>> here. >> commissioner john burton. >> here. >> commissioner gail gillman. >> here. >> and commissioner doreen woo ho. all right. item 2 is approval of minutes of the october 13, 2020 port commission meeting. >> so moved. >> second. >> we have a motion and second and roll call vote, please.

>> certainly. [roll call] . commissioner burton wasn't seated on the 13th. i'll go to commissioner gill million. >> yes. >> commissioner woo ho. >> yes. >> item 3 is public comment on executive session. >> thank you. we will open the phone lines to take public comment at this time for executive session for members of the public and the operator will provider instructions now for anyone on the phone who would like to provide pc. >> at this time we'll open the

lines for anyone on the phone wanting to make a public comment on executive session. press star 3. the system will let you know when your line is open. others will wait on mute until their line is open. comments are limited to three minutes permission. the queue is now open. please dial star 3 if you wish to make public comment. >> thank you. do we have anyone on the line? >> at this time there are no members of the public on the phone wishing to make public comment on executive session. >> commissioner: thank you. >> item 4 is executive session. >> commissioner: may i have a motion. >> motion to go to executive session. >> second. >> commissioner: roll call vote. [roll call] .

>> commissioner: >> commissioner gillman. >> yes. >> commissioner woo ho. you're on mute. >> commissioner: motion passes unanimously. now it's open session. >> commissioner: i'll make a motion we don't disclose anything the closed session this

afternoon and the commission unanimously approved the point of michael martin as assistant port director. and not disclose anything else the commission discussed. >> commissioner: may i have a second. >> second. >> commissioner: roll call vote. [roll call] . >> commissioner: motion passes unanimously. next item please.

>> that's the pledge of allegiance. >> pledge allegiance to the flag of the united states of america. and to the republic for which it stands one nation, under god, indivisible with liberty and justice for all. >> that's item 7. announcement. a member of the public has up to three minutes to make permanent public comment and note during the public comment the moderator will instruct dialing participants to use a touch tone stone to register their desire for public comment. audio prompts will signal to dial when they've been enabled for commenting. dial in when the item you want to comment on is announced and

if you're watching on the internet there's a broadcasting delay so when you hear the item you want to comment on dial 1-415-655-0001 then access code 146-849-4764#. please mute the volume on the telephone or computer. when public comment on the item is announced when prompted, press *3 to be added to the queue. and please mute your microphone and turn off your cameras when you're not presenting. that brings us to item 8, public comment on items not listed on the agenda. >> we'll open the phone lines to take public comment on items not listed on the agenda. for members joining on the phone and the operator will provide

instructions now for anyone wanting to provide public comment. >> we'll open the phone now for anyone wishing to make public comment on the items not on the agenda. when prompted, press *3 to be added to the queue. others will wait on mute until their libe -- line is open. the queue is now open. >> thank you, jennifer. do we have anyone on the phone? >> at this time there's no members on the phone wishing to make public comment on this item. >> commissioner: thank you. seeing no public on the phone, public comment is closed. >> item 9a the executive directors report.

>> good afternoon, the port's executive director. first and foremost, i would like to welcome senator john burton to the port commission rank. you paved the way for the modern port with the seminole 1968 legislation that bears your name. and advocates for the water front, you have been long devoted stakeholder of our water front to celebrate our world class working class heritage and our current promise to sustain and support equity and jobs and diversity in our vibrant water front. we're fortunate to have you join us and grateful to mayor london breed for our choice. it's notable you're joining the port commission during the commission because we're preparing the port for short and long-term economic recovery to

continue to protect and enhance our water front. ob behalf of port staff we're excited to welcome you to the port commission and we look forward to working with you into the future. my report is brief. i have an equity update followed by a report on the economic re-opening. on equity the port has concluded our listening tour which is an important milestone for the development of our racial equity action plan. we're now working to incorporate recommendation to ensure it includes our collective voice and work with stakeholder including racial equity working group to complete required action items in seven areas of the phase 1 framework. the plan will be before the commission in december and excited for you to see it and comment on the plan. economic re-opening and port recovery. last week our mayor breed announced the city is continuing

its measured reopening as san francisco is performing well against key public indicators. the city is opening non-essential offices at limited capacity. san francisco will also re-open indoor climbing calls and expand to other businesses and activities. we continue to benefit from the city's policy of reopening. since the state introduced the tiered system august 28 san francisco's approach resulted in us being the only place in the country in the yellow tier and continue to do well. we're on the time line for reopening activities and expanding previously re-opened businesses in the following weeks. additionally the city plans to enhance indoor dining to 50% and make expansion for places of worship, theatre, museums, zoos

and aquariums all if the virus stays under control in future months. winter is coming and as the public health director and city officials have warned we need to stay vigilant and exercise all the public comment measures of social distancing and masking as we enter the holiday season we'll have more businesses open and have more travel in and out of the city and as we are seeing the virus is spreading in other places in the nation and internationally. very close monitoring and you can all find the data and key public health indicators on the department of public comment website and it's structured to maximize the ability to track local health indicators but open the economy so we continue to recover in a safe and sustain manner. the reopening plan is available online at future of --

sf.gov/reopening. i'm excited to announce our partners are offering dollar days on the ferry for the month of november. with $1 fares all month long to thank essential workers and welcome back riders. they'll continue to adhere to strict health guidelines requiring all passengers to wear a mask and have limited capacity but be aware of the offer. it's very enjoyable to get out on ferries and takes traffic off the road. note the $1 fares are only available through an app available on apple and android systems. that concludes my report and wish everyone a safe and participatory election cycle. thank you.

>> we'll provide instructions for public comment. >> when prompted, press *3 to be added to the queue.

>> we need to detail the services for everyone. >> thank you. [indiscernible].

[indiscernible] >> commissioner: commissioner burton?

>> no comment. >> commissioner: senator burton, welcome and congratulations. i'm glad you had a nice chance and welcome. you're an icon in the city and state of california. look forward to work with you. you know a lot about our history in the iow and great to have you on the commission. thank you. >> elaine, thank you for the report. i too would like to welcome senator burton to the commission. it's an honor to work with you and look forward to learning you from and experiencing all your knowledge about the water front and history and san francisco and all i know you have to offer. welcome. >> thank you very much. >> commissioner: next item, please. >> 9d, the commissioners report.

>> commissioner: commissioners is there anything to report? nothing to report. we do not need to take public comment on this item. next item, please, karl. >> that would be item 10a request approval of the resolution recommending the board of supervisors approve the district financing including the issuance of bonds in aggregate not to exceed $15,000,100 and a bond purchase agreement or form a pledge agreement, continuing

calendar certificate, and official statement and authorizing and directing the executive director to cause the package to be committed to the board of supervisors and work with the director of the office of public finance to finalize and distribution of the official statement and the issuance of the bonds. this is resolution 2048. >> thank you, carl. good afternoon president and commissioner. i'm phil williamson with port real estate and i'll hand it over. over a decade in the making and fully support all stakeholders at full build out the project will create a vibrant new water front neighborhood including approximately 1200 housing

units, 40% of which will be affordable and that crosses a wide range of the median incomes from 45% up to 150% so addressing a wide swath of housing needs. and these are rental and retail and production space primarily on the ground floor of the project's buildings and the rehabilitation of 240,000 square foot pier 48. and we'll be breaking ground. phase 1 will include two rental housing buildings totalled 560 units, 202 of which are programmed to be affordable.

two office buildings totalling 550,000 square feet and ground floor retail and totals approximately $65,000 square fet and excited to build a new park on the north side up mccovey cove and this will all be accompanied by robust project infrastructure including new streets, sidewalks and all the utilities that will serve the buildings and side users. phase 1 is targeted to be complete in 2022 and again as i mentioned we're looking forward to breaking ground next month. a lot of activity is soon to be coming to this part of the water front. i'd like to introduce wyatt to continue the presentation.

>> i work on the finance side of the development project and will present on the bond itself and the financing structure. the general financing structure on the bottom on the left are the different sources going in and the early investments in the project are developer and equity to build the horizontal infrastructure and pre development costs including

things like roads, sewers, parks, etcetera. and the near term is the value of the project the ground leases provided an additional source of funds and the final source is two tax districts. the community facilities direct a special assessment and the infrastructure financing district which is baked on the value of the growth of the property and it increases the property value and this captures that value to invest back in the project. eventually the isd will repay the developer and land value for all the cost of road sewers, etcetera. on top of these investments and

this is a key factor is the developer receives 18% return on their investment in the project. whatever they pay, they also receive 18% return to limit the total return and make sure that that amount is repaid as quickly as possible. the port uses those tax sources as much as possible and maximize the public financing available which is what we're discussing today. the phase 1 budget includes the bond we're discussing today and there's three main costs in the project hard costs the physical infrastructure, roads, suers

with -- sewers, electrical and soft costs like engineering, permitting associated with the improvements and return on the developer equity based on the 18% return. the different revenue source the leases which have all been executed now. there's one of the bonds and the general tax over the years. there's the community district and special practice and the infrastructure financing district tax increment. and we have the total cost of

$25 million. the key sources -- $225 million and the development payment are the prepaid ground leases and the two are key. because they're early on, they're the main sources to fund the cost of infrastructure. we already executed and received the development rights payment and next key and the bond on unimproved land was expected to generate $35 million for the project. we're hoping for a little bit more and i'll get in to that in a second. that's a critical piece of project sources we're discussing. there's action have been taken to get us to this point on the public financing side.

in february 18 the project area was established around and the city made amendment to the special tax law to allow for special tax use for the pier 70 and things like seismic retrofitting historic rehabilitation and in may 2020 we had the formation of the community facilities district which is what is the security for the bond here today. the district has four purposes. the first say development tax which funds infrastructure and parks. it has 40 years of bond authority. the second is the office tax

which funds infrastructure and parks as well however, the difference with office tark is it has -- park is there's more flexible use the third is a shoreline tax for protection study and facilities and the final [audio digitizing] and maintenance. the bond we're discussing today uses only the development tax as a security. the other three come into play later. the bond issuance we're discussing today is limited by two factors. first, the appraised value. the city has a policy of only issuing debt with a 3-1 value that means the value of the underlying property and land must be three times as much as the amount of bonds we're issuing. this is a conservative approach to ensure we always have a means

to pay the debt service. the current evaluation is $150.4 million which would result in a value ratio of $50.1 million in bonds. we're asking to exceed the bond amount of $50.1 million. its was from earlier in the year and we're updating the appraisal with the latest data from covid. there may be a change from that. if there is a change the bond issuance will not exceed $50.1 million or the 3-1 value. 50.1 is the maximum but if it decreases we will not exceed that. that's the main limiting factor here. the second is the tax revenue available to pay the debt service on the bonds and you

need 110% coverage. the development taxes ants paid for phase 1 is in excess of this multiple times. it's not a factor here but will come into play for future issuances as the value increases due to the development. the sale of bond of $50.1 million could create for the investered and the table to the right showed the potential uses of this amount including different reserve funds and the main use there is the improvement fund which will repay various infrastructure and development costs.

thank you commissioners and thank you for the action we ask for approval and the recommendation is the board of supervisors approve the financing in the amount not to exceed $50.1 million including the form of the bond purchase agreement and form of the pledge agreement and continuing disclosure agreement. we're available for questions and also have our private partner available for questions. >> commissioner: commissioners can i have a motion? >> so moved.

>> second. >> commissioner: we'll open the public comment for those joining on the phone. >> at this time we'll open the queue for anyone on the phone who would like to make public comment on item 10a. when prompted, press *3 to be added to the queue. comments will be limited to three minutes per person. the queue is now open. >> commissioner: do we have anyone on the phone? >> at this time there are no members of the public on the

pho phone. >> commissioner: seeing no one on the phone, public comment is closed. commissioner woo ho. [indiscernible] >> commissioner: you have to speak up. [indiscernible] >> the presentation is

straightforward. this is very complicated financing structure with many sources for a complicated but great project, mission rock. at this time i commend the staff and all the work that's gone into it to come up with the structure. i don't have further questions the this time. >> commissioner: i have no question on the bonds or how the financing structure was put together. i had one question because we also know how important the structure is to fund the development and excited this has anchored one of the office building and my understanding was that was an agreement struck before covid-19 and i wanted to understand and have reassurance the commitment is still there

post covid-19 and the change of how people are going to work. >> thank you, this is phil williamson from port staff. i'm not aware of the change. the leases are moving forward and all four leases have now been executed for phase 1. the important payments for the projects are forthcoming in the very near future for clarity and confirmation i don't believe there's been a change but i don't think there's additional information. >> we're fortunate the commitment is continuing and it puts us flea great position to move forward with the project where others are not able to do so. we're exciting to get going.

>> commissioner: commissioner burton. >> no questions. >> commissioner: commissioner adams. >> no questions. >> commissioner: wyatt and phil. thank you for the report. it's exciting the project is moving forward. we're lucky in a low interest rate cycle. hopefully we'll get record low rates on the financing. it's exciting it's scheduled to be completed in 2022. when is the appraisal to be completed. >> this week hopefully. it may take time because once the draft comes out you need to

review it and have comments from the appraiser but are hoping in the next week or two. >> commissioner: can we have a roll call vote. [roll call] . >> commissioner: it passes resolution 2048 is adopted. >> next is 10b informational presentation on the port's contract activity for fiscal year 2019-2020 and strategic

initiatives for local business enterprise lbe engagement. >> thank you for the opportunity to brief on the contracting activity for the strategy. i'm stephanie tang and thrilled to be joined with the senior community developer. we wish to express our gratitude for assistance on the item. we'll be briefing you on the local business enterprise program. and we'll present information about the contracts awarded in this in the contracts and development agreement and share some of the outreach efforts. we'll then look ahead to this

fiscal year 2021 and discussion the vision for what the program can develop and developing strategy and what will make it a reality. and the city operated the minority women local business utilization coordination. after the proposition of 209 an amendment to the california constitution that prohibit the state government from considering ration or ethnicity in public employment, education and for the matter here, public contracting. san francisco has added benefits to women and minorities and the current lbe ordinance was passed. proposition 16 which would repeal proposition 209 is on the ballot this november for voters in november. the contract moderating division

and the program denotes each with the ownership. women business enterprises are in the red in the graph on the left. the minority business enterprises are in the blue and the other is for the obe neither women nor minority business enterprises. the chart on the right is a pull out looking at the minority owned lbes and asian americans are at 41%. african american firms at 26% and the latino owned firms at 25% with the other ethnic groups of smaller percentages. in the last physical year contracts were awarded. 8 of 13 contracts were awarded to lbe prime contractors, three

lbes were awarded contracts and one asian american and one lati latino owned firm won a contract. the contracts was $30.9 million and when prime praments are included with the sub payment it amounts to $12.4 million. looking over the past five years we see the contract awarded remained steady at 62%. and the dollars paid to lbes was 40%. applaud the port staff for exceeding the informal goal of contract awards and exceeding the mayor's aspirational awards. these goals are set in recognition that money spent

locally provides stimulus and the role is providing an economic benefit to our city. the negotiations resulted in a commitment to a good faith outreach goal. at a brookfield project there's a 17% goal and 25% was awarded to small micro or sba lbes and others have agreed to fill the construction goal of 20% and pre-construction goal of 10%. the project is just moving from the pre-construction phase and overall through both phases the mission rock project is at 19% awarded to small micro and sba

lbes. now let's here hare about outreach and engagement. >> good afternoon commissioners. i'm tiffany tatum the senior community development specialist. i'll be providing highlights of the community outreach and engagement efforts for fiscal year '19-2020. and there was a listening tour in district 10 offering dedicated networking time and extended q&a session and match making sessions between prime and subcontractors. i'd like to give a huge thank you to the engineering team and their ability to quickly respond

to the virtual needs required by the shelter in place and for being one of the earlier adapters and bid openings online. lastly, our very own stephanie pang was one of two featured speakers in the webinar where she discussed how the city was ing to processes during the public comment is closed. i will now turn it back over to stephanie.public comment is clo. i will now turn it back over to stephanie.apublic comment is cl. i will now turn it back over to stephanie.npublic comment is cl. i will now turn it back over to stephanie.dpublic comment is cl. i will now turn it back over to stephanie.epublic comment is cl. i will now turn it back over to stephanie.cpublic comment is cl. i will now turn it back over to stephanie.public comment is clo. i will now turn it back over to stephanie.public comment is clo. i will now turn it back over to stephanie.public comment is clo. i will now turn it back over to stephanie.public comment is clo. i will now turn it back over to stephanie.public comment is clo. i will now turn it back over to stephanie.public comment is clo. i will now turn it back over to stephanie.apublic comment is cl. i will now turn it back over to stephanie.npublic comment is cl. i will now turn it back over to stephanie.dpublic comment is cl. i will now turn it back over to stephanie.epublic comment is cl. i will now turn it back over to stephanie.mpublic comment is cl. i will now turn it back over to stephanie.ipublic comment is cl. i will now turn it back over to stephanie.cpublic comment is closed.

i will now turn it back over to stephanie.ublic comment is clos. i will now turn it back over to stephanie.ic comment is closed. i will now turn it back over to stephanie.omment is closed. i will now turn it back over to stephanie.ent is closed. i will now turn it back over to stephanie.nt is closed. i will now turn it back over to stephanie.t is closed. i will now turn it back over to stephanie. is closed. i will now turn it back over to stephanie.is closed. i will now turn it back over to stephanie.s closed. i will now turn it back over to stephanie. closed. i will now turn it back over to stephanie.closed. i will now turn it back over to stephanie.losed. i will now turn it back over to stephanie.osed. i will now turn it back over to stephanie.sed. i will now turn it back over to stephanie.. i will now turn it back over to stephanie. >> we realize the strategy really has three key goals. first we want the program embedded in the practices of the ports. the champions cannot be held by a few people but widely held and thought through through all the stages of the port's work. we wanted to think about the port's equity toolbox and how to use the lbe along equity tools and third we wanted to make sure the port's work is with stakeholders and we're advancing opportunities for small businesses and diverse contractors. how we came up with the plan regarding the economic context for small businesses is not just by the port's activity but through the national and international and state and local economy. the port is a factor and we should be bold in policy but realistic within all the things small businesses have to consider. next the chapter 6 department and as a landlord. we have are unusual in that we also hold land and this affords

additional opportunities in thinking how we implement the policy. the program is designed to create economic enhancements. barriers to bidding. it's not easy to bid, negotiate or work on projects. we have to be conscious of the barriers and what the role the port plays. internal practices. i talked about the larger context hard for the port to shake, however, within our own practices we have a lot of control to take a good look in the mirror and figure out how they can do better in making sure we are doing our best practices and learning from what's happening across the

port. finally the equity work. the port is headed in a new direction in achieving the strategy of equity. the hiring of the equity manager and equity work plan and possible changes of population 16 and this allows the lbe program to take its place alongside the other equity tool the port is going to advance. we're going to improve our internal practices and creating best practices. we'll listen and partner with stakeholders. ultimately the policy is to create economic impact of community partners and stakeholders. we must run our policy and practices through the perspective of the committee to ensure we're listening and acting on their concerns. we have to solution to contracting barriers.

this is especially necessary as we expand and work with new partners for all businesses. finally we have to merge the efforts with the racial equity work plan. this is going to be our north star at guiding how we organize our work. the lde efforts will be nested within the plan and advanced with other equity initiatives. the final slide is what we're going to do. >> setting concrete deliverables is the first step in being effective. we spent the first 30 days thinking about the blue sky. these deliverables for january 1 and july 1 are a part of a larger plan spoke about. in the next few months we plan to implement five outreach and engagement strategies and

initiate the expansion of lbe and complete a technology workshop aiming to address feedback on bidding barriers. looking further out, we will develop an lbe tool kit and implement three supports to divisions and improve monitoring of lbe payment data and develop deliverables with leasing, development and the maritime team and ensure voices are included in the planning and efforts. this plan is our stake in the ground. it's through the actions we can advance the lbe programs as one of numerous equity tools. we look forward to future commission meetings where we can follow-up on the progress of deliverables. this concludes the presentation. we're available for questions. thank you.

>> thank you for the wonderful report. we'll open it up for members on the phone and we'll provide instructions for anyone on the phone who would like it provide public comment. >> thank you, president ban don. at this time -- brandon. we'll open the queue for anyone on the phone wishing to make an item on 10b. when prompted, press *3 to be added to the queue. the queue is now open. dial star 3 if you wish to make public comment. >> commissioner: thank you. do we have anyone on the phone? >> yes we have two callers on the line at the moment. >> commissioner: thank you.

>> good afternoon. >> caller: i'm from brookfield properties. first i wanted to say thank you to stephanie and tiffany for the vim -- summary and working with our team. we have implement the workforce development program and they're support allows us to achieve our workforce goals and it exceeds our participation rate result inning $48 million going to lbe firms. the majority small and micro lbes. and we have local residents and

while covid has impacted the timing for the larger scope work we originally planned on awarding reducing the number of dollars we still continue to proactively explore opportunities for lbes in all areas of contract. in the second quarter of '20, 82% or $4 million went to lbes. we're always looking for ways to improve tone program over the last year we made a concerted effort to increase the diversity of our lbes working with our

liaison and we have the technical assistance provided and we continue to exploring diversity for any markets such as marketing and launch and what was a small amount of money for the project overall you won't see a change in the workforce numbers and it's a story we personal find important to us because we recognize that one contract made a large impact to the small company especially during these times. before i end i wanted to say we are committed to continuing to work with the port, cmd, rbg to push our team to continue to improve our workforce program going forward. i wanted to recognize our office and those listening to the meeting and to recognize

leadership they both provide to our internal staff and gcs on a daily basis providing work on the program. i look forward to listening to the commission's discuss. >> this is dwayne jones from rdj enterprises. i wanted to begin by thanking commissioner brandon and director forbes and the executive team for constantly putting forth the lbe participation as a priority the report speaks to the efforts. we're fortunate to work on two of the primary projects for the port which is both pier 70 and

mission rock. they're both doing amazing jobs in the times of covid of having an equity lens to try to maximize participation and diversity of each respected projects. they've been ban -- fantastic and been creative to maximize opportunity and remove barriers and change the landscape of what seemed to be business as usual and we have work to do but i appreciate the progress we've been able to make thus far and look forward to continued partnership internally and externally. thank you. >> at this time there's no other

callers on the line wishing to make public comment on this item. >> commissioner: thank you. public comment is closed. >> i want to thank staff for this thorough report and i appreciate it and your goals in moving forward. will you be doing anonymous surveying and are you looking within the barriers the city creates within its own processes or going to look at other barriers that are external like access to capital, access to talent for hiring when the projects come along, technology expertise, etcetera.

>> the work on identifying the barriers and where the port sits is work ongoing for some time. there's a survey done with the monitoring division and those results were delivered. we have a sense from the community in how the port is engage. we're thinking internally and externally and looking at barriers system wide as well as within the port itself. the answer is all of the above. >> thank you. this is critical work and ensuring we have equity in the contracting. thank you.

>> thank you for the report and it's gone through a history and evolution with pushing on the lbe side and now i think it's come full circle and appropriately integrated into our equity objectives and strategies going forward. i think the report answers questions and i'm sure commissioner brandon will still find questions she needs answers to and i think the objective initially was to open the funnel and make sure we were creating jobs and creating the opportunities for all the local business enterprises and minorities to bid on city wide projects.

i think we want to move to understanding how the funnel can be open and maybe wider and i also think we want to report on some of not just the number of contracts awarded but a little bit in terms of how the lbes performed because i think there's good success stories and quality work there. i think the staff is very accustomed from always asking the question, did the project was it on time, on budget. i'd like to add it to your property so we can know and see awarding these projects to the lbes make sense to the port and to take the message down to the goal line because i think we're opening up the funnel and it's a

good outcome and we should report on that as well to make this whole circle complete and connect the dots. does that make sense? >> >> i understand. >> i know it's going to take more work but i think we have taken and we're better at this than other departments in the city and i think we've been at it a while. commissioner brandon has been championing it and pushing and i think we're probably ready to take the next step to be able to add that in to the equation to show why it makes sense as a role model for other agencies to say we're not just doing it because year pushing the equity objective, -- we're pushing the equity objective and in many cases i remember some parking contracts we insisted on

training programs so the big operators and how we help people succeed and step up one more step. and as i said in our discussion of lbe lending to teach them how to fish and i think brookfield mentioned they're awarding more contracts but hopefully they're teaching people how to fish not just give them the fish. that's an important part of what we should be doing in our equity programs and what the lbe programs so they cannot remain lbes forever. they should be growing and hopefully that's just the first step in their career paths and their success. that would be my hope and vision for what they're doing ultimately. thank you. does that make sense? >> yes, i'll take that and we'll

add that to the next time. >> thank you, stephanie. commissioner burtdon. -- burton. >> a great report but no other comment. >> commissioner: thank you. vice president adams? >> great report. >> not everybody points to the port that the port can do what we can do. thanks. [please stand by] . try and mitigate the barriers

and bring more local businesses into our project. i think we have done a

phenomenal job in that everybody is focused and intentionally reaching out to our firms. we have to be able and hopefully with all these measures in place, we will start attracting more minority firms that can do business with the port. so i want to thank all of you guys. you have done a phenomenal job and i know it's only going to get better. i have one question. did i read in the report that we were setting up an l.b.e. advisory committee? >> there is an l.b.e. advisory committee. it's not on port committee. it's through the contact monitoring division and it's a combination of both the departments, as well as the l.b.e. community. so the port is a stakeholder at the l.b.e. advisory committee

and they are an entity which one of our goals, in terms of stakeholder groups, is that we want to make sure we're briefing them about what the port's plans are and what our initiatives are, as those are some of the key stakeholders that communicate with a lot of the members of the community. >> right. so there is a lot of information and best practices and see who's doing what. that's great. i'm happy to hear that. thank you and i congratulate you tiffany and the entire team on where you're taking our l.b.e. efforts and i look forward to the new things you're putting into place and you reporting back in july saying more successes. thank you. >> thank you. >> okay. next item please.

>> that would be item 11a, which is an informational presentation regarding the u.s. army corps or engineers flood resiliency study and focused alternatives. >> hi, this is kelly. should i just go ahead and start? >> please. >> okay, thank you. >> hi my name is kelly. i'm a project manager for the flood study. i'm going to start off the presentation and then we're going to go to matt and lindsay for some more detail on a couple of items. next slide please. thank you. i'll provide an overview of the flood study and the process and identify some key milestones and then we'll get into a little more detail on the future

without project stakeholder input, the alternatives development process, which includes a focused array and we identified some key considerations for the port commission and then we'll talk about next steps. next slide please. the waterfront resilience program covers 7.5 miles of the waterfront. it includes several major efforts and we're here to talk to you today about the army corps of engineer's flood resiliency study, that's one of the major efforts in the water front resilience program. next slide please. this graphic shows that there are a couple of the major efforts in the waterfront resilience program and we have the embarcadero sea wall program which overlaps with the flood study. in that overlap is where there are proposition a projects with flooding benefits that will be

included in the army corps of engineers alternative. that's how some of that is related within the waterfront resilience program. next slide please. the study is a partnership between the port and the army corp. of engineers. it's referred as the local sponsor. this utilizes local and federal expertise. it creates a study that is a fifty-fifty cross share between the two-parter ins, the port and the army corps of engineers. the study will assess five sea level rise curves, including three army corps of engineers curves and two curves from the state of california. the study includes robust community input and we determined if there is a federal interest and if a federal interest is determined and the program is approved, the federal

government would fund 65% of the design and construction costs and the local sponsor would fund the remaining. [inaudible] >> sorry, i accidentally went on mute. next slide please. back one. sorry, my slides are out of order. you can go ahead to the next slide. the army corps of engineers process includes several steps at a very high level. we identified a future without project and then the future without project accounts for damages and consequences of flooding. the damages are put into four accounts. you'll hear more from matt later

on in this presentation about the future without project and these accounts. can you go to the next slide please. okay, this is the slide i want to be on. okay, so in parallel to developing the future without project, we identified problems, opportunities, objectives, con strave stra -- constraints, and considerations. that leads to a formulation process, number three, where there are three levels of alternatives that are identified. an initial array, focused array, and final array. right now we're in the focused array stage. you'll hear more from lindsay later on in the presentation in more detail about this focused array. as we proceed into the final array, what comes out of the final array is we identify two alternatives, a national economic development plan and

locally preferred plan. from there, one of those plans is identified as a tentatively selected plan or a negotiated plan. a tentatively selective plan is identified and that plan is further developed in the feasibility study and evaluated under the national environmental policy act and the final product that would come out of this process is a report called an integrated feasibility study and nepa document. you can go to the next slide. these are some major milestones in the study process. we are currently undergoing an agency technical review which may result in recommendations that cause us to adjust some of these dates. right now we're aiming to get to a final array of alternatives in

early 2021 and we would be coming back to the port commission and to the public with that final array. that is kind of an overview of the process. you can go to the next slide. now what we're going to do is get into more details of the future without projects from matt. on to you. >> thank you kelly and thank you commissioners. my name is matt wickens. i'm serving as a technical lead for the flood study. as kelly mentioned, one of the key steps is the development of the future without project condition. i'm going to give you a quick introduction and explain why it's important. next slide please. in advance of making an investment decision, the team must first understand what flood damages may occur in the future and how they impact the city and ultimately national economy. these damages are quantified

through what is known as the future without project condition. because it will take years for federal investments to be implemented, the start year for the analysis is considered to be 2040. due to the time value of money, the analysis only considers damages that occur within a 50 year period of that study, making the period of analysis 2040 to 20 090. with the present value of flood damages during this period exceeding the present value of the costs in order to build a plan, it is determined that there is a federal interest, meaning that the government will fund flood protection in san francisco. next slide please. jumping into the process a bit for defining the future without project condition, the first step is to fully understand the assets and services at risk. the team has collaborate with city partners, port tenants, and stakeholders to assign value to

the physical infrastructure, to estimate the impact of disruption, in order to combat a database to be used in the economic modeling. now the graphic on the right can be overwhelming and this is the southern most reach of the study. next slide please. so study wide, the database covers miles of roadway and tracks and dozens of other critical elements of city infrastructure. i want to point out that the database is not just intended to capture stuff, but also people and the impacts that flooding will have on their lives, which include over 11,000 jobs, 350,000 regional commuters, and 13,000 residents, more of half of which are people of color. next slide. so once we understand the inventory of assets, the next step is to determine what sort

of floods could occur over the period of analysis. as a life cycle, this model will simulate potential storms many times to arrive at the most likely flood damages. these storms are based on the historic record and are randomly sampled throughout the analysis. additionally due to uncertainty of sea level rise, the analysis is repeated five times to see what the future of that project damages would be over five different curves. those curves are demonstrated on the left, which show on the lowest of curves, sea level rise by 2090, maybe less than a foot. on the higher curve, the 1 in 200 chance, sea level rise could be 60 in that same period of time. the figure on the right demonstrates where we have rare 100 year flood events and what

that looks like relative to the shoreline and the daily high tide to the shoreline. you can see the 100 year flood today is equal to high tide with 3 feet of sea level rise. next slide please. to understand the relationship between flood likelihood and the damages that it causes, the figure on the right shows a low level flood with a high likelihood of occurrence in the analysis. the facilities in this flood will see damage in almost all scenarios and carry a lot of weight in the computation without project condition. next slide. on the other hand, a larger flood event has a lower likelihood of occurrence, but will impact many more facilities and people. the analysis will determine whether or not this increase in flood damages is offset by the low likelihood of occurrence and whether or not it makes sense for federal investments to

protect these facilities from flooding. next slide please. so with a robust inventory and an understanding of flood scenarios, the computerized planning model runs hundreds of simulations to plan when and where damages will occur. as you can see on the figure on the left, the dots inindicate facilities of high value that sees more than $10 million worth of damage between 2040 and 2090. these are primarily clustered in the financial district within mission creek, along mission bay, as well as a few bordering the creek and at pier 96. it's important to note that almost none of the piers are highlighted with a red dot when it comes to federal interest in the account that i will describe in a second. now these are draft findings and we're currently undergoing a technical review through the

army corps. so these results are expected to change a little bit, but it's not yet determined how much. next slide. so most of what i described and the figure that was shown on the previous slide applies to the national economic development account. the corp. uses four distinct metrics. the national development account captures the impact to the national output of goods and services. this is related to why taxpayers in kansas or alaska or the carolinas will fund flood protext in san francisco. the next account, the environmental quality account is a non-monetary measure to the impact to resources. it captures the impact to the region, wages earned and the tax

impact. finally the other social effects account captures the impact of people and community such as the displacement, connectedness, leisure and recreation. this quantifies the extent which vulnerable populations are impacted by potential flooding. next slide please. so these -- all of these accounts will be used as a baseline measure for possible investment for the future with project conditions. once you completed the future without project condition, you look at all the different flood plans and the future with project and you compare the two. the main driver that will determine federal interest and plan selection is the national economic development account, which hinges on a cost benefit ratio being greater than 1 -- excuse me, benefit the cost ratio being greater than 1.

for this reason, it's desirable from the local perspective to count as many damages as possible into that account. for this reason, the port is pursuing policy exemptions for the core of vertical change where appropriate in order to capture as many benefits as possible under that account. additionally the port will leverage the other accounts to inform the locally preferred plan and push to incorporate the latest resilience guidance written in the core planning process to understand and best make use of the other three accounts. next slide please. in summary, the future of the project effectively defines the size and scope of the flood risk mitigation plan. due to the complexity of the san francisco waterfront and the importance of accurately capturing future risks, this milestone is currently delayed.

the port continues to work with the core to maximize potential benefits in a manner consistent with core policies, rules, and guidelines. the model used to quantify flood damages is used for the first time on the west coast as part of this study and army corps experts are looking at the outp outputs. they're making sure this is captured and monetized in the future without projects in the national development account. i apologize for the alphabet soup of acronyms. it's an army corps world and with that, i would like to hand the presence off to lindsay, who is looking at plan formulation for the flood study and the resilience program at large. >> thank you matt. good afternoon president brandon, vice president adams, and welcome commissioner burton.

my name is lindsay and my portion of the presentation includes stakeholder engagement, the army corps focused array work. the resilience program in partnership with some wonderful local women owned and minority owned firms. this engagement has included citywide and neighborhood events, a community meeting in three locations, engagement, mixers, homeowners association and public housing engagement, tenant engagement and over 100 presentations and discussions with community advisory groups, neighborhood groups. additionally recognizing that people cannot always come to meetings or events, which is especially true now. we have been engaging digitally. next slide please.

the team has been engaged in city departments and resource agencies, working with the corps we engaged a coordinating team for city departments and others to meet and provide guidance at each key stage in the flood resilience study. we convened a working group to advise on regulatory permitting and resource issues. next slide. the team held our first digital meeting last month in the embarcadero segment of the waterfront and presented the findings, introduced attendees to flood measures and summarized stakehold stakeholder to date and for each of the waterfront areas. next slide. in response to covid-19, the team developed the waterfront resilience story maps and measures explored to engage the public in the program and give people an easy way to provide

input. to date, there has been more than 100,000 visits to the site. we will continue to be creative with our engagement, particularly as we move into alternative development and continue to deal with the covid-19 environment. next slide. i will now provide an overview of the focused array development process that we just wrapped up with our army corps partners. this is our second iteration of a telternativ alternatives, the first being the initial array that i think was presented last year to the commission. next slide. the material that we used in the waterfront was developed to support the focused array work. using areas made it possible to have a more detailed and refined understanding of each of these areas, rather than working at a high level. the waterfront wide scale we used for the array, which could

be a challenge. it included existing conditions, services, stakeholder priorities, hazards, risks and consequences, existing and proposed projects, and measures and approaches for all of the sub areas from aquatic park and lends a quarter of a mile. the work relied on knowledge of city and port staff used an integrated team to address those seismic measures and used public feedback obtained to date for alternative developments. next slide. this map helps the commission to understand what we mean by sub areas. these are the 15 sub areas, aquo aquatic parks, south beach, many around the creek area that we used to frame the material. next slide. the materials were designed to be detailed enough to be used by the team and easy and well

designed enough to be shared with a broad audience digitally on the map to serve those purposes. next slide. problems, opportunities, constraints, and considerations have been used and designed to give us a lot more detail on each sub area and are available online and are shared with the commission to get input on these important materials. next slide please. we also assessed the appropriate measures for each of the sub areas and applied them in the which line will fit in the sub area, some work in some locations better than others and some don't work at all in some low cakeses -- locations, we wanted to do that matching process with the flood measures. next slide please.

although the study is all about flooding, the team also understands that the seismic measures need to accompany the flood measures, particularly in the embarcadero segment of the study. the process considered the application seismic measures for certain ones in the focus array. we used that material on the focus array and looked at themes to ensure a wide range of issues and approaches is considered. next slide. the themes we used included ecological, historic and cultural transportation and mobility, community cohesiveness, seismic response and non-structural. next slide. i'm going to go through some of the key findings from the focused array work. those findings include that most of the piers that matt mentioned are not going to be include in

the army corps project, in the final project because they don't meet the cost ben fit ratio. those are preliminary findings, but those are the findings that we have to date. there is also a finding that the options are very challenging due to the combined flood risk of both high bay and the creek that is trying to empty into the high bay and the low lying bridges across the creeks. it's important to note that while it requires consideration of non-structural measures such as relocation, waterproofing, structure elevation increases and local policies and zoning changes, these measures can be very difficult to apply along a dense urban water front with so many port and city critical assets involved. next slide.

we found that while there are not many opportunities for horizon levies or large marsh areas to reduce flooding, there are opportunities for ecological enhancements across the waterfront. applying flood measures to the area reinforce the fact found that while we apply flood measures to the area, the fact was reinforced that we're working in a narrow adaptation zone in those areas of the waterfront. this narrow adaptation zone may require work in the roadways, the bay, or both. the port and the city need to establish a desired level of flood protection to inform the study. next slide. as we worked, we came to understand how critical it is for us to develop alternatives to integrate the flood and seismic issue -- measures together, particularly in the embarcadero portion of the water

front. we discovered how much flood risk is inland of the port's jurisdiction, making engagement and partnership with the city critical at each step of the process. we found that many of the approaches we identified will require somewhat large construction areas and temporary destruction of a variety of activities. next slide. these images depict the structural measures that we used in the northern waterfront and those structural measures include bulkhead building, raised roadways, raised pathways, sea walls, tide pools and native vegetative terraces. we identified barriers as far as roadways, pathways, and levies. next slide please. [please stand by.]

>> next slide. >> some of the findings that will form the final [inaudible] for each geography, there are a structure of systems in the

embarcadero that can be enhanced in the bay and in the shoreline with the enhancements in the embarcadero bay and the near shore area. in the central waterfront and mission creek area, there is an opportunity for soft edge combined with raise elements that protect and lend assets and an elevated pathway for the entire length of the area as well as raised bridges over the creeks. there are flood risk measures that also include raised bulkhead wards and buildings. and then yslas [inaudible] to provide more room for water. next slide. upon completing the focused array work, the team and its workers began to identify the key themes and findings that i just presented and several

issues that i would like to share with you for your consideration. next slide. the next item relates to the peers ad identified in the project section of the presentation, we are not finding a national economic development level value for the piers. additionally, the piers are not able to serve as [inaudible] protection so we want to make sure that we highlight this for the commission now and ask the commission that they have any supports or guidance for us and for the army corps as we complete this work. next slide, please. as previously described, the corps requires these studies to

require nonstructural alternatives that include relocating, set backs, and flooding and zoning use restrictions. we'd like to know if there's any guidance that the port commission would like to provide as it relates to these nonstructural measures in the urban waterfront. next slide, please. there are a number of opportunities to ecologically enhance the shorelines, the near-shore environment, and the creeks. while we continue to refine this work, we wanted to agree that the commission agreed with the ecolodgic value to the process. finally, as he mentioned, the team implemented seismic and flood measures together for some of the focused array work and with the idea that the flood

measures could be phased in or built in together and implemented at the same time. we want it known when we present alternatives, including for proposition a, we will present different options for phasing and timing. next slide. next slide. thank you for your time today. i know that this was a lot of information, and i apologize for the long presentation. hopefully, it was helpful for your understanding of the program, the work we're doing, and the army corps specifically that work. here's some of the next steps for the study. the project delivery team, which is a partnership of the port staff and the corps will continue to present a project that matt presented. we will also to present alternatives development and used focused array to did he

v -- develop that final array, and we will continue engaging the commission, particularly on program framing, l.b.e. participation, and alternatives development in the upcoming months, including december, january, february, and march. next slide. thank you again. matt, kelley, and i are available for your questions and comments. >> thank you so much for a great presentation. now let's open it up for public comment. we will open the phone lines to take public comment on 11-a, members of the public that are on the line, jennifer will

provide instructions now for anyone who'd like to present public comment. >> clerk: thank you, president brandon, at this time, we will open the queue for anyone on the phone who would like to make public comment on item 11-a, please dial star, three if you wish to make public comment. the system will let you know when your line is open. others will be muted until the line is open. please dial star, three if you wish to make public comment. >> thank you. do we have anyone on the phone? >> clerk: president brandon, at this time, there are no members of the public on the phone wishing to make public comment on this item. >> thank you. seeing no callers on the phone, public comment is closed. commissioner woo ho?

>> thank you, staff, for this presentation. this is an important piece that intersects with some of the other projects that we're trying to figure out in terms of our challenge going forward with the seawall, and so obviously, the army corps of engineers has a very specific process, etc. i appreciate the comprehensiveness and the detail and understanding where this leads to, and i'm assuming that if we are in agreement with the army corps of engineers on some of the measures -- because first of all, i guess the assessment. damage. i don't know if they put a monetary. you did mention the monetary damage for the flooding, particularly for the downtown area, if that is known at this time or is still under study. obviously, we're hoping to not have that happen, so that is why we want to study what the

mitigation efforts can be, and it's very useful to know that some of it's ecological, that that is sort of a first for me to understand, that there are some ecological measures in addition to some of what you'll call hard state solutions that you have to put in place. the other very big ah-ha, for me at least, is that the piers aren't going to be covered, not in the measures that they would prevent flooding, but i guess it's to understand how much national funding we can get from the corps of engineers to help us with our flooding issues. so the ah-ha for me is the piers are not going to be included in any funding request that we think is needed for whatever, both seismic and flooding, and that's a separate exercise.

so i think that i would at least like to get agreement that we're trying to figure out the cost eventually for all of these measures and how much the federal government is going to be able to give us under these types of auspices, and then what else is left for us to explore on our own, and what is covered or not covered. like i said, you don't have all the jigsaw puzzle pieces today, but these are more pieces to put into the puzzle. am i right, that our objectsiv is to figure out how much federal funding is there to help us mitigate these issues? would that be fair to say? >> that's correct. i wanted to answer on that. >> okay. and then -- >> we have to continue to work on the future of that project,

which is quantifying the potential of flooding in that project, but also, as we develop the alternative, there is an exercise to do cost estimating for the projects, so that that can be compared, we can compare the total cost of damages and what it would be to implement, so we will be doing that work. >> okay. so we talked the last meeting mass presentation about flooding and projections from 20 -- i think it was 40 through 90. when would we expect the time frame line of being in -- the measures that could be implemented? not just being specific because i know it's not precise enough at this point, but are we talking about five years from now? ten years from now? when would we be able to say

okay, we know enough about the damages, the cost-benefit ratio, 3:1, and what timeline are you talking about, do we think? >> so the study timeline is the 2040 through 2090, so that is the time frame that we're looking at and the sea level rise curve -- we have the sea level rise curves that we're estimating. so our study period is, again, 2040 to 2090, and these types of projects will be implemented right around the 2040 time period or just previously start

to be put in place. we can move some projects forward in time faster and implement them earlier if they're part of that final program if they're tentatively selected for that final plan. we can enter into certain agreements to implement some of the projects earlier. so we haven't landed totally on when the projects would be implemented and exactly what projects are even -- will even be in the program, but there is an opportunity to implement some of them earlier. >> so, commissioners -- >> the ecological programs seem to me that there are some things that are less costly and some things that you can do that are not going to be as complicated as some of the other projects. sorry. i didn't mean to cut you off. >> no, that's fine. that's a great comment. i just wanted to follow up on kelley's comment or response. because it's going to be an

effort that is phased over time, that is why it started in 2040? we need to phase the work over time. we will be start implemented in 2040; we will likely start implementing in 2030, but because we have a phased waterfront project, we'll take that ten years to implement those projects over time, and that's why we have that later date for the start of the benefit on that. so matt, do you want to add a little bit on that? >> yes. so right now, we are in a position that we could itch willment something through prop a that is part of this tentatively implemented plan.

so that would be implemented in the next six years, and that's building toward that 2040 future. we wanted to make sure that that base year was far enough out that we were able to capture sea level rise and make sure that plans were recognizing the potential damage from sea level rise while also giving us so implement a phased approach over 7.5 miles. so we can start implementing as soon as possible, but at the same time, we want to make sure we implement the plan that's part of the army corps process. >> okay. and my other question -- as i said, it's kind of a jigsaw puzz puzzle, trying to put different pieces together.

impleme i can't ditch hate what the seawall is going to do, versus all the -- differentiate what the seawall is going to do, versus all [inaudible] can you comment on that? >> so let me try and explain quickly our integrated alternatives process? that integrated alternatives process is looking at the full 7.5 miles, and we're implementing or applying these flood protection measures over that entire 7.5 miles. then, we're applying a set of lenses that are prop a funding alternatives, and that's which project can be funded by prop

a? that's anything in the embarcadero section of the waterfront that is reducing the risks associated with the seawall. not necessarily rebuilding the seawall, but the risks associated with the seawall, reducing seismic risk, first and foremost, and then also flood risk. in the areas south of mission creek, that alternative development process cannot use that funding source, so that alternative development process is for the corps as well as potentially other funding sources. around yslas creek, we have a partnership with sfmta and s.f. planning to look at that yslas creek area, and there may be potentially other funding sources for work that comes out of this project as well as this core work. so we're looking at alternatives development for the full 7.5 miles, and then, we're identifying which of

those actions in the alternatives and which of those alternatives could be funded by prop a, and which of those alternatives could be funded by the army corps, and what are the processes and funding mechanisms that we can find that can fund all of the rest of those alternatives, including those areas in the embarcadero segment that we can't fund because we don't have enough resources. the prop a funding will only go so far. so it's one alternatives process -- [inaudible] >> okay. well, my last question just relates to the army corps of engineer has been doing this study with us, and i think we've been in the forefront of resilience, and i commend staff and elaine forbes and the whole city for being very focused on what we need to do. it's going to get out to being competitive at the federal

level and other cities or coastal cities studying something similar. where would you say we stand in comparison to other coastal cities that are facing maybe not all of the same issues, but some of the same issues, and given the weather patterns that we've seen on the east coast over the last year as is relates to climate change? do we have any knowledge on that, because it seems like the faster we can get down through the past, the better off we are. >> i think that's right, and i'll let kelley and matt chime in, as well, but i think it's very important for us to identify a tentatively selected plan within the next couple of -- you know, within the next year because as you've identified, this is an issue that a lot of jurisdictions are confronting? i think the fact that we have so many critical assets that are really important to the region, the nation, and the

state helps us in that quote, unquote, competition. i think the other way we're looking at it is as a partnership because we're really learning from those other studies and leveraging what we're doing in our study for that other work in other places as well as leveraging what they've been doing in other places, and learning from that as we do our work? a lot of this is new, sea level rise issue layered onto the current flooding issue. it's something that we're all, particularly with the corps, learning how to apply together, and then, that g-2-crm model that matt mentioned, i believe the r.f. study is the first study that's using that, so we are on the forefront of that. >> what would be some of the other major cities that they're studying at the same time as we are?

>> i believe there's about five studies that are currently ongoing in florida that are -- were appropriated under a similar forefront. there's also a large study in galveston, on the texas coastline. i think everything that's been done, what damages have you seen on your shoreline from flooding to date, and they just don't compare to a sandy. so we're trying to get over that hurdle and a paradigm shift, and we're tackling a problem before it becomes a problem. >> okay. thank you. >> commissioner gilman.

>> so first off, i really want to thank kelley and lindsay and matt for an incredibly in-depth report, and also for the staff report. thank you for the time and energy that you put into this. i have some similar questions to commissioner woo ho's, and i won't revisit them because i think they were answered well. i'd just like to see some of the ecological especially nhan that we can do. i think we have a responsibility to do that, and i want to say that resonated with me. and thank you, also, for calling out the piers. i mean, we do have the historic piers that are coming out for the northeast waterfront, and hopefully, we'll need to put some mitigation measures there

as a way to protect them. i was surprised to hear they wouldn't be part of it, but they are a key part of the waterfront and for the port itself. so i don't have any other questions, and thank you very much for the staff report. >> thank you. commissioner burton? >> thank you. no questions, and thank you for a very informative report. >> thank you. vice president adams? >> i'm good, thank you. >> oh, you're on mute -- you were off mute. >> thank you. kelley, matt, and lindsay, thank you for this report. this is extremely comprehensive and very helpful. i think commissioner woo ho

asked a lot of great questions, and a lot of people say we're very fortunate to be able to partner with the army corps on this effort, and whoa, it's a lot of information. i really want to commend you guys on the digital engagement strategy. i happened to go through the story map and the poocq. not for every area, but i just thought it was so informational, even the history of the different areas. i do encourage everyone to visit that site, and it really is a lot of great information on this project and what we're trying to do, so i really want to thank you for that. i don't have anything to add, other than i look forward to you coming back, and i know this is a long process, and a lot of thought has to go into

it, but just appreciate what you've done so far, so thank you very much for this series. >> thank you. >> thank you, commissioners. >> next item, please. >> clerk: that would be item 12-a, an informational presentation on pg&e sediment remedial action planning for pier 39 to pier 43 1/2 offshore sediment. >> good evening, commissioners, and welcome, commissioner burton. my name is catherine purcell. i originally presented a presentation in march 2019 on the pier 39 to pier 43 1/2

offshore sediment. i i'm pleased to be before the commission with an update of the report. next slide, please. today's presentation will briefly review the background to the site, milestones completed, and pg&es remedial plan for the site. i will go through the steps on engineering design, construction, and touch on ongoing stakeholder outreach on the project. next slide, please. as shown on this waterfront map, the project site is located on the port's northern

waterfront. extending from north to south, the site includes pier 43 1/2, home of red and white fleet, golden gate bridge tours, and bay excursions, down to the bay ferry and promenade. then, pier 39 west marina where blue and gold operates s.f. bay and alcatraz tours. and finally, the southernmos - southernmost -- yeah, the southernmost location would be pier 39 east, and this is home

of a small craft marina with over 300 vessels. next slide, please. as shown on this map, pg&e and its predecessors entities operated a manufactured gas element, what we call an m.g.t., located between jefferson and beach streets from the early 1900s to approximately 1931. the plant was sold in the mid50s, subsequently demolished, and in 1963, a total was constructed on what is the 250 beach street block. in 1997, as part of a hotel addition, soil investigations and contaminated soils were excavated and removed from the beach street site. stepping over to our site, in

2011 and 2013, the port's tenant, pier 39, identified pelly cyclic aeromatic hydro -- polycyclic aeromatic hydrocarbons related to the historic manufactured gas plant operation. coming forward into 2017, the water board ordered pg&e, as the primary responsible party for the p.a.h.s, and the port as the property owner to further investigate offshore sediments. the red line that you see on this map represents what we call our investigation area, basically encompassing pier 39 east basin, pier 39 west basin, all the way over to the eastern side of pier 45 and extending

approximately 1,000 feet offshore into the bay. next slide, please. pg&e, with port cooperation and oversight, continue to respond to the water board orders and complete critical task milestones, including completion of required soil, sediment, and groundwater investigations from 2016 through 2019. in january of 2020, pg&e submitted the final remedial investigation report to the water board which determined the extent of p.a.h. contamination in sediments at the site. in june of 2020, the water board issued its conditional concurrence of the r.i. report, and in order to complete a

feasibility study remedial action plan or what we call the f.s. rap for the site. i want to acknowledge that before pg&e declared bankruptcy in 2020, it continued to work with the port to prepare a complete investigation and prepare the f.s. rap. we have also held numerous interagency meetings to ensure the scope and the completeness of the investigations and the upcoming f.s. rap. next slide, please. per the r.i. report and the draft fsrap to be submitted to the board later this week, the objective of the board is to remediate bay sediments impacts with p.a.h.s to protect human health and the environment. the fsrap will include an

immediate alternative that will include sediment removal, immediate dredging, placement of cap materials, construction and environmental monitoring and post construction institutional controls. remedial design will address contaminates sediments in areas a through e that are shown on this map. again working left to right, area a is the pier 43 1/2 red and white footprint; air b is the pier 43 ferry arch. moving to area c is where we have blue and gold's ferries. area d moves into the pier 39 west marina, and then finally, area e is the pier 39 east

marina. next slide, please. construction related project components will include mobilizing marine-based equipment and materials such as dredge equipment barges, sediment scows, and tugs. pg&e will also install debris boones and sew curtains around barges to aid in protecting the environment. once mobilized, there will be marine debris removed primarily around the former pier 43 apron air. it will temporarily remove select piles and docks to allow equipment access to perform construction work. they'll then proceed with dredging, transporting, and disposal of dredge materials. once dredging is completed, there will be installing of

sand cap and/or armoring material on post dredge areas. finally, site restoration and demobilization will be completed. next slide. upcoming project milestones include, of course, the submittal of the fsrap later this week. as part of the site analysis required for the fsrap, pg&e will need to determine further soil and geotechnical conditions for areas of the site. as recently discussed with port and tenant staff, pg&e is preparing to mobilize early next week to begin a three-week geotechnical investigation and collect samples from various

locations shown on this map. this work is being coordinated so as not to impact tenant operations and be completed prior to the thanksgiving holiday. next slide, please. as shown on this slide, in addition to the submittal of the fsrap, the water board is preparing a draft ceqa initial study for the remediation project. the port anticipates the water board will issue the project fact sheet, the draft fsrap, and the draft ceqa study for public comment first quarter 2021. once the sfsrap and the ceqa reported are ordered, they will issue a final order demanding that the plans be finalized in order to complete remediation

in each of the areas identified in the fsrap. meanwhile, pg&e, with support from the port, will continue to advance engineering design plan specifications along with permitting over the next 24 to 26 months with the goal to obtain all of our project permits by the end of 2022. next slide, please. pg&e, in coordination with the port, have developed this rather detailed project schedule which will require a multiyear design and permitting process to authorize remediation in all five areas of the site. in addition, we anticipate construction will be scheduled over five years during in-water regulatory work windows, which are june 1 through november 30,

beginning in 2023. next slide, please. port staff has actively worked with pg&e staff to conform with the water board orders, perform investigations to discover sediments. we have held numerous interagency staff meetings both in person and through webex to review and discuss investigation plans and findings and the cope of the fsrap. it's also important to note that the port and pg&e staff continue to work with pier 39, blue and gold, and red and white fleet staff to coordinate site access and minimize operational impacts during field work and to discuss the scope of the proposed remedial

plan and the timeline. it is also important to note that pg&e is working directly with tenants on costs associated with tenant impacts due to the contamination. next slide, please. as previously discussed, the water board will undergo a public review and comment period on the pg&e fsrap and on the board prepared initial ceqa study in first quarter 2021. we also understand the board will develop a cleanup order following the comment on the fsrap and ceqa orders. with that, pg&e will detail further progress on the engineering design plans and

the project permitting. this concludes my presentation, and i'm available for any questions f questions or clarifications you may have. thank you. >> thank you, and now let's open it up for public comment. we will open the commephone lio take public comment on item 12-a, for members of the public who are on the phone. jennifer will be the moderator and will provide instructions on the phone for anyone who would like to make public comment. >> clerk: thank you, president brandon. at this time, we will open the phone for anyone who would like to make public comment on item 12-a. please dial star, three if you wish to make public comment. the system will let you know when your line is open. other participants will remain

muted until their line is open. the public queue is now open. please dial star, three if you wish to make public comment. >> thank you. is there anyone wishing to make public comment? >> clerk: yes, president brandon, we have one caller on the line. >> please open the first one. >> hi, caller, and welcome. >> please make sure that any ecological measures that you do incorporate only local native plants so that we have the opportunity to meet not only san francisco but california requirements on the biodiversity goal. please make sure that all of the ecological measures include

only native plants. thank you for listening. my comments are complete. >> thank you. jennifer, are there any other comments? >> clerk: president brandon, at this time, there are no other callers on the line wishing to make public comment. >> thank you. seeing no further public comment, public comment is closed. commissioner gilman? >> thank you, catherine, for this really informative report, and i have no questions for you at this time. it's important for us to get mitigated and move forward since both pier 39 and the hotel on jefferson and beach are popular tourist sites, and we can go back to having folks on the waterfront. thank you. >> thank you. commissioner woo ho. >> thank you very much for the report, and i agree with

commissioner gilman, so i have no further questions. >> thank you. vice president adams? >> thanks, catherine, really much. i appreciate the report, and definitely with pier 39. we've got to get that going, and so important with the maritimes. thank you very much. appreciate your work. >> thank you. >> thank you. staff, i want to thank you so much for this very detailed report. we really appreciate the briefing. a couple of questions, and one is who is doing the remediation? is it the port or is it pg&e? >> pg&e will be performing the remediation. the port -- pg&e is the primary responsible party and will perform remediation. the port staff is just supporting through remedial

over sight and will reach out with engagement. >> all right. and i just wonder why it takes so long? >> well, it's a very complex location. we've got five separate operating areas that will have to be temporarily repositioned and worked around. we can also only do in-water construction work of this nature from june 1 to november 30 of any given year, and so the plan -- and the ceqa study and the permitting and the engineering design is about a two-year process to get all of the permits and the engineering completing, and then, we'll remediate each of the five areas over five separate years due to that in-water study. and i think it's also critical

that we contain public access and tenant operation interruptions, and so that's the other item, is to tackle each item individually, complete it, and then move to the next area. >> great. thank you so much for the presentation. >> you're welcome. >> call the next item, please. >> clerk: that would be item 13-a, an informational presentation on the pier 70 shipyard and memorandum of understanding with the san francisco public utilities commission. >> all right. good evening, president brandon, members of the commission, director forbes, and members of the public. my name is andre coleman,

deputy director of maritime. today's presentation is an informational item on the pier 70 shipyard. the presentation will cover interim tenanting and operations at the shipyard as well as future planning. i will also provide a general overview on a proposed memorandum of understanding with the san francisco public utilities commission for temporary use of the shipyard's excess power supply. next slide, please. as background, the pier 70 shipyard has had a rich history of ship repair. the shipyard is a unique port property comprised of approximately 13 acres of land, 17 acres of water parcels, and 16 buildings. it is a capital intensive industrial facility, with care taking currently being performed by port staff. the shipyard features two large

floating dry docks, seven heavy lift marine cranes, and a vast assort of industrial equipment and tools. since 1972, the port held contracts with viable ship operators who assumed all responsibility for all capital and operating costs. ground leases were in place during this time until the last successful operator, publia, declared bankruptcy and ceased operations at the shipyard in 2017. due to that, the port entered into a benefits task agreement with orton, inc. funds are set aside as reserve for capital improvements to ensure sustainability of the

facility, and i'll cup on some of those capital improvements made thus far later in my presentation. next slide, please. the benefits task agreement was in effect from june 2017 through may 2019. during this time, port staff focused on marketing the shipyard as an available fully functional ship repair facility to over 300 similar operations throughout north america. also during that time, two port commission authorized r.f.p.s were issued, however, both nailed to return a viable shipyard operator. during that time, staff also worked through orton development to undertake two major capital improvements at the facility, one of those being an electrification upgrade project, removes p.c.b.

contaminants at the facility, and the other being the demolition of two red tag buildings. the demolition and removal of those buildings have kbeen beneficial to the facility but activating flexible lease space for interim use. next slide, please. two r.f.p.s were unsuccessful in returning a viable operator. staff did continue to seek sole source opportunities for industrial marine uses, and in early 2019, we received two proposals for operation of the shipyard. staff engaged b.a.e. urban economics, a third-party consultant, to review both proposals. in addition, port staff asked b.a.e. to provide an overview on west coast and national market opportunities for ship repair at the shipyard.

one of those was withdrawn, and the other was ultimately rejected. further, b.a.e.s analysis noted that the current conditions make it unlikely that a basis will be unable to operate in the shipyard without considerable federal subsidy requirements. so with regards to interim uses, as i mentioned, the benefits task agreement ended in may 2019, as which point, port staff assumed the care taking of the shipyard. from there, port staff immediately sought to secure interim tenants to offset the costs of essential operating expenses. on this slide, the picture

shows a cargo vessel moored at the dock in a labor agreement. these types of agreement occur when a vessel owner or operator request a ship docking for a certain period of time. these happen quite often and are good revenue for the port. in modifying essential operations such as security and utility, positive net revenues of 4 # $0,000 were achieved in fiscal years 19-20. the following two years, fiscal expenses exceeded revenues, and this was due to a higher use in securities and operating costs, as well as staff costs with a benefit task agreement which

then expired in may 2019. as far as some of our current tenants, that includes anderson enterprises, part of an automobile build industry. they stage vehicles at the shipyard facility for delivery to dealerships in san francisco. we have the deutsche group, which is a marine construction and dredging operator, currently working on a few port projects along the waterfront. a domestic vessel operator, and that was the image you saw on the previous slide. marine express, a harbor service operator, and we also have utilized the shipyard as overflow berthing and storage for fishermen during the crab season. other uses include storage at the facility, port storage at the facility, and office space for port staff.

next slide, please. moving onto the temporary power m.o.u. with the sfpuc, in march 2019, port staff was approached by the sfpuc power enterprise group and began discussions with temporarily sourcing a large portion of power, roughly 5 5.1 megawatts or 86.1% of the total power allocation. additionally, 12 megawatts have been supplied to the shipyard, we previously dedicated 5.5 of that 12 to the o.d.i. historic development in 2016, and that has left us with the 6.5 total megawatts of power. with the proposed m.o.u., it would be for a period of one to five years, with the sfpuc

paying a minimum $1.5 million for use. with the total power remaining, sfpuc would take roughly 85%, leaving roughly 14.6% behind. sfpuc has assured that that remaining 14% of the power supply is sufficient to supply current interim tenants and future uses. next slide, please. the proposed m.o.u. will allow sfpuc to provide power to the bullet projects shown to you under the city's interagency agreement with pier 70, all of which are beneficial to the port. next slide, please. so with regard to next steps, staff intends to complete the m.o.u. with the sfpuc and

return to the port commission to approve the action item, which will create another source of revenue to the facility. staff will take on selected pruning of the shipyard's vast inventory. when publia abruptly abandoned the facility in 2017, it left behind all of the inventory to include tools, rolling stock, and office equipment. the picture on this slide is a picture of building 105. as you can see, since the last day of operation, a lot of equipment has removed in place. staff will also explore opportunities and build alliances with state and local educational institutions to create job training and maritime education programs, so looking towards working with some of the local institutions in the area, with calstate maritime, etc. we will continue to consider maritime trust uses to explore a marine exploration vessel

builder, and other light industrial maritime operations. with that said, we have had interest from nontraditional uses for the dry docks. there's been interest in aquatics center in one of the dry docks, and we also have had interest in a high-end fashion show on the larger dry dock. with that said, port staff seeks comment, input, and guidance from the port commission regarding the strategic objectives and timing for creative repurposes for the shipyard premises and attributes, and we welcome any feedback from the port commission as we intend to return at a future port commission meeting with a more defined reuse plan for the shipyard premises. next slide, please. that concludes my presentation. thank you, and i'm available to answer any questions you may

have. >> thank you, andre. we will now open the phone lines to take public comment on 13-a. >> clerk: thank you, president brandon. at this time, we will open the queue for anyone on the phone who would like to make public comment on item 13-a. please dial star, three if you wish to make public comment. the system will let you know when your line is open. others will wait on mute until their line is open. comments will be limited to three minutes per person. the queue is now open. please dial star, three if you wish to make public comment. >> thank you, jennica. do we have anyone on the phone? >> clerk: president brandon,

at this time, there are no members of the public on the phone wishing to make public comment on this item. >> okay. with no callers on the phone, public comment is closed. commissioner woo ho? commissioner woo ho. >> yeah, i'm trying to -- yeah, i'm trying to unmute. sorry. thank you very much, andre, for the report. we obviously have gone through a long saga with this location and trying to find the uses. i think this latest recommendation, and the fact that we are going to get at least some revenue coming in from this m.o.u. is great. i am supportive. i know it's been a long journey, so it's not been easy, so i am supportive of the item.

thank you. >> thank you. >> thank you. commissioner gilman? >> same here. i'm supportive of the item and want to just also say it's great to see your innovation, you and your team working with the p.u.c. to bring in this kind of revenue for the shipyard, so congrats, you should feel good about it. >> thank you, commissioner gilman. >> vice president adams? >> first, i want to say congratulations, young man. i first remember when i gave your first presentation. you could barely get the words out of your mouth. that was a great presentation you made today, and i want you to know that director forbes, she kind of threw you out there, so great job. i know that commissioner gilman came on in the last year or so, but president bran don and commissioner woo ho no myself that this shipyard provided union jobs for many, many

years. like 14 different unions, pensions, great health and welfare, and created a lot of jobs for district 10. we had to come to the hard realization that we couldn't compete with the shipyards up in portland and up in alaska. they were doing it for a lot cheaper than what we could do for it because in san francisco, you have to pay union wages, and it costs to live in the bay area, and we have to change with the times. andre, congratulations. we had to do what we had to do. it just wasn't going to happen for us anymore, and now we're turning it into something that's really positive. it's kind of like a dinosaur. either you change with the times, or you become extinct. we're changing with the times. thank you for your ideas, and we're going to have some more revenue, and hopefully, we'll have some more ideas.

>> thank you, commissioner. i just wanted to let you know that we have kept the local trade unions apprised of where we are today. as i noted, in my comments about exploring job training, we had discussions to continue that connection that the shipyard has had with those local trades. additionally, it's important for us to maintain light maritime industrial use of the shipyard, and we hope to bring some of those local trades along. >> thank you, andre. thank you so much for the presentation, and i'm happy to hear that the shipyard does have a positive net revenue flow. and i think this is a great opportunity. just wondering. so -- so have we decided how long they are there, and what is the purpose of them being

there for that period, however along it is? >> i'm sorry, president brandon. i didn't catch the first part of your question. >> oh, i was saying when will it be decided how long they will be there, and then once that's decided, what are they doing within that period? >> is that in regards to the sfpuc m.o.u. ye? >> yes, yes. >> okay. rebecca? >> thank you, commissioners. excellent question. on this, i happen to be the lead on this discussion, along with jerry. so sfpuc has already nearly completed their completion of the bctv electrical line that runs along illinois street and

up to mission rock along the channel. they need to electrify that line, and then, they can provide power without our assistance. they think it will take a little bit less than a year, but they've been allowed to extend beyond one year, if they extend, there is an increase in the payment they are to pay to us. they expect one year, but they added two years just if anything goes awry in terms of the electrification of that line. and once that line is live, we'll get back to our allocated megawatt level that andre referenced earlier. >> okay. thank you. >> of course. >> thanks, rebecca. >> thank you. i look forward to you guys coming back with an action item.

>> thank you, president brandon. >> excellent. >> thank you. calm next item, please. >> that is item number 14, new business. >> commissioners, is there any new business? >> yes, commissioner -- president brandon. sorry. i just wanted to sort of resurface with the staff -- i know this has been brought up at previous meetings, but i would like to see where we stand with the next iteration of tenants on the waterfront that we want to see rental relief or forgiveness fore. we had looked at some of our community serving organizations, including the bay aquarium, building together, the folks who house

all the parade items for gay pride and trans year. i know that was something we said we would look at, and i hope we could get an update or informational at our next meeting. >> just to comment, we had planned that item in november, late november, december, also to give an update on tenant relief and speak to that category that we'd left open and planned to come back to you on. thank you for the reminder, and that was our intention. thank you. >> president brandon, this is to you being the chair. if, at our next meeting, we're going to have closed session, can we start a little early so we can have the full time to delve into things. starting at 2:00, and 3:15 comes really fast, so if we need more time, can we just start at 1:45 or 1:30 if we

have the time? just referring to you as the chair. >> certainly. i'm ask staff and see if we can't start a little earlier. thank you. >> thank you. >> is there any other new business? no? commissioners, can i have a motion to adjourn? >> motion to adjourn. >> so moved. >> second. >> can i have a roll call vote? [roll call] >> the meeting is adjourned at 6:19 p.m. >> thank you. >> thank you, everyone. >> thank you.

. >> mayor breed: good morning, everyone. i'm san francisco mayor, london breed, and i want to thank you for being with us today, to provide an update on covid and the election and halloween in san francisco. we have 12,320 cases of covid total since this crisis began. 37 hospitalizations, 147 people have sadly lost their lives.

san francisco has really stepped up its pace around its testing. we have been doing around 5,000 tests a day, which is absolutely incredible. right now our positivity rate is 0.89 and i know that so many san franciscans have been hearing the stories about how great san francisco has been doing in fighting the virus, but the fact is we're still in the midst of a pandemic. so today is just a reminder that not only are we doing well, we are starting to see a slight uptick in the number of hospitalizations, which puts us in a situation where things could possibly get worse than what they are. it's just a reminder. in places like france and

germany, they've had to make adjustments. france is in lockdown again. and germany, which has been a model in the rest of the world, is looking at restrictions. it's not just what is happening here in the united states, it's still challenging all over the world. it is just a reminder that we are in the midst of this pandemic. as a result of some changes that we've seen in the numbers, what we will have to do as a result is put a pause on some of our reopening efforts we have for next week. let me just say that san francisco is in a good place. we are in the yellow tier. as a result of being in the yellow tier, we made some very conservative choices around our reopening efforts. our reopening and the decisions that have been made focused on when we were in the orange tier

because we know that the more we open, the more people are moving around, the more possibility there could be of spread. and the last thing we want to do is go backwards or tell a business or a school or someplace that they can open and then tell them they have to close. so we are proceeding with caution and what that means is that some of the decisions we made will still move forward, the ones that are already in place and a few more, but others will need to take a pause until we see improvement in the numbers. what will remain closed, indoor pools, bowling alleys, locker rooms and showers at fitness centers. the capacity will stay at 25%. we initially talked about increasing capacity in restaurants from 25% indoors to

50% indoors. we unfortunately are going to need to put a pause on that, but we will leave 25% intact. non-essential offices will be able to open at 25%, which they've already done and we will keep it at that. so capacity staying at 25% includes restaurants or indoor worshiping places, churches, religious facilities, indoor museums, zoos, aquariums, movie theatres which continue without concessions unfortunately. what's coming -- some places that will still be able to reopen include indoor dining at museums at 25% capacity, expanding indoor film production and additionally live performances with up to six performers with a drive-in setting. i know these are nuanced and

complicated in some ways, but if you have any questions and you want to know how the policies relate to your particular industry, please visit the department of public health website. it not only provides a list of what is opening and what can and can't open, but also guidelines that will allow people to make a decision of what makes the most sense to move forward. remember, we are still in a pandemic. we are tired of covid-19, but covid-19 is not tired of us just because we are tired of it. so it is still here and present. we see it in the increased number of cases every day and in the number of people who are sadly hospitalized. and we definitely feel it when someone loses their life. it's important for us to keep that in mind.

what i'm so proud of is what i see in the streets of san francisco, people who are wearing their masks and social distancing, and those spraying their down tables to keep their visitors safe, it's because of you. it's because of your -- because you are following our public health experts and their guidelines. it's why san francisco is in the yellow tier in the first place. when you think about that, it's remarkab remarkable. we are the second-densest city in the country and we are still in the better place than most large, urban cities. we should be proud. but we also know there is still more work to do. we also know that tomorrow is halloween. halloween is my favorite time of year. there are those making plans.

i'm going to wear a costume, but i also know that i can't participate in any parties or large events or anything of that nature. so we know that this is also important to families. family families have children who want to trick-or-treat and people have parties and want to get together. what we've seen during holidays, sadly, is an uptick in the number of cases because people have chosen to come together. these parties and events and gatherings could become superspreaders. it takes one person to infect all people who attend a party. that's where we've seen numbers increase and in the past. i just want you to be mindful because even though this year will be a sacrifice, the sacrifice is worth it because it means that we can get our kids back in school sooner and we can

get our economy going faster. the more that we sacrifice now presents a better opportunity for us in the future. this is going to be a tough halloween, i know, but i know that we can do it and there are creative ways that you can participate in a number of programs. there is a virtual halloween contest that i'm going to be attending and it's supporting larkin street youth services and cindy lauper is performing and it's going to be online. there are so many creative ways in which you can celebrate. restaurants are still open. the shared spaces program and people's ability to dine outdoors social distancing from one another has been a huge success in our city, supporting our restaurants and small businesses, while continuing to follow the health guidelines to keep people safe is critical. so let's be creative, let's be safe. look on the department of public

health's website for some guidance for some things you can do with your children, with your families, with your communities. but more importantly, let's not take this as an opportunity to celebrate and to go out and to party because it could end up putting us in a worse situation than we are today. so the other thing i wanted to talk a little bit about also was election day. election day is on tuesday. and i want to thank all the voters who have already voted and who have encouraged those who have not cast their ballots yet to make sure that you vote. and we know that we're not sure what's going to happen with this election, but we want to encourage people to watch from home or with friends based on your groups of folks that you interact with on a regular basis in your families.

we know that people like to go out and a lot of the bars are closed still, but make sure that you keep that in mind, that we're still in the midst of this pandemic. we're not sure which way this election might go, but our city plans to be ready for any situation. ultimately, when you have large gatherings, when people come together for any reason, that puts us at risk. please keep that in mind on election day and operate under precaution and safety. i also want to talk a little bit about our schools. this has been at the top of so many people's mind. it's been not only frustrating, but very sad that so many children in this city are still not back in school. we've had over a hundred applications from private schools, and we're still having

some challenges with getting our public schools to a place where they are planning to open. dr. matthews and i and my office have been in close contact because we are here to help. we are here to help the unified school district and get schools open sooner rather than later. i'm so grateful they're willing to work with us. they've reached out to evaluate the various facilities to make sure that they meet public health guidelines. we're also looking at how we're going to implement the testing that they want to set up to ensure safety within their various locations. so we think that working closely with the school districts, using all the resources from the city that are at our disposal is going to support them and get us

moving our city a lot faster. we sadly see the achievement gap grow. even though there are some incredible fathers out there trying to do their part, we know that this burden of going to work and trying to socially distance and also take care of your kids while they're doing this distance learning is having a tremendous impact on mostly women in this city, which is further creating a challenge around inequities that continue to exist. there is so much at stake here and that we continue to do. i want folks over the weekend and on election day to keep that in mind. you might not want kids going to our schools right now, but think about them and their experiences. let's try to do our part, whether we have children or not, whether we have elderly parents or not, whether we lost our jobs

or businesses or not, because what we do by making sure we're wearing our mask and washing our hands and keeping our distance and avoiding large gatherings and parties and all the other things that we enjoy, what we're doing is we're setting our city up for a better future sooner rather than later. that's what this is all about. thank you all so much for your cooperation. we'll get it done. i know this weekend is nice, but again, please do everything you can to stay safe and follow our guidelines. with that, i want to introduce dr. grant colfax who will provide an update around the challenges that exist in the department of public health. again, if you have any questions about halloween, any questions about elections or election day, if you have any questions, please visit sfgov.org or the

department of health website. thank you so much and have a great day. with that, i want to introduce dr. grant colfax. >> good afternoon. i'm grant colfax, director of public health for the city and

county of san francisco. thank you, mayor breed, for your leadership during this pandemic. i want to reiterate mayor breed's thanks to the citizens, the community of san francisco, for everything you're doing to slow the spread of covid-19. you know, my office across the street here is right next to the polling center where people are going to vote right now. on my way over, i saw san franciscans exercising their right to vote and doing it in a safe way, wearing masks, social distancing, using good hygiene. thank you. today is not unexpected with regard to our pause in reopening. since we've been removed from the state watch list on september 1, we have had a consistent path of increased activities. we have employees returning to

offices at limited capacity. students returning to in-learning classrooms. indoor dining and playgrounds being used. this is, indeed, good news and this is progress. but, as our activity increased, we realized we new and expected an increase in the infection is likely. we have been and are prepared for this. overall, san francisco continues to do well, but we have seen an increase in case positivity. we want to pause on riskier activities because we do not want the virus to get ahead of us. because, as we have seen in

other countries around the world, when the virus gets on top of ahead, you can't catch up. and we, all of us together, have done a great job of not letting the virus get too far ahead. from the onset of this pandemic, we have closely monitored our local data. we have monitored the spread of the virus so we can slow the spread of the virus and sustain the progress we've made. san francisco, we have avoided massive surges and crushed two curves, the first one in the spring and the second one in the summer. and the data are once again, as i told you this summer, the data are telling us it is time to

pause. we are working to extend the time before we reopen the next phase of indoor activities. the reason for this is because in the last two weeks our case rate has gone from three per 100,000 of population to four. that's a 25% increase. that might not sound like a lot, but when this virus takes off, it takes off quickly, unless again we take efforts to slow the spread. in addition, our hospital numbers are increasing. they've increased in the last two weeks from 23 to 37. low numbers, the good news is our hospital capacity remains good to take care of people, but that rate of increase is concerning. as a result, we have a shift in our key local indicators in

keeping the healthcare system stable and managing the current rate of infection. that hospital rate of increase is in the red and our case rate has shifted at the local level from yellow to orange. we have also seen a 38% increase in cases in california and a 41% increase in cases in the united states over the past two weeks. until we understand the magnitude and the potential duration of increases, it makes sense for us to pause, to make sure we are mitigating the virus, so we can continue to move forward and not backwards. we remain in relatively good shape compared to other major cities. we still continue to have lower infection rates compared to

places like new york, philadelph philadelphia, denver, and los angeles. we continue to have the lowest death rate among major cities and the highest testing rate, as the mayor said, currently testing over 5,000 people a day. i am confident that working together we will again beat back the virus, as we have done two times before. but i wouldn't be me unless i reminded you, keep wearing those masks, so important, saving lives by wearing those masks, continue to physically distance, wash your hands, avoid large groups. the holidays are upon us and now is not the time to throw caution to the wind. let's be here next year when, hopefully, this pandemic will be behind us and we can get together with our loved ones, in

close contact, hugging, sharing food, giving toast, but we need to use caution this year. we got do this without the help and cooperation of all of you. so celebrate, but celebrate safely. virtual election parties, small outdoor gatherings limited to three households, and again, please wear those masks. thank you. >> this concludes today's press conference. thank you, mayor breed, and dr. colfax for your time.

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. >> madam secretary, will you please begin by calling the roll? >> clerk: yes. today is wednesday, october 23, 2020, and this is the regular meeting of the abatement appeals board. the first item is roll call. [roll call] >> clerk: okay. we have a quorum, and the next item is item b, the oath. will