president brandon, at this time there are no callers on the line wishing to make public comment. >> president brandon: thank you. public comment is closed. next item please. >> executive director's report. >> good afternoon president brandon, vice president adams commissioners, members of the public i'm elaine forbes executive director of port of san francisco. we're aware of the derek chauvin outcome. the guilty verdict held chauvin accountable. the national reckoning for racial and social justice that mr. floyd murder inspired

through the early days of pandemic is having a lasting effect and gaining traction. sadly, the verdict will not bring back mr. floyd or fill a deep wound in communities of color have endured for industries. since mr. floyd's murder last year, more murders have taken place. i am hopeful last week verdict will have a lasting impact on the movement of justice. i believe it signal things to come as we continue to do the hard work and demand change. we must all do our part. the port is striving to become an anti-racist organization to support this change in the ways we can. in my report today, i will provide an update on economic recovery and equity. san francisco's new covid cases and hospitalizations remain low vaccination efforts continue to reach more people and we're seeing more and more san franciscans get a shot.

67% of san franciscans received their first dose of the vaccine. the city continues to making significant progress for vaccinating people who live and work in san francisco. allport staff has access to vaccines. last week we were able to secure 50 slots for any staff who has not received their first dose. all staff who wanted to get a shot were able to get one. the pandemic is not over. we must continue to be visible lent and adhere to public health guidelines. all members of the public are urged to continue to wear mask, social distancing and hand washing. we're on a long road to economic recovery and look forward to welcoming people back to our water front. the port is facing some very serious financial challenges as

a result of the virus. port revenues have fallen by nearly 50% with economic forecasters mating total loss of $100 million over the next five years. the port is working aggressively to write our financial ship through the recently announced economic recovery initiative. i'm happy to note that our first action that we're taking in this initiative is pursuing a $20 million fund loan from the city and we received initial support from it mayor. this concept is subject to further review from the mayor's office and the board of supervisors. if approved the loan will be paid back in full overtime. the fund will help fill the revenue shortfall and allow us to avoid layoffs in the upcoming fiscal year. it will allow us to care for aging and de-- deteriorating

infrastructure. our port service remain open for business and provide economic relief and support for our tenants. maintaining fund balance is important to sustain the port's strong debt and bond rating and hedge against future emergencies. the port is an economic engine for the city and city leadership understands the value of our organization and will work with us. as you know, the pandemic has also brought unprecedented financial woes for our tenants. in december 2020, the commission

authorized the rent forgiveness program for nonprofits to 7 up to three months rent of forgiveness. the program has a maximum forgiveness of $200,000. i like to inform the commission that we have allowed one applicant to enter the program even though it has revenues exceeding $3 million maximum annual revenue threshold. we made this decision for our port tenants to enter the program, this tenant meets the criteria to enter the program and total rent forgiveness requested by all applicants is less than the maximum amount authorized by the port commission of $200,000. rent forgiveness program sums to approximately $111,000. we're happy to welcome young

community builders into the program. equity. i'm pleased to report that the port continues to make progress on our racial equity action plan goals. the port leadership team identified key staff to serve on the racial equity change team for their respective division. each member is commit to ensuring actions reflect and embody the racial equity action plan goals and principles at the division level. a key and immediate responsibility for the racial equity change team is to monitor and report on their divisions progress implementing one or more of the 30 short-term actions by the end of the year. the port race equity team to celebrate diversity and working to finalize diversity calendar programs to celebrate aapi heritage month in may.

the purpose of the diversity calendar is secrecy staff. awareness, provide opportunities to engage and invite staff to experience a variety of cultures at the port through history, art, music and food and collaboration. to conclude my remarks i like to acknowledge the hard work and excellent collaboration of port staff on crane coe park. in northern california chapter represents more than 650 landscape architects. the national professional organization represents 17,000 landscape architects. i'm delighted to report that the energy observer is scheduled to call the port the vessel runs on hydrogen using sea water has been on a 6-year voyage to test

the ship and to promote and educate about the clean technology. the observer started its voyage in 2017 from france. she is colonelly in long leach and head to hawaii after leaving san francisco. that concludes my director's report. thank you. >> president brandon: thank you, director forbes. we'll open the phone lines to take public comment on the director's report. >> clerk: thank you. 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

three minutes per person. 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? >> clerk: at this time, there are no members of the public on the phone wishing to make public comment. >> president brandon: seeing no callers on the phone, public comment is closed. >> commissioner gilman: director forbes thank you so much for that report and your opening remarks. it's really important to recognize the events that are happening it nationwide and they affect the efforts of the port from an equity perspective and continuing to become an anti-racist organization. i really appreciate those remarks. i want to -- i know we have coming up as an item, how excited i am about loans to help

us sustain this economic crises. i want to thank you and the team for all your work. i have no other additional comments. thank you. >> president brandon: thank you. >> commissioner woo ho: i echo what commissioner gilman said. i had one question about the funding. i was going to ask since it's also part of the later finance presentation. can you tell us what -- i know it was identified in the staff report, what are the possible sources which department is the one able to give us this $20 million. what are the candidates? >> you have a knack for guessing. we're in discussions with the san francisco airport and also with the city's general fund. of course, the loan would have to comply with all regulatory restrictions. there's a precedent for airport

loaning funds to the city actually under the jordan administration when the city faced financial challenges. there's a precedent and there's a nexus between airports and ports. they've been very gracious to us. the city is looking internally at the city's general fund sources and accounts in the general fund. >> commissioner gilman: i would think that the general fund is stressed at this point given all the demands being made. rest of the city is trying to go to economic recovery. i will reserve my other remarks when we get to that part of the financial presentation. thank you very much for the report. >> commissioner burton: no comment. >> president brandon: vice president adams?

>> vice president adams: directo r forbes, i appreciate your strong message. i think commissioner gilman will answer my question. maybe we can get the money from the airport. just really concerned about the attacks on our governor and a possible recall. this seems like this year it's going to be like last year. we'll get through it. we're taking couple of steps back. i'm hopeful because i know we were hoping to get money from the state. thank you. i appreciate the effort of you and your team. thank you. >> president brandon: thank you. elaine, thank you so much for your opening comments and your compassion. it's a sad time. four days ago on my birthday, another young black man was killed. it just continues to happen.

i know we have a long way to go. i'm so happy with the work we're doing here at the port under your leadership. thank you very much. it does not go unnoticed. i think we are so lucky to have an executive director that is a finance -- [indiscernible]

>> clerk: [agenda item read] >> so moved. >> second. >> president brandon: now lopes- let's open up for public comment. we'll take public comment on the consent calendar. anyone on the phone like to provide public comment? >> clerk: at this time, we'll

open the queue for anyone on the phone who like to make public comment on the consent calendar. please dial star 3 if you wish to make public comment. the system will let you know when your line is open. others will wait on mute until their line is open. comments will be limit to three minutes per person. 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? >> clerk: at this time, there are no callers on the phone wishing to make public comment. >> president brandon: thank you. seeing no callers on the phone. public comment is closed. we have a motion and a second. please call for roll call vote. [roll call vote]

>> president brandon: motion passes unanimously. resolution between-19 is adopted. >> clerk: request approval of port fiscal year 2021 through 2022 operating and capital budget supplemental eappropriation. this is resolution 21-20. >> good afternoon my is nate cruz. i'm here to request approval for the supplemental appropriation. just to remind you, the historic context under which we're submitting this request. this is the revenue history of the port until we hit covid. it tells a pretty blunt picture about our situation over the 5-year recovery that we're forecasting before we return to normal revenue levels.

we're forecasting over $100 million shortfalls. that requires a very significant adjustment to the way the port does business. here's a little bit more revenue detail that we provided in the information a month ago. the table on the top provides details on revenues both before and after the pandemic by different types of business lines. you can see commercial rents, that includes fixed rate and percentage rate tenants is down about 15 e%. 15%.from july to february 2020. parking is down 60%.

cruises is nonexistent. cargo has been stable. fish and harbor services have been down 15%. the table below that on the bottom takes that revenue numbers that slices it in different ways. it slices it by division. you can see real estate versus maritime. what it shows is the portion of the total revenue picture. before the pandemic, 77.6% total revenues maritime 22.4. that remains relatively stable during the pandemic, real estate revenues were about 80% and maritime about 20. the supplemental that we're proposing for you today for approval are number of components. the first is the operating budget changes. the changes to the salary and benefits line, we identified over $2 million of savings by

moving quite a bit of port labor off of harbor fund and on to capital projects and outside funding sources. that is largely offset by the cost of living increases to city labor rates. the net adjustments is savings of $400,000. in other current expenses we're requesting $3 billion to ongoing rent negotiation for lodges in tier one. programmatic projects, we identified roughly $600,000 of

savings across various projects in the port. we also increased very important project that we think we hope no not need, we may. that's the project we used to prepare vacant facilities for new tenants. hope all tenants can weather the storm. we want to ensure we have the resources to populate those vacancies as soon as possible. the s.b.h. operating budget, that's also seeing an increase, that's due to the city labor rates going up by the cost of living. this is the next component of the supplemental. this is capital appropriation. this is pretty unusual. because we've been spending so deeply in our fund balance this year, we need to replenish that. what we're proposing is to go back to unspent funds that were appropriated in previous budget

years and take the unspent money and replenish it to fund balance. those defunded projects were identified in the late fall through a ranking process that the deputy directors had. we identified $17.7 million of savings. on top of that $17.7 million of defunded projects, the finance and accounting and the deputy director staff members at the port identified technical adjustments little over $9 million. that's closing out old projects that's right sizing projects that maybe have more funds that we currently anticipate needing. we're able to identify quite a bit of funds there. finally, we're also appropriating $11.5 million. that's just paying the port's fund balance back from an advance we provided to the

resilience program. we seen litigation that would tie up the seawall bond issuance. rather than let the program stall, we advanced $11.5 million. those bonds have been issued to pay ourselves back. the total replenishment to fund balance is ref -- roughly $38.3 million. that's how we -- that affected capital appropriations from prior years. this provides an overview what we're doing with the fy '21, '2.

we hope to cover most of this money, we identify the source of the league. i think it's the fuel operator. we expect to recover most of the this $1 million. we want to make sure that funding was available to clean up in a rapid manner. in the southern waterfront, there's no changes to the budget that you approved. it's about year and a half ago. unchanged $2 million in the project to update fenderring.

this table is unusual table. we will introduce this during the covid budget presentations. it provides the full snapshot of the port finances through the pandemic and also what hope is the recovery window. what you're seeing is a forecast of the fund balance, revenues and expenses through recovery. in the current year, we're expecting to see the starting fund balance roughly $69 million, revenues flow in, expenses flow out. we're expecting to lose or withdraw from fund balance almost $50 million this year with end in fund balance of $20 million. in 21-22, that's the subject of proposed appropriation, we start the year with not very much fund balance. the revenues come in. in that blue box, you see in the first row, now you can see the effects of this capital defunding. we're bringing in $38.3 million

in to replenish fund balance. in 22-23 revenue come in. there's this other line. the bottom of that blue box, e.r.i., that's really to ongoing saving that are going to be necessary to keep the port on a secure financial footing. the existing savings we've identified are certainly

difficult. they are fairly simple to operationalize. these e.r.i. saving will require lot of work. this is the financial picture that we're forecasting with what we know with covid recovery. which has quite a bit of uncertainty. one of the big things that's changes is staff made significant progress to secure inner fund loan. i want to give lot of credit to director forbes here who had unprecedented event and provided lot of leadership and paved the way for us to make that ask. what we included permission and authority to into a $20 million loan that would be repaid in full within 20 years. these are all draft terms.

we're still working to define the fine points. currently we're envisioning that payments will be interest only for the first five years to allow for the recovery and revenues to rebound. we would pay it off within the next 15 years. if things recover more quickly or if something changes in the stimulus landscape, we can always repay it early. we're envisioning the interest rate to be equal to the cost of funds that the lender would have earned on that money. it all sits in an account that the treasure controls. it's roughly 2%. what's really critical about this loan is in the last presentation, we mentioned there might be a hand full of layoffs. if we're able to secure this loan, it eliminates need for any layoffs.

this slide is very similar to the one we just saw but now you can see in green, the effects of the interfund loan. not only it mitigate need for layoffs, it does two key things. first you see the fund balance numbers on the bottom. the fund balance numbers there are much better than in the previous slide. they all stay above $30 million, which is a number that in coordination with the financial advisors have come up with a minimum level that we need to have through the pandemic. we certainly need to build that number back up to roughly $60 million. 30 is kind of a threshold for us. we want to have -- to maintain. the other thing that does if you look at bottom of that blue box, future e.r.i. saving in '22, '23. now that number is $5 million. without the interfund loan, the

target net savings needed there was closer to $8 million. the work that deputies are doing, if we're able to secure the interfund loan, will be less severe to the port. the way to think what the interfund loan does, it really lessens the intensity of the revenue shortfall shock. it allows us to stretch the effects out overtime and soften the effects. we want to secure that loan. we're working diligently with the mayor's office and controller's office regularly. if we're able to secure that loan, it will be entered into the budget. that is submitted to the board of supervisors on june 1st. as far as the future e.r.i. work, that work has begun. really, there's a lot of work

ahead of us to understand how to implement them. real implementation -- we'll be back to update you with our progress on e.r.i. that concludes my presentation. i'm happy to answer any questions you have. >> president brandon: thank you, nate. can we have a motion? >> so moved. >> second. >> president brandon: let's open up to public comment. we'll open the phone lines to take public comments on items 8a. members of the public joining us on the phone. >> clerk: at this time, we'll open the queue for anyone on the phone who like to make public comment on item 8a. 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 to three minutes per person. the queue is now open. please dial star 3 if you wish to make public comment. at this time, there are no callers on the phone wishing to make public comment on this item. >> president brandon: thank you. seeing no callers on the phone. public comment is closed. >> thank you for that report. i appreciate the progress you have made in terms of looking at the difficult decisions as far as how we're going to move forward on the financial side. with director forbes report, very good to hear about the interfund loan. only one thing. this is something to be -- you

all are very conservative. i personally think that the recovery in this country, economically is going to come sooner than perhaps what the city is projecting. that will be good news. the revenues to climb faster in the latter part of 2022, 2023. we're feeling that the economy has recovered to much greater extent. it is not affecting some of our tenants as much, as far as hospitality or travel. if you look at some of what's happening with the corporate earnings that is coming out for the 2nd quarter and other indicators it's very clear that the economy is on a fast pace at the moment. there will be some good news. i hope that people want to travel. we hope to see some of this impact us. we are limited to restrictions

like the cruises. we're going to hear more about that later. i hope that your forecast further out is going to be more positive in what you have now. i understand that you -- at this point in time, it's in throbbing -- lock step what the controller office is saying. it's really on the revenue side, which is the most important side. turning to the expense side. i did hear what you said. in the presentation that you put out earlier, the savings was only about $400,000 that we're getting about $20 million. i guess some of it is reflected

in what you're calling e.r.i. savings. that's a big differentiation. i need more explanation on where the $20 million will be applied beyond layoffs? >> the application of the $20 million in proceeds would go and sit in our fund balance. it do allow us to offset the lay layoffs. we will be lowering those e.r.i. targets. does that answer your question? >> if i can add couple of comments. the decision about where the

funds would go, whether to fund balance, that's the technical place that the funds would go. whether in future budgets we would allocate your funds to capital investments to keep our facilities open and not shuttered or to avoid layoffs into expenditures or into fund balance is describing is subject to future decision from the port commission and the future budget progress. it is subject to future port commission decision-making and sum to what the economic recovery initiative yield. those are assumptions what is possible. we don't know what we can safely

assume and savingses and revenue enhancements. how successful that is will depend very much on the $20 million loan fund are appropriated. i hope that helps. nate please jump in if i misstated anything. >> i appreciate that explanation. your layoffs will not equal $20 million. we all would have been shocked if that's the case. i guess couple of things just from a finance point of view, if you're putting in that you will use it in the future, the balance sheet is shored up, i would suggest that you also think about a concept that -- if you will take an actual $20 million cash from whatever agency and the city will give it to you, i'm not sure what accounting industries you're making, my suggestion would be, if you're putting it there to

give yourself a reserve, you wouldn't want to draw down when you don't need the money yet. what i'm saying, probably is -- from my point of view as a banker, it would be good know if you had a line that you can draw upon. if you're not using the money in expenses up front or on capital projects, don't borrow more than you need. if you can set up some sort of structure that would be more of a line versus strictly takedown of 100% in financial terms. that's something you might want to take down a portion of it. do you have some things that you need to mitigate. when i hear we're going to cushion the layoffs an that's only $400,000, it's lot less in between. your explanation just now,

elaine, did not give me the sense that you identified it specifically. i would suggest you work on a hybrid structure, which is more based on a drawdown as you need versus drawing everything and pay interest on it. does that make sense? >> absolutely. that's a point of discussion currently. i didn't include it in the slides. drawdown model is something we've been considering. >> don't pay interest on anything that you don't have to. the other agency will still eearn that money in the marketplace. the city would be better off too. other than that, i think i understand what you trying to do. this is sort of a way to cushion

a bit more of of soft landing for us. i'm hoping that your projections will be actually better than what you're showing here.

>> i want to applaud staff for creative idea to help the port move forward. thank you. >> president brandon: thank you. >> vice president adams: thank you. commissioner woo ho, i appreciated your comment. incident to say to director forbes, i like this. we're not sitting back playing victim. we're playing chess instead of checkers. i like that. i really like it that we made a decision. we're going for it. i support it. i appreciate commissioner woo ho, she comes from that world of finance. i don't.

so do you director forbes. that's how i think. we are playing chess instead of checkers. we're thinking out the box. we never had to go here. i'm on board. i want to say thank you and commissioner woo ho thank you for your comments. president brandon, you all understand finances. i think staff will be happy. we got some wiggle room now to give us some time. i'm hoping as you say commissioner woo ho that it economy will get better. unfortunately we don't have a crystal ball. i'm hoping that it will be faster than later. thank you. >> president brandon: nate, thank you so much for this report. very comprehensive. i want to tell you how much i appreciate the team coming up with this innovative concept.

this puts in a better position than we were earlier this year. [roll call vote] i think you're on mute commissioner woo ho if you're there.

>> president brandon: motion passes unanimously. resolution 21-20 and 21-22 are adopted. call the next item please. >> clerk: 8b is information presentation on on the port's contracting activity and local business enterprise strategic initiatives for the first and second quarters of fiscal year 20 between-2021. >> good afternoon commissioners. i'm from the contracts procurement team. i'm here to present the local business enterprise activity and report back on our l.b.e. engagement strategy. we have two part agenda. we're going to be looking at the rundown l.b.e. contracting

activity. the awards, payments and outreach. the second part will be to look at the l.b.e. engagement strategy including looking at the citywide context for the l.b.e. program reporting on the deliverables to be presented. the l.b.e. program is governed by administrative code chapter 14b and administered by the contract monitoring division. the minority businesses enterprise in the blue section, the women business enterprise in the red section and the other business enterprise in the yellow section, the pie chart on the right is a pull out of the m.b.e. slice shows you the breakdown of ethnicity of m.b.e.s in that piece. larger segment is for asian

owned firms followed by latinx owned firms and african-american firms. as a city there was a decline in the number of certified micro and small firms by 14%. when you compare the two time periods, there was a small increase in l.b.e. and m.b.e. remained steady. in the reporting period, the report awarding five contracts for a total of $3.2 million. four of the five contractors were awarded to l.b.e.s including an african-american owned firm and latinx firm and nonprofit. 55% of contract dollars were awarded to l.b.e.s and please note that one contract was not awarded to an l.b.e. it was a federal contract. if we exclude that contract, the port awarded 100% of our

contracts subject to the l.b.e. program. the port contract payments was $3.0 million or 14% of payments. the percentage as needed and professional services contract remains strong with over 30% of payments. when you look at construction, you might be wondering why is it only 4%? port staff had to consider this. the tradeoff was eliminating the scope of work, we're able to dispose the material and more environmentally beneficial way and it's safer. we were contributing to the

wetlands restoration project. we saved $355,000. at the last port commission meeting, there was a request for port and l.b.e. performance retirement budget. there were no construction project closed out during this reporting period. that will be presented in the future reports. let's turn to performance overtime. the contract awards remain very strong. the dollar awards remain within trend. chapter 14b is required for contracts that i mentioned. the l.b.e. program and how it's applied is negotiated.

in total, $83 million in these projects has been awarded to l.b.e.s. $5 million has been awarded to black owned businesses. i'm delighted to share this outcome with the commission today. the port has widened the lens how we think about the economic activity an organization and stimulating impact of our development deals in san francisco. in addition to our contracts, how we engage with our community is also a core function. the port launched the l.b.e. emergency relief program where we have currently approved 16 loans and reaching about $700,000 in funds approved.

we hosted a workshop on over water work to hear from l.b.e. firms about bidding at the port and dispel the myth that all our projects are over water. this is the point of the presentation. we will move from our strategic thinking and outcome in future work. the slide is the same slide you saw in october. it's our basic approach. internal practices, the importance of partnership, the technical assistance and really merging our efforts with the

racial equity action plan. for period looking at the last two fiscal years, we looked at the data reported on l.b.e. participation. the l.b.e.s are the ones in blue. the non-l.b.e.s are in yellow. other departments are bars one and three and port is bars two and four. i'm delight to announce in when we compare the port's results to similar departments, they awarded 38% of contracts l.b.e.s and the port awarded 62% of contract awards to l.b.e.s. these are pretty great results. i like to thank my predecessor and all the project managers who

work to create opportunities to encourage professional services and help many l.b.e. bidders. we maybe a small department in the overall city picture, there's been a continuing instances to l.b.e. engagement as these results speak for themselves. when it comes to the contract awards by dollar, we're doing better than the city departments. other departments are awarding 32% of dollars and the port is at 39% of dollars. these are impressive results. we're going to do some more analysis to understand why we went from astronomically better to nearly excellent. when we look at the l.b.e. awards, by dividing the bities into l.b.e. type we see that the port has the same exceptional results for o.b.e. and w.b.e.

how do we think about this? when i take a step back and i look at these results, i think we are certainly well beyond what we expected and areas of growth should be strategies for m.b.e. engagement. the path forward for equity and contracting is with working and making sure that we implement the racial equity action plan. next, tiffany is going to share how we have completed all our deliverables and share what's coming up next. >> thank you, stephanie. good afternoon president brandon, vice president adams and commissioners. as previously introduced, my name is tiffany tatum. i'm the senior community development specialist. i'm here before you again to underline what stephanie already said and to highlight our continued efforts for fiscal year 2022. on slide 8, stephanie highlighted the community

engagement efforts that was completed between july 2020 and december 2020. we have had the opportunity to reach out to communities and engagement will be a core value. we are commit to meeting our deliverables. let's be clear, that completing bullet points does not mean we're finished. these activities are things we will continue to work and rework and track overtime so that the value of the l.b.e. program continues to deepen into the contracting process at the port. our july 1 activities are underway. by july 1, we will have built on our previous efforts with new activities that includes developing phase one of an l.b.e. tool kit. we intend for this to be collection of resources that give staff the foundation for doing l.b.e. equity work. understanding the requirements

but also best practices and how to implement this program in a meaningful way. additionally, we will also be working to develop a conceptual framework for a l.b.e. loan program. by the end of the calendar year, we intend to roll out and implement a fully vetted and final version of the phase one l.b.e. engagement tool kit, enhance l.b.e. payment data which will be an internal process improvement to ensure that we have the systems in place to monitor l.b.e. utilization.

>> president brandon: we will open phone lines to take public comment on 8b. jennifer will be our operator. she will provide instructions now for anyone on the phone who 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 item 8b. 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? >> clerk: there are no callers on the phone wishing to make public comment on this item. >> president brandon: thank you. public comment is closed. >> commissioner gilman: thank you so much for the report.

i want to thank you for the report. as always, we continue to align this with our racial equity report and recommendation. i have faith in tiffany and stephanie and director forbes and president brandon leadership we'll get there. we're doing better than other city departments. thank you. >> president brandon: thank you. commissioner burton? >> commissioner burton: wonderfu l comments. we have to keep our fingers crossed. semigood news. i talked to the deputy director of finance today.

they are very encouraging to send that money to us. she can't guarantee anything. she's very optimistic. i've known her for quite a while. she knows what she's doing. she and her boss, they are all very supportive. i know we got the commission support today. i think we're going to get that money. it looks better than we might think. >> president brandon: thank you so much. we really appreciate your support in all the work you're doing. thank you. vice president adams? >> vice president adams: stephan ie and tiffany, it goes without saying, once again, just another great presentation.

very flawless, right to the point. very well thought out. you answered all my questions. i want to thank you both for the work that you're doing. appreciate it. >> president brandon: thank you. stephanie and tiffany, thank you so much for this report. this is one ever the comprehensive reports we've seen on this subject in a long time. even the staff report was much more detailed than your presentation. you goys put a -- you guys put a lot of thought and focus in this report. i want to tell you how much i appreciate it. i have one question. that's regarding the -- [indiscernible] can you explain where we're not meeting the numbers there? >> i may need rod's help. let me explain my understanding of it. there was going to be a scope of

work for how the material was going to be disposed. that was scope done by the o.b.e. after the contract had been executed, it turns out that there was actually another way that was approved to dispose of the materials which hadn't been approved earlier. as a result of this new change, there were many benefits. it was going to be disposed in a deep ocean site which involves moving the materials much further distance. it's leaving it in the ocean. whereas the new site is both safer as well as more environmentally friendly as well as cheaper way of doing it. it is not a scope of work that this l.b.e. could do as well as was interested in doing. i'm not sure they were capable of doing it for not. there are many conversations around this specific l.b.e.

gauged in this. there are other l.b.e.s that are on this contract. their utilization is higher than what the initial goal had been. while the l.b.e. utilization for the one l.b.e. is down, it is better for the other l.b.e.s. >> president brandon: i know that a huge project. i want to make sure that going forward, that we are honoring our l.b.e. commitment. you guys are doing an incredible job on l.b.e. outreach and on contracting with l.b.e. we still as noted have work to do when it comes to m.b.e. i really appreciate all that you put in place to expand the opportunity going forward. this was a great report. i really appreciate all the work you and tiffany put in it.

>> commissioner woo ho: i wanted to echo what previous speakers said. this is a tremendous report and wow, to improve what we have. i want to commend all of you on the staff side and executive director forbes and also -- this has been the passion of our president here. president brandon. she has been pounding the pavement ever since i been on this commission.

one of the things that strikes me with l.b.e. and m.b.e.s as you just mentioned on the mission rock project, sometimes people don't have the qualifications. i'm wondering, we make our big scale developers in the city put aside funds for affordable housing, etcetera. i'm wondering whether there's going to be a day we not just men date -- mandate we will have l.b.e.s. it's giving them a leg up to get qualified to have the skills and the capability to do the work. we sort of ask the developers to put aside funds for affordable housing. if there's something we can be more -- you can mandate saying you should put aside x percent of the project. if you don't have enough people qualified to do it, we want to make sure that the outcome of the projects are quality

standards than we expect so we don't have to rework and spend more money. there's got to be a way to teach them how to do work. that burden isn't on the port. it's on everything that is doing this work. i will give that as an idea to think about. i don't know if other people in the city thought about it. i know that the city made lot progress on affordable housing in that regard. we pushed the idea. we're pushing l.b.e. is there anything more we can get other people to share in technical assistance? >> i do believe there's a way in which the developers contribute.

which is one of the main training arms. i don't have lot of details here. it's something we can come back to you with as it relates to that fund. >> commissioner woo ho: that would be helpful. if there's anything we can do, maybe to compliment or maybe in part of the program, let's see how walk make one plus one equal three. >> president brandon: i give my apologies. that's a great point. quarterly, we do meet with your development partners.

we meet with the resilience team to make sure that our development partners, we're all working together to make sure that we are increasing our l.b.e. opportunities and input. we do that. we started this about two years ago. it's working extremely well and stephanie and tiffany are doing great job on following up with them and working with them and being part of the team. thank you so much. that's definitely something we would like to continue to do. >> clerk: 9a, request approval for resolution for authorizing the executive director to

execute a first amendment to the transit shelter advertising agreement with the san francisco municipal transportation agency and clear channel outdoor. this is resolution 21-22. >> good afternoon commissioners. good afternoon president brandon and the rest of the commissioners here. i need the next slide please. talk about the clear channel agreement and the resolution in front of you. i was presenting at our last commission meeting earlier in april. very briefly, what this contract covers in 2007, the port entered into an agreement with the sfmta of san francisco, municipal transportation agency to maintain transit shelters. clear channel as the right to display advertising panels.

sfmta and the port share revenue from the advertising with clear channel. clear channel is in compliance with the agreement. the term is for 15 years with a city option to extend five years. about 20 months remaining within this 15-year contract. regarding the covid-19 pandemic and its impact on transit, transit ridership is down 60% to 70%, ad revenues 60% to 80%. creating a significant hardship for clear channel and also impacting the revenues to the city and the port. port revenue under the agreement -- of the advertising panel's, 44 of the 1706 are on port

property. that's about 2.58%, about one in 40 of the panels that are spread throughout the city. the revenues have increased annually over the past 12 years. pre-covid they were about 440,000 annually. the port received by $3.6 million in total. there was some questions about the revenue how it's being dispersed and when it's being dispersed. under the proposed amendment. it affects the -- the propose amendments affects the payments to the city and port from january 2020 to december 2022. in different periods it affects it differently. prior to the pandemic in this period the port expected to receive about $1.34 million total. with the amendment, the port

would receive $702,000 total, decrease of $638,000. payments would be guaranteed. the period from january to april of 2020, we have received back payment. $146,000. that is the full amount under the existing agreement. the proposed amendment states that for the last two months of that first six months from may to june of 2020, there would be no payment made. from july 2020 to june 2021, that's a 12-month period instead of receiving the approximately $440,000, we will be receiving $152,000. from july 2021 to june 2022, another 12-month period instead

of 440, we'll be getting $162,000. in the last six months of this three-year period, we will be anticipate receiving the full payment which comes to at that time about $240,000. there are some changes to the agreement that don't impact the port but they do m.t.a. such as the management pieces. there are some givebacks from clear channel to allow public messaging and some of the advertising panels. regarding the amendment approval process, the agreement requires all parties to approve any amendment and three parties on the agreement are clear channel, sfmta and the port commission. the sfmta approved it on march 2nd. it's the resolution is in front of you today. the next stop will be the board of supervisors and the agreement is also acceptable to clear

channel. gale stein of sfmta is here to assist if there are questions. thank you for your attention. >> president brandon: thank you very much for your presentation. commissionerrings, -- commissioners may i have a motion? >> so moved. >> second. >> i have a question. >> president brandon: let's open up to public comment. we'll open the fine lines to take public comment on item 9a for members of the public to join in on the phone. >> clerk: at this time, we will open the queue for anyone on the phone who would like to make public comment on item 9a. 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: do we have anyone on the phone? >> clerk: 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. commissioner burton? >> commissioner burton: clear channel, they also have television right? >> they have many different business lines. our agreement is solely with the transit shelters. >> commissioner burton: that wasn't my question. they also have television right? >> i'm not much expert on

television. >> commissioner burton: that either have television or they don't. i think they do. all of the money when it's all over, goes into the same pot. >> our agreement -- >> commissioner burton: i understand that. thank you. i appreciate it. our agreement is solely dealing with the billboards or the shelters on portland which the revenue that comes from that, then goes into clear channel and clear channel i don't believe that the money is divided

necessarily. i guess do we have in case things bounce back, do we have any kind of meaningful -- [indiscernible]. is it just statutory limited to what contract you people have agreed to? >> if i may address that. what i just displayed is a minimum annual guarantee that the port will be receiving. it is not subject to the condition of the economy. the economy and the advertising revenue decrease. the port will still receive that. if it increase, it will still receive that. >> commissioner burton: if they increase we will not get more than that. >> if a revenue -- there's a

revenue sharing clause in the agreement if it exceeds a certain threshold and the port and the city will benefit from the revenue sharing. i would have to refer to gale stein with sfmta if she's available to answer that. i don't have that number. >> commissioner burton: okay. the >> revenue sharing existed throughout the first 12 years of the agreement. >> commissioner burton: unfortun ately, the only thing i have some knowledge on is the transit advertising in the city having been involved in it 30 years ago. i kind of understand it. the question i have is simple. is there a code built into it that would provide more money to the city and the port if

revenues to clear channel exceed the guarantee? >> yes, there is through a revenue sharing agreement and gale stein, just popped up here. i like her to address that threshold for you. >> hi commissioners. this is gale stein from the m.t.a. thank you for hearing and considering this item. the contract does have a revenue share of 50%. that means that if clear channel during the fiscal year that ends june 30th earns more than $11.8 million in revenue, then the m.t.a. would receive more than the $5 million. the port would receive a higher percentage through its part, which is 2.58%. yes, there's way for they're to be more.

>> commissioner burton: [indisce rnible] what will be the percentage of the increase in a certain level? how is it determined by the revenue by clear channel on port property which i assume is a just a percentage of revenue that clear channel gets throughout the whole city, right? >> it's the whole city. for example, if m.t.a. receive $200,000 over the $5.9 million from the first year, the port would then receive 2.58% of that extra $200,000. >> commissioner burton: how about the next year? >> same thing.

>> commissioner burton: it's ongoing? >> yes. there's revenue sharing for the entire contract. that's not going away as a result of this amendment. >> commissioner burton: so the contract, if the city has with clear channel -- it's an ongoing -- it's a flat fee with an ongoing cola through the term of the contract? >> yes. >> commissioner burton: thank you very much. i appreciate it. >> president brandon: commission er woo ho? >> commissioner woo ho: i have no further questions. >> president brandon: commission er gilman? >> commissioner gilman: i have no further questions. i support the item. >> vice president adams: i have no questions. i support the item. >> president brandon: thank you so much.

great report. thank you very much. we have a motion and a second. can i have a roll call vote. [roll call vote]. >> president brandon: motion passes unanimously. resolution 21-22 is adopted. call the next item please. >> clerk: request approval for the extension of the terminal management agreement between the port of san francisco and pacific cruise trip terminal l.l.c. for one month. this is resolution 21-23. >> good afternoon president brandon, vice president adams, commissioners my name is andre coleman, dent director of maritime.

is at the port meeting on april 13th, staff provided the port commission with the state of the cruise. staff lightly touched on the impact the pause in cruises had on the port's cruise terminal operator, terminals are commonly referred to as metro cruise. today's presentation will focus on the impacts to metro cruise and metro's request for extension of management agreement. this timeline was presented during the april 13th meeting. in short in march 2020, the industry announced a pause in operation of its members in order to assess and address the risk posed by the pandemic.

in that same month, the c.d.c. director issued no sail order. there was recent update that occurred on april 2nd. however, at this time, it is unknown when cruise will resume from u.s. ports. impacts through the port of san francisco, the port was scheduled to host cruise calls which only 12 calls materialized. to quantify revenue impacts, the combined calendar year for 2020 and 2021 to date direct impacts to the port of san francisco include 198 canceled cruise calls. equating to approximately $15 million in loss of passenger revenues alone.

extending it in the local economy, it is estimated -- generates approximately $500,000 in direct spending by passengers and crew. i'll touch on the last two budget points little later in the presentation. with regards to the -- our impacts to the cruise terminal operator, they are experience significant economic stepbacks. similarly to the port inability to generate passenger tariff revenue, the inactivity cruise have effectively ham strung metro's ability to generate revenue from ground operations and management all of which is required under management agreement. despite having no idea of the timing for the return of cruise, metro has continue to keep the

terminal for the past year plus at a cost of approximately $90,000 per month. in august of 2020, the port commission approved the resolution 20-41. given the uniqueness of the port's terminal management agreements the relief program excluded the port's terminal operators. however, as noted at the time, it could be negotiated on a as needed basis. metro has approached the port and requested relief in the form of extending the terminal management agreement. just a little bit of background on the current terminal management agreement. it's been in place since september 2014. with the opening of pier 27. jimmy hermann cruz terminal. it's a term one 5-year option.

included in the pier 29 license agreement that the port has with metro, metro is required to host four events per year at free of charge to the public. an example of that, the facility has been activated during fleet week which includes metro live music, games and entertainment

for family. additionally, there's a discounted rate for nonprofit events. since 2015, there have been 35 nonprofit events have occurred at the cruise terminals. the proposed amendment is metro terminal management agreement is to extend the initial term by one month for each month with no cruise activity beginning in march 2020 for maximum of 24 months. basically, once everything is put on pause in 2020 for each month that we have not had a cruise operation that month would count. the first cruise call would activate the additional month and lock in the new expiration date. the extension would be added to their 10-year term. the 5-year option will be remain and will be added on from the

new expiration date. benefits to the port, an extension of the terminal management agreement will provide considerable value to both parties and improve the financial feasibility of the terminal management agreement and preserve metro's ability don't operations at the port. metro has continued to pay the monthly fee without the pause in operations. in the proposed amendment will continue to do so for each month of extension. as we rebound from the pause in cruise, this amendment will provide stability in our cruise operations as we continue to work with our trusted partner, metro to adapt and enhance our terminal for the safe resumption of cruise and events and the amendment provides confidence to the various cruise lines and industry stakeholders.

for an outlook, again, regards to port of san francisco for 2020, forecast for cruise at the port is extremely bright. we are projecting -- request for 118 cruise calls. that number -- for passenger counts we're estimating around 300,000. that number does factor in sailing at reduced capacity. driving increase in calls is the interest of the carnival cruiseline into san francisco. as mentioned in the previous presentation, we have carnival miracle that will be home ported in san francisco 2022. there's still lot of questions on the table. industry wide collaboration is

crucial for the state resumption of cruise. staff continues to engage in dialogue with the american association of port authorities. the california association of port authority and the american sea port cruise committees towards safe resumption of cruise. in conclusion, staff recommends that you approve metro's request for an extension to the terminal management agreement. that concludes my presentation and i'm happy to answer any questions that you may have. >> president brandon: thank you for your presentation. now i like to open up to public comment. we'll open the phone lines to take public comment on item 10a. >> clerk: at this time, we will open the queue for anyone on the phone who would like to make public comment on item 10a.

please dial star 3 if you wish to make public comment. others will wait on mute until their line is open. comments will be limit to three minutes per person. the queue is now open. please dial star 3 if you wish to make public comment. >> president brandon: do we have anyone on the line? >> clerk: there are no members of the public on the phone wishing to make public comment on this item. >> president brandon: thank you. seeing no callers on the phone, public comment is closed. commissioner woo ho? >> commissioner woo ho: thank you for this presentation. i appreciate what you gave us in terms of the background. we do have a good sense of what the background going on in the cruise industry. i guess my understanding, let me make sure that i understand this

report correctly, we're extending the terminal management agreement for the period of time that the cruise ship terminal has been inactive from the standpoint of cruising. you did mention the benefit at the end. there is no financial -- we're not giving up any financial terms as result of that, which is extending the terminal management agreement. is that my understanding that correctly? >> that is correct. just extending the management agreement and doing so for each month of extension, metro will continue to pay the management fee to the port. >> commissioner woo ho: they are just trying to sort of make up for the period of time that they didn't have -- we didn't have the cruise ship terminal either for cruising or special events. they thought this is a good time to execute this agreement? it sounds like they also obviously positive about the future in terms of when we do

see the cruise industry come back. i think from i can read, once c.c.d. goes, the industry can take off quickly. everybody wants to go somewhere. at least that's what hear. younger people and older people. cruise industry made a great point to say they are safe as airplanes. i want to be sure there's no financial negotiation that we're making, which is extending and that's really to help us, which is good. that we have a partner for the longer term as well. that gives us the stability. i want to make sure my understanding was correct. >> that is correct.

>> commissioner woo ho: i'm supportive of the item. i hope the c.d.c. will move forward to release the cruise ships to do that. we have the issue that canada does not accept cruises, and mexico does. that's one the things cruise lines are thinking since they have to comply with the jones act. >> yes. canada prohibition on cruises is still in effect through februar. i know there are ongoing discussions potentially address many technical stops. >> commissioner woo ho: i think there are some longer around the

world cruises that started in los angeles. i'm hoping that one day that we can also pitch -- we can be the starting point for some longer cruises. i have friend who are going on these cruises. they're getting on in los angeles. why not san francisco? hopefully we can keep that on as we keep talking to our partners in the cruise industry. will be great to have as commissioner adams said, he wants to see million cruise passengers. we have to come up with the routes to increase the traffic more than the traditional ones that we have. alaska, or hawaii will not create million cruise ship passengers. you have to have more exciting itineraries to attract that many people. thank you.

>> thank you for your comments. >> president brandon: thank you. commissioner burton? >> commissioner burton: no comment. >> president brandon: vice president adams? >> vice president adams: great work. my only problem is that the port -- nobody from the union got on board say they supported this. it's labor that does this. i know it's a business thing. sometimes business forget about their partner labor. you guys left labor out. you and metro both. i will rind the union of that. you guys left them out. w that being said, i'm going to support that because it's good. when we talk about partnerships, sometimes we forget about those that make it happen. besides those economically that make it happen. i will leave it at that.

thank you. >> thank you for your comments commissioner adams. i'll note that in the april 13th presentation, i did highlight that our growth in cruise is attributed to the work that iowe performed throughout the years. they had significant jump from 85 vessels on average for their prior five years to now being roughly 117 is a testament to the turnout of the workforce. i think i noted that in the april 13th presentation as well. there has been significant amount of lost workers. we're both aware of that. i think as we move forward towards resumption, we appreciate the reminder.

we will have to engage labor ahead of resumption to ensure that the work environment is adequate and it's safe for the workforce. we have everything in place to get back to the level of productivity that we worked pre-pandemic. >> president brandon: thank you. commissioner gilman had to leave early. she wanted to me to thank you for addressing the community. andre, thank you so much for this report. i'm in full support of it. i think it's fair and maritime -- [indiscernible]. thank you again for working up this agreement. commissioners, can i have a motion to approve the item? >> so moved. >> second. >> president brandon: roll call

vote? [roll call vote] >> president brandon: motion passes, resolution 21-23 is adopted. next item. >> clerk: item 10b is an informational presentation on pier 45 shed c post-fire interim improvements and a long-term replacement strategy to benefit the fishing industry. >> good afternoon commissioners. mike martin, assistant port director. i'm going to make few remarks and hand over presentation to dominic of the maritime division. i wanted to frame this item

today by looking back over the little over 11 months we've had since the fire ripped through shed c of pier 45 last may. the fire, i think, put the port in position of having a number of sort of urgent short and long-term tasks ahead of it in order to get back on to its footing. there were the immediate needs to sort of make the site safe to allow -- salvage to sort of reactivating the site in support of the fishing industry and operations of pier 45. we had to initiate a claim with our insurer. we had to start alongside all of these sort of tasks to put the building blocks together what it mean to do that in a smart way that will enhance what is there and hopefully this will put us in better fogs deal with the resilience challenges faced by

port property. the backdrop to all of us, we were about two months into shelter-in-place and the pandemic and all of the destabilizing aspects of working remotely, having to sort of coordinate among different people who are on site versus the home and all the things that made it hard to develop a strategy. we put together a working group that was exemplary and stepping to up that challenge. because the interest in the divisions at the port really had to have representation and sort of one place we can have a single discussion about all of these different things from the experience we had with the fire. today a s an opportunity to share our status and look at preview the next step we're seeing in rebuild of shed c.

one thing about that conversation something i said a number of meetings which is, typically, when facilities are being built or rehabilitated on port property, we're looking to harness the skills and opportunities of private developers who are able to step in and sort of bring their expertise to the task. in this instance, the port is the developer. we'll be putting together the strategy and the thinking behind what it is to be built there. we need to have a really thoughtful effort at putting together what it is we think the facility needs to be and sort of how we can get there with the resources we have available in our current challenge situation, budget wise.

i want to give a thank you to the rest of the working group as well that includes planning and environment division, real estate development and nate cruz from finance administration. >> thank you, mike. i'm with the maritime division. we'll be providing informational presentation on the pier 45 shed c post-fire interim improvements and long-term replacement strategy to benefit the fishing industry. our informational presentation will show the post-fire cleanup efforts. our tenant and license see relocation strategy eases,

improvements and our study to identify long-term improvements and shed c replacement strategy. on saturday morning may 23, 2020 a four alarm fire started on pier 45 in shed c lighting up the early morning sky. pier 45 at the port of san francisco, suffered losses and operations were disrupted. the loss of shed c and contents must appear without fish processors and destroyed personal property for many fishers. since the fire, the port has removed the remains of the shed and coordinated cleanup. huge thank you to the san francisco fire department for the response.

the port immediately began multidivision, all hands on deck for hazardous material removal, demolition, tenant communications and salvage management. the port contract with the fire restoration company to remove debris from impacted facilities in sheds a, b and d. restoration work, the port granted reentry of tenants to sheds a, b and d within two weeks. port staff worked with 35 licensees to relocate to shed a and pier 35. port staff focused on demolition of the shed c structure and removal of debris from the footprint. the port conducted two-week salvage period including implementation that allowed tenants licensees to access the

site. i like to highlight engineering and maintenances effort and dedication to this project all done within the height of the global covid-19 pandemic. i like to thank our demolition contractor for their safe and efficient operations to clear this site. by late june, the plan to provide temporary space to pier 45 stakeholders was coming together. by july through the incredible resourcefulness of the real estate team, relocation plan for those directly affected by the

fire was ready for implementation. the primary groups that needed space included the fishing community. the fishers and processors, and maintenance area and the jeremiah o'brien. staff identified the fleet would need to remain approximately 20,000 square feet including space for crab pots. the port initially provided open storage space to 15 dislocated from shed c. red and white fleet in san francisco icon relocated their headquarters and administration to the boats. the red and white fleets maritime maintenance was relocated to approximately 1500 square feet in shed a. the historic liberty ship which

survived the may 23rd fire was relocated within days on may 26, 2020 to pier 35 for emergency labor. jeremiah o'brien returned from 10 months from the day of the fire. she sits at pier 45 urgently. simultaneous with relocation efforts, port staff prepared three-phase interim improvement plan to address the needs of the fishing industry and generate revenue at the site. phase one improvements identified here in the blue box were completed in april 2021 and include adding surface treatments to facilitate the area.

establishing 8700 square foot maritime storage area, secure with 4 and 8-foot high -- high fences and laying out 32 space parking area. i'm happy to report that beginning may 1st, the first of these parking permits will be issued. phase 2 improvements, identified here in the yellow box, scheduled to be completed june 30, 2021 and will include installing additional light holes and electrical service connection to the jeremiah o'brien, installing 1200 feet of additional fences and provide physical security and relocating ports maintenance department, operations and maintenance trailer from shed a to the shed c site.

phase 3 a.m.i.s remainder of the pier shown here in the green box are scheduled to be completed july 31, 2021. it will include the footprint of approximately 40,000 square feet for general storage to support future construction projects including the upcoming san francisco police department dock installation, jefferson street projects and potential additional storage area for commercial fishing. i like to hand it over to my colleague to discuss additional work of this ongoing project >> again, president brandon and members of the commission. it's my pleasure to be here and jump in and talk about the insurance recovery on the pier and then go through the pier 45

long-term improvements and shed c replacement strategy. regarding the insurance recovery, the port and the city risk manager have engaged with the insurer and the port was advanced $25 million to stabilize the site and made interim improvements on it. the work being done now is to prepare basis of design which will help us understand how much it will cost to rebuild what was there including with the required code upgrades. it does not include a study to evaluate other rebuild options. completion of the bases of design is expected by the end of this summer. on to the long-term improvements for the pier and the shed c replacement strategy this was put together by an interdivision

team. dominique and i -- [indiscernible] i'm beginning to cover the survey of the fishing industry. which was completed in december of last year. talk about our facilitate summary, next steps going forward. highlight one in particular which will be a resilient charette planned for next month. the survey conduct the by port staff reached the industry businesses that operate on pier 45 which bring in and process great variety of fish. of the fish processors most have

been pier 45 for 25 years. things that came out of the survey was desire for storage space and improved support services include ice making and bake sales, additional office space for fishing industry and more parking for the fishing industry and the findings. the industry of desire for maintaining shed c for those industry uses. the continued use of pier 45 for the commercial fishing industry. the economic value of the fishing industry, the port's role on pier 45 is one of being the facilitator of the industry allowing pier 45 businesses to interact and bring fish to market. the fishing industry is the primary source of pier 45 revenue where the port participates and receives

revenue each step in the process. as fish move from the boat to processors, then distributors and restaurant and market, the product increases in value with each step as does the value of the port participation. the arrangement of uses on the pier aids in this exchange and efficiency of the operation. part of our current role is to work with the industry to identify improvements to make the industry more efficient and profitable. this diagram illustrates the fishers and the processors and distributors and restaurants point out that the fishers are buying grocery and bait and ice. there's a variety of other businesses and uses associated on the pier.

the port prepared a facility summary that looked at the history of the pier, how it's being used and the condition. looked at what we feel coming -- what can come up. i will give you a few take aways. as part of -- i won't go into great detail, few findings, the shed buildings are in good useable condition with a few exceptions. fishing industry occupies most of the pier and generates most of the revenue on pier 45. shed a and c are not fully used generate less revenue that sheds b and d.

public access area are not arranged in a united way that is understandable to the public and not well used. sea level rise is going to play a role. on this diagram at the bottom, the blue line indicates depicting anticipated sea level rise and the shed title b is wrong. ignore that or insert sheds a and c. if you look on the right side of the draw, the blue line extends, just below that blue line

outside of a shed is the elevation of the central valley of pier 45 which is where vehicle circulation occurs. it sits below because it's being built to allow truck dock access into the pier sheds. the central valley little also impactedly by -- impacted early by rising seas. this condition depicted probably less dramatic way, could occur in extreme conditions today. it's anticipated to occur with greater regularity. to look at the resilience and sea level rise, we will be conducting a resilience charette

with port staff and waterfront -- water team consultants. the purpose of that is to look at short an long-term options for this. what we will be doing in coming years and how this will affect pier 45 long-term uses. the intent of the charette is to add in decision-making. we look forward to providing update of the findings of that for you. it inform future studies and could feed into other development decisions going forward. we also plan to seek stakeholder engagement, reaching out to the fishing industry to review and get their input on preliminary

uses and improvements being developed for pier 45. our finance team would further negotiations with the insurance provider. with that, i and others of the team are here to address any questions you may have. thank you for your time. >> president brandon: thank you, dan, might and dominic. great presentation. now let's open up for public comment. >> clerk: at this time, we will open the queue for anyone on the phone who would like to make public comment on item 10b. 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. it 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? >> clerk: at this time, we have no callers on the line wishing to make public comment on this item. >> president brandon: thank you. no callers on the phone. public comment is closed. commissioner woo ho? >> commissioner woo ho: thank you dominic and dan for this comprehensive report. i want to say, i think you guys done a tremendous job in terms of speaking about it thoroughly in terms of what needs to be done and sea level rise in the next steps. i'm not sure that i have many

more questions to ask. only question that i had is looking at the insurance. i know that some of the fishing tenants obviously had problems when the fire destroyed all their equipment. are we insuring that the insurance coverage they're looking at what we're looking at, we don't repeat any lessons that we should have learned from that incident. is there anything -- i know we're looking at -- discussing it. is there anything that was learned about the fire that we should do differently about insurance coverage for the port and for other partners and stakeholders? >> the good thing about this team, we have experts on every topic. i'm going to highlight nate cruz to address this question. >> thank you, nate cruz from the

finance division. it's still pretty early in the process. i think we will keep an eye out for lessons learn the and reshape our coverage and be prepared for a claim in the future. i can't think of any particular lessons that we could apply to any future disasters or coverage applications. from the finance side, i invite anyone from the real estate team about interim uses or moving tenants around to add to that. hearing none, we'll be keeping our eyes open and learning along the way. right now it seems too early to say anything definitive. >> commissioner woo ho: thank you.

>> president brandon: commission er burton? >> commissioner burton: no comment. >> president brandon: thank you. vice president adams? >> vice president adams: thank you dominic and dan. thank you. >> president brandon: thank you so much for the report. lot of good information. really happy that we're bringing so many different stakeholders together to assess the long-term uses for this property. we haved -- we received $25 million from the insurance. that was to stabilize it. has those funds been used? >> no, that total has not been used. if you need a general amount on that, i will highlight nate for

that one. some of it was used for cleanup and demolition and relocation efforts that have occurred. >> president brandon: thank you. >> commissioner nate cruz men. we can get you a more specific number. we only used a portion of that. i'll follow-up with a more precise answer. >> president brandon: as far as the long-term strategy with our insurance agency, what are we with that? >> that's a timely question. we're in the middle of renegotiating our coverage for the next fiscal year. the city and county along with the port. we renew our coverage on an annual basis. the property insurance market is under quite bit of turmoil because of covid and climate change issues like wildfires. we've seen substantial increases in costs, reductions in coverage. we're exhausting all the possibilities to maintain

adequate coverage and economical level. we're working with the city manager on a weekly basis. >> president brandon: thank you. danker thank you so much for this report. really appreciate it. call the next item please. >> clerk: that would be item 11, new business. >> president brandon: commission ers, is there any new business? i don't think i heard anything. >> no. >> i don't have anything. >> president brandon: next item please. >> clerk: item 12 adjournment. >> president brandon: may i have a motion to adjourn? >> so moved. >> second. >> president brandon: roll call vote please. [roll call vote]

>> president brandon: meeting is adjourned at 5:25 p.m. thank you everyone. great meeting.

>> when i open up the paper every day, i'm just amazed at how many different environmental issues keep popping up. when i think about what planet i want to leave for my children and other generations, i think about what kind of contribution i can make on a personal level

to the environment. >> it was really easy to sign up for the program. i just went online to cleanpowersf.org, i signed up and then started getting pieces in the mail letting me know i was going switch over and poof it happened. now when i want to pay my bill, i go to pg&e and i don't see any difference in paying now. if you're a family on the budget, if you sign up for the regular green program, it's not going to change your bill at all. you can sign up online or call. you'll have the peace of mind knowing you're doing your part in your household to help the environment. >> chair haney: this meeting will come to order. this is the april