>> clerk: commission for tuesday, april 13, 2021. president kimberly brandon called the meeting to order at 2:00 p.m. item 1 is roll call. [roll call] >> clerk: item number 2 is approval of minutes for the march 23, 2021 port commission

meeting. >> so moved. >> so moved. >> second. >> second. >> thank you. we have a motion and a second. can we please have a roll call vote? >> clerk: absolutely. [roll call] >> the motion passes unanimously. the minutes of the march 23, 2021 meeting are adopted. >> clerk: item 3 is public comment on executive session. >> we will now open the phone lines on public comment for executive session. for members of the public, jennica will be our 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 executive session. 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 comment line is now open. please dial star, three if you wish to make public comment. >> thank you, jennica. is there anyone on the phone? >> president brandon, there are no one on the line wishing to make public comment. [inaudible]. >> clerk: item 4 is executive session. >> so moved. >> second. >> we have a motion and a second. roll call vote, please. >> clerk: yes. [roll call] >> the motion passes

>> make a motion that rereconvene in open session and not discuss anything we discussed in closed session. >> is there a second? >> commissioner: second. >> thank you. we have a motion and a second. can we please have a roll call vote. >> clerk: [roll call] >> item number 6 is the pledge of allegiance. i pledge allegiance to the flag of the united states of america. and to the republic for which it stands, one nation, under god, indivisible with liberty

and justice for all. >> clerk: item number 7 is announcements. please be advised to make public comment on each agenda item. please note that during the public comment period, our moderator jenicka will instruct all participants to use the touch pad. and note if you're watching this on sfgov tv streaming on the internet, there's a short broadcasting delay. so when the item you'd like to comment on dial 1 (415) 655-0001 and then enter access code 187 571 6057 pound.

and mute the volume on your computer and device and listen only through your telephone which is a live broadcast with no delay. and then when public comment on the item is announced, dial star 3 to raise your hand and listen for an audio prompt to listen when it's your turn to comment. and please mute your microphones and turn off your cameras when you are not presenting. that brings us to item number 8, public comment on items not listed on the agenda. >> thank you. we will open the phone lines now to take public comment on items not listed on the agenda for members of the public for 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. at this time, we will 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 xhenlt.

the system will let you know when your 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. >> president brandon: thank you. do we have anyone on the phone? >> yes, president brandon, we have one caller on the line at this time. >> president brandon: thank you. please open that line. >> thank you. opening that line now. >> good afternoon, port commissioners. my name is allison madden, i'm an attorney and i'm calling with a request to put something on your radar so to speak. i was so excited i called yesterday. so i was glad i had the opportunity to call back. and what i would like to make known is something that i have been circulating to the port of oakland. i spoke to the meeting last

thursday and the port attorney spoke to me and i've also been reaching out to our senator who is senator becker who is new and will be speaking with the assembly member. i have a desire to speak to the port commissions and port department as well as the senator and assembly member from each county that has a port and the reason why i'm asking for a clarification to the public resources code and it's something that affects each of the ports in california. there was a recent legal decision at the first district court of appeal and it's not published, but it's definitely still very much these unpublished opinions, they are found and they have influence and weight when similar situations come back up and it has to do with a section of the public resources code that addresses, it's kind of

fundamental and definitional and it addresses basic principals of agency and fiduciary laws being able to create independent ports. so it's a very small public resources code section. we think that the decision was not correct and it has sweeping impact across the state. i also had reached out to assembly member ontoe and he's now the state attorney general. and we followed up and in, in general, i'm having a positive reception to looking at the issue and that's what i'm asking the port commissioners to be aware of and the port counsel to perhaps reach out and i would send the same information which is the decision, of course, and some background on the case that was

decided and what we'd like to do is ask our legislators and the attorney general to report a clarification to the public resources code and p.r.c.6009.1 c-13 that it has basically fundamental application in terms of basic agency law and that it is not intended to be pre-emptive of county and city charters. it creates an independent port and i'm aware that san francisco has a little special situation and that there's also statutory authority that applies to the formation and creation of the port, but this would still be of impact i believe to the san francisco port as well as the san mateo county harbor district. >> clerk: thank you for that. >> okay. >> president brandon: thank you. can you please have someone

reach out to ms. madden. >> clerk: absolutely. i'll do that. >> president brandon: thank you. >> at this time, there no other callers on the line for public comment on this item. >> president brandon: thank you. seeing more call no callers on the phone, public comment is closed. please call the next item. >> clerk: that would be line 9. executive report. >> good afternoon. i'm elaine forbes, the executive director of the port of san francisco. in my report, i'll provide an update on economic recovery. to economic recovery, last week, mayor breed announced plans for the return of indoor live ticketed events signalling our ongoing success in a year-old struggling against the virus. we expect to see new guidelines

issued later this week with important updates to what kinds of events may resume with capacity limits and other safety protocols. additionally, the state recently changed guidelines for private events which may also be reflected in up coming changes. these changes are critically important to the port as it will allow for more elements of the city's tourism and hospitality sector to resume. these sectors are critical to port revenue streams. a key criterion for the resumption for indoor events will be stable or declining rates of new covid cases and hospitalizations. the public health officials will continue to monitor san francisco's health indicators and the city will need to pause or roll-back activities if data suggests that covid-19 is increasing within our community again. right now, the news is good. san francisco's new covid cases and hospitalizations remain

low. also, over 50% of san franciscans have received their first dose of vaccine as have over 80% of city residents over 65. starting today, anyone over the age of 16 can be vaccinated although supply will remain a challenge, the city continues to remain a significant though this is a lot of good news, the pandemic is not over and we can continue to make progress only by maintaining vigilance and adhering to public health guidance. continue wearing masks, hand washing and practice physical distancing whenever they are outside of their homes. shifting gears on economic recovery, i'll provide an update on the port's efforts to secure federal funding. in early march, president biden signed the american rescue plan act. a $1.9 trillion covid relief

bill that includes $350 billion for state and local government assistance. on behalf of the port of san francisco, speaker pelosi inserted language in the bill to allow the state and local recipients of funds to transfer those funds to sea ports and this applies nationwide. the state of california will receive up to $26 billion from the passage of the bill. decisions on the allocation of federal stimulus will come from discussions between our governor, senate pro tem, tony atkins and speaker of the assembly, anthony rendon. it is still unknown whether the allocation will be handled as apart of the normal budget process or a separate action. along with the california port authority, capa and san diego are advocating for a 250 million allocation to ports.

on wednesday, march 31st, the biden administration released its $2 trillion infrastructure plan. this plan calls on congress to invest $17 billion towards improvement to inland waterways, coastal ports, land ports of registry and forries. additional details are expected to be released in coming weeks and we are already drafting internally to the port of capital projects shifting gears, i'd like to highlight two welcome additions. first, baseball is back. last week, the giants home opener at oracle park, we are happy to see the return of baseball and fans to the

waterfront. many at oracle park saw increased foot traffic and sales. secondly, i'm delighted to report that red bay coffee will be opening in the ferry building next week. red bay will be in the center of the building right near book passage. this is a black-owned open based specialty coffee purr vaer. red bay cough fee is at the forefront of the fourth wave of coffee with ensuring production is not only high quality and sustainable but a vehicle for diversity, inclusion, social and economic restoration, entrepreneurship and environmental sustainability. we welcome red bay coffee to the forry building. shifting to equity. the port has reached an exciting milestone. a database that will be used to

collect data related to the report's progress on implementing the 30 short term actions we will be completing by the end of this calendar year. we anticipate our systems will be aligned to support the important work ahead. based on the discussions last time, i did want to come and point out that the points ratio equity initiative follows the citywide framework that the office of racial equity developed which seems to transform systems to support the collective liberation of black, indigenous, and people of color in san francisco. our equity work includes uplifting all people of color including our asian pacific islanders and latinx communities. within our racial equity action plan, some of our external and internal actions target historically disadvantaged neighborhoods adjacent to property such as bayviewpoint and other neighbors in district 10. engagement within district 10

extends our reach not only to our black community, but also to diverse asian pacific islanders and latinx communities as well. the port does acknowledge and recognize that more than words are required to build a more just and equitable society. in that spirit,, we have invited staff to attend the san francisco human rights commission and stand together sf initiative for the launch of campaign for solidarity. this is a citywide cross cultural, multi-generational event to bring our a.a.p.i., black, latinx, american indian, and multi-racial communities to stand up against racist hate and violence. now, i would like to make an announcement on the up coming development rfp for building 49. the rfp will be issued tomorrow with a response deadline of may 4th. to develop and operate two

currently vacant historic structures. it provides the opportunity to provide community, water recreation, visitor serving and commercial uses that will enhance our beautiful park. and that concludes my director's report. thank you very much. >> president brandon: thank you so much. we will now open the phone lines to take public comment on the executive director's report for members of the public joining us on the phone. jennifer, our operator will provide instructions on the phone now. >> 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 mute until their line is open. comments will be limited to 3 minutes per person. the queue is now open. please dial star 3 if you wish

to make public comment. >> president brandon: thank you. do we have anyone on the phone? >> yes, president brandon. we have one caller on the line. >> president brandon: thank you. please open the first one. >> thank you. opening that line. >> good afternoon. this is pete sitnick managing partner at water bar and epic steak on the embarcadero. i just want to first off acknowledge the help and support we've gotten from the port in working our way back into some level of new normalcy for the restaurants but i would also like to just point out in the same spirit and vein that the public must still comply with the protocols and

precautions in order to get to the other side of covid-19, the restaurant businesses on the port are in the same boat. while if you walk past water barn epic on a sunny day, you're thinking this place is doing phenomenal, it's back to normal, it's great and i am very grateful for all the business that we do have, but we are still operating at tremendous profitability losses. we're about 50% of where we were prepandemic due to their phenomenal location upon everyone else that there are restaurants out there that are hurting. they're my friends, they're my

colleagues, i'm specifically talking a lot about fisherman's warf restaurants, but there are other ones out there, and i would just say that i hope that the port will continue to focus on the ability to help small business recover and get back to a level where we can operate profitably, sustainably and in good spirit. thank you, appreciate your help. >> president brandon: thank you. are there any other callers? >> president brandon, at this time, there no other callers on the line for public comment on this item. >> president brandon: thank you. seeing no more callers on the phone, public comment is closed. commissioner woo ho. >> commissioner woo ho: thank you, elaine for a great presentation on the economic recovery and the plans and i think the most exciting thing we've heard today is how we're proceeding forward to access some government funding and

that seems to be having a few more concrete sort of information about what the process is and how much is involved and if it's possible to hear if we could recapture some of the revenue that's lost. of course, this is increasing the country's deficit over time with these huge bills. so that's another problem that needs to be tackled at a national level, but i'm very glad to hear that at least we're going to to be able to get some relief as we try to provide some relief to our port tenants and i think that was probably the most important aspect of what i heard in your executive director's report and i commend you for you and the staff for being very proactive about it and i think all of the work that you and i guess president brandon and vice president adams have made to make sure that our congress and senators in washington are aware of what san francisco needs and are continuing to

look out for us. thank you. >> president brandon: thank you. commissioner gilman. >> commissioner gilman: director, thanks for a great report. similarly to commissioner woo ho, really excited to hear about the equity work particularly about the gathering that's taking place and being encouraged by all city and county san francisco employees to come together to stop racist hate on any community of color. i just really want to commend the city for engaging in that activity and excited to hear about that. and i do want to sort of double click on the fact that last month, we didn't have a glimmer of hope to be involved. i'm assuming we're involved in the infrastructure bomb that's going forward. infrastructure is a lot of things. it's exciting to see and have an understanding that ports nationwide are apart of that since we have not received any stimulus dollars or federal support during this whole

pandemic. unlike our brothers andsters at the airport at sfmta i'm sure that you and president brandon and vice president adams will work very hard to ensure its passage and i hope that everyone listening in, folk who is do business at the port, folks in labor, we need to get that bill passed and it's a hard road ahead and i'm excited that the port has included it in this. so thank you for your report. >> president brandon: thank you. vice president adams. >> vice president adams: director forbes, thank you for your work and tire manslaughter less work and your staff and your discipline. it's really good to hear that one of our tenants like pete costly comes on. pete's a warrior. he's somebody that gives a lot of love to the port, gives a shout-out and i appreciate that. i hope one day we can do a port

commission meeting at one of his restaurants down there and show a little love. what i wanted to ask you, director forbes, for you and assistant director mike, where would you gage our progress so far this year and are we where the goals that you set as our director, are you at where you think we would be at this time to say middle of april heading into may real fast, where are we at real quickly or are you pleased with the progress that the port is making? >> thank you, for your question. it's an important question. i think so much of this year and our progress has depended on the behavior and our ability to fight the virus and so in some ways, 2021 has been a very positive year for fighting the virus and we've seen gradual re-openings and we'll continue to see more re-openings and vaccines are getting out.

but in other ways, we're still overwhelmingly closed at the border. waiting for herd immunity and further along with vaccines. our own economic recovery is put on hold or put on wait and see as we wait to really tackle the virus. and, we're also still -- we have a large essential workforce, but most of our office workers still are remote working. so while i'd say where we want to be given the current state of the virus, we wish that the virus was more controlled and there was larger economic re-opening. but the light is at the end of the tunnel. so i would say we're getting closer. i think it would be easier to gage our progress through the frame work of june and through the fall when we'll see full

re-openings. at least we're anticipated to see re-openings. that would be an important time to see how the port is doing along economic recovery. on the economic front i'm proud to see what the team is doing to respond to what our employees are asking for as it relates to equity and i believe our organization is on a very strong path to be a more equitable place to do work and to do bids with, so i'm very proud of that work. i hope that's a good answer to your question and we can calendar something specifically a little later down the road to answer that question in more specificity when we have more data points about our economic recorpse. >> commissioner adams: okay. i want to go back to what commissioner woo ho has said. i've never seen this before and i want to thank president

brandon for going out and getting that $sixty million. one of the things i am concerned about they put a hold on the johnson and johnson vaccinations because of blood clots and mostly it's happened in women. other than that, thank you, and, please, get as much as you can and thank you for going for 60 even if we get 35 or $40 million. we need that money and anything that i can do and i'm sure commissioner gilman and commissioner woo ho, we'll do whatever we can to make some calls because we need the money. thank you. >> president brandon: thank you. elaine, thank you so much for your report. that was a lot of information, but economic recovery is key to all of us and i want to congratulate the giants on their opening day and winning on their opening day and being

able to have people come. i also want to congratulate red bay coffee. they're expanding even in this time of uncertainty. there is a light at the end of this tunnel and we will recover and i think it's imperative that all of us on the commission call the governor, call the mayor, call everyone to make sure that we are able to continue to help our tenants with some type of resources from the stimulus funds and especially the infrastructure plan. and, i really want to thank commissioner burton for making so many calls on behalf of the port to make sure that everyone is aware that we too need money to help with the economic recovery of our planet. thank you so much for that report. call next item, please.

>> clerk: that would be item 10, the consent calendar. request for approval of port lease number l-8627 with forry plaza limited to partnership. located adjacent to the forry plaza. that would be resolution number 21-14. >> president brandon: can i have a motion to move. >> commissioner: so moved. >> president brandon: we will open it up to public comment. jennifer will be our operator and will provide instructions now for anyone on the phone who would like to provide public comment. >> at this time, we will open the queue 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. 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 3 if you wish to make public comment. >> president brandon: thank you. do we have anyone on the phone? >> president brandon, at this time, there are no callers on the phone wishing to make public comment. >> president brandon: seeing no callers on the phone. public comment is closed. we have a motion and a second. can we please have a roll call vote. >> clerk: [roll call] >> president brandon: the motion passes unanimously. resolution 21-14 is adopted. call next item, please. >> clerk: item 11a, request approval of a revised mutual termination policy. that's resolution 21-15 and also requests a delegation to port staff to offer additional leasing incentives including discount lease rates and rent

abatement for tenant improvements for office, maritime office, and shed space for new leases and share of subleasing revenues. also an update on tenant relief programs. >> good afternoon, president brandon, vice president adams, and commissioners. rebecca benasini deputy director of real estate and development. i'll be presenting along with my colleague jay edwards today on the portfolio management strategy's action item before you. this is a followup from our february 23rd informational item. i want to acknowledge portfolio management as michael martin's brain child that we've been developing into an adolescence and i want to acknowledge the senior staff in the real estate team kimberly beal, tyrone

navaro as well as our director. and i also want to acknowledge that we have two of our consulting team members here who've been helping us with market and leasing incentives advice and analysis. we have santino derose and we have debbie kern from kaiser marston. they're on the line in case there are questions that would benefit from their notes or their advice. i want to note from february 23rd, we've made some refinements and updates and i'll be highlighting those along with jay edwards and i'll be going a little bit quickly through the background information that you've seen previously just sort of as a primer and i'll try to focus on new information. so, with that introduction, it would be great to see the next slide. thank you. so we'll go through strategic plan alignment, background, the work ahead and why we've undertaken this portfolio management strategy action item. we'll go through the strategy

and the requested action. next slide, please. in terms of our alignment with our strategic plan, typically, at this time of the year, we're resetting our parameter rates. they're typically going up x percent in this moment of market youmulti. we can think of this item as a sort of reset of the market parameter rates that we have providing different tools really aimed at stability of revenue and attracting new tenants and also retaining the tenants who may be at this moment on the bubble of whether or not they should entertain signing a new lease. that's the alignment with the strategic plan. next slide please. this is a slide we showed last time to really note that the core strategy going back a year now during last summer. we were looking at how to

maintain our tenants during the displacement and difficulty, unprecedented difficulty of the pandemic. the bubbles you see in blue very quickly are noting through all of the program level information and new ventures that we stood up. these were deferrals of rent. all of the gold bubbles indicate programs that the port stood up went into changing contracts giving rent relief, giving others, giving repayment plans. were amendments to leases. those are the two sorts of bubbles. all of these were focused on keeping tenants in place up to this time period. next slide, please. as background on all of our relief programs, we showed similar information on february 23rd. we have some updated information.

at that time, we had much fewer applications in the door. now we're up to 230 tenants. their total rent forgiveness request is $13.4 million which is very close to the high estimate that we had provided back in the summertime when the rent forgiveness program was coming through the port commission. on the repayment program where tenants are allowed to come up to where they need to be in terms of repaying the port for rent that was due in 2020, we have the same collection that we had in february for option a where tenants were able to provide a lump sum payment for rent that was due in 2020. we collected about seven hundred twenty-nine,$000. that one hasn't changed. we now have applications for the option b repayment where tenants can pay rent due in 2020 the first half of the calendar year. we also have 2022 applicants.

so those applications, we think those are the end of those applications although, if tenants do reach out, we will consider those on an ongoing basis up until we anticipate one more month. next slide, please. we're talking about portfolio management because we have these programs where people have entered forgiveness for payments. but we have quite a number of tenants who haven't come into full compliance with their lease. as a note, this is the same as it was in february. we've had about 20 mutual terminations of leases over the last year representing 40,000 square feet. so we haven't had other tenants come forward with mutual terminations in the last six weeks or so. i want to note, we still have a growing accounts receivable ledger. it's about $23 million at this point in back rent. that's owed to the port. much of this will be taken down as we process the rent

forgiveness lease amendment. so $23 million outstanding. we have about $13 million in rent forgiveness that we think folks are eligible for. so that number will be coming down as we execute those lease amendments. that still leaves a large gap of about 178 tenants representing $13 million that don't qualify for rent and haven't yet resumed their full normal rent program, rental payments. so that's really the crux of the portfolio management strategy where we're trying to get at. next slide, please. also, another indicator of tenant health and you've been seeing this sort of data through the budgeting process as well. these represent the percentage rent tenants and their sales. the blue bar on the left shows 2019 sales. the orange bar shows 2020 sales. just shown a different way. we can see the rent data.

tenants who've applied for rent forgiveness. the orange line is tenants who haven't applied. and this just indicates a sort of the large amount of revenue that has been lost during the pandemic year. also want to note that the sales data goes through january 2021. several months behind. we'll get the february data in probably two weeks and during january as we all remember that was during a very difficult winter surge and many of our operators who fell to customers face-to-face. we're not operating at high levels at that point. next slide, please. so that's the background on how tenant relief is going. all of the tools that went into tenant relief are shown in gray in this table that's sort of like the full toolkit of items the real estate team is working

with. we're now going to talk about how we can use our existing staff authority and if you approve it today, new staff authority to continue managing the portfolio in an efficient way. the two rows shown under existing staff authority will talk through. those are items that we sort of do on a normal day-to-day basis and we'll talk about the three subsequent rows that are showing potential new policies. one of the key action items you'll see in the resolution is extended delegated authority for mutual lease terminations and then the second action item is to do with the strategic leasing tactics that we'll talk through in quite a bit of detail. we don't have a proposal as of yet. we're working with our finance staff to come to that proposal, but it's another tool that adds our as we have tenants that are unable to pay and have left the premises, there will have to be an accounting of those uncollectible balances to keep

our books in order. next slide, please. so focusing on the existing authority, we'll be turning towards collection strategies. we've talked about this a bit in february what we have completed since february is a new tenant account database. we had been a bit hobbled in terms of having up to date information on how tenants are doing with making payments. we now have a database through a lot of work with our i.t. team which has been excellent to have an up-to-date database on tenant payments each week which has been a real help for our property managers who are keeping track of who's up to date and those who are not. we'll be working with our collections team to begin outreach to tenants on collections. the second tool is settlement authority to the extent tenants are coming forward with proposals to settle out outstanding debts.

we will use the executive director's authority to settle claims up to $25,000 and we will be coming to the port commission for other claims that could require port commission approval or board of supervisors approval depending on the lease we're talking about. those are the strategies we'll be using to get tenants back into lease compliance. next slide, please. there are also strategies we'll need to deploy to separate from tenants who need to come up to date in terms of complying with their obligations under the leases. we'll talk through the mutual termination options and in the authority that's shown in the upper bubble, uncollectible balances as i mentioned will be coming forward with a policy on how we would write off those balances. there are several steps that we typically use in those sorts of procedures, but i think it's a good time to formal. >> vice president elias: those procedures more clearly through

the port commission and we're going to talk quite a lot about this item and you can think of this as jay edwards will go through in more detail, we have our leasing authority under the parameter rate schedule. this is simply sort of a modification to that sort of list price. we have our list price for all of our property which we offered to tenants in particular cases where we're having trouble leasing a space or a tenant maybe wants to do a one-year lease, but if we can entice them into a three-year lease, that's really to our benefit because we're looking to stabilize our tenant base. so jay will go into that in a bit more detail and that will be focused on filling vacancies and getting those tenants into those term leases. next slide. let's focus on some of the actions that are requested today. the first one, it has to do with mutual termination authority to delegated to the executive director. this policy currently in place was passed in 2009 and has been

unchanged since that time period. it allows staff and the executive director with city attorney input to mutually terminate with a tenant term leases that have less than five years remaining on the lease. leases that are less than 10,$000 in rent per month owed to the port. so long as staff goes through these various steps. they are verifying the tenant's condition. verifying the property condition and determining that termination is in the port's best interest and the way we have done that is to show that we could potentially lease the new site. it's sort of a define space and if the tenant shows they do not have the means to fulfill the contract. our current authority is to bring that $10,000 per month value up to account for the twelve years since it was passed. it needs to be increased for

cpi and then parking lot increase. we're proposing an additional buffer to account for what we need. there will be more tenants who may be interested in if this mutual termination and we may be able to find all of the steps that i went through. they are in a port financial condition. the property is in an o.k. state to be released and take the space back. the resolution includes adding more defined steps we would go through prior to recommending regional determination for so not only would we state that it's a clean and open space we could lease, but we would look at the potential lease rent we could get for that space. but also the financial documentation to just add on to that layer where we're being clear that they cannot actually

abide by and fulfill their requirements under the lease. that's request for action item number one. i'd like to turn it over to jay for the leasing tactics. i think it's the next slide. so jay will go through the leasing tactics that he works on in conjunction with senior staff as well as the consulting team that's on the line. jay. >> thank you, becca. good afternoon, commissioners. we're pleased to present this portion -- or i'm pleased to present this portion of the report to you and what you have in front of you is our current authority, if you will, and a range of rates that we've set back in 2019 as becca said, in 2019. and you can see there's a wide range and we have a limited

amount of tools right now to really deviate from the parameter rents. so we're requesting additional authority and i want to just start off with reiterating this was the leasing tactics were developed in collaboration with our consultants, kaiser marston

and may vin commercial you may have heard their reports back in our previous staff report and in these objectives are to help fill these . >> that we're hoping now will see this as a good time to sign up from term. so this is an ab choice. it's either or. it's not both. so for tenants that really just want to take this space as is or invest your own money into the premises, there would be a tiered rent discount of 70% of the minimum parameter, 80% and then it goes for 100% minimum parameter. this requires a three-year term. this is an applicable to tenants on a one-year lease. we think that is the sufficient time to get us through any economic recovery and we should be poised at that point to hopefully have some growth in our rents. the second option is really in response and we'll talk about this a little later on the next

slide is a response to what tenants are seeing out there in the private sector. so what we're proposing here is rent abatements. we have right now some limited rent abatements for space prep. we're proposing to expand delegated on an inland basis nor additional rent abatement for a total up to five months a year and a total up to seven months for a five-year term. next slide, please. and we've done the same here for shed rents which are what we have in primarily mostly storage type tenants. we have some restaurant and port tenants. mostly small and local business here. this is going to be very

helpful we think to meeting those objectives. you can see the tiers. we've proposed a slightly less rent abatement of five months and six months respectively. i do want to point out that all these leasing tactics are online in exhibit a and it gives you more detail in summary of some of the requirements and this is just an abbreviated slide, if you will. but everything in here, what we're really asking for and i can talk about that in the next slide. andre coleman has spent time with our consultants. and so this is what's been proposed for maritime leases

with office space and submerged land and we think this would enable the port to keep our existing maritime tenants and hopefully maybe even attract some more. next slide, please. so as we get into why are we here? why are we doing this and what is this really about? this is in response to really a fairly significant downturn in the commercial real estate market. we're really and our consultants believe this, this is a moving target. this is why we're here for interim leasing tactics if you will because we don't, we can't predict what's happening out there in the next six months. it's very uncertain. we've heard from our tenants

about how they're not expecting a rapid turn around and maybe looking for more flex ability and also response in competition. the port is not as nimble as a private sector. who can offer. that i would extend which basically takes an existing lease, reduces the rent and return for additional term. we're not proposing that here but that's what the port's up against and that's what the tenants are seeing as they go into the market to review their opportunities and as we said before, the parameter rates were set at really a high point in the market and so this will enable us to be more competitive and so just kind of you can see what these are sort

of the notes say. was i do think one thing we do want to talk about is risk management. look, we have in the exhibit 1 put in requirements for rent abatement to attract capital into our property. we can't offer any allowances generally having tenants improve their space under certain conditions and it's all in the exhibit a. but the improvements have to improve the property, the tenants first of all so they have to be on the premises. for example, for office, it could include utility upgrades, interior improvements lighting vvac or could be amortized over

the term of lease and the port must approve these improvements with estimate in cost, live expectancy and customary lease requirements and work that does not qualify as an improvement so we think we've got a way to manage the process here effectively that's not overly time consuming and is nimble enough to provide the port with these additional interim tactics we think to maintain our tenant base. >> i thought i would take this

one. >> that would be my guess. >> you'll be back with questions and answers for sure. >> so the third action is a smaller effect action, but something that we've heard from some of our tenants where they have a current space they have the ability to sublease within their rental agreement, however, any of the sublease agreements that they've received come to the port. so we effectively see. so we're seeking to delegate the staff to amended the leases as tenants can demonstrate that they have the ability to sublease space for more than the rental rate that is in their lease, we would allow them to do that and we would split the revenues with them rather than take all of the

revenues for ourselves. we would definitely report back on this because we would see whether or not this was an effective way to increase revenue. we can do this relatively efficiently and then we can see the results of the action and see whether or not it does generate increased revenue. so that excess rent action is on you today. as tenants make that request. next slide, please. we're just about done here. when we talked in february, there was a lot of interest and, you know, getting more information and being informed which makes complete sense as you all are considering all of these various actions. so i wanted to declare on the reporting that we're able to do

with our current systems, we did a hard look at what we can produce easily. leasing monthly reports, they are now back coming back to you each month. we also spoke with andre's team which would be a new report in a quarterly basis to give you a sense of how that market is doing. we also will start submitting termination reports on a monthly basis. this would be a new report that you will see. which is an extremely interesting report that provides just a very good snapshot of where things are financially. we are working on the -- a near term action on the race equity action plan and that does include evaluating the feasibility for initiation as tenants come through our

leasing and we're working on how to implement that. that's the summary of reporting and i think the next slide will summarize the actions. so you have two resolutions before you today. resolution 21-15 and resolution 21-16. i'm sorry to say there was an error in the resolution. so if you're able to make a motion on this resolution, there are two clauses, the two final clauses of the resolution have these underlying words that are on the screen before you that you would need to read to the record to correct these two whereas clauses i'm sorry. this whereas clause and this resolve clause. that concludes the presentation. i appreciate your attention. i know that was quite a lot of information and jay and i and the consultant team are all available for questions. >> thank you so much, rebecca and jay for the report.

commissioners, may i have a motion. >> commissioner: so moved. >> commissioner: second. >> president brandon: now let's open it up for public comment. we will now open the phone line for public comment on item 11a. 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 will open the queue for anyone on the phone who would like to make public comment on item 11a. 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 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 comment. >> president brandon: thank you. do we have anyone on the phone? >> president brandon, at this time, there are no members of

the public on the phone wishing to make public comment. >> president brandon: thank you. seeing no callers on the phone. public comment is closed. and just for verification, when do we amend the resolutions? >> michelle, i'm sorry, could you -- >> yeah. hi, this is michelle. you will amend the resolution, whoever um, when you call the vote, you would read the new whereas and the new result prior to taking the vote and carl can do that as well. >> president brandon: okay. thank you. commissioner woo ho. >> commissioner: you're muted,

doreen. >> commissioner woo ho: thank you, rebecca for that report and also lots of progress in all the various areas of how we're trying to get through this economic recovery and help the tenants. and on the two particular topics that you have presented in this part of the presentation today. on the mutual termination policy, i'm very supportive on increasing the limit. i think that's important on the circumstances to do that. and i think my question is and i sort of mentioned this a little bit earlier in our closed session. i wanted to get a little bit better sense because we look at our parameter rents once a year in a very normal sort of cycle and obviously we're going through a very volatile real estate cycle and we don't know how fast the real estate market is going to recover with all

aspects particularly commercial and obviously within the hospitality, restaurants, etc., and so what i was not clear is that you're setting this tiered structure based on the rental parameters we established in 2020 versus today and i'm not sure why since we do have consultants, we wouldn't be looking at the market as it is, and if it is, we feel that we can't really establish it drrding to where it is today as it's a moving target as jay said, how did we come -- how do you land on 70%, 80%, and one hundred% over the next three years? just not sure that those percentages necessarily automatically sort of make sense. there's obviously some assumptions behind it or forecast behind it and i'm not sure that i understood that when i read the report or when

you presented today how we came up with those numbers. i understand the intent here which is to give the tenants time to catch up and they're trying to go through economic recovery, but i'm still trying to understand how we came up with these numbers and if, for instance, because three years is a relatively long time, if things begin to happen sooner, we set ourselves up for limitations. so i'm just wondering how did we come up with those particular percentages and if we are really basing it off a parameter rent table that is no longer really current. >> thank you, commissioner. i'll start and, jay, i would love if you would want to come in and perhaps jay or abby have something to add. so you hit on the head with a we started the consultants on which we asked them to look at the market, look at parameter rents and 0 pine as to whether

or not it was a exercise to try to reset those and we came to the conclusion as you mentioned that given that it's a moving target, it was not a worthwhile exercise to go through each of our facilities to try to reset to market just due to the dirth of transactions and that we should wait to do that. so that was the initial take on why we should not reset the parameter rates at this moment and instead keep the parameter rates and come up with these leasing tactical approaches to entice tenants in and to sign that three-year lease with us. before i hand it over to jay to talk about the percentages, one other point that we've been focused on is how many of our tenants are out of compliance we've showed earlier the 178 tenants that were looking to figure out what their next move is in terms of coming in to compliance with us or not and

looking at that potential amount of vacancy just made us eager. could i let jay kind of talk about the percentages. >> commissioner woo ho: can i ask a question? >> yeah. >> commissioner woo ho: so one question is there any sort of market reference point in the private sector? is there a similar approach going on. is this something that came up just within our own sort of bubble or are we looking at this is an approach that's being used now by other landlords in the city or in the bay area? and so i don't get that context at all. and so i understand it's our consultants. so i think that's important context to understand. and then on the rent abatement,

what you mean by that is that they basically will have, i just want to make sure i understand what abatement means. abatement means five months and three year term which means they are basically free rent for five months if 'they sign a three-year term and they're responsible for their own improvements to bring the space up. but these are new leases. didn't i understand these are new offices, this is these are new. this is not the same as an existing tenant coming to us. >> it's not. exactly. only for new leases or existen tenant who has a lease that's expired and wishes to sign a new three-year lease and they have improvements that have a cost that some to more than five months worth of rent. does that make sense and they would get that five month's worth of free rent in exchange for completing the improvements as jay describes that are kind of listed in one that would

kind of outlast their agreement. you've got it right. it's up to five months of free rent if they have improvement that some to a cost exceeds that five months words of rent. >> okay. but we would validate they're spending money improving the property. >> right. exactly. they would have to give us a cost estimate, get the building permit but they would get the rent abatement potentially during the early part of that lease. they could get it all upfront to the extent that they've shown they have the financial needs to complete the improvements. and we're -- one of the reasons we're concerned about this is we have received back, for example, one piece of property that we finally got back after a unlawful detainer action and in quite a difficult state. it's not in a good state and we're concerned that there

might be other lease premises that people, that we get back that need improvement dollars and we won't have those dollars to get them ready for a new tenant. and maybe jay can speak to the percentages and how they relate to how different months of free rent or the blend and expend options that the consultant was looking at that other landlords are offering. >> thank you, becca. yes. thank you, commissioner woo ho. in terms of setting a tiered rent schedule, this was done with really a lot of consideration on what would really be something that would be competitive in the marketplace. as you may or may not be aware of, what's really impacting the commercial market state and

there really is no floor on the sub market lease. it's kind of a wild card, if you will. but the 30%, 20%, then 100% discount, we felt that was reflective of the market data that we could assemble. it's not a lot of good data out there, commissioner. i'm sorry. there's not that many transactions but what we're seeing is a competitiveness now for new tenants and in terms of if you just do the math on it for example, a 30% discount is roughly equal to 3.5 months of rent abatement if you add another 20%, it goes to 5%. so they are symmetrical in some way which we felt was important to have a program that didn't

offer one incentive over another. you know. we wanted it to have so that it could fit a point that didn't need to make improvements or if they were going to make improvements, they do have to be verified by the way they've been performed. there is a time limit, it's one year. and let's say you request an extension for up to six months. so it's not that waiting to find out if they've done it. so we tried to take that approach. i can't say it's exactly science because there's just not that kind of data out there, but we think this is going to really help meet our objectives and it does tier it so we're gradually getting back to our rents and then in terms of your question about the future, this is a window for -- this is a one-year window.

we're not going to have -- i think we're going to have hopefully a good response, but our next year, we'll be back setting the parameter rents and we'll be looking at this board and seeing the effectiveness. i do want to also add that this is -- we're not obligated to provide that. if we have a facility that is actually more competitive for whatever reason it's in better condition. we don't have to go to this. this is a tool for us to use as needed. it's not an automatic just like the minimum parameter is not automatic. we have many times we've been able to get above minimum parameter. but we do have tenants that we've talked to that are actually out in the marketplace saying you're not competitive right now especially in the office market and so this was in response to that. so hopefully, it's a long answer, i'm sorry, but

hopefully it helps with the context. thank you. >> commissioner woo ho: okay. i will pass on to my other commissioners for further questions. >> president brandon: thank you. commissioner gilman. >> commissioner gilman: thank you, jay and rebecca for the report. i just have a couple of additional clarifications. i just want to make sure i'm understanding it right because it is a lot of information and we tend to sort of package or bundle the real estate resolutions because they have a lot going on with them. so, again, this is just temporarily for a year and this is to address the 40 leases that we know are coming up or might be coming up for folks who are not looking to flat out terminate. for that part of the resolution. jay, you referenced the 40 tenants. you're asking for authorizations, it would be to

negotiate and to work with those 40 tenants. >> half right. any new tenant who came along who was willing to sign a three-year lease. we would have the ability to offer them these tiered rates. >> and, also offer the 40 existing tenants the tiered rates. >> if they are willing to sign a three-year lease. >> correct. i just want to understand that and then the mutual termination, part of the resolution, that could be for any tenant who comes forward who wants to engage in mutual termination regardless of whether their lease is up this year. >> exactly right. so long as they have less than five years remaining on their term. >> commissioner gilman: okay. and we know that there's 127 tenants. unless i missed it, we didn't break down what kind of tenant types they were. but there's 127 tenants who owe us some sort of rent who are

not actively working with us or are in communication. >> right and it's 178. if i'm looking at the right part of the staff report. but, yes, it's a large number. we could break that down for sure by, we have type, portfolio, we would break that down further if you're interested in seeing that. >> commissioner gilman: jay, go ahead. >> commissioner gilman, thank you for your comments. i just had one clarification on the renewal, on the existing tenants. so this is what we did. we looked at the up coming leases in the next year. so that was approximately 40. there are tenants that we mentioned earlier that are on holdover status that we think we'd like to convert off as well. we'd like to confirm a status.

there's conditions for some tenants that they're not going to be on holdover due to the facility commission, potential development, various factors. so there may be more than 40, some additional holdover tenants which we think is a good thing because it basically secures our income stream here for three years. so i did want to make that one clarification. hopefully that's helpful. >> commissioner gilman: thank you. that is helpful. so i think, you know, these strategies are the right temporary strategies when we don't know how the market's going to rebound. you know, everyone will be vaccinated by the summer and everything will come rushing back. you read another article that san francisco's had the largest exodus of residents and businesses in bay area county. i'm generally supportive of these parameters particularly in raising the threshold to

20,$000 in the discretion of the staff and the director. i do want to say, moving forward, and i appreciate the note in the staff report since i was the one who asked the equity question. i do think when we're talking about the over 180 tenants who are not engaging in us, it would be helpful to understand who the typology of who those tenants are. if 100 of those tenants are our parking tenants then i think we need to have a separate one for our parking tenants. i think staff would be to move forward. tenants that have, you know, base rent and percentage rent are very different than straight-up office tenants to have parameter rent. i think that's a good point for us as a commission to understand. if all the tenants were maritime. maritime is a trust use and one that we hold as a value very dear to us. so i think it informs how we look at what we want to offer tenants both of the incentives

to stay with us and then also for termination of lease. i just also wanted to ask, rebecca, you did mention when you were talking about what you weigh for terminations, the condition of the property, lease term. i hope you would also be doing cost benefit analysis on what it would cost to go to litigation and recover funds. as many of these tenants are small mom and pop operations, my belief is that they're terminating their lease earlier to walk away could also mean they're accompanying themselves is teetering on bankruptcy and i just hope we would do that cost benefit analysis to know when it's more beneficial to use litigation or litigation threat versus spending years in litigation and at the end of the day due to bankruptcy or other things to retrieve dollars so i just wanted to point that out and thank you for your report and your diligence on this.

it's a hard time for everyone and we're doing everything we can. >> thank you, commissioner. >> president brandon: thank you. vice president adams. >> vice president adams: becky and jay. i have no questions. i'm good. thank you, president brandon. >> president brandon: thank you, rebecca and jay for all the work that's gone into it. commissioner woo ho and gillman have some very great questions and made great comments. i just have a question regarding the amendment of the excess rent. you said that's a pilot. is that a one-year pilot? >> i agree. good question. so it's -- this action is in the resolution 21-16, which is the leasing tactics.

so when we come back to reset the parameter rate the new parameter rate resolution would replace this one so we would replace this one and see whether or not it's good to reduce it from 100% or not. so it will be like jay was mentioning the one-year sort of term on the leasing tactics. >> president brandon: okay. so you're coming back this year? >> we would come back in 2022, sort of the same sort of time frame april. and that's what our plan is. there's always an opportunity like commissioner kelly was saying maybe we're all vaccinated in june and we're below market and we should reset earlier, but our normal schedule we would come back next spring. >> president brandon: okay. the and then it says from 100% to not less than 50%. how will we decide where within

that 50% to 100% someone would land? >> good question. with the steps i thought someone would do are we'd look at what the opportunity is. do they have a sub tenant in hand. how much rent is the sub tenant willing to pay. what's the attorney cost we would have to expend to go through the lease process because it's not zero cost to us for sure and then we'd figure out what amount of profit do we want on top of that effort. i think we just had a sentence that said we'd think about our cost and think about what the benefit is to us and then propose a percentage. but we don't have -- the only other examples i'm aware of so there's a 50% share. so that was the key example we had. we can definitely research other shares that landlords have charged. >> president brandon: okay. so i guess we'll put a little more thought into that to

understand if it's 50% or 75% or 60% or, you know, where a tenant has a little more transparency in where a tenant falls within that range. >> yes. exactly. depending on the marketability and the profitability and all of that. i think that's the key thing to report back on as part of the pilot. >> president brandon: okay. that'd be great. >> okay. >> president brandon: thank you. commissioners, if there are no more questions, we have a motion and a second. can we please have a roll call vote after you read the amended resolution. >> clerk: absolutely. so on resolution 21-15, initial terminates from the policy resolution which is on page 15 of the staff report. the last whereas clause will read whereas an order to reflect the increase and the parameter rent schedule since

2009, inflation and the unprecedented economic conditions and associated need for flexible tools. port staff recommends increasing the monthly lease parameter threshold to up to 20,$000. now therefore be it in the resolved clause on page 15, will read "resolved that the port commission hereby delegates the port executive director to partially or completely terminate by mutual agreement leases and licenses with the remaining term of less than 5 years and monthly rent not to exceed 20,$000 subject to the terms and conditions described in the memorandum." so on resolution 21-15 and resolution 21-16, president brandon, [roll call] >> president brandon: the motion passes unanimously. resolution 21-15 and 21-16 are

adopted. >> thank you. >> clerk: item 12a and informational presentation on the state of the u.s. cruise industry and the impact to the port of san francisco. >> all right. excuse me. good afternoon, president brandon, vice president adams, commissioners. my name is andre coleman, deputy director of maritime here to provide you with an update on the state of the cruise industry and impacts to the port of san francisco. i'm joined by brendan o'mara with the maritime division and we will both be available for any questions you may have following the conclusion of this presentation. next slide, please. with regards to a timeline of events related to the cruise industry, let's see, at the on set of the covid-19 pandemic,

the cruise industry has been on pause at the direction of the center for disease control and prevention more commonly referred to as the cdc. on march 13th, 2020, cruise line international association announced a pause of its members to address the risk posed by the pandemic. on march 14th, the cdc director issued a no-sail order. there have been a few updates to the order. the most recent update was issued on april 2nd and it provides technical guidance for cruise ships seeking to operate in u.s. waters. it was received with i guess -- yeah, it was received with concerns. the formal response from the

cruise line international association to the cdc noted that the latest update included unduly burdensome, largely unworkable and reflects a zero risk objective rather than mitigation approach to covid. that is the basis for every other u.s. sector. so the most recent update is significantly technical and, again, the response from the industry has been overburdensome to say the least. next slide, please. with regards to impacts to the cruise industry, further complicating the resumption of cruise, the canadian government. this is significant because in the event u.s. cruising resumes prior to canada's february 2022 date, the prohibition will impact the u.s. cruise industry as the passenger vessel services act requires ship that

is are not u.s.-built to stop at foreign ports between u.s. ports. for the port of san francisco, that would impact our alaska sailings which is a good chunk of our business. to capture the economic impacts as a result of the industry's pause, according to the cruise line international association's most recent economic impact study which was released in august 2020, cruise activity in the united states of course, nearly half a million american jobs and generates $53 billion annually and economic activity throughout the country. each day of suspension of the u.s. cruise operations results in a loss up to $110 million in economic activity. suspension is particularly profound in states that depend heavily on cruise tourism. these states include florida,

texas, alaska, washington, new york, and california. next slide, please. so just for a little recap in where we were heading into 2020, the port was scheduled to post 117 cruise calls with approximately 183,zero passengers. however, twelve of those calls materialized. as you might imagine, there's a continuous amount of long as well as impacts to the harbor services workforce such as harbor services extending to tourism, the grounds transportation operators, hotel, excursion, restaurant retail and travel agents have all been adverse doorway impacted as well. to quantify revenue impacts, the combined calendar year 2020 and 2021 to date include 198

canceled cruise clause equating to approximately $15 million in loss tariff passenger revenue alone. and z extending into the local economy, it is estimated a single shift call generates approximatel $50,000,000 $500,000 in direct passengers and crews. has experienced significant economic set backs due to the industry's pro longed pause and cruise operations. the inactivity of cruise has effectively affected its ability. despite having no idea of the times for the return of cruise,

metro has agreed to keep it in a good state of repair for the past year plus at a cost of approximately 90,$000 per month. metro has formally requested relief in the form of extending the terminal management agreement. port staff intends to return for the port commission in two weeks with the presentation regarding metro's request. for economic relief, director forbes briefly provided an update on the relief in the american rescue plan for her executive report. port staff along with the california association of port authorities and the port of san diego initiated an outreach strategy to request the $250 million allocation to california's ports to cover revenue losses resulting from the pandemic. san francisco is requesting a sub allocation of $60 million to mitigate impacts of the health emergency including

$15 million to cover the lost passenger tariff revenues. discussions related to the american rescue plan act funding are ongoing and dynamic and port staff will continue to keep leadership aware of new developments. next slide, please. so before i jump to 2022, i just with regards to the port of san francisco outlet, as of today there are 27 cruise clause that remain today. 18 of those calls are in scheduled for quarter 4. however there's still calls on whether they will cordize: for the 2022 forecast for crews at the port of san francisco, the year looks extremely bright

with 118 cruise calls next slide. previous slide. we're good my apologies. with 118 cruise calls and 1905 passengers. the numbers those passenger counts could change plus or minus would be dependent upon reduce capacities etc. with regards to sailings. so it could increase or slightly decrease. driving the increase cause. the carnival mare cal will be home ported in san francisco with 22 calls in 2022. i'd like to add in europe, more than 62000 passengers under

european covid guidelines and monitoring the cruise recovery dash board last time i checked was well below 1%. in summary, i'd say that the consensus right now is that the industry is in holding pattern with regards to technical requirements. as i mentioned in the opening slide, in their indications for the cdc those requirements were overly burdensome. there's still a lot of questions on the table in industrywide collaboration is crucial for the safe resumption of cruise. we will continue to remain engaged and dialog. the california association of port authorities at the america's sea port community which is headed by the port of miami all of which we are

continuing to carry on dialog and more so locally to continue to closely follow the guidance of state and local health officials while working closely with industry stakeholders as we work towards developing health and safety protocols the health and safety of the public for terminal staff and crew. that concludes my presentation and i'm happy to answer any questions you may have. >> president brandon: thank you for your presentation, andre. now, let's open the phone lines to take public comment on item 12a. jennifer will be our operator and provide instructions now for anyone on the phone who would like to provide public

comment. >> 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 12a. please dial star 3 if you wish to make public comment others will wait on mute until their line is open the queue is now open. please dial star 3 if you wish to make public comment. >> president brandon: do we have anyone on the phone? >> at this time, there are no callers on the line. >> president brandon: thank you. seeing no callers on the phone. commissioner gilman. >> commissioner gilman: andre, thank you so much for that report and i also want to thank commissioner adams who asked for this and i really appreciate it and it seems like

we're doing everything that we can be doing. monitoring, you know, looking to advise what we can do to bring cruise ships back to the port. but i have no technical questions for you that really is a federal and cdc matter and we're doing everything possible to be welcoming. i guess i just wanted to note and this could be a later informational, what's happening with the cruise ship terminal? is it being serviced or vacant? >> for operations at the cruise ship terminal, right now, of course, no cruise. events at peer 27 have not occurred. we have had some small scale events at peerthirty-five in accordance with public health which one of the clients of a

vehicle operator and they were doing some testing in the peer 35 set. additionally, we've had some short term birthing opportunities at peer 27 and then at peer 35 metro when we got the shed c fire, metro stepped up to support the jeremiah's o'brien's peer birthing. not only did that include peer support but also it sheds base inside pier 35. as i mentioned, it continues to keep the pier in state of repair, but that is pretty much all that has occurred and events have been seen in accordance with public health order.

>> commissioner gilman: thank you for the update. i guess i'd like us to consider of having to stop in a foreign court and canada's not allowing cruise ships to dock in their ports for another 10 months i hope maybe we can consider using that public space to youth supporting groups for some sort of recreation festival that would bring folks to the port, but particularly our young adults who live in many of the community our property touches. the bayview, on this side north beach, china town. so i hope we can use some creative thinking of ways whether it's embarcadero or other nonprofits to see if there's a creative way to use the space. >> throughout this time, metro

has continued to market the facility for use in accordance with the public health order, but i will ask that not inside of the cruise facility, but in the plaza, on the lawn plaza, there has been a couple live music events that have been held on a few weekends throughout this shelter-in-place period. >> i guess i should clarify. we're looking at the outdoor space knowing that we need to limit our indoor activities. so, you know, i will say it has become quite the place for roller skaters to rollerskate and do all sorts of tricks and i just think there's a way even if it's free of charge could be a public benefit while we're holding this pattern. thank you so much for your

support. >> thank you commissioner gilman. >> president brandon: thank you. commissioner woo ho. >> commissioner woo ho: thank you, andre. appreciate this update. and, now, i have heard a couple of the c.e.o.s of the cruise lines that have not been exactly happy with the cdc guidelines because they feel in the rest of the world as you mentioned, there has been safe cruising. i think there's only been 15 cases of covid and they have changed their protocols dramatically. so i heard a challenge which they put and i don't know how the cdc's reacting to it to say the president has put july 4th as the day we were going to go back to normalcy as a country, but right now there's a few bumps in the road given that timeline in michigan and new

york. i guess my question is this, if there is a change and there should be some opening of the cruising industry at late summer as an example, how is metro and ourselves prepared if the cruising should resume sooner because the cruise lines say they're ready. they've implemented everything they needed to do, they're ready to go. and, of course, you do have the jones act issue and you can go to canada, but i guess you didn't mention mexico. mexico seems to be open. everybody i talked to, they're going to hawaii or mexico. those are the places of people who've been so tired sitting at home. they seem to be going to hawaii and mexico. and i imagine. i talked to people that went to puerto vallerta where there

have been these wild parties and super spreader kind of risks. but i haven't heard about the coastline. so question number one, if cruising should be open sooner in late summer or early fall, is metro and the port ready and the cruise schedule that you projected, question number two, my understanding in talking to a lot of friends who have been booking cruises because they're so anxious to get on something in 2022, that the cruise lines are not booking 100%. they're booking x percent of their cabins to keep safety guidelines in place. so are you including that in your projection as far as they're not really booking 100% not because of the demand, but because they're following safety protocols? >> yes. thank you for your question, commissioner woo ho. so just to start, i would say from the major lines, there's been a mixed reaction with regard to the latest cdc

update. really, one of the major lines responded to the cdc in saying our proposal is that we require 100% vaccination. so at 60% capacity and some other proposals that were returned back to the cdc which as i understand it is was to be considered by the cdc. at the same time, you have other major cruise lines that will not require 100% vaccination. so there still is a mixed thought on how to proceed amongst the major lines. with regards to where the port's been in working with metro, we have been meeting almost monthly now and that frequency will most likely increase over the past few months. that does take coordination with the lines that call the port.

we have roughly 16 different lines that call our port. that takes some coordination with those lines and also further guidance, shore side guidance from the cdc. there are some guidelines that are currently in place that are going to take coordination with our local health authorities. our various line operators. our terminal line operators to ensure we have everything we need to have in place based off of the current cdc update. i think the biggest thing right now is that the industry consensus is that we're in a holding pattern as we continue to engage the cdc with some of those that i mentioned, the a.p.a., capa, and america's port emergency. good points raised. i spoke with one of our

terminal operators who has a significant business in hawaii. hawaii's now at 70% of tourism levels where they were in 2019. that's encouraging to see. mexico, there's no prohibition on cruise to mexico, however, on a america's association of port authority called last week, there was concern with deployment of vaccination at some of those ports. so, again, it's still, the situation is fluid, but locally, we continue to remain engaging with metro on how to proceed and as i noted that frequency will most likely increase and as we work towards engaging some of the local health authorities hospitality, etc. as laid out in its most recent update on april 2nd. >> my point was just simply to

be sure that if the cdc because they probably are getting pressure from the ceos of the cruise industry and i'm sure they're getting eventually some probably from their friends in congress and etc. to open up and if we're talking about getting more funding for ports, etc. in these rescue bills, i just want to know that we're ready to open up as soon as the word comes down and if the cruise ships who say they're ready to go and they say their bookings are actually increasing all the time although i think they're cancelling. they actually have bookings for 2021, they just keep cancelling as the dates come up and the cdc has not said yes yet. i have some friends that just said i've got canceled again. so i'm aware of that. they just cancel when they can't get the go ahead. so that we are ready on the

infrastructure side to support that. i'm just making sure that we are. it's possible by late summer, fall, that this could be resuming again because i think i've heard some very convincing arguments of the protocols that they've put in place but there's a lot more. the airlines are one of the safest places to travel these days with all the changes that they've made. >> so my apologies, commissioner. i failed to mention that some of the things throughout discussion has been that this will most likely be a phased restart and a phased geographical restart. so east coast, southeast goal moving to the west coast and then up the coast. the advantage there is that our terminal operator has a presence on the east coast in the gulf. so when that roll-out occurs, i believe they will have some

experience in the blueprint for us to be in a position to resume cruise when it is safe to do so. >> commissioner gilman: well, we hope. >> commissioner woo ho: well, we hope it's coming back soon and in the meantime, i think commissioner gilman's suggestion if we can use it for other opportunities out there, that would be great. i know personally, some people have asked about the plaza for some other organizations in the city and it didn't necessarily work out, but i think there is interest to certainly find outdoor venues. >> thank you. >> president brandon: thank you commissioner woo ho. vice president adams. >> vice president adams: thank

you, madam president. andre. i really appreciate your poiseness and confidence. president brandon and commissioner woo ho will remember the $120 million price tag with this james r. harman cruise terminal when it opens and i want to thank you for your work. a couple things, one, the goal i always wanted to see and other commissioners i think is a million passengers a year. coming through san francisco long for 28 other million and thirty million unit we have. one of the things is i know that i don't know if the biden administration was able to get the money because the cruise companies don't pay any taxes in the united states. they're in the bahamas and other places and they don't pay any money into the united states. so i know there was some in the house and the senate that didn't have a lot of love for the cruise terminals and i don't know if you know that.

i mean, i know you're aware of that but they just don't pay any taxes so they didn't feel like they should of got any support. do you know anything about that now, andre? >> no. not other than what you mentioned. a lot of the major cruise lines are foreign registered ports so exactly to what you said. there was a no relief provided there for our side as i noted in the economic relief that we're pursuing. that's been the port's side. the significant loss that we've experienced during this pause. >> vice president adams: i'll ask president brandon and director forbes, i know commissioner woo ho will remember, commissioner gilman wasn't here. but we had three or four commissioners at the meeting. and i'll ask madam president to consider that that we can start

having port commission meetings in person again. we have another one at the james r. harman cruise terminal. one other question. so are they still having weddings down there? are they having special events? are they having anything at the terminal now? >> so the events have been all in accordance with the public health order. the facility is continuing to be marketed for events to include weddings. i believe last i checked, there are two weddings on the books and late q4 of 2021. so, you know, heading in to 2022, there was a huge effort by metro to promote the facility by weddings and the outlook was good and then the pandemic happened. but continuing to market the facility. i think throughout this period with the previous cap being at

12 for indoor events, a minimal of events have been held of either 25 or 37. >> vice president adams: okay. this terminal was very special to me. james harman was the president of the i.o.w.. commissioner brandon served with them. and president brandon and i will also ask again that you will consider my request at some point at your discretion that we start meeting in person again and we have are the port commission meet at the james harman cruise terminal. i yield now to you, president brandon. >> president brandon: thank you vice president adams and thank you, andre for that report and thank you vice president adams for reflecting this report. it was great to get an update and, you know, it just expresses how hard the cruise industry has been hit especially here in san francisco.

at this terminal that we have. and, of course, vice president adams, i would love to meet again at the cruise terminal as long as it's under cdc guidelines. maybe in 2022. we may not be able to do it this year, but definitely next year. but congratulations, andre, on bringing to home port the miracle. when will that ship sail? >> so itineraries will include seasonal. i know for certain itineraries will include trips to mexico and hawaii, i believe alaska is to be determined that the position they or excuse me the vessel may reposition to southern california during the alaska season. so tbd there. >> president brandon: well

it's great to know despite what we've gone through over the past year, we are looking forward to recoffery and that we're looking to a really good 2022 if everything falls into place and we are able to re-open and recover according to plans. so despite the fact it's not being used now and we have no ships coming in, we have a bright future in 2022. thank you, again, for this report. we appreciate it. and we look forward to new maritime activity coming to the port. >> thank you. >> president brandon: thank you. call next item please. >> clerk: item 13a requests authorization to accept and expend $1,667,000 in grant funds from the california state ocean protection council for the heron's head park shoreline

resilience project and the approve grant agreement subject to the board of supervisors' approval. that is resolution 21-18. >> thank you, carl. and, commissioners, thank you. i am here today to request your authorization to do three things. to accept and expend grant funds from the state ocean protection council to seek the board of supervisors' approval to accept and expend funds from the ocean protection council coastal resilience grant program and to apply for additional funding from the wild life conservation board. next slide, please. where are my slides?

carl? >> they're visual, carol. they're up. >> i don't see them. that is strange. well i'll just trust that they're there. um, so since the port expanded and improved a small area of title wetland and created heron's head park over 20 years ago, the wetlands on the southern shore have subsided, eroded and nonnative plants. the shoreline has retreated 50' from its 1999 location and we expect to lose that without protecting the shoreline, we would lose an additional two acres of marsh over the next 30 years. next slide, please. so we have designed a living shoreline type solution to

shoreline resilience at heron's head park. pock of green to gray where a gray shoreline would be like our sea wall or rip wrap armored shorelines, living shorelines at the other end of the spectrum are a green solution. a living shoreline is defined as a protected stabilize coastal edge made of natural materials such as plants, sand, or rock. they're also referred to as nature based shorelines, green shorelines, or soft shorelines and they offer the advantage of providing plant and animal habitat as well as shoreline protection. there's a growing interest in using nature-based shorelines for coastal resilience and during our waterfront land use and waterfront resilience planning processes, we've heard a lot from agencies, policy

makers, and the general public supporting the port's attempts to implement nature based solutions for shoreline resilience where applicable which is not true everywhere at the port. next slide, please. the heron's head park shoreline resilience project has the following objectives. to restore native plant habitat, to create capacity for adaptation to sea level rise and to create opportunities for youth employment and community engagement. this cartoon of a living shoreline solution illustrates the essential elements of the heron's head park shoreline. from left to right, you can see that we would construct a coarsed grade beach.

we would stabilize the beach with groins extending into the lower intertitle zone at right angles to the beach to keep that beach material from migrating. we would plant the high intertitle beach with native species and also plants in the title marsh inland of that beach crest. and this would enable the protected marsh to migrate inland and upland with sea level rise so that we would have some title salt marsh and the recreational public access trail through mid century. next slide, please. the hare ron's head park living shoreline project actions include starting with hiring local youth to grow native plants, remove invasive plants and replace with native species. this is under way under a

contract with a community based organization in the bayview hunter's point area. literacy for environmental justice and you will recall approving that contract and the grant from the san francisco bay restoration authority that's funding that work back in july. this photograph shows ledge's team of eco apprentices who are transitional age youth generally 18 to 26 who are employed cultivating native plants and planting them ute at habitat restoration projects including here in heron's head park. next slide, please. this project overview diagram shows the essential elements of the shoreline construction. the yellow tan area is the

gravel beach. the adjacent purple area is a feeder beach where we would place additional beach material that then would be pushed by wind driven waves and replenish overtime that the gravel beach in the tan area. there are rock groins extending perpendicular to the shoreline at the most exposed areas and in areas that are subject to lesser wave forces there are some smaller cobble sills that also are built perpendicular to the beach and, again, those will help stabilize the beach material and prevent it from being pushed by currents and waves to the west. the tiny blue dots that you see at the base of the groins are oyster reef balls which are spherically shaped features

that are designed to support oysters and other native plants and animals. and, this diagram also shows the temporary access routes that construction vehicles and equipment would use to access the beach from the main trail. those temporary access routes will be demolished and revegetated at the end of the project. next slide, please. we should now be on phasing and funding. somebody shout out if i've gotten out of sync because i can't see my slides. so wetland vegetation, the wetland revegetation project will take a total of five years. the first two years are under way and that will continue from fall 2020 threw full 2022 funded by the san francisco bay restoration authority. the shoreline stabilization element is a part of the project that brings me here

today. that portion of the work must occur during august through january of any year. it's subject to seasonal restrictions to protect species and the ocean protection counsel has voted to award the port $1$.667 million. that's about 52% of the tote estimated cost for the construction of the stabilize shoreline. wetland revegetation will continue in a subsequent phase for three additional years and the port also will be obligated to conduct construction monitoring for 5 years of the wetland vegetation and 10 years of the shoreline construction element.

so, again, i'm here today to request your authorization to accept and expend the grant funds from the ocean protection council to construct the stabilize shoreline and to seek board of supervisors' approval to do the same. also asking you to grant the executive director the authority to execute a grant agreement and any other related documents to the ocean protection counsel grant and, finally, to apply for the wildlife conservation board funding for the additional funding that we need to construct. next slide, please. the ocean protection counsel is a division of the california natural resources agency. op.c. invited applications for grant funds for coastal resilience projects and the funds come from proposition 28. in february, the counsel voted

to award $1.667 million. there were a total of $6 million that were granted in award for this year's solicitation and one of the priorities of the grant program is to serve urban and disadvantaged communities, to engage the public and especially youth. and these attributes in the heron's head park resilience project contributed to the reason that it was selected to receive the funding. next slide, please. the wild life conservation board is a division of the california department of fish and wildlife. wild life conservation board also has prop 68 money to

disburse through a grant program. their priorities are slightly different focusing on wildlife habitat and wildlife oriented recreation, but they also retain the prop 68 priorities about serving disadvantaged communities and providing outdoor recreation provided it is sensitive to wild life habitat in particularly to communities that have outdoor access. the wildlife conservation for the grant solicitation is a little unusual in that they want a resolution from the applicant board prior to application. that is why i'm here to request your authorization to apply.

which is the balance of funding needed to construct the shoreline project. next slide, please. next steps are to seek the board of supervisors' authorization to accept and upon the board of supervisors' approval. we'll continue the restoration work through fall of 2022 and keep fundraising. and, finally, i'm including this slide about a study that was just issued or a report that was just issued today by the san franciscos estuary.

he asked why would we accept a material that somebody else has to pay to get rid of and this report was just released today so you might hear about it explains the reason why which is that wetlands and shorelines need sediment including coarse gravel, that beach type of sediment that we're using in order to adapt to ricing sea levels and the natural supply to the shoreline is vastly dwarfed by the rate of sea level rise. so wetlands and shorelines aren't going to keep up with the pace of sea level rise unless there is significant intervention in the form of

capturing sediment that is dredged from the bay and placing it on the well lines and shorelines of san francisco bay. so i thought that was a very timely piece of news that i wanted to share with you all. and that concludes my presentation. >> president brandon: thank you. great presentation. commissioners, can i have a motion? >> commissioner: so moved. >> commissioner: second. >> president brandon: thank you. now, let's open it up to public comment. we'll open the phone lines to take public comment on item 13a. for members of the public who wish to make public comment, 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 will open the queue for anyone on the phone who would like to make public comment on item 13a.

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 mute until their line is open. comments will be limited to three minute per person. the queue is now open. please dial star 3 if you wish to make public comment. >> president brandon: thank you. do we have anyone on the phone? >> president brandon, at this time, there are no members of the public on the phone wishing to make public comment. >> president brandon: thank you. seeing no callers on the phone. commissioner woo ho. >> commissioner woo ho: thank you, carol. as usual, you always g fif a comprehensive and it's always a pleasure to hear your report in terms of what we're doing with the environment and our parks. it's great we're ago able to access this grant and i'm just

very supportive. thank you very much. >> thank you. >> president brandon: thank you. commissioner gilman. >> commissioner gilman: thank you so much for your report. i have no questions. i'm very supportive of the item and i'm excited to see the commitment to heron's head park. >> president brandon: thank you. vice president adams. vice president adams? >> i think he's muted. >> vice president adams: president brandon, i am good. carol, great job again. i wish we could have you first one they've provided

supplemental programming for a lot of those kids. last summer, they offered very small size and covid-safe wetland explorer camps. so there were two 3-week sessions of camps for young children at heron's head park where they were on site and they're offering that camp again. i think it's ages 7 to 10 and they're actively recruiting from the public housing that's 1/3 of a mile away and, you

know, within easy walking distance to heron's head park. i don't know how those camps are filling up, but, you know, it's only april. so i think it shows great promise and there's really a lot of great community engagement with the rec and park staff. if you don't mind my going on about it because it's a topic i'm pretty excited. we actually had somebody come back, a young man who had been a city college student who had done some of the work in one of his classes and years later now is bringing his sister who runs a small dance group in the bayview to come and teach those kids in the dance group about what he learned at the eco center because he still feels really passionate about it and now the dancers are going to create some sort of

interpretive dance related to wetlands. so it's kind of coming full circle. >> president brandon: nice. very nice. well thank you again, and i really want to commend you for your passion and your efforts. >> thank you. >> president brandon: okay. we have a motion and a second. carl, can we please have a roll call vote. >> clerk: absolutely. on resolutions 21-17 and 21-18. [roll call] >> president brandon: the motion passes unanimously. resolution number 21-17 and 21-18 are approved. call next item, please. >> clerk: item 13b. is an informational presentation on a proposed contract amendment to the transit shelter advertising agreement the port entered into with the san francisco municipal transportation agency and clear channel outdoor ink. to reduce the minimum annual guarantee payments and administrative and marketing

payments from may 1,2020 through june 30, 2022, due to the impacts from the covid-19 pandemic. >> good afternoon, commissioners. dan hoodaf with the port's planning division. and i'm here to talk to you about a contract we have the port shares with sfmta, san francisco municipal transportation agency and clear channel outdoor inc. it has to do with the covid related impacts that are going forward. so thank you for taking this at the last item here today and giving this consideration. can i have the next slide, please. this agreement was entered into in two thousand seven. it was a three-party agreement that we are part of. it's a 15-year agreement. in other words 12 years or so

of it has gone by, 12, 13 really and it's -- well, a couple years left. the agreement basically is clear channel, has certain responsibilities for maintaining and cleaning the transit shelters and replacing them and in return have post advertising panels and generates revenues from those and the port at sfmta share in those revenues. can i have the next slide, please. the agreement terms clear channel maintains the shelter, replaces the glass at times, they placed the shelters where the need arises. and they bring utilities to those as necessary and it's display advertising on those and then there's an agreement set up where there's a minimum

annual guarantee and then there's also the possibility for revenue share should revenues exceed a certain level which they never have over the life of the agreement so we've always relied on the established minimal annual guarantee. next slide, please. so, due to the impacts on transit, the unprecedented impacts, ridership is down 60%. and that was even as late as february of this year. ad revenues correspondingly are way down and that's where all the dollars for this are generated. so clear channel has agreements in many cities across the u.s. and has made these appeals to the other cities as well. san francisco is not unique in this. next slide, please. so of the advertising panels,

there are 44 of the total of 1,706 on property or 2.5% of the total. regardless, the port's done very well with this contract, $3.6 million through 2019 and the revenue started out smaller and they have increased annually. the port was receiving about $440,000 annually from this agreement. next slide, please. the proposed amendment is completely about the pandemic and the damage it's caused to the ability to sell advertising on these transit platforms. and, it would affect a period of january 2020 to december 2022 although not equally throughout all that period. on either end, we get full payments, but in the middle,

it's greatly reduced. there are some other pieces of the agreement that affect m.t.a. more than the port. the port during this period expected to receive $1.32 million. that's an estimate. it's not an exact amount. the port would receive the $702,000. the difference is about $618,000 for this period and that $702,000 is a guaranteed payment. it's the minimum annual guarantee. there's also a provision in the proposed amendment for revenue share as i said, as i've mentioned, that's something that's never been realized in the life of the agreement. next slide, please. it's a three-party agreement between clear channel sfmta and the port and it needs all those parties to approve and it also needs board supervisors' approval to go forward. the sfmta board acted on

march 2nd of this year for approval and i'm here today for an informational presentation to take your comments on these proposed amendments. and, with your direction would return on april 27th for action with your direction. next slide, please. board of supervisors would follow the port commission then. so what if we were -- if the port was not to approve this, what would that mean? it would need to be reconciled with sfmta. there are substantial services that come out of this contract with the cleaning, and repair and maintenance provisions in the contract. clear channel could default requiring leaving this responsibility with our own agencies which would have an impact on our budget as far as being able to maintain it. or sfmta could rebid to secure another transit shelter

contractor. sfmta estimates a nine to twelve month process to do a rebid on this. and there's a substantial risk that the new agreement would not be as favorable as the one we enjoy today. that is the essence of the proposed amendment. next slide, please. and i and gail stein of sfmta are both here should you have questions about this. thank you very much. >> president brandon: thank you, dan. now, let's open it up for public comment. we will open the phone lines to take public comment on item 13b. for members of the public 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 will open the queue for anyone on the phone who would like to make public

comment on item 13b. 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 mute until their line is open. comments will be limit today three minutes per person. the queue is now open. please dial star 3 if you wish to make public comment. >> president brandon: thank you. do we have anyone on the phone? >> yes, president brandon. we have three callers on the line at the moment. >> president brandon: thank you. can you please open the line to the first caller. >> thank you. unmuting that line now. >> hi there, my name is victor sill. i'm the [inaudible] i'd just like to speak a little bit about clear channel and with a we do for the city. so clear channel outdoor was not only able to keep myself and all employees working throughout the pandemic, the 853 teamsters are the gentlemen

and women who clean the shelters in the city. while many peoples' jobs shifted to working from home, we continued to work in the streets of san francisco and other cities across the bay. our work with the sfmta and other transit authorities was deemed as provided essential services for the city. as a company, c.c.o. moved quickly to make sure we stayed in compliance with cdc safety protocols by wearing masks, social distancing, washing hands, and making sure all of our equipment was an is a sanitized after each and every use: shutdown or going to school that were no longer allowed to attend school. allowed them to stay home and reorganize their work schedule to accommodate those needs. [inaudible] our installation team. these are values and goals.

shelters or billboards. since workload was so slow there, we helped out with the city keeping the city clean. we all know that the street behavior is challenging at times. 2020 was no exception with that. during covid, issues that arised over 70% and the vandalism has increased substantially. it takes a team of heroes to keep this city up. and i believe here at clear channel outdoors, we have that team of heroes representing the city and keeping the city as clean as we can. i appreciate the commissioners' concern and ultimately approving this amendment. thank you. >> president brandon: thank youment next caller, please. >> thank you. opening the next line. >> hello. good afternoon. hi, my name is ramiro gonzalez. i'm a teamster with our local

853. i've been employed at clear channel since september 3rd, 2019, maintaining and cleaning bus shelters throughout the city. so there were people working from home during covid-19 -- when the covid-19 hit, me and my colleagues continued our work maintaining and cleaning shelters which is considered essential due to that we're providing the services from day one of the pandemic. we hear at clear channel know that our work is important to rebuilding the trust of the public and using public transportation even though there's still a pandemic, clear channel has kept me and my colleagues working through it. working in the streets of san francisco is a tough environment and it seems it has gotten tougher due to covid-19. every day, we are out there in the field dealing with these tough issues from homelessness, mental illness issues,

graffiti, urine, syringes, broken glass, even having our work truck stolen, [inaudible] mornings before we come in. they provided masks and other essentials to keep us and others safe from covid and taking all precautions. i just want to say thank you to clear channel for providing work and keeping us safe while others stayed home. i can't imagine what it would look like out there. i appreciate you to consider the amendment that's before you. thank you for your time. >> president brandon: thank you. next caller, please. >> thank you. this is the last line. >> hello. my name is emily abraham. i'm the interim of public policy. i'm here to offer our support

for authorizing the executive director to execute the amendment. clear channel is a reliable and good standing member of the san francisco community and has been a long time and long serving board member of the san francisco chamber of commerce. as i'm sure all of you are aware, covid has devastated transportation ridership and, as a result ad revenues are down by almost 80%. throughout the pandemic, clear channel has continued to provide essential services to the city of san francisco including cleaning, repairs, capital investment, and transit. investments go by building trust and ridership transportation. the preservation of the agreement will ensure that uninterrupted performance of cleaning, repairs, and capital projects will continue. we hope through this clear channel can continue to essential work for our transit system. thank you all so much for your

time. >> president brandon: thank you. jennifer, are there any more callers? >> president brandon, we have no other callers on the phone wishing to make public comment on this item. >> president brandon: thank you. seeing no more callers on the phone. public comment is closed. commissioner gilman. >> commissioner gilman: thank you for that great report. i led the staff report and given the fact that sfmta commission has already approved this deal with clear channel and they have the bulk of the bus shelters, they only have 44 and you're still guaranteed over $700,000 annually with the new agreement? >> no $700,000 of the period through january 2020 through december 2022. >> commissioner gilman: okay.

sorry. i just wanted to understand the terms of it. and that's -- and you said that's about a reduction -- it's a little over half of what we anticipated receiving? >> yes. during that period, we anticipated just over $2 million and we would be getting a $618,000. >> okay. yeah. i think this in some ways, in my opinion, we're all taking a sacrifice here at clear channel down to the work that they're doing and i think we all have to do our part and we're a minor player. so i actually have no guidance for you. i'm generally supportive of it and i just wanted to note for the public record clear channel must be an extraordinary employer and the fact they kept

all of their employees on payroll working through the pandemic and that they are a unionized shop and are other factors is why i'm comfortable with the agreement. >> president brandon: thank you. vice president adams -- i mean, commissioner woo ho. >> commissioner woo ho: yeah. thanks, dan for this report. i'm supportive of the item. have no further questions. >> president brandon: thank you. vice president adams. >> vice president adams: yeah. it's -- i know that people may look at this and there are some little pain and suffering here, but i'm very supportive of the item clear channel they have kept and being a union person, i understand that the teamsters and their families, they were out there on the frontlines and they did what they had to do and we have to protect those that are out there in these extraordinary conditions that we've all have been through in the last year and so i know

this is an informal presentation, but i'm in support and i know sometimes there has to be a little pain, but i think we can work through it. thank you. >> president brandon: thank you. dan, again, thank you so much for the presentation and thank you for the callers and everyone who sent letters. it sounds like clear channel is a great employer. you said this affects payments from 1-20 to 12-22 but yet in our staff report it affects payments from may 30th 2020 to june 30th, 2022, and so i just want to understand the difference and which period it affects and what expected revenue versus revenue we will see? >> thank you, commissioner. that's a great question. and, it is a little bit

confusing. so of this three-year period that began in january, 2020, clear channel provided the full payment for the first four months. so that was january through april. and then the reductions occurred beginning in may of 2020 and extends through until july of 2022. after july of 2022 or through june 2022 beginning july '22 until december of '22, the port would be back to the full rate and that is the reason -- there's a variety of reasons that it's defined in that three-year block. one, that would bring the contract to the completion of its 15-year period although there is an option to be extended another five years. so at the beginning and at the end of this three-year period, the port is getting the full

payment. it's in the middle where this reduction is taken and that's -- and there are also some other adjustments that affect mta. so we haven't covered those. does that clarify your concern? >> president brandon: i guess i'm just trying to figure out economically how does it affect -- because i know on the table that i saw, i don't see now, but the original table that i saw, the january through june and the july -- the january through june 2020 and through june 2021, the amount that the port was going to receive was about the same and i did see the increase in the later months of july 2021 through june 2022. it was confusing to me because

it seems like the four-month period that was paid was captured. but because i don't see the economics listed out as i did in the previous report. i just wanted to know exactly from may 1st, 2020, through june 30th, 2022, what revenue were expected and what revenue will be received. i think the other, the first and the last period is status quo. it's not changing. maybe one month in the beginning. >> okay. >> president brandon: and i think it's confusing to me because we're using a three-year period but you're asking us to look at a two-year period. so they don't go together. so when you come back next time for approval, maybe we can just discuss the months that you're asking us to make the concession for.

if that makes sense. >> i would be happy to provide greater clarification on which months we would be receiving what payment. that's a very reasonable request. thank you for that input. >> president brandon: no problem. but thank you for the report and it sounds like we all support it. i just wanted to clarify exactly what it is we're agreeing to. >> okay. >> president brandon: thank you, dan. >> thank you, commissioners. >> president brandon: okay. call our next item please. >> clerk: that would be item 14, new business. >> president brandon: commissioners, is there any new business? sounds like no new business. can i have a motion to adjourn. >> commissioner: motion to adjourn. >> commissioner: i second that. >> president brandon: also, can we have a roll call vote.

>> clerk: [roll call] >> president brandon: the meeting is adjourned at 5:48 p.m. >> thank you.