection agreements and plan for long-term zoo in c and annotation of the northern bayfront. in addition we added that she may ferry landing which is captured in the enhancements: and the port staff continue to work to secure full funding for both projects. turning from the need to the devil resources, in this 10 year plan we project $1.3 billion in the funding to be available. that includes about $350 million which if you look at the blue wedges in this chart you'll note our direct --the vast majority towards

repair improvements to the $940 million in extra sources are largely dedicated to enhancements but they also make an important contribution to state of good repair. nearly equaling in dollar value the internal funds directed toward that important work. taking a slightly deeper you dive into what's in those different source categories, we see that the internal sources are primarily port capital project and the port tenant from his business paul was there for port bonds this represents expense your previous issuances in the caterpillar on the external source side, we see the development projects are the primary computer. this category includes developer investment in the public finance associate with the development project. think back to the prior slide about a third of those development dollars are going towards state of good repair work and the rest are enhancements. so if

you can't do math and please gone along there's a significant funding gap is or has been in prior plans. you have about a total revenue of $1.3 billion and combined need of as much as 3.3 billion. we look at this chart we see the yellow are the funded sections. pull out the unfunded conditional, which again may or may or may not be needed. we have project sources for about half the total need about 4% of the state of good repair that we are funding for and that 60% of the hands needed on the enhancements i the capital plan generally in the past is included only in instance for which we've had revenue but in this plan we've added mission bay ferry landing and seawall because they're such important to the port and to the whole city family and so that's what we see some of the gap on the enhancement side. this time and recently port staff has a conversation about what can we do with our limited resources

to deal with the backlog and stretch our dollars as far as possible in terms of state of good repair. so i'm going to just touch on some of the ideas that we generated out of those conversations. these fall into three broad categories. one is to increase funding sources. the others to use existing dollars more efficiently and finally to decrease our responsibilities. in the area because those are rather broad- to give more specifics in the category of increasing funding sources may include work by seeking additional external funding wheel to improve our capacity to do this by starting to plan out our priorities for which we will seek external funding sources. something we hope to do through a new five-year capital improvement program must cip, which megan when she comes up and talk about the five-year financial plan could also get to increase funding sources. we talked about pursuing more prepaid leases that money now to spend on these important renewals. in the area of using existing

doors dollars for officially this could include things like trying to get things like the roof on pier one 3170 because we see if you wait to get more expensive and so adding that including a lens we think about what posix to fund when the light will cost us more. in the area decreasing a responsibility we have talked to explain things like transferring responsibility. something we heard about it more with central basin today. it also we talk about take the form of looking to other city department who might have more expertise in certain kinds of facilities that we have such as parks and senior visible from and long-term maintenance at some of these facilities. here, finally, pursuing additional public private partnerships which of the great ability to both contribute to state of good repair work happening and also in some cases developers take a longer-term maintenance sponsor those good is moving a seminar responsible the office port. that wraps up my presentation. be happy to answer questions. >

>> thank >> thank you is there any public comment on 14 a? any people that on 14 a seeing none, public comment is closed. commissioner kounalakis >> that was very compressive and very useful. also really very well laid out. so i may think of something to ask after hearing my fellow commissioners but this really is very good so thank you. >> it really was very clear and very well laid out. i really appreciate this and the good news is that we have 1.3 billion and we only need 2 >>[laughing] >> sounds better doesn't create >> >> yes. sounds better >> commissioner katz >> >> thank you it was very clear. appreciate all the work that obviously went into

making. it's not easy to make it as clear as you did so thank you. it's much appreciated. i agree. the numbers are a little west daunting than they have been in the past good so the glass is half-full. i also appreciate the efforts to look at the alternative sources and figuring out ways and i know that's been something that the staff across the board have been really focused on and it obviously shows. i think there's a number of opportunities look forward to thinking of other ways we can try to put a further dent in these numbers by looking at other partners an option. but thank you very much. >> first of all i like to apologize about my phone going off. i'm sorry about that but when i was looking at you in the audience i thought you were someone's daughter. you look so young. really, you just look so huge i could not believe it. i was like what is she going doing going up there. i thought you are megan's daughter or something. you look so young.