>> chairman: good morning and welcome to the rules committee of the sanfrancisco board of supervisors. i'm aaron peskin, joined by raphael mandelman and

connie chan. our clerk is mr. victor young. mr. young, do you have any announcements? >> clerk: yes. due to the covid-19 health emergency, and to protect board members and the city, the committee room is closed. our members will be participating in this meeting remotely. the committee members will participate in the meeting to the same extent as if they were physically present. we are streaming the number across the stream, comments during public comment are available by calling 415-655-0001, and the meeting i.d. 1871554385, and then press ##. when connected, you will hearing the discussions, but you will be muted and in listening mode only.

when you're item of interest comes up, dial *3. the best practices are to call from a quiet location, speak clearly and slowly, and turn down your television or radio. you may submit public comment via e-mail at victor.young.org. that completes my announcement. >> chairman: thank you. could you please call the first item. >> clerk: first on the item 1 one (indiscernable) for the appointment of mary yee for the police commission for a period ending april 20th, 2022. >> chairman: thank you, mr. clerk. i believe we have now clarified the seat issue, and that was addressed by the clerk.

clerk and our council. and the offered motion is before us. i want to thank mr. yee for his willingness to serve, and he is available if we have any additional questions. if not, after public comment, i would like to make a motion to amendment the subject motion by removing the word "rejecting" in the title and in the move provision at line 13 and then send the matter forward. so with that, are there any comments from committee members? seeing none, anything, nominee yee, that you would like to add since last week? >> no. just it is great to see everybody here again. thank you very much, and i'm looking forward to serving on the board.

>> chairman: thank you. with that, why don't we open item number one up to public comment. >> members of the public who wish to provide public comment on this item should call 415-655-0001. the meeting i.d. 1871554385. then press ##. if you haven't already done so, please dial *3. the system prompt will indicate you have raised your hand. please wait until the system indicates you have been unmuted and you may begin your comment. mr. barretto, do we have any callers for public comment. >> mr. clerk, we have three callers and one in the cue. >> supervisors, the last time this item came before you,there was some amendments to be done and some confusion.

and so i called in today to see, like, what really happened. and i'm happy that whatever needed to be done was done. so, mr. yee, you have a big responsibility with the side of the population that hasn't been represented. we did have a chinese woman before, and she did a very, very good job, but they removed her. so i do, from time to time, call in for the regular meetings of the police commission. and what i see there is not good. and i know, mr. yee, you will do all in your power

to ratify that. we need good representation, more so now, when there is a lot of discrimination. and the paradox is that we are a force to be reckoned with. so i will support you, as i said before, one million percent. thank you very much. >> chairman: thank you. next speaker. >> mr. clerk, there are no more callers in the cue. >> chairman: comment is closed, and relative to the last speaker, not to engage in a dialogue, but there are floating seats on the police commission, but there was information in the committee packet that seemed to indicate, pursuant, that mr. yee was being appointed to a seat

formerly held by thomas mazuca, which required that the individual be a retired judge or a lawyer with trial experience. while mr. yee is certainly qualified to serve on the police commission, he did not have those qualifications. but that has since been clarified by the clerk and the attorney general and city as been dealt with in the subject motion. with that, i would like to make the aforementioned motion to remove the words "rejecting" at line 13, and in the title, and on that motion, mr. clerk, a roll call, please. >> clerk: on the motion to amendment, supervisor mandelman? >> aye. >> clerk: supervisor chan? >> aye. >> clerk: chair peskin? >> chairman: aye.

>> clerk: the motion to amendment is adopted without objection. >> chairman: before we send this to the full board with recommendation, i want to note for the record that as with the next three items, this could have been sent to the full board as a committee report for tomorrow's board meeting, but that request was not forthcoming in time from the mayor's office, so this will go to the full board of supervisors not tomorrow, but a week from tomorrow. with that, i would like to make a motion to move the motion as amended to the full board with recommendation. >> clerk: yes, on that motion, supervisor mandelman? aye. >> clerk: supervisor chan? >> aye. >> clerk: chair peskin? >> chairman: aye. >> clerk: the motion is recommended as amended without objection. >> chairman: thank you. can you please read items two through four together. >> clerk: yes.

item number two is a motion approving or rejecting the mayor's nomination for reappointment of chris foley to the committee for a four-year term ending december 31st, 2024. [inaudible] >> for a four-year term ending december 31st, 2024. item four is a motion approving the mayor's nomination for appointment of lutia lackawarner for a four-year term ending december 31st, 2024. >> chairman: thank you, mr. clerk. colleagues, first, these are all appointments, as the clerk said, to the historic preservation pursuant to a charter amendment, proposition "j," from 2008, that i authored. i want to thank mayor breed and her staff for

renominating two individuals who currently serve on the commission, as well as a new member for -- which is item number four, lutia, to the h.p.c. i want to thank chris foley and diane matsuta for their willingness to serve another term. with that, why don't we go to the nominees in the order that they appear on the agenda. mr. foley? >> thank you, supervisor peskin and thank you, rules committee. i just had a short kind of thing i wanted to mention. that is, i really enjoyed being on this preservation commission for basically three reasons: one, is what the commission is for, and that is not only the buildings, but actually the people. and i learned that from vice president lakuta.

thank you very much. i really enjoyed that, being around the buildings and the people of culture. and the ones i deputy know didn't knowabout way the racial equity commission. we actually work with them on issues. and i find those to be actually super interesting and things we need to work on. and lastly, legacy business. i think we need to work more on legacy business. we shouldn't just have legacy business legislation, but we should actually promote that from the standpoint of how do we build community and help these local businesses grow and thrive through covid and amazon and everything else. and i want to give my last pitch out to (indiscernable) because we have all of these great places in san francisco and people. the perfect amount is the bar house. we should have a bar code so people can click it and

see what these fabulous women did. so thank you very much, rules committee, for allowing me to speak today. >> chairman: thank you, mr. foley. i want to note for the record that mr. foley fills the seat that historic preservation professional, or a professional in a field of law use, community planning, or urban design. indeed, mr. foley does have very direct experience refurbishing a church that was vacant for 31 years, if my recollection is correct, and that was my first or second term in office, at least a decade and a half ago, so thank you for your work on that. and i also want to comment that, mr. foley, your form

700s are even longer than my own. with that, why don't we go on to ms. matsuda. >> thank you very much. good morning, supervisors. thank you for providing me with the opportunity to share information about why i would like to be considered for reappointment for the historic preservation commission. simply put: there is still a lot of things i would like to do over the next four years. my background and work experience are that of working with community, particularly communities where stories and life experiences are often not documented in mainstream documents, with documentaries and news articles. i had no ideas what words and concepts like historic preservation or landmark preservation are. but i knew that those aspects of history needed a place equal to that of the built-in environment, and to brought to life and

to be equal valued. that is what i've tried to do at the h.p.c., and would like to continue to emphasize. we have recently passed the racial and social equity initiative, which has allowed us do to, making key decisions a priority, and that is a priority. what it means in specific terms is that we can make it priority when we see there are certain areas of the city that have never been considered for landmark designation status. it means that we can make it a priority to pay more close attention to commercial corridors, where there have only been a few legacy businesses nominated. most importantly, it means we can expand our view of what historic preservation is to those who may not own a nice building, or who haven't had a famous architect design it. history and culture are not just for the few. it is something all of us should value and embrace.

i hope to create a more inclusive community, and feel we can do this with these tools in place. thank you for considering my reappointment. i'm happy to answer any questions that you may have. >> chairman: thank you, ms. matsuda, and i want to thank you and acknowledge your work with the planning department on the racial and social equity plan that i think will have, as you said, a meaningful impact. and you didn't toot your own horn, but i think the fact that you're the staff attorney for the asian legal outreach and have long roots in jay town and continue to be the director of special projects through the japanese and cultural community center of northern california are added benefits. i again want to thank you for your previous service, and we'll be delighted to support your next

four-year term. are there any questions for either of these two renominations, colleagues? seeing none, why don't we move on to ruchira nagaswan. >> good morning, supervisors. thank you so much for considering me as a nominee to the historic preservation commission. i'm a licensed architect with almost 25years of experience, and 20 of those have been in historic preservation, living in and working in san francisco. i am qualified under the secretary of the interior professional qualifications for historic architecture. i studied architecture at the university of notre dame and came to san francisco in 1996. i worked in preservation for eight years here, and then i worked in santa barbara, building new traditional buildings, and then i returned to san

francisco 13 years ago and continued in preservation. my breadth of experience included small buildings,residential and commercial and institutional campuses districts and landscape. i worked on iconic buildings, including the fairmount hotel, the asian art museum, and around the san francisco city hall when it was under seismic retrofit. i worked on kelly community in the tenderloin, the ruth williams bay view oprah house, and the lgbtq center on market street, which includes the oldest building on market street. i immigrated to the united states as a 5-year-old and lived in colorado. at the time when i immigrated, there were only 100 indian families in the whole state.

so i'm well aware of how it is to be a super diverse minority and also just the experience of being an immigrant. and from being an immigrant, i also traveled the world, thanks to my parents. and i saw a myriad of cultures and urban environments and rural environments, and it has really been part of who i am. and i want to bring that to the forefront and, like, work on the commission, and i want to bring the broader perspectives of that, as well as all of my breadth of experience. i feel like i can speak to a lot of different types of projects and be able to understand the challenges that those projects have within the city and for the sponsors. my goal is to actually learn a lot from my

honorable commissioners that have done so much in the community and look at what the needs are of the community and provide more of that encouragement. one of the things i'm intrigued with, as the commissioners are, is the racial and social equity resolution. i am inspired specifically by mural art and monuments in public spaces, and the ways in which oral histories can be brought into the context. and i really appreciate what commissioner foley said about q.r. codes. i think one of the most respective ways to bring history to people is having them speak. and it would be amazing to have these places that we could go and just do the q.r. code on your phone and hear the histories of what these people and how they influenced this

community. and san francisco is such a unique place, both for the social aspects, the diversity aspects, and our sense of responsibility to the community. and i really appreciate that planning commission, and the atc, who have brought that to the forefront in the past few years. with that, i thank you for listening. >> chairman: thank you. and the one thing you neglected to say is that, weirdly enough, probably a year after you got here, you and i met each other late at night at a kinko's downtown, which you reminded me of when i interviewed you last week. and as i said to you privately, when i authored proposition j-13 years ago, and set forth a seat requirement for an

architect meeting the standards for historic act architecture, i was thinking of somebody just like you. i'm delighted that you applied and that the mayor nominated you. and with that, colleagues, if there are no questions, why don't we open up items two through four to public comment. >> clerk: yes. members of the public who wish to provide public comment on these items should call 415-655-0001, i.d. 1871554385. then press ##. if you haven't already done so, please dial *3 to line up to speak. a system prompt will indicate you have raised your hand. please wait until the system indicates you have been unmuted and you may begin your public comments. mr. barretto, do you have any members of the public

for public comment at this time? >> mr. clerk, we have three listeners and no people in the cue. >> chairman: public comment is closed. commissioner chan? >> well, thank you chair peskin. i had the chance, you know, to talk to all three commission candidates, and i really was impressed with their expertise, but really, most importantly, it is about their perspective and their care for our community. it is -- i have a chance to observe historic commission meetings from time to time. it is always sometimes very challenging to watch, you know, that. how do you decide to preserve people's place and their marks in what is

considered as history that we want to recognize and highlight, but in the 21st century environment. i think that it is challenging and it takes people that actually have the perspective about our community, our history. and i think all three of them, mr. foley, ms. matsuda, and ms. nageswan, really have those expertise -- i said that last name wrong. my apology. i just want to express my support for them, and most importantly thank you. thank you for willing to commit yourself and recommitment yourself to this time in serving our city. thank you. >> chairman: vice chair mandelman? >> thank you, chair

peskin. these are great candidates, and i also want to thank the mayor for reappointing commissioner matsuda and commissioner foley. i think ms. nageswan is going to be a fantastic commissioner. i would be remiss if i did not note that the mayor chose not to reappoint, here in hyland, and the person in hyland was doing important work related to the lgbtq on the historic preservation commission. there are now two seats that were formerly held by lgbtq folks, where that representation will not be continuing. the mayor does have an opportunity with one remaining seat to don't the work that commissioner hyland in particular was doing, and i do think it is important that that aspect of representation be present on the historic

preservation commission. mr. foley referenced the racial and equity work being done, and mentioned lion martin house. i think that is important work. and i think it is important that it is someone who will play a leadership role that ensuring that the queer history of san francisco gets its due. >> chairman: thank you for those comments. supervisor mandelman, i know that you and i are both helping the mayor's office find that person with the required qualifications as set forth by the charter. and so i will is just publicly say that anybody who is interested and is qualified for that remaining seat should let that be known to

supervisor mandelman or the mayor's office. or the mayor's appointment staff. so thank you for reiterating something that this committee, if i may, is committed to as well. with that, i would like to make a motion to amendment all three motions in the same way as we did in item number one, to remove the word "rejecting" in the titles, at line three, and remove the word "rejects" at line 15, so that all of these are changed to approved. on those motions for all three files, mr. clerk, a roll call, please. >> clerk: yes. on that motion to amendment, supervisor mandelman? >> aye. >> clerk: supervisor chan? >> aye. >> clerk: chair peskin?

>> chairman: aye. >> clerk: the motion passes without objection. >> chairman: and then i would like to make a motion to send all three files, as amended, with recommendation as committee reports for hearing tomorrow at the full board of supervisors. on that motion, a roll call, please. >> clerk: on the motion to recommend as amended as committee reports, supervisor mandelman? >> aye. >> clerk: supervisor chan? >> aye. >> clerk: chair peskin? >> chairman: aye. >> clerk: the motion passes without objection. >> chairman: congratulations, and we will see all three of you tomorrow afternoon. >> thank you. >> chairman: next item, please, mr. clerk. >> clerk: next item is item five, hearing considering appointing two members' terms ending june 6, 2e immigrant rights commission.

>> chairman: thank you, mr. clerk. colleagues, as i did at the last meeting, given that one of my staff is an applicant for this non-paying position, out of an abundance of transparency, i think it is best that i, again, recuse myself from this matter. and with that, mr. clerk, does there need to be a motion to recuse me? >> clerk: yes, please. >> moved. >> mandelman. >> clerk: on the motion to excuse supervisor peskin from voting, on that motion, supervisor mandelman? >> aye. >> clerk: supervisor chan? >> aye. >> clerk: chair peskin is excused. >> thanks, everyone.

good-bye, chair peskin. all right. so we heard from applicants last week. at that point, i think supervisor chan and i felt that we would benefit from having an additional week to hear from community and from applicants. during that time, i believe that commissioner rodwan decided that he would pull his application back. and so we have, again, applicants before us. i think before we -- unless supervisor chan has any comments, i think we'll open this item up again to public comment on the commissioner appointments. >> supervisor chan does have something to say, so go ahead. >> i want to say it is very similar to what i

said last time around. we're so fortunate to have so many applicants that are, you know, interested in this, and willing to serve. we're very fortunate to have that, especially for a critical issue around immigrant rights, given what we have been through in the last four years with the trump administration, and some of the conversation around sanctuary cities. i want to express my gratitude to everyone that has expressed their interest, including commissioner ameral logan for his interest. and i think last, but not least, to also kind of just talk a little bit about our residency and waiver that is needed for some of the applicants for their seats. what i really find that in

the recent years, especially, many immigrants and working families really facing displacement in san francisco because of the high cost of living, i see they have worked here and lived here for a long, long time, that have to make the financial choice to leave the city, but are still committed to serve us as a city. so i just want to, again, thank them, even with the need of residency waiver, they are still expressing their commitment serving san francisco. i am always inclined to support those who have been living and working in san francisco for a long time but now require a residency waiver in order for them to continue to serve. so i just want to make sure that that is reflected publicly, and that that is my intent, to

support the candidates that may require residency waiver today. >> great. thank you, supervisor chan. let's open his item up to public comment. >> clerk: yes. members of the public who wish to provide public comment on this item should call 415-655-0001, i.d. 1871554385. then press ##. if you haven't already done so, please dial *3. a system prompt will indicate that you have raised your hand. please wait until the system indicates you have been unmuted and you may begin your comment. mr. barretto, do we have any members of the public to speak on this item? >> mr. clerk, we have two callers listening with one in the cue. >> chairman: great. i will add our speakers will have two minutes. state your first and last name clearly and speak

directly into the phone. if you have prepared a written statement, you're encouraged to send a copy to our clerk for inclusion in the file. mr. clerk, let's have our first caller. >> hello, everybody. this is john davidson. i want to speak in favor of three of the applicants. [inaudible] transgender immigrants have to deal with a lot more. and, of course, ryan, because he has been to restorative justice and is someone i have known for a while. also, i think, i wanted to devote most of my time to (indiscernable). yes, she has a democratic

party inside her, but she is not involved in the city hall machinations. she is somebody who stands up for community, whether it is helping farm workers, whether helping getting the census, whether it is helping small businesses -- she has done it all. and she is also an lgbtq person, and she is a female, and we need more women on commission. and she is also a san francisco resident and a immigrant herself. let's just say that we're going to really lose out if we don't appoint her and yet appoint someone based on their political connections. i really think you need to appoint her because her voice is necessary. thank you. i yield my time. >> chairman: thank you. mr. barretto, are there any additional callers? >> mr. clerk, that

completes the cue. >> chairman: great. public comment is now closed. as you have observed a couple of times, supervisor chan, we have too many good applicants for the seats that we have. i want to thank everyone. i want to thank the current commissioners for their service and applicants for their interests. it's a tough decision, but i do have some suggestions, which i will run through, and supervisor chan, we can talk about how this bounces to you. i will propose that for seat one we go with jesse ruiz navarro with a residency waiver. for seat two, jorego gime, for seat three, ryan

gussavea, and seat five, with a residency waiver. for seat nine, alanhe fani, and for seat ten, suza, and for seat 11, lucia masters. that is my thought of a way to move forward. supervisor chan, i can turn that into a motion if you would like, or you may have different or alternative thoughts? >> i wholeheartedly support that decision. thank you so much, vice chair mandelman, for walking us through that motion. i'm ready to vote for that. thank you. >> chairman: i will move that we forward those ap applicants for those seats

with the residency waivers required and please call the roll. >> with recommendation. >> chairman: we recommendation. >> clerk: yes. on the motion to recommend those following appointments -- excuse me -- supervisor mandelman? >> aye. >> clerk: supervisor chan? >> aye. >> clerk: chair peskin is excused. the motion passes with chair peskin being excused. >> all right. thank you very much, mr. clerk. do we have anymore items before us today? >> clerk: that completes the agenda for today. >> well, then, we are adjourned. >> thank you. >> thank you.

>> clerk: [roll call] >> clerk: item number two is approval of minutes from the february 9, 2021 port commission meeting. >> so moved. >> second. >> we have a motion and a second. please call for a roll call vote. [roll call]

>> motion passes unanimously. the minutes of the february 9, 2021 meeting have been adopted. >> clerk: that brings us to item number three, public comment on the executive session. >> thank you. we will open the phone lines to take public comment on executive session, so members of the public who are joining us, [inaudible] who would like to provide 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 executive session. please dial star, three if you wish to make public comment. the system will let you know when your line is open. the line is now open. please dial star, three if you

wish to make public comment. >> thank you, jennica. do we have anyone on the phone? >> operator: president brandon, at this time, there are no callers on the line wishing to make public comment. >> thank you. no callers on the line, public comment is closed. >> clerk: we do want to note for the record that commissioner gilman joined the meeting at 4:36 p.m., and site four is executive session. >> motion to go into executive session. >> so moved. >> second. >> second. >> we have a motion and a second. can i have a roll call vote. [roll call] >> i'm sorry. we need a roll call. [roll call]

>> i'll make a motion that we don't disclose anything and open session that we discussed in closed session. >> second. [roll call] >> motion passes unanimously. we're now in open session. >> that brings us to item number 6, the pledge of allegiance. >> i pledge of 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.

>> item number 7 is announcements. please be advised that a member of the public has up to three minutes to make pertinent comments on each agenda item unless they adopt a shorter period on any item. during the public comment period, the moderator will instruct dial-in participants to use a touchtone phone to cig mall their desire to talk. please dial in when the item you wish to comment on is announced. and please note that if you are watching this meeting on sfgov tv streaming on the internet, there is a short broadcasting delay so when the item you would like to comment on is announced, dial 1-415-655-0001 and enter access code 1875564298 #. please then mute the volume on your computer and listen to the meeting only through your

telephone, which is a live broadcast with no delay. when public comment on the item you want to comment on is announced, dial star 3 to raise your hand and then listen for an audio prompt which will signal when it is your turn to comment. and for meeting presenters and participants, please maouts your microphones and turn off your cameras when you are not friending. that ining wheres us to item number 8. publts comment on items not listed on the agenda. >> woe are will now open the phone line for items not listed on the agenda. members of the public who are joining us on the phone, jennifer will be our operator and will provide instructions now for anyone on the to enthat would like to provide public comment. >> operator: thank you. at this imtoo, we'll open the queue for anyone on the phone who would like to make public comment on items not listed on the agenda. please dial star 3 if you wish to make public comment. the system will let you know when your line is open. others will be on mute until

their line is open. comments limited the three minutes per person. the queue is now open. please dial star 3. >> thank you. do we have anyone on the phone? >> operator: president brandon, at this time, we do not have any caller on the line. >> thank you. public comment is closed. please call the next item. >> that would be item 9-a, the executive director's report. >> good afternoon, president brandon. commissioners, port staff, members of the public. i'm the port's executive director. this week actually marks the one-year anniversary of the city's mass mobilization efforts to confront the virus and commit resources to protect public health. just about a year ago, port staff first served as d.s.w.s

to the emergency operations center while others worked closely with federal, state, regional and industry partners to prepare for the arrival of the grand princess. it seems like longer than a year ago, to be honest with you. now a year later, the city is poised to administer 10,000 vaccines per day through high-volume sites at san francisco in the bayview as well as community-based sites in highly-impacted neighborhoods and through partnerships with safeway, c.v.s. and walgreens. unfortunately, vaccine supplies are extremely limited. so, while individuals may be eligible for a vaccination, there may not be doses immediately available. san francisco is ready to distribute the vaccines when they become available and hopefully supply will strengthen soon. given the limited supply, the state is prioritizing populations for vaccination based on their risk of

contracting and spreading the virus as well as their risk of serious illness, hospitalization and death. as we receive more vaccine and move forward through the phases t city's goal to distribute the vaccine as quickly, fairly and equitably as possible. as of february 16t city has received more than 263 doses and has administered 203 of those doses to san franciscans and surrounding bay residents including those over 65 years old. this is a vaccine usage rate of 78%. starting tomorrow, san francisco will move into phase 1-b tier one. people who work in the education and child care, emergency services, and food and agriculture sectors as defined by california's population priority plan will then be eligible to receive the vaccine. these sectors employ more than

115,000 people in addition to the approximately 210,000 health care workers and people over 65 currently eligible. we encourage everyone to get vaccinated when they can do so. i'll provide a report on economic recovery and equity update and get some key project updates as well. as you know, due to covid-19 public health emergency, the port of san francisco is suffering an unprecedented drop in revenues. economic activities from restaurants, cruise ships and parking have significantly dropped or in some cases stopped entirely and is not expected to recover until 2025 in terms of tourism and programs beyond. total port revenues have fallen to 50% of their prepandemic levels and we're projecting a loss of 50 million in the current fiscal year. as you know, we've trimmed our operating costs, reduced our

annual capital expenditures and drawn on some balance to weather the storm. but more turbulence is ahead. port staff is fine tune our revenue projections with the city's controllers office but we currently forecast a revenue loss of $33 million in fy-22 and $14 million in '23 for total losses of $47 million over the two-year budget window or a 21% reduction compared to precovid revenues. the general fund for the same period is predicted to be 4%. 21% is a lot for a small organization with a big mission. the commission has a budget of $112 million and staff of 239 f. te.s, 33% of whom are in the maintenance division and perform daily capital maintenance on the port's facility to ensure the ongoing operation of the port. the port's ability to weather this economic storm is really critical for the waterfront and the city overall because our economic recovery and

viabilities impacts others, protecting port assets and delivering on our mission is really critical. the port is home to many of the city's premier tourist test destinations. be ever the pandemic, the embarkader included 24 million visitors a year. this is why port staff has initiated an economic recovery initiative aimed at tried and true and innovative strategies to address the economic consequences of covid-19. this approach will be so the organization weathers the the storm and is really positioned for economic recovery. finance staff is currently working with each division to identify expenditure reductions and revenue enhancements for

fy-22 budget, that are easy to implement. they are then looking to temporary -- to help fund and resolve the temporary economic cliff that the pandemic caused. you will hear more about strategis to the seek other sources of revenue under the item 12-a today. under the legislative priorities item. we're going to need the commission's help to be successful with these the endeavors. following the budget, which was easy to implement concepts, port staff will then pivot to 10 months of inquiry, internally with port staff, looking at our organization to find ways in which we can further make reductions that we can afford to make that are good for our organizations and good for our people and good for the waterfront. commissioners, we're very eager to find and present strategies to stabilize the port's financial position and we'll

need your continued leadership, support and advocacy for a successful -- to successfully mitigate the revenue impacts of covid-19 on the port. and i'm very confident in our ability to tackle these extreme challenges working together. and i am excited to leave this effort and i'm very excited to work with katie on this who is, in fact, the economic recovery initiative czar. more to come for you march 23rd when you see our budget suspecttal. -- supplemental. you'll see strategis in that document and the low-hang or easy-to-implement budget reductions that staff is coming up with as we speak. to equity. the port's rate equity team continues their work to assess and prioritize racial equity action plan action items to implement in the 2021 calendar year. while we work to complete this process, the port rates equity team has focused on implementing actions from section 6 of the plan, creating an organizational culture of inclusion and belonging.

i would also like to report that the micro l.b.e. emergency hardship loan program has approved 10 loans to date with two more in underwriting now. 50% of those loans have been deployed to black-owned businesses. to celebrate black history month, the rates equity team developed new programming for staff that has been well-received and inspired great conversations and team building. the team has form add subcommittee to carry on the programming as we build a diversity calendar to capture milestones and celebrations across all backgrounds and cultures. planning for women's history month this march is under way. staff will hay light fwrim all racial backgrounds who have made history and those who are making history, bringing the past and present day efforts of our fearless women leaders to the forefront. we're continuing the keeping it real movie club where staff has been invited to watch a featured film about supreme court justice ruth bader ginsburg followed by a facilitated discussion. lastly, staff have decided to

repurpose our virtual coffee breaks for the month of march to engage one another on a personal level by sharing which women inspires them and why. now i'd like to give some project updates to the shoreline resiliency project. s the california oceans protection council or o.p.c., a division of the state natural resources agency, voted just this last tuesday to award the port $1.677 million in a grant from their coastal resiliency grant program to the port heron head park shoreline resilience project. our project was one of 15 projects that was selected to receive funds. the o.p.c. grant program distributes funds generated by proposition 68 bond initiative passed by voters in 2018. this was o.p.c.'s third round of funding focused on nature-based strategies and

they awarded just over $8 million to 15 projects. the.1.677 million awarded to the port is the largest amount awarded in this round and was one of two implementation projects. the herron head park shoreline resilience project consisted of two commonly integrated elements. shoreline stabilization and wetlands restoration. the project calls for a construction of a living shoreline comprised of a course sand and gravel beach with natural wood features. the shoreline stabilization elements will protect herron's head park from shoreline erosion which is causing substantial loss of wetland acreage each year and will enable some capacity to adapting to sea level rise by 2050. while we do not have all funds yet for the project, receiving this award is a big step in the right direction. to get to the $3.1 million we

need for the entire project and i want to thank carol bach for her tireless work and congratulations on receiving the grant. the squeak engineering week and i'd like to acknowledge our engineering division for their outstanding work. this has been featured on social media channels and will be ho*ting an a.m.a., ask me anything session, to port staff on friday. the engineering division does a great job serving port, port tenants, the public interest in its roles as protector of public safety and port property. they provide project and engineering design, facility inspection, contracting, code compliance review and permitting services for all port facilities and there are many types, peers, structures, cranes, utilitieses, public and private areas, public development, streets and walkways. they did $55 million of capital work last year, including some big projects like craneco park

and the back lands project and they are on track to complete $34 million of capital work in 2021. i'm proud of this team, the works they do for waterfront resiliency program as well and the work they have done on the fire. it's a great group of people. congratulationss to you and happy engineering week. lastly, aye like to conclude my report. i'd like to announce that min young was recently hired as the planning and environments division new assistant deputy director. ming will bring our dwaition wealth of experience and expertise with policy and work with regulators to help advance the port's promise and programs. she's been with the port since 2017, previously serving as a waterfront planner. prior to joining the port, ming was a planner with the city planning department and a coastal planner with bcdc. congratulations, ming. that concludes my director's report. thank you very much. >> thank you t elaine, for that report. we will now open the phone

lines to public comments on the executive director's report for members of the public who are joining us on the phone. jennifer will be our operator and will provide instructions now. >> operator: 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 the executive director's report. please dial star 3 if you wish to make public comment. the system will let you know when your line is open. others will wait on maouts until their line is open. comments will be limited to three minutes per person. the queue is now open. please dial star 3 if you wish to make public comment. >> thank you. do we have anyone on the phone? >> operator: president brandon, at this time there are no members of the public on the phone wishing to make public comments on this item. >> great. seeing no callers on the phone, public comment is closed. commissioner?

>> sorry. unmuting. sorry. thank you for the report, elaine. very informative and i also want to comment that i did read the minutes of the last meeting that i missed and i feel like i'm totally caught up so you caught me up further today. i have no further comment. thank you. >> thank you. commissioner gellman? >> thank you, director, for the report. it was thorough, as always. i did want to commend the port on the team building and socialization from an equity perspective around the black history months and now moving into international women's fruit. it's hard to do in this covid environment and the port has give and lot of thought to our equity officer and i want to comments you on the coffee chats and the movies.

great to see it is still happening in this virtual environment. >> thank you. vice president adams? >> director forbes, great report. a couple of thing stood out to me. one of them you said that we don't respect tourism -- we don't expect tourism to fully rebound 2340825. -- until 2025. that catches my attention and the loss to the port and i'm curious to hear later today when we talk about what we'll do as far as a reset financially and then i think my last question to director forbes is she mentioned we're moving into one [inaudible] and i want to thank the mayor. my question is, are there going to be any sites in the port or the cruise terminal where members from the community can get vaccinations? >> i'll answer that now. at this point, there are no port facilities that are providing vaccines.

but the city has max vaccination sites, three in particular in town, and there are numerous locations where one can get vaccinated and it is all on the city's websitement you . you can sign up and be aware of where you can go for vaccination. thank you. >> thank you. >> thank you so much for your report. i think it's absolutely phenomenal with the covid relief efforts that we've been able to participate in over this year. it's hard to the believe that it has been a year. but you and the staff have just done a phenomenal job. i also think it is absolutely wonderful that carol is able to get the $1.677 million for herron's head park. she is so wonderful and so dedicated to all the parks and in this time of our economic recovery and us needing all the funds that we can find, that is

especially wonderful. i was a comprehensive report. the social media has been -- everywhere i look, i see the port. whether it is black history month, whether it is engineering week or [inaudible], the phenomenal work that went on. so given all that we have been through over the past year, it's remarkable of what we've been able to accomplish under your leadership. so, thank you. >> call the next item, please. >> that would be item 10, the consent calendar. item 10-a, requests approval of the port's 10-year capital plan for fiscal years 2022 through 2031. that is resolution 21-09. >> could i have a motion? >> so moved. >> i second the motion. >> thank you.

now let's open it up for public comment. we will open the phone lines to take public comment on the consent calendar for members of the public who are joining us on the phone. jennifer will be our operator and will provide instructions now for anyone on the phone who would like to provide public comment. >> thank you, president brandon. at this time, we'll open the qwest for anyone on the phone who would like to make public comment on the consent calendar. please dial star 3 if you wish to make public comment. the system will let you know when your line is open. others will wait on maouts until their line is open. comments will be limited to three minutes per person. the queue is now open. please dial star 3 if you wish to make public comment. >> thank you, jennifer. do we have anyone on the phone? >> operator: president brandon, at this time, there are no callers on the line wishing to make public comment on this the item. >> thank you. see nothing callers on the

phone, public comment is closed. we have a motion and a second [inaudible] please have roll call vote. >> certainly. [roll call] commissioner gilman is on mute. [roll call] commissioner gilman? >> is she still on maouts? >> still on muy. i can't see her here. commissioner gilman, are you there? >> well, the motion passes. resolution number 21-09 is adopted and we will record

commissioner gilman's vote when she returns. call the next item, please. >> certainly. item 11-a, request authorization to enter into an exclusive negotiation agreement with san francisco waterfront partners iii l.l.c. for the lease and development of a project including commercial, retail, maritime and public access uses for piers 38 and 40 located among the embarcadero and this resolution 21-10. >> good afternoon, commissioners. thank you, kyle. president brandon and director forbes. the port's real estate and development division. i'm here seeking your authorization into enter into an e&a for piers 38 and 40 with san francisco waterfront partners three. -- iii. i'm joined today with rebecca benoccini and eileen chevay and simon snelgrove and wayne perry from san francisco waterfront partners team. all of us are available to respond to any questions at the end.

msnbc slide, please. this is a brief outline of the presentation. i will note a typo on number 4. you can see where i've drawn from for my slide deck. i will be providing an update of the pacific waterfront partners iii proposal, not strata proposal. apologies for the typo. we'll also be talking about the e&a terms we negotiationed and then next steps. next slide please, karl. i just wanted to again share with the commission and the public where we are in this long journey and process and how development projects make its way through approvals and titlements typically along the waterfront. this is a general scenario that shows where we're at high lighted in green, saekings your approval of the e. in. a. and move into negotiations on a term sheet, the project

description. during that time, we engage with the community regarding the project proposal and begin key regulatory outreach and that typically takes anywhere from 7 to 12 months. later in the presentation, i'll provide a more detailed schedule for the peers 38 and 40 project. we will get the board of supervisors to approve the fiscal feezability and begin to negotiate transaction documents such as the ldea and the lease, begin environmental review, other regulatory partners review with ongoing engagement to the community and that takes usually 18 to 24 months. we'll come back to the commission for approval of the transaction documents and then go to the board of supervisors for their approval. so, again, we're very early in the process. we have a lot of outreach to do with our partners, including

the community and our regulatory partners. i just wanted to give that overview of where we're at in the timeline. next slide, please. again, just wanted to share an overview of what the development offering is. it is piers 38 and pier 40, including 35,000 square feet of retail and office at pier 38 and the 95,000 square foot shed and then on pier 40, it is the 46,000 square foot shed with 20,000 square feet of parking and the water areas north of 40 and north of 38 and extending east of pier facilities. next slide, please. i wanted to show that this project aligns with five of the port's strategic plan goals, including productivity, stability, resilience, engagement and equity and i'll say this one of the reasons that pacific waterfront partners score sod high with

the scoring panel was their concept and how to achieve not only the goals of the waterfront plan and the values of the community, but how to bring equity to the project, which is an important part of their consideration. next slide, please. so, again, just wanted to talk a little bit about the background and how we arrived, where we're at today. we've been working off the port's strategic plan. following the work of the waterfront plan update and request for interest for the historic piers. piers 38 and 40 are part of the embarcadero rehabilitation program that will include can other piers coming down the pike for an r.f.p. and hoping through these projects we can help build the resilience of the waterfront and support the resilience program. next slide, please. that is brief timeline on the process that we've been under way for about the last year,

showing about the issue of the r.f.p. january 10, receiving proposals about a year ago on march 4. going through the technical review and panel review and presenting the two concepts to the commission in august, receiving your authorization to begin the e.n.a. negotiations with san francisco waterfront partners and now today seeking your approval of the e.n.a. next slide, please. >> i wanted to give you a brief overview of the proposed program for piers 38 and 40. in front of us is a site plan and land-use program. in green shows all of the public access areas, both on the pier 8s in the facilities and the new docs being proposed. the orange and pink areas are for commercial retail areas,

both restaurants and pop-up spaces, accommodating a range of offerings. the primary revenue generating source for the project is the gray. the teal is the supporting leaseholds that support the facilities and then the blue is a shared space for pier 40 te nanlses, existing tenants and workforce development training space. next slide, please. so this is a numbers overview and some illustrations of the concept of san francisco waterfront partners with a total program of around 247,000 square feet with a mix of office, retail and restaurant, some exterior pop-up retail and this doesn't include any of the maritime facilities. next slide, please. throughout the negotiating period, included in the

exclusive negotiating agreement, there are several responsibilities of both the port and the developer. i won't read through all of these. the primary role is to actively negotiate and help facilitate the community outreach while the developer is responsible for doing all of the things listed, including site due diligence, negotiating terms, renegotiating the port for the negotiating fee and transaction cost, establishing and performing at the schedule identified and completing the financing and land use forms on ceqa. next slide. during the negotiations for the last approximately 10 months, we've been negotiating three specific terms that were different from the form in the r.f.p. including aed dressing equity inclusion. extending to a term of two-year which is we think will take the

entitlement of the promise and the transfer. specifically as it relates to diversity, equity and inclusion. during the e.n.a., there are no l.b.e. requirements and recognizing this we wanted to establish some level of measures to address diversity equity inclusion and we'll be working with san francisco waterfront partners and the diversity team to establish metricks to work towards within the e.n.a. period. the term is two years with three six-month extensions which matchs the performance benchmarks and then lastly the transfer provision. one of the reasons we chose san francisco waterfront partners was because of their experience and skills. however, it is recognized they are likely to bring other investors in. port staff spent considerable time to carefully tailor provisions to meet the

developer's need to access capital while protecting the port. with that in mind, the port commission will need to approve investors that have a greater than 50% interest in the investment unless it is an institutional investor which would require the executive director's approval to executive director may request the commission to grant approval. under all these circumstance, san francisco waterfront partners must maintain operational day-to-day control in decision making and what we heard from the commission at the last meeting on piers 30-31, if a request for approval is ma i to the executive director for an investor of greater than 50% by an institutional investor and e.d. plans to approve the request, the executive director will notify the port commission and if approved also provide a notice to our northern advisory

committee. next slide, please. moving back to this project-specific schedule, we're looking at hopefully awarding the e. in. -- e. in. -- e.n.a. and beginning that today and completing by the fall of 2021 which allows us to begin the ceqa process later this year with a goal of securing all necessary approvals by mid 2023 and to begin construction in the fall of 2023. next slide, please. so, the next steps are should you approve the e.n.a., continue and the stakeholder outreach, begin the regulatory partner coordination. continue on with term sheet negotiations. and come back to the port commission and provide updates and seek guidance as required. with that, the port team and

san francisco waterfront partners are available for any questions. thank you. >> thank you, david. commissioners, motion? >> so moved. >> second. >> second. >> let's open the public comment for item 11-a for members of the public who are join us on the phone. jennifer will be our operator and will provide instructions now. for anyone on the phone who would like to provide public comment. >> thank you, president brandon. we will now open the queue for anyone on the phone who would like to make public comments on item 11-a. please dial star 3 if you wish to make public comment. the system will let you know when your line is open. others will be on mute until their line is open. comments will be limited to three minutes per person. the queue is now open. please dial star 3 if you wish to make public comments.

>> thank you, jennifer. do we have anyone on the phone? [beeping] >> operator: president brandon, there seems to be no callers on the line wishing to make public comment. i wanted to see if a hand would go up. but i don't think it is going to go back up. thanks. >> thank you. seeing no callers on the phone, public comment is closed. commissioner gilman? >> thank you, david, so much for this report. this is really exciting to see 38 and 40 moving forward. i have one question and two comments. the transfer terms are the same theoretically as we're moving forward with our other major projects like peers 30, 32. correct? >> yes. we align them together. >> great. so, then that adds to my other reflective comments. is one two years is quick and i love that.

s so hopefully maybe we can align everything else moving forward to make it as quick and fast as possible. not to exclude ceqa and public comments, but just the fact that they can start construction by 2023 is admirable and exciting. it just want to say that with a due diligence on environmental review and i hope also moving forward we can explore how to include the d.e.i. work that we talked about in this stage of the process. i'm impressed that you will be bringing that back to the commission. the approximately cants had a strong partnership and proposal when he came in for the r.f.p. for these peers. i think that is something that we should be incorporating during the e.n.a. process. so i just wanted to make those comments. i fully support the item. >> thank you, commissioner. >> thank you. commissioner?

>> yeah. i fully support this. i think we had it presented before when it first came up and commissioner gilman has add add few questions. i don't have anything to add at this time. >> thank you. vice president adam? >> i'm good, madame chair. thank you. >> wow. maybe we should have put this on consent calendar. [laughter] david, thank you so much for this presentation. and as you can tell, everybody's very excited to move this forward. just wondering the piece of it that is going to be included in the portion of it. so when will you come back with those matrix? >> maybe to be consistent with what we shared with you on piers 30, 32 in approximately six months. we might be able to do it sooner on this because we have

a few more things i want to touch on but i'm beginning to have conversations with stephanie tang and tiffany and tony to figure out how we can do it and do it right. i know simon and wayne are excited to begin to discuss it in more detail. so, i would think between four and six months, if director forbes is ok with that timing. >> ok. so, the e.n.a. period is one year? >> it's two years with three six-month extension options. >> ok. ok. got it. ok. that's fair. >> i think if there are no more questions that simon wanted to say a few words, too f that's ok. >> i was just going to ask if simon or wayne wanted to say a few words. so please, simon. >> thank you, madame president. thank you, commissioners.

we're delighted. i've been getting tweeted by people who wanted to speak but couldn't get through the line. so, mainly today, director forbes and commissioners and the [inaudible] [quacking] sorry. that's howard still trying to get in. it's such a pleasure to work with the team. it is firing on 16 cylinders right now and everyone from the team, mike martin and, of course, we'll -- [inaudible]. but seriously, it's great. we're very excited and particularly excited to

introduce your bill. i wanted to ask wayne if he would come on and say hello and you're probably sick of hearing me talk. so i'm going to go quiet now and ask wayne to say hello and thanks for the help. [please stand by] [please stand by]

hi. this is alex bash, and i worked at the port 20 years ago.

i want to say this can kind of be a world class center [inaudible] city covid testing site, and as you continue on, there's a long gap until you get into the sparking community pop up site within mission bay, which has many food trucks bringing many people together in a convivial, albeit safe atmosphere, during covid.

having entertainment, food trucks, and market stalls, whatever else might happen there would be another thing to [inaudible] so just want to say that, you know, i have stayed active in the northern waterfront serving on advisory committees for almost 20 years now, and i think this would be a wonderful development to the waterfront by a development team that has really proven itself in the outstanding job they did at piers 1 1/2, 3, and 5. i think one of the best things that we did at the port was to

select such an outstanding developer there and for the ferry building. so thank you for the opportunity to make these comments, and thank you, all, on the commission for your service. >> thank you, alex, for your comments, and it's hard to believe it's been 20 years. jennica, next caller, please. >> okay. opening the next line. >> hello, can you hear us? >> clerk: yes, we can. >> we can hear you. >> i can hear you. you can hear me? >> we can hear you. >> this is byron [inaudible],

recently retired from the port authority. thank you for the opportunity to speak on this project. i, with the years that i was on the port, had the opportunity to work with simon. i won't mention piers 1 1/2, 3, and 5, but i think it's comparable with what's being proposed at 340. i want to speak in the years after that project was completed, that specifically, simon and his waterfront team continued to partner with the port to get businesses on the waterfront. more importantly, i wanted to speak to the equity opportunities that this proposed proposal presents. there are a number of businesses in the bayview that

are food-oriented businesses where the operators are trying to grow those businesses, maybe don't have access to brick and mortar facilities, and in particular, the pier 40 plaza market is an opportunity to partner with those folks, looking forward, if you all approve this, to pacific waterfront partners and the team working closely with the bayview community, getting that kind of participation as a pier 40 development as well as training in the other restaurants and employment in the other restaurants and retail activities that will happen within the project. so i encourage you all to approve this e.n.a. and move forward with the development. thanks for letting me speak. >> thank you. next caller, please. >> clerk: president brandon, it seems that that's all of the

callers on the line for this comment. >> okay. thank you. again, public comment is now closed, and commissioners, unless you have any further comments, want to thank david and simon for this presentation, for bringing this project together. if it'll be anything like 1 1/2, 3, and 5, we'll have another state of the art facility on the waterfront, and it will be a wonderful addition to the waterfront. so with that, please, can we have a roll call vote? >> clerk: absolutely.

on resolution 21-10 -- [roll call] >> motion on the resolution 21-10 is adopted. call the next item, please. >> you're on mute, carl. >> clerk: thank you, michelle. president brandon, i was going to say, if it's okay, i would like to record commissioner gilman's vote for item 10, which was resolution 21-09. >> yes. >> clerk: okay.

# 11-b is an informational presentation regarding real estate and maritime portfolio management strategies and policies to address current and projected market conditions and support economic recovery. >> good afternoon, commissioners. mike martin. as you know, over the last, let's say six to eight months of 2020, we had an intensive set of dialogues with you really focused on tenant relief and retention. we, i think, worked with you on general ideas, refined those with you, and eventually received your approval and have moved on implementation, and

looking now to things we need to do to more efficiently administer the portfolio as we see it now to find new opportunities to fill vacancies and to otherwise sort of improve port revenues over time and hopefully reduce or operating costs so -- reduce our operating costs so that our budget can come back to what it needs to be to do all the things listed in our mission. i think we're going to report to you on implementing the repayment on the relief programs. i've been in a couple of calls already today about these implementation questions that come up over time, but really, i think it's sort of to be transparent with you about the strategic thoughts that we're having based on conversations that we're seeing, coming back later to you with more detail and hopefully seeking approval needed to move ahead on these strategies. so this is the first of a

series of items where we'll be in front of you and definitely interested in your strategic policies. with that, i'd like to hand it off to the new deputy director of real estate developments, rebecca bendicini.

so with that, i'll hand it off to rebecca to take it off from him. >> thank you so much, mike. good afternoon, president brandon and commissioners. could i have the next slide to get into the meet. so as i go through, i have about 15 slides to go through with you. i want to give you a bit of background, give you a scale of the work ahead mike was starting to allude you in terms of our portfolio management. we have a bit of market data that we want to share with you that our consultant helped provide and then look at the steps that we need to take to come out of this recession on the other side on stronger footing. this is the beginning of the conversation. there's more to come, and as director forbes alluded to, we have an economic recovery

group, and this conversation is going to be going on over the coming meetings. next slide, please. we're focused on strategic alignment elements focused on economic viability. we need to maintain our financial strength. it's a really important part of the strategic plan, and these elements we're going to talk about will support those strategies. next slide, please. as mike was alluding to, middle of 2020, many of the meetings were focused on maintaining tenant occupancies, maintaining them in their leaseholds, and preventing what we called unnecessary vacancies, so you'll see in the staff report as well as the slides here, these bullets are all the work having to do with the tenants

helping them through these difficult economic circumstances. the blue bullets were working through rent-based referrals, getting them through december, and getting them the referrals, the share spaced. we had the l.b.e., which was targeted to tenants and port contractors and working on any program with our tenants. we are very aware of those that have been able to function on outdoor dining and those that closed down when they needed to for shelter in place and different health orders. that's sort of the background. it's a whole cornucopia of items that we've been working on in terms of rent relief and just broadly tenant management. next slide. so a bit of an update on how we've been doing since we passed the number of programs since the end of 2020.

with regard to rent relief, we have had 72 tenants apply to date. we anticipate or we will be closing down the on-line applications come sunday. those tenants represent about 103 agreements. we've been reaching out for many months, trying to make sure that tenants are very aware of this program, and we know of tenants who have started the application and have not completed it, so we're expecting that number to go out, but we still don't have many tenants who have applied for that program that we believe are eligible. our civic impact tenants, we believe many who are eligible have applied.

[inaudible] >> so the staff report is -- it's actually not as long -- it's not too long, but it has a lot in it, and as you're thinking about what your comments might be and what you want to opine on, this table kind of summarizes what we're talking about today in terms of seeking your feedback, so the items that are grayed out are all of the policies that are underway that you have approved in some way and were implementing, so these items were underway and we're just in administration mode. the second grouping of items which are called staff authority, we just want to be transparent and make our public aware of these are the tools at our disposal with leases that

tenants aren't in compliance with. we'll talk about our delegated authority for settlement, which allows us to do settlement at staff level or settlement at the commission level where the commission will, on a one-off basis, look at a particular kind of situation and may decide to go forward with a settlement agreement? those are sort of existing authority? the next three are existing changes. this is an informational item that we want to talk about you with potential changes, and then once we're ready, we can come to you with a presentation about the port's determine. delegated authority relative to uncollectible balances. these are balances that the tenant is not going to pay and has left, and we do not believe they're collectible, and then, the last one is strategic leasing tactics, so this would be as we get more spaces and we

have more vacancies, what are your potential thinking we would like your delegating of authority to get these things to us. everything in this table, it's a nice little wrap of everything that's on the next slide. the next slide, as we think of this 161-tenant grouping that we're going to have to get to lease sometime, there are some tenants that don't reach back to us, some who don't attend to their leasehold very frequently, they might be subject to a potential bant onment assessment, and we'll be -- abandonment assessment, and we'll be looking in our database to see if we need to pursue a collection strategy. there may be tenants that

respond to us and have a dispute of the amounts that we're charging with them. there may be opportunities for us to enter settlement agreements. you're already starting to see some of those on your closed session calendars, so to the extend that there are settlements that are mutually beneficial to the court and the leaseholder, we have the authority to settle anything up to 25,000, and after that, we can go to the port commission for those items exceeding the threshold. they're a tool that we could apply to these 161 tenants. next slide, please. in the staff report, we noted that the mutual termination authority has been used a couple of times in the last year. it was adopted -- the policy was adopted in 2009. it allows staffing authority to

enter mutual terminations with tenants of rent up to $10,000. we are requesting we increase that. between 2009 and 2021, our rent parameter has increased somewhat. the office of parameter rent has gone up quite a bit more than that 50% differential, but we're suggesting about a $15,000 break point where staff would have the opportunity to enter mutual break rather than bringing it up to the port commission. as for uncollectible balances, we don't have a specific policy yet. what we have today is working with the controller's office and the city attorney and doing an analysis of the tenant's

assets. this is when the tenant abandons the property and is not able to enter into a settlement agreement with us. in that case, we need to determine whether or not we're going to pursue them through legal means in order to get that money back. there are some cases that we've looked at the tenant's assets, looked at the possibility of receiving that money, and with the controller and the county attorney, trying to go to court or determine if, even if going to court, if we're going to get that back. we may be returning with a policy for you to look at if we think that that would kind of ease that administrative burden, or, when we return, we think that we're going to continue the same procedure we've been using, which is just looking at each tenant, case-by-case basis, and bring it to the port commission, reports relative to these uncollectible balance write-offs. so that one, we don't have a

presentation as of yet, but we want to keep it on the table as we're looking on this very large accounts receivable ledger. the third one, this is about leasing tactics. this is to the extent determinations are that it's an uncollectible balance and leading to many separations, and we're going to have to start filling those vacancies, and we're going to want to start entering into leases as expeditious as we can while still being fair and transparent with the new tenants coming along and the old tenants that we have. so next slide, we'll start talking about the leasing tactics. next slide, please. so we worked with mason and k.m.a. for a very quick turnaround. they provided a market overview in order to shed some light on our 2019 parameter rent? is the port commission will remember i think we didn't do parameter rent reset in 2020. we've been identifying whether or not we want to do it this

year, so we had them look at kind of current market trends, and not only where the market is today, but what are the dynamics, which direction do we think it's going to go in the coming year, and then also, we asked them to review other commercial landlords in san francisco who are leasing or trying to lease today to identify what sorts of tools and tactics they are offering to tenants in order to get them to sign leases, and i'll talk a little bit about increased revenue context, but we're definitely -- that is an on going effort not only for our administration but for our leasing division. from a market overview, office and industrial are highlighted on this slide? the key thing is the drop in average rental rates isn't

quite as large as some people might have expected, but if you flip through and see even though there's only been a 7% or 8% drop in average rental rates, forecasting is that's going to get worse. we haven't seen the full brunt of the pandemic as of yet. industrial is interesting. it's actually holding okay. there seems to be spaces that are feeling. there's a little bit more demand that's industrial. of course with the on-line retail economy, and there is, there's some office tenants that are moving into the industrial market as they're just trying to reduce the amount that they put forward for rent, so there's a little bit more demand for industrial space. next slide, please. maritime retail restaurants and parking, these aren't tracked on a -- closely on a broker basis, so you don't get those

nice charts. these are more kind of assessments of the community, so just a couple of notes on the maritime review, which is still on going. interestingly, port of oakland profit loss has been a, you know, a relatively small, a 6% profit loss, and of other note, of course, we've been hit very hard on the cruise side, and oakland doesn't have that sort of -- that sort of a market. so we had a very large loss on cruise but generally are expecting some movement on the maritime side, but we're thinking that some of the what we're going to talk about in a moment can be geared towards keep those maritime tenants. on the retail side, really difficult retail side. many of our retail market, union and embarcadero squares, are seeing high vacancies.

very difficult retail market today. on the restaurant side, same thing. we have seen restaurants seeing unprecedentedly difficult times throughout the city. interestingly, mason properties have been successful in continuing to lease -- maven properties have been successful in continuing to lease, so that's one bright spot in the report. and on the parking side, exactly what you would imagine. just an absolute flip from daily parking revenue be a very large part of parking operators' revenue, to now monthly parking is their main

revenue stream, just a much better value than the daily parking. next slide, please. so on our leasing tactics, particularly in the parameter rent schedule that's adopted by the port commission each year, we not only set the rental rates on which staff can lease to any new tenant, so there are a number of new particular tacks that maven and their research brought forward as potential tactics we could adopt that would allow staff and the port to offer some incentives to new tenants as we're seeing a vacancy rate that we haven't seen in a number of years. so one is relately simple. it would expand build out time to the extent that the tenant needs a time to do a buildout. we would allow an appropriate amount of time, given how long permitting and planning and

construction can tend to take these days, just recognize that and make that a little bit longer. a second would be to offer a potential free month of rent to the extent that the tenant is signing on a multiple year lease. i think right now, it's one month per year, so we're discussing something longer and coming back with that. we're also discussing tiered rent. i think this is very common in leases that are being signed today. you would start at potentially a lower level beyond the current parameter and then go up over time. and then, the fourth bullet kind of allows it to be applied

to our [inaudible] and then extend the lease out so that we get them up to parameter by the end of the lease. the last item we wanted to mention is regard to our maritime tenants who are looking at potential lease renewals, we want to come back with a potential reduction with what we've affectionately called our rent tenants. they have berthing space, shutter leasing space, and office space. to the extent they have all three of those and are a maritime tenant, we would offer them a reduction in a portion of that lease. we don't have a specific proposal there, but it's been something we've been talking with maritime group and bringing a consultant in as well to look at similarly

situated ports after the bay area to see if there's this full office space is harder for tenants to pay and it's harder for them to be competitive with that office space as compared to a special tenant. next slide, please. just for your information, we're working, continuing to work with a consultant on five-year forecasts. we're also just asking them to do a market overview for different san francisco-based businesses that we can target as we get more vacancies. we're asking them look at a cup -- having them look at a couple of our spaces in detail. we're also looking at our typical restaurant r.f.p.s that we've done in the past to make us ready in case we need to do an r.f.p. in the coming years or month as to whether we need to restructure that r.f.p. to make it more successful, and

they're marketing a template for us to makeup a nice marketing and leasing flier. next slide, please. and the last item i wanted to mention that we're looking at that we're able to do at the staff level is examining whether or not we can provide more of an incentive to tenants who may be shrinking their footprint, to sublease that space, currently, we get every dollar that they sublease fore that's above their rental rate. we're currently looking at a split to incentivize and then we would share the excess revenues in some wa up to 50/50. i think we would look at other

splits. as well. i think that's the last step. i'd love to get your comments today. i'm sure there are so many. there's a lot of information, and for the items that we are seeking your approval for, we'd be doing back that in the next meeting or two, and then we'd come back before the summer with a presentation how the market is responding to our tools, how the tenants are responding to it. that's my presentation. i appreciate everyone's input.

>> thank you. now, let's open it up for public comment. for members of the public who are joining us on the phone, jennica will be our operator and will provide instructions now for anyone on the phone who would like to provide public comment. >> operator: 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-b. 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. do we have any people on the phone? >> operator: yes, president brandon, we do have two callers on the line. >> [inaudible].

>> operator: okay. opening the line now. >> this is randall scott, fisherman's wharf community benefit district. i just want to thank the port for all their on going efforts to -- this is kind and supportive of the port tenants and driving as much, you know, economic activity as i can, you know, toward them so they can, you know, stay afloat at least in the fisherman's wharf area going should those tenants take advantage of those opportunities, so thank you very much for that investment because we do see it as an investment in the tenants and the wharf itself. the community benefit district as a whole, although we did -- the portside did not renew, they had significant interest, and we'll be rolling out our

afill@program for those businesses that want to go forward with our services, to include -- we'll be investing heavily in marketing to the wharf area and using aye conic wolf brand to hopefully pull in more investments in the wharf before 2025. thank you for working with the port, and we look forward to working with port staff and moving the wharf, you know, faster and better than it was before, so thank you. >> thank you for your comments. [inaudible] are there any other comments? >> operator: yes, we have one more comment on the line. >> please open the line. >> operator: thank you. the line is open now. >> good afternoon, president brandon, vice president adams, commissioners. this is pete sidnick, managing bar at water bar and epic

steak, two businesses on the waterfront, and i also want to express my gratitude and thanks to the port and the port staff for their concern over the economic recovery for tenants on the waterfront. i do want to point out a couple of different programs that i think really need to be taken a look at. one would be the percentage rent program, that would need to be extended over this year, 2021. we're going to face a really tough uphill battle in bringing economic recovery to san francisco and the waterfront as has really been proving out in

the last few weeks with the investments that need to do outdoor dining just in february has proven to be really challenging. the second would be the payback schedule on deferred rent, i believe, really needs to have an extended payback period because you're looking at some times right now that cash is so scarce, to be able to payback a deferred obligation is going to be challenging, and just to stay current on rent obligations is going to be a challenge, as well. the third one would be the shared spaces program, and again, very thankful for the lead that the port has taken, along with partnering with ccdc

to get additional restaurant space and outdoor seating. i think this is a program that's absolutely critical that needs to stay in place. if we're really truly going to be partners, rather than landlords and tenants, these are the types of programs that in order to drive revenue are absolutely essential, and it's going to take a concerted effort on all parties in order to get us back to a position of sustained economic recovery. so thank you, and i appreciate you letting me speak. >> clerk: oh, you're on mute, president brandon. >> sorry. thank you, pete. jennica, are there any other callers on the line? >> operator: press brandon,

there are no more callers on the line. >> thank you, jennica. with that, public comment is closed. commissioner [inaudible]? >> yes, thank you, rebecca, for that detailed presentation -- oh, somebody's phone. i think the world going forward is not going to be the same as the world before, so it's not getting back to normalcy. i think we have to reimagine how the port is going to be used by tenants in the few tour, and that could be by different tenants or a different mix of tenants in the

future. [inaudible] in sort of that strategy at a very high level, but that did create economic vibrancy by mayor ed lee, and etc., so now, we have a different set of challenges during the pandemic and also our social issues with the city that were even existing prepandemic, so i think there's got to be different thinks at city hall and other community leaders as to how we imagine this city is going to get back on its feet and how will space like ours be used in that economic recovery. i think we have designed a very good toolkit, and that's exactly it. it's a toolkit, it's tactics, but it needs something to connect to to make it work, and i think we're still missing a piece that we can't do by

ourselves, and i think we need to connect to the bigger picture of how it's going to be used. yes, it's possibly -- you know, our programs may not extend as much as they need to. we've had a number of, i guess, ups and downs and waves that have delayed things, so we may have rethink some of those parameters. and we don't know, except there's a little bit more hope this time, as we get through a period of vaccines and people -- and we're pretty good in the bay area in terms of observing all the safety protocols, that maybe this thing will be, by the end of the year, in a much better

place. we were at a 200,000, and now we're down to less than 50,000 a day, so we're making progress in that regard. but i do think that as our tenants, if they can only see right now the first couple of quarters ahead of them, it's still very tough. 2021 is going to be a very difficult year. but hopefully in 2022 and beyond, things could get back on a track. so what i would like to suggest is, in all your toolkits and tactics, and this refers to a lot of deferred part of the program, that we have designs and triggers, so that if things do get better for them, better than we expect, that we can then step up a little bit of what they can do to help us because we do have so many needs at the port. you look at the capital planning budget, it's still a huge challenge for us to be

able to do what we need to do to keep this port fiscally sustainable, and even our longer term issues with the seawall and sea-level rise etc. i hope that we can sort of figure out how to design triggers that sort of initiate the deferment. we have to figure out how to recover as a port, as well, with all of our needs, so we need to figure out a longer-term design as well as help people get through this very short-term period paying. and the usually way of doing this is not going to work. it's going to take a lot of reimagination of how the space

is used. could be used differently than it has been in the past, and so we have some exciting r.f.p.s, and people that are going to do some things in some of the bigger spaces. but as tenants, i think we need to rethink that, so i'm just asking to connect the dots with the overall strategic plans [inaudible] if we can't get the city back, and right now, the projection's not very positive. we have people leaving the city, and people working from home is going to change our way of life. we have to think about what's going to build this economic recovery, and i don't have the answers. i'm just asking the questions, and we need to get down to how this actually gets down to the execution of policies, procedures, tools, and

tactics. that's my reaction. i appreciate all of the efforts and the presentation; that we are trying to work in parallel with our tenants, but we are not the ultimate partner that can also just take the loss and write it off forever, so i hope we can take this and do something creative in the long-term. i will yield at this point. >> thank you. >> thank you, commissioner woo-ho. commissioner gilman? >> thank you, rebecca, for the report, and i echo many of commissioner woo-ho's statement. she was right on point on so many things. i just have one question, and this is just more idle cure i don't sayity -- curiousity. when you spoke about the 161

tenants that owe back rent -- >> and it wasn't back rent, it was that they rent about $267 million per year, but the back rent is bigger. >> i'm sure it's not proportional, but that's about $47,000 per year per tenant, if you were to divide it in, but was this really small leases because this seemed like a really small amount to me. it struck me with a large group of people to represent such a small number. >> you've got it right. it's a lot of small tenants, and just to remember, this excludes the tenants who've applied for forgiveness. they've neither paid rent nor come forward and said please

forgive my rent going back to march. you're right. it's a relatively small number. >> okay. so i guess i'm -- i guess i'm -- i guess there's no reason why we couldn't do this from a legal perspective. i think when we collect data points from a tenant, that should feed into our decision making as a commissioner. i want to use the most limited definition for a small business. i would think the city has a more narrow definition, but i'm trying to identify the city's mom-and-pop small businesses.

if they're a majority, minority owned or p.o.c. led or owned business organizations, i think these demographics are important when we're looking at the overall portfolio. i wouldn't want to see us end up, in 2024, when the economy is coming back or we're in more full recovery, seeing that the tenants who are able to weather this downturn in the economy and the pandemic were only our larger tenants, our tenants who had more equity partners, or our tenants who did not represent the fabric of san francisco from an equity perspective. so i think these things are important when we're looking at these policies to make sure they're fair and equitable because there are individuals who run businesses who might be brilliant at running their businesses or doing whatever they're doing to be a tenant of

the port and the office, it could be a defined interest, who may not have the sophistication. it is still sometimes, for some folks tricky, burdensome, hard for folks to contract with a city or governmental entity. so for me, moving forward, i would, whether we're in negotiations on, you know, shrinking space, reducing lease payments, if we're coming up with more deferral programs, i'd like to understand who's taking advantage of those programs so we have a snapshot of who those folks are. there's a difference between a coffee stand on the pier and, with all due respect, boudin's.

so i'm just hoping we can collect that data moving forward. i think you've given so much thought to this. we're a leader. the airport took our lead on our sort of deferral program, so i really appreciate everything that the staff is doing for us and our tenants to help weather the storm, but i think this information is important. >> thank you, commissioner. we have been thinking about how to collect data, and we have sort of our typical annual process that we go through, and we're looking to analyze and add additional data to that. we're working with the city attorney to figure out how to ask the question the right way to get the information that we need. >> thank you so much. and then, particularly on the small business front, because so much more is becoming

available to small businesses, under 20 employees with sort of net profit and gross receipts, i just think we can help facilitate them, seeking in the right direction, what they're looking for. >> thank you. >> thank you. vice president adams? >> right now, i have no questions. rebecca gave a comprehensive report. i'm going to be following up with her and ask a lot of questions. that was deep. that was just so thorough. i've never heard a report like that. thank you. >> please do. i welcome -- we're all getting so much information, and i want you guys to have what you need, so please reach out to executive director forbes and me. thanks. >> thank you, rebecca.

[please stand by]

>> clerk: at this time we'll open up the queue for anyone to make comment on item 12a. dial star, 3, 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. dial star 3 to make public comment. >> thank you. we have any callers on the line? >> clerk: president brandon, at this time there's no one on the

phone for public comment. >> thank you. seeing no callers on the phone, public comment is closed. >> and thank you for your presentation and they're so informative and how you present them, i could sit here all day and listen to them. so thank you so much, it's like you're a radio announcer. i have no questions. the one thing that i wanted to track with you, that we should track at the state level is a couple things. one is sb5 is moving through. that's going to be a state-wide housing bond. they're looking at between $8 billion and $10 billion, excuse me. so i think that since we the resiliency was kicked in the last cycle due to the school bond, we should talk to the bay area delegation about. i believe that senator wiener is in discussions with the pro tem

on the size of that bond so i wanted to call that to your attention and say that whatever ways that us on the commission, you know, at the state level or others can be of assistance, feel free to reach out, many of us in a variety of other roles are in contacted with them. you're tracking the right things and hopefully there will be a package in d.c. when we move forward that will be in alignment with president biden's goals, particularly around climate change and sea level rise to get needed funds to us. and whatever we can keep doing also to remind the public that unlike the airport and the m.t.a., we have not received care or stimulus dollars. i think that is important and we know that the public doesn't understand why we're not doing better financially. an excellent report. thank you. >> thank you. we'll track sb-5. >> thank you.

commissioner? >> you're on mute, commissioner. >> all right, i was going on and on. thank you for this excellent report. very thorough and complete and as we have started to ask for this report i guess over the years, and with the commissioner brandon and vice president adams, and also making trips to washington, i know that this has taken a higher priority and we have gotten more visibility and i echo the comments for the delivery was also excellent. all of the reports today have been amazingly great from the staff. i appreciate that. and i think that the fact that you all stepped in and you made speaker pelosi aware that we were not getting our share of the cars act is excellent. because actually we are less

resourceful. and so it's great to make sure that we're part of the infrastructure, such an important part of the infrastructure, not just for the city but for the west coast, for the country, that the portion be considered in any of the bills allocating the important strategic funds. and so i compliment and hats off to you to keep fighting the battle. this is probably one of the more encouraging reports today in terms of what you are doing. and the fact that, you know, we have some hope here to be able to sort of look for some funding that will enable us as well as hopefully to sustain the port and as much as possible to also help our partners and tenants as well. so i'm going to encouraged by

the progress. i think that this was handed off to you and you have stepped into big shoes and done it well for us. thank you. >> thank you. >> thank you, vice president adams. >> a great report. we've got to go to work and i appreciate you doing what you've got to do. we have to take advantage of this opportunity. a few thoughts. it's good to know that we have an adult in the white house now. and we have a president that is 78 years old and he knows that he's got maybe four years and he's probably going to be one term so he's got to get stuff done. so we have to push our agenda. we've got to be engaged and we need to be on fire. i'll just give you an example. look at what happened down in texas. he didn't play any games and he went down there and gave them some money to help the people down in texas. he's an adult. and he was supporting. so that shows you what that

president cares. i'm really concerned about the cruise industry because this is hitting us very hard, even with the port, and seattle, and alaska and san diego. a lot of the senators don't want to give money to the cruise ships because they don't pay any taxes. and post of them are registered and they have taken a lot of cruiseses in the bahamas or other places. so i had several heads of cruise ships call me and say, hey, can we get some support but they don't pay. so i don't know how we do that but we definitely need our cruise industry, especially when we're talking about a recovery here in san francisco of 2025. this is long overdue that we have not gone out and tried to get some of this money.

and we have supports. so we need as many resources as we can. and he basically said that he'll do what he will do and he's stuck on the $15 an hour, and i think we're doing it here in san francisco. so you can count me in to do any lobbying and make calls. i have a good relationship with the speaker reardon and of course speaker pelosi. and vice president harris. we know them, that family. i know the senator very well. and let's push our agenda forward.

>> thank you, board. thank you so much for a wonderful detailed, competent report. something for us to actually look forward to. and it's so wonderful that you are bringing to life all of these various federal and state bills in formation and as my fellow commissioners have said we are here and here at the local, state, and federal level, however you need it, to bring money to the port and our tenants. so thank you so much for this presentation. >> thank you. >> president brandon, may i ask one thing of the board. probably the most politically savvy person is not here today, commissioner burton, who was the chair of the party and everybody

knows john burton. so let's give commissioner burton and maybe president brandon to put him to work. so let's use john burton and thank him to open up some doors and make calls that maybe the rest of us can't make. thank you. >> thank you. >> thank you, board. >> thank you, commissioners. >> call item next please. >> clerk: item 13 is new business. >> i am coming back in no less than six months on piers38 and 40 to review the diversity and equity and inclusion program. any other new business? >> any other new business? if not, commissioner gilman, a motion to adjourn. >> yes, president brandon. but before i make the motion to adjourn i hope that we can adjourn our meeting today in memory of lawrence getti, the

first poet laureate of san francisco who came here in 1951, and in 1953 opened up with two other owners city light bookstore. he's been an icon of san francisco and at the ripe age of 101, he passed monday evening. he was particularly to the neighborhood that i love and call home on the northeast side of the waterfront north beach. and folks are gathering socially distanced and wearing masks and leaving memorabilia at the city light bookstore. so i hope that we could close in his memory. survived by his daughter and son, lorenzo, so i hope that we could do that. >> is that a motion? >> a motion to adjourn in his memory. >> second. >> can we have a roll caught vote. >> clerk: [roll call vote]

>> great, the meeting is adjourned at 5:24 p.m. >> thank you. >> have a wonderful evening.