retirement, renee dunn martin communications director port of san francisco september 1997-january 2019. with a gratitude for your outstanding service, loyalty and dedication. congratulations and best wishes. [applause]

>> thank you. [applause] >> oh my gosh. what can i say? first of all, president brandon, vice president adams, congratulations on being re-elected again and

commissioners, director forbes, all the port staff, our tenants, our consultants, our community, and all my friends, thank you so much. from the bottom of my heart i want to thank all of you for this wonderful honor. it's been my honor to work all of you and for all of you for the past 21 years. they say that time flies when you are having fun. it's been a great ride and i've enjoyed every minute of the journey i'm taking with me so many good memories, accomplishments to be proud of and friendships that i'll cherish for a lifetime. i'm so grateful to have played a very small part in the transformation of this beautiful waterfront here in san francisco over the past 20 years. working with all of you has been the most rewarding experience

for me. thank you, commissioners, for your outstanding leadership, your wisdom, and your vision for the port. it's been a pleasure to work under your stewardship. i'm so grateful to know each and everyone of you. director forbes, and my port colleagues, thank you so much for allowing me to be part of your excellent team of hard-working, dedicated, brilliant, team members and public servants here at the port. collectively, you've all made this waterfront an international destination, a great place to work, a wonderful place to have fun and just a beautiful place of open space for the public to enjoy. this is all of our great work collectively and i'm so proud to be a part of it. i wish that i could thank each

and everyone of you. time does not permit for that today. i probably would be way too emotional. but i do want to call out just a few people briefly that i worked closely with everyday. first, my communications team, kirsten and kelly. kelly is out sick today but i'm sure she will review this later. thank you for the hard work that you do on the communications team and working with me. i'm sure that the great work will continue after i'm gone. our consultants, civic edge, davis and associates, you heard from darlin', next steps communications and bonner communications, those are all the consultants that communication teams currently works with. so thank you all for the great work in helping me to make the port look good. to our senior staff and the executive team, all of the

project managers and day-to-day folks that i work with at the port everyday, i just want to say thank you, thank you so much. i love each and every one of you. i wanted to call out on the executive staff amy, who spoke earlier. she is my sister and my friend. we've worked side by side with each other from the first day that i arrived at port. i just want to also say to you, amy, i love you and thank you. i will miss you terribly. you've heard people talk about the great events that i'm getting credit for putting on. yes, i might lead the team but there is a team of port staff that volunteers all the time, every time we have an event. they step up to the plate and they're there to help out and i just wanted to call a few of them by name. that would be amy kasada, april

shaw, josephine fung, denise long, manny ma pacheco and our entire port maintenance team. without the maintenance crew coming in, setting up, cleaning areas, stepping up to the plate, we would not all look good. i want to thank you for helping me with my job in making the port look good. in my job, i think i have literally touched every person at the port. i want to thank you all for your professionalism, for your passion in making the port a great place to work and to grow. which i have done. thank you, very much. i'm truly grateful to be part of the city family. to work with my fellow p.i.o.s throughout the city. you've heard from a couple of them today. from m.t.a.

and to be part of the port family. wild horses couldn't keep me away from returning to those port barbecues and fun events that happen along the waterfront. i certainly will be back. i will miss you all for sure. but just know that i'm monitoring your success in the news media. i'll be check he can to see how things are going. i will always, always be a true friend of the port. my very best wishes to all of you. thank you, very much for this os accommodation. [applause] congratulations, renee. the next item is to announce the san francisco giants have reclaimed the green glove award. i'm very pleased to report they won this. it's a major league baseball award for environmental stewardship. they have been -- they were the

recipient from 2008 to 2016 with a one-year hiatus and are back to win it again. that's 11 seasons of receiving this award, which is truly truly remarkable. they set the industry standards for their waste diversity standards year after year. they diverted 93% of their waste from going to landfills. this is a very aggressive program. they've also installed lead lights, and make changes than make the facility truly green. they in fact, in 2018, diverted 19,000 tons of recycled and composted waste. congratulations to the giants for your superior leadership in this arena which supports mayor breed and the port commission vilal policies. on a sad note, i'd like to have

an inmom or yum of mike denman. he passed away last week. he recrated this ramp restaurant. he started the place as a place to really rent sciffs and buy bait for fishing. i understand he then started selling hot dogs and beers out of a cooler and then the restaurant busy merged and grew to what it was today. he started sunday salta which was a really big hit. it's become really a neighborhood jewel and destination. he hired from the community and was respected by his employees and community. he is a true gentleman and a very kind person. he will be deeply missed on the waterfront. port staff request that you close the meeting in mr. denman's honor. floristine johnson has passed away. she was the port's former executive secretary of the planning and development group. we understand she was having a very happy retirement and passed away suddenly. she worked with us for 20 years.

retired in 2010. the year he arrived. i had an opportunity to meet her. she was very dignified and a proud public servant. she was organized and worked for the planning group. she had her hands full. developing a file system and helping them with filing. they still refer to the filing system as the floristine files. we would like to send best wishes to her family and we close the meeting in floristine's honor and that concludes my report. >> thank you, very much. >> i would just like to acknowledge former commissioner brian mack williams here with us today. >> hi, brian. >> commissioner. [applause] >> item 9 proposed changes to

the five-year strategic plan. >> good afternoon, commissioners, i would like to present the update to the port strategic plan. first and foremost i would like to thank dan hodak who helped to produce this report and plan and he is worked tirelessly with the various division leads, the deputy directors and all staff and has been very good at helping this plan come together. so thank you, dan. it's a important set of policies and priorities that helps us guide ourselves in a condition of con trained resources. i was last year in february, of 2018, and at that time i told you we had about a third of the staff we need to do the work at hand. it wasn't exactly a perfectly scientific metric but it's absolutely true that the port staff does not have the resources that it does to have the work to accomplish the work that we have to do.

it's very, very important that we prioritize. and the strategic plan, which first came forward in 2016, has been a very important tool at helping us achieve our objectives and goals. this plan moves the goals and objectives to the current year and five years forward. it also adds some clarification and accountability mess tricks so we can measure our success and strengthen the language. finally, when we were here in february, you all had comments and the public had comments and those are reflected in this plan update. in reflecting on this plan and where we've been since 2016, i would say that we are really starting to turn our financial house around. i think you will see this.

>> to see how we've laid seeds that have come into bloom which are now helping us to be a more solid and secure enterprise agency that can better meet our public trust mission. it's critically important for us and you will see that demonstrated today and i'm very proud of the leadership you have shown to get us to this place. it's not yet an isolated plan. it is impacted by our governing documents, our other plans and policies. of course the burt enact comes into the plan as the city policy and requirements and the waterfront plan we've just finished an update to that plan and we'll be undergoing environmental review this year many of the capitol plan in five year financial forecasts are

also the guiding documents to create what we can achieve and a strange teen i can plan and the implementing pools are the budget and capital implementation program. when i first came to the port in 2010, we were an agency that was i am balanced. our balance sheet was not growing. we were adding to our capital backlog. i remember the first time the port commissioner asked me, when will we resolve our 2 billion-dollar backlog. it might have been you, commissioner. my answer was never in my head. i think i gave a more eloquent answer because at that time, we were generating net revenue of $10 million a year. we had a capital backlog of $2 billion. the most we'd received from this city was a 35 million-dollar general obligation bond for parks. the development partners is an outside sources were the only notable meaningful changes we

were able to accomplish financially. that is just not the case today. you are going to see that for the first time ever, our unmet and funded capital needs are balanced. we have operating surpluses and all of the financial models, low base and high case. i've never seen that. and we are making decisions that are actually allowing us to grow our financial capacity to add staff resources to do more and to achieve more on our public trust objectives. and sometimes people say the port is about making money. the port is not about making money. the port is about having a healthy financial portfolio so we can invest and meet our public trust mission. when we make money, it's park, open space and et cetera, so it's very, very positive what has come through through very concerted efforts. i've said a lot. let me change slides.

so, the plan is organized in a vision and mission. it's the guiding statement that directs the strategic plan. we have seven goals that guide our work to rehabilitate the waterfront. and then we have objectives under those goals to achieve in the five-year period. so let me take you through the goals. evolution, which was formally renewal, is about transforming the waterfront to respond to the changing public import needs. the renewal goal used to have a lot of business development items, objectives, we've moved those to business and this now really focuses on the public benefit pieces of evolving to meet the port's needs whether it's transportation, open space, parks, and developing policies and priorities that help us guide our future.

resilient. this is to prepare the port for natural and human-made risks and hazards. we're in the business of climate change and all future port commissions will be in the business of climate change. so notably, we're working on fortified resiliency for our waterfront of which the seawall earthquake safety program is a piece of that effort. we have a desired a complete the multi hazard risk assessment and select our projects for construction in 2023. the goals and objectives for this program but it's safety project and we know it's urgent. developing that port-wide resiliency framework to address seismic and flood risk port wide. and emergency preparedness to ensure we can work with city departments to prepare when incidents occur. when the city is hit with a major earthquake, the waterfront will be a critical asset and we need to help the city recover.

engagement. increase the public awareness of the purpose and benefit of port functions and activities. this is about our communitien gainment and having events and tours, the digital outreach social media and work with the media. we talked a lot about this arena in recognizing and honoring renee. equity, which was formally live ability. we have clarified that with equity what we're really trying to do is advance equity and public benefits and attract a diversity of people to the waterfront. we have started this conversation in earnest on work contracting and this strategic plan reflects all of the goals that we have created to have more diversity and port contracting and encouraging more local businesses to apply and to win and to do work for the port. we are growing and improving in this arena but we also want to

move into other arena including leasing, parks and open space and other areas where we can attract and retain diverse communities so we truly create a public waterfront for everyone. sustainability, this is of course incredibly important and it's our quiet constituent, the environment and the bay. to practice environmental stewardship and limit climate change and protect the bay. we have the climate action plan that we will be updating. to set transportation energy and business practice goals. they protection related to natural infrastructure biodiversity and move our utilities above deck. one day we won't be able to do so and it will be a problem. clean fuels, vase ability of those fuels and to study more clean fuels to add to the waterfront.

productive. attract and retain tenants that build an economically viable port. looking at the maritime portfolio, we want to do more automobile shipping. it's certainly our competitive advantage and more fargo and increase cruise capacity at pier r pier and last year the shipyard is the project which we had the least success and certainly need to figure out a new future for the shipyard. assist in mission rock and pier 70, 68 new acres of new neighborhoods that are under construction and soon-to-be under construction. to prepare the development and implementation of the 8096 industrial strategy. we are primarily industrial landowner. we have the ability to intensify the uses of our land, which will add values in jobs, in economics

and in opportunities for our communities. we're very anxious to continue to increase the use of those lands. stability is about maintaining the financial strength of the organization by addressing that deferred maintenance issue. maximizing the value of our property and increasing revenues. you will see, in the five-year financial forecast, we will hit that 125 million-dollar goal. we continue to target investments and projects that generate revenue for the organization so we can turn that back into public benefits. for the capitol funding, we're targeting investments and projects that generate revenue and continuing to secure external sources, which are very critical to us. we will be -- it's important that we learn to deliver capital more effectively and we've gone from a 10 million-dollar capital budget to a 30 million-dollar

capital budget in a couple of years and so we need to get our improvements in the ground. we'll be increasing staffing, increasing contracting and establishing a contract management office. so i would like to do a little boosting about what we accomplished last year in 2018. port staff have been working very hard to achieve objectives for the organization following this plan. these accomplishments yield better results down the road for us, as the efforts mature. so, this is a look back at last year. in the arenas, i'm combining evolution and equity, we have entitled mission rock and 1,500 new homes and 40% and six acres of parks. we have 88 broadway approved. 100 affordable housing projects

and 130 low income families and 55 senior homes. we've entitled pier 70 up to 250 homes and 33% of affordable and waterfront park, community retail and space. just an amazing array and looking with our partners they put in improvements to address the safety concerns that you heard loud and clear from the partly cloudbicycle and communi. we coordinated to open great g, the first of ferry land projects is readying for $40 million of construction. it does need to be worked out but that project is on schedule.

for the 20th historic project, the o.d.i. project which there's another item to talk about all six building have been complete or are nearly complete and the financials are stronger than we anticipated. you have approved cane cove park. we'll see those seven acres of park improvements done. but lots of work done on it last year. you have approved the alcatraz project. it's important-long-term lease agreement as a gateway to alcatraz. we have open space installation and pier 27 point of view and the beautiful 30-foot polar bear and the harry bridge plaza to celebrate climate change and we removed 500 piles and replanted the entrance of the park. an area of resilienc rye sil se.

one of only two flood control projects which will offer opportunities of up to $1 billion of improvements to the shoreline. we've done lots of geo tech studies completing 100 to under the seawall program and we've defined a framework to tackle the seven and a half miles of waterfront to strengthen, adapt and envision to guide a resilient port future. engagement was an incredibly banner year. the waterfront land use plan received unanimous support. we had a minority business mixer. 160 attend's and we've had contracting workshops and we've reached 100 attendees. we had a contract opportunity open house with 140 attendees and we've put out embarkadaro and engage 52 respondents.

the outreach is extraordinary and 100 stakeholders and i won't read the statistics but it's remarkable. and many, many members of port staff engaged in those efforts. it's the ability and we've had the beneficial reuse of dredge materials and that's an important improvement for the environment to reuse the materials in the wetlands for habitat benefits. in collaboration with the mayor's office we have cleaner fuels for our ferries exertion providers and they will be all transitioning in 2020 and fisherman's warf, we have waste disposal facilities and renewable diesel for fish we work with our tenants to improve air quality and we work with street tenants on dust patrol for maritime lease and we got

our rail locomotive and quality continuing to reduce truck trips. we have the area of productive which is the business side, we have new crews called portion new calls scheduled for 2020, that's a very traumatic expansion of growth for the port. we continue to grow pier 80. we have agreements with auto manufacturer and we're near capacity at pier 80. the first time in decades near capacity. we had record cargo volumes. we have a 15 year lease with the sf bay railroad. we've had record investments in capital. we've had a five-year plan and we've maintained all the while our ratings of a, which is excellent. we had 345 building permits with a total value of 247. we had five million dollars from new leases that were annualized

and we did those rent increases bringing in 500,000 more annua annually. so, i do think that you will see-through this process that the planning and the effort in attention that we're paying on the strategic framework is really helping us see long-term projects to success from the planting, nurturing, fighting off weather to the bloom and harvest. i really see that in things like the backlands, the 20th street historic core, the pier 48 parking improvement, which is because we improved pier 31, alcatraz ferry, et cetera. i think this process of prioritizing is helping us achieve very, very important results for the enterprise. thank you for your attention and i ask if you have comments or recommendations on the proposed strategic plan.

>> is there any public comment on this item? >> thank you, director forbes for the update. first, i just want to congratulate you and your staff for those incredible accomplishments in 2018. you achieved a lot. i think by any department standard here in the city. i just really think the growth under your leadership that and the agency has had. i wanted to say i like the equity reframe of that. i really appreciate in that resume is with me. i'm excited to see what we can do in 2019 and what we can achieve. i think we're on a really good path. as you want to also articulate