>> september 14th, 2021. court commission president calls the meeting to order at 2:00 p.m. item one is roll call. (roll call)

we'll get them on the line as soon as possible. but you do have a quorum madam president. >> thank you. next item please. >> the san francisco port commission acknowledges we're on the unseated ancestry homeland. as the indigenous stewards of the land and in accordance with their tradition, they have never seated, lost nor forgotten their responsibilities as the care taker of this place and for all people to reside in traditional territory. as guests, we recognize that we benefit from living and working on their traditional homeland. we wish to pay respects acknowledging the ancestors, relatives and elders of the community and affirming their sovereign right as first peoples. that brings us to item 2, approval of minutes from the

august 10th meeting. >> so moved. >> second. >> we have a motion and second. can we please have a roll call vote. >> (roll call vote) >> thank you. the motion passes. the minutes of the august 10th, 2021, meeting have been approved. >> item 3 is public comment on executive session. >> thank you. i would like to announce that today's port commission agenda has been amended and reposted to make clear the closed session items are soly for real estate

negotiations. we will now open the phone lines to public comment on executive session for members of the public joining us on the phone. we'll provide instructions now for anyone on the phone who wants 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 executive session. 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. dial star 3 if you wish to make public comment. >> thank you. do we have anyone on the line? >> yes president brandon, we have one caller on the line at the moment. >> please open the line.

>> thank you. opening that line now. >> thank you very much. this is anonymous. i informed the commission last night that your agenda as timely notice had an unlawful closed session for conference with legal council. as you may know, you cannot conduct that unless you properly note it exists for the purpose of conferring pending litigation. your agenda notice for the closed sessions did not include that information. early this morning, i received a response from the port commission that you had now changed the agenda so it cited only a conference with your real estate negotiation, which is fine. however, you posted that agenda within the 72 hour requirement you have and so you should not conduct this closed session.

i have filed complaints against the commission and will also file ethics commission complaints if you go ahead with the closed session until delaying it to properly notify at least 72 hours ahead of time and then properly conduct the closed session. thank you. >> thank you for your call. any other callers? >> at this time there are no other callers on the line wishing to make public comment. >> thank you. seeing no more callers on the phone, public comment is closed. before we go into closed session, can we please hear from the city attorney. >> hi commissioners. acting general counsel, can you all hear me? >> yes. >> did you have a specific question president brandon? >> i just wanted a response to the caller who said we cannot go

into the closed session based on his thoughts. >> so i believe that the revised calendar does cure the questions that the caller raised and it would be up to the commission to go into closed session or postpone the closed session. >> if i could provide some clarifying remarks. the notice was similar to prior notices we have given of closed sessions under real estate negotiations, it clearly stated the underlining basis of our right to go into closed session is the real estate negotiations. the language that has been changed in the amended agenda clarifies by striking city attorney language. and so i would recommend the commission proceed with closed session unless our acting city attorney would advise otherwise.

thank you. >> so our acting city attorney has not advised otherwise. i will ask for a motion to go into closed session for real estate negotiations. >> i make a motion we go into a closed session just to talk about real estate negotiations. >> second. >> thank you. we have a motion and a second. so roll call vote please. (roll call vote) >> the motion passes. we are now in closed session. thank you. >> [indiscernible]. >> so moved.

>> second. >> thank you. without objection we are in open session. >> clerk: that brings us to item number 6, the pledge of allegiance. [pledge of allegiance] item number 7 is announcements. please be advised that a member of the public has up to three minutes to make pertinent public comments on each agenda item, and please note that during the public comment period, our moderator jenica will have dial in participants to use their phone to register their desire for public comment. an audio prompt will signal to participants when it is their

turn to comment. dial in when the item that you would like to comment on is announced, but note if you are watching this meeting on sfgov-tv and streaming on the internet, there's a short broadcasting delay. so when the item that you want to comment on is announced dial, 1-(415)-655-0001. , and then enter access code 2494 732 3780, pound. and then mute the volume on your computer or tv, and listen only through your telephone which has a live broadcast with no delay. when public comment is announced, dial star, 3, to raise your hand to indicate that you would like to comment. and then listen for the audio prompt to signal when it is your turn to comment. for meeting presenters and participants, please mute your microphones and turn off your cameras when you're not presenting it. brings us to item number 8, public comment on items not listed on the agenda. >> president brandon: we will

now open up the phone lines and take public comments for items not on the agenda. for members of the public joining us on the phone, jenica is 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 up the queue for anyone on the phone who would like to make public comment on items not listed on the agenda. please dial star, 3, if you wish to make public comment. the system will let you know when your line is open. others will 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, jenica. do we have callers on the line? >> yes, president brandon, we have one caller on the line at the moment.

and i can open that first line if that's okay with you. >> president brandon: yes, please. >> thank you. opening that line now. >> caller: hi. thank you. my name is melissa merseski and i would like to make a public comment in support of building 49. i am the executive director of kids enjoy exercise now san francisco. and i represent our amazing community of youth and young adults with disabilities and their families. we are a non-profit that provides free recreational activities, led by volunteer coaches. this summer i reached out to adam zolad at dog patch paddle about hosting a team paddles program with him at dog patch club at the park. and on saturday, august 28th, the magic happened.

i would like to applaud the dog patch paddle club for their involvement in those amazing programs. they provided just really, really impactful and significant service to our athletes at no cost to the community, i might add. and i just want to tell you about the incredible impact that had on our athletes. first, we were lucky enough to have perfect weather at the park that morning. and adam and his team already had the safety equipment and the paddleboards out for us. they were all ready for us once we arrived. and they made us feel very safe and welcome the entire time. our team athletes got their -- after our coaches did -- first we had an hour of preparation with adam as he gave us a

private tutorial on safety in the water. and then when our athletes arrived, everyone came together and matched up, one athlete per one coach, and we got out on the water on our paddleboards. everyone was in a safety life vest. and we had an amazing time. it really was incredible. i was not sure at first how the team athletes would respond to this recreational activity, but they -- they loved it. they absolutely loved it. there were so many smiles, laughter, high-fives. it was so much joy. and this is what really empowers our team, our youth with disabilities, to thrive with dog patch paddle club. they really hosted us so well, and i believe that the buildings 49 is, in fact, an amazing proposal and it should be -- it

should be undertaken. and i am in full support of dog patch paddle club and their intentions with the park and with the building. i myself will frequent it, and i hope that we can bring our team there, our team to join for more recreational activities on the water. and also in partnership with the ymca of san francisco. and we can also enjoy some bagels. so, thank you so much for allowing me to speak, and i am in full support of building 49 and adam and his team at dog patch paddle club are really wonderful stewards of the land, and amazing, generous people that really helped our community of persons with disabilities get out there and to experience something new. and it was very empowering. >> your time is up. >> caller: thank you, sir.

okay. all right. >> president brandon: thank you, thank you for your call. jenica, are there any other callers? >> president brandon, at this time there were no other callers on the line wishing to make public comment. >> president brandon: thank you seeing no more callers on the line, public comment is closed. call the next item, please. >> clerk: madam president, if i could ask if we could do a roll call vote on the motion to not disclose what was discussed in close section, given the virtual environment. >> i make a motion that we not disclose anything that happened, right? >> president brandon: yes, you can do a roll call vote. >> clerk: okay. [roll call vote] thank you. and that would bring us to item 9a, the executive director's

report. >> good afternoon, president brandon, vice president adam, commissioners, port staff and the members of the public. i'm elaine forbes, executive director of the port. september is natural preparedness and essential workers' month. the region and the state are managing serious emergencies like covid-19, extreme heat and wildfires. more than ever we're very attuned to the impacts of emergencies. september is our annual reminder to review our emergency plans for home, work and for community. and please visit www.sf72.org for emergency tips. i want to take this time again to recognize our port essential workers who have been at work to ensure the port continues to be safe and operational. our essential workers also responded to the call of duty, serving as disaster service

workers through every phase of this pandemic. our organization deployed over 90% of our employees to this important work. maintenance staff in particular really stepped up. it is because of our essential workers following mayor breed and her leadership team that the city has had such a stellar response to this pandemic. thank you for your outstanding work to support our community, our waterfront and city during this unprecedented scary and uncertain time. thank you to our port essential workers. we appreciate you. now to the vaccination requirement. although port and city employees have made remarkable progress in getting vaccinated, we still have work to do to protect our vulnerable populations. for those eligible for vaccination in san francisco, nearly 80% are fully vaccinated, which is a huge victory, but the 20% unvaccinated pose a risk to

themselves and to others. so there have much left to do. to date, nearly 90% of city workforce has been vaccinated. last month, the food and drug administration granted final approval for the pfizer vaccine the cdc updated their vaccination and return to work policies. and all city workers are required to be fully vaccinated by november 1, 2021. and to return in alignment with the vaccination deadlines. port employees who are not vaccinated by november 1 are at risk of separation from the city. we are doing in reach to support all port employees to ensure that everyone has the resources and support they need to get vaccinated. the port covid response team has and will continue to prepare trainings and educational briefing for all port staff, in coordination with the department of public health and human resources and the city is hosting a pop-up clinic on

thursday, september 23rd at the south beach harbor community room. a second dose vaccination clinic will be scheduled. these events are for city employees only. members of the public who are interested in being vaccinated call the city's vaccine call center at 628-652-2700 to book an appointment. all of our port employees are doing all they can to keep each other safe and healthy during this time. now turning to equity. this month we've launched an all staff racial equity training bar, the first cohort of staff. this includes employees responsible for tracking and reporting assigned actions in their divisions and employees that sit on the racial equity advisory council. and happy rosh hashanah to all that celebrate the jewish new year that is an opportunity for

deep introspection and gratitude. tomorrow is september 15th, latin-x history month begins. we look forward to celebrating the latinx's rich history and culture and invaluable contributions to the port and the city and beyond. and now to an equity victory that is crucial to our economic recovery objective. on friday, september 10, the port with our non-profit partner meta, mission economic development agency, held the first of several informational workshops for those interested in becoming sidewalk vendors aware of the port's new program and to help with the application process. i am proud to report that 50 people attended this meeting. representatives from the office of small business, the fire department, and public health also attended the meeting to give insights and information about their permitting requirements. the port launched a website

yesterday. the next workshop is scheduled on friday, september 24 at pier one. meda began leading one-on-one technical assistance today at the harbor. port staff is working hard to achieve the port commission's vision of a successful permitted street vendor program and the end of unpermitted vendor activities on our waterfront. i will also point out that this is supervisor peskin and the board of supervisor decision as well. and today you will hear from carol valk, with planning and environment assistant deputy director, regarding the heron's head park restoration project. and i want to commend the planning and environment team for seeking and winning available grant funds to update heron's head park and to keep it a beautiful place for everyone. as you know, the port is focused on resiliency and sustainability. over the decade our port

commissioners have prioritized resilience in every waterfront project. heron's head park is highlighting what we can do with nature to combat climate change and see the environmental justice is incorporated into all port projects. this project will protect the highly accessible and valuable wetland habitat for future generations. our national preparedness month and every month of the year, the port will continue to ensure resilience is prioritized for the people's waterfront. finally, i'd like to congratulate the port for winning the 2021 american society of civil engineers of san francisco award for crane park. as you know, the park is a fantastic new addition to our waterfront and to the dog patch neighborhood. congratulations to staff for this outstanding achievement. and that concludes my report. thank you very much.

>> president brandon: thank you, director forbes, for your report. so we will now open up the phone lines to take public comment from the members of the public who are joining us on the phone jenica will be our operator and will provide instructions now for anyone on the phone that 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 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: thank you, jenica. 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. commissioner woo ho? >> commissioner woo ho: hi, thank you, director forbes, for another very good report. and everything is trending in the right direction, both in the port and in the city, so thank you very much for the update. no other questions or comments. >> president brandon: thank you commissioner gilman? >> commissioner gilman: thank you, director forbes, for your report. and thank you for the continued efforts and support of all city employees, but particularly port employees, to ensure that everyone has equal and equitable access to vaccination. i think that we want as a commissioner to have all of the public and our employees to please get vaccinated so we can continue on our pathway to recovery. and also congratulations on the award for heron's head park.

that is wonderful. i know that it's an agenda item today but we keep incrementally moving forward to complete this promise to the southeast waterfront. so thank you so much for your report. >> president brandon: thank you commissioner burton? >> commissioner burton: no comments. great report as usual. >> president brandon: vice president adams. >> vice-president adams: director forbes. stellar report. i want to thank you and your staff. it's been a long year and a half, and i know that dealing with this commission -- the commissioners, we are hard. [laughter] and you're still smiling and you're still hanging in there. so, no -- thank you. and congratulations for the award that was won and the due diligence and i know that you've lost a lot of your senior staff, but you've kept running and you're running hard and, please, continue doing the good work. i've got a call today from andée

and it sounds like the crews are going to pick up and you're doing some other things. i'm very optimistic that things are going to get better, even though it's going to take time. so thank you, and i appreciate -- i appreciate it. >> president brandon: thank you director forbes, thank you so much for your report, and you have a lot of great information in the report. and heron's head park, and the awards that they have had are just astounding. and the fact that your staff has done such a phenomenal job over the last 19 months, i'm sure that we're on the road to recovery and going to do well. and i want to echo with the fact that vaccines are extremely important and anything that we can do to encourage our staff to get fully vaccinated, we need to do. and i am here to support you in that effort as much as i can. so thank you.

call next item, please. >> clerk: item 10 is the consent calendar and there's three items, 10a requests retroactive to modify the contract 2113, and the roadway improvements to a completion date. resolution 2135. and 10b, approval to sub-lease between blue and gold fleet and vp san francisco for a month-to-month term to operate retail shops. that's resolution 2136. and 10c, request approval of a memorandum of understanding number 16811, with the city's recreation parks department for rec use of port property with submerged lands beneath a dock located at 502 and 504 jefferson street, and aquatic park and that is resolution 2137. >> president brandon: thank you commissioners, may i have a motion to approve the consent

calendar? >> so moved. i make the motion. >> second. >> president brandon: thank you we will now open up the phone lines to take public comment on the consent calendar. the members of the public who are joining us on the phone, jenica 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 up 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. 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, jenica. 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. we have a motion and a second, and can we please have a roll call vote. >> clerk: [roll call vote] >> president brandon: the motion passes unanimously. resolution 2135, 2136, and 2137 are adopted. call next item, please. >> clerk: item 11 a requests authorize to accept and expend $1,493,000 in grant funds from the california department of fish and wildlife for heron's head park shoreline resilience project and approve the grant agreement, subject to board of supervisors' approval. this is resolution 21-38.

i think that you're muted, carol -- sorry, carol. >> can you hear me now? >> clerk: yes, we can. >> great, thank you. i'm carol bach. good afternoon, commissioners, i'm your environmental affairs manager, and i'm here this afternoon to request your authorization to accept and expend grant funds in the amount of $1.493 million from the california department of fish and wildlife. next slide, please. as you've heard at several presentations over the past year, subsidence and erosion have resulted in a loss of over an acre of the tidal wetland habitat at heron's head park. port staff have been working with consultants and regulatory agency staff to develop a nature-based solution to the

erosion that's occurring there. next slide, please. the heron's head shortline project is a living shoreline approach to shoreline stabilization as illustrated here. it consists of a coarse sand and gravel beach that will be placed along the eroding edge of the marsh, and enhanced wetland behind the stabilized shoreline, and the project has been designed to have someit to adapt to sea level rise over the next 30 years. next slide, please. the wetland habitat restoration element of the project is funded by measure aa, the san francisco bay clean water, pollution prevention, and habitat restoration measure of 2016. the grant comes from the san

francisco bay restoration authority. and the port is using it to fund the non-profit organization literacy for environmental justice, which is located in the bayview hunter's point area to hire and train local youth to grow, plant, and maintain native plants that create the eclogically functional habitat at heron's head park. and that work is funded for the next five years. next slide, please. the restoration authority funded youth employment and wetland habitat restoration component is currently underway. the shoreline stabilization element of the project, which is funded by the -- which we hope that will be funded by the grant that i am requesting your authorization to accept today, that element of the project must occur between august and january of any year, due to timing

restrictions to protect fish and wildlife. with the two grants, one from the ocean protection council, and this second from the california department of fish and wildlife, we hope to be able to construct the shoreline improvements during the august 2022 through january 2023 window of opportunity. together those grants provide 88% of the total estimated cost to construct the shoreline. next slide, please. the california department of fish and wildlife grant includes terms and conditions similar to those of other state grants that the port and the city have approved. the port's obligations include an obligation to maintain and operate the park for its intended purposes of habitat protection and public access. the port is required to endem

few the state and carry certain insurance. they have administratively approved the indemnification and insurance requirements and we are required to acknowledge the funding from the california department of fish and wildlife and all forms of communication about the project. next slide, please. so pending your approval, we will proceed to request authorization to accept and expend the funds from the board of supervisors, hopefully in october. we will then execute the grant agreement with the department of fish and wildlife upon the board of supervisors' approval, and continue to secure additional funding needed to construct the shoreline component of the project. and hopefully we will be back to request your authorization to

advertise construction bid opportunity pending availability of funds. next slide, please. i wanted to mention that one of our other funders the ocean protection council, who is granting $1.667 million of prop 68 funds to the project, opc is producing a mini-series of short videos about the shoreline, about -- sorry -- climate resilience projects that they're funding with prop 68. so if you're interested in seeing the recently issued episode about the heron's head park shoreline resilience project, you can find links on the port's social media. that concludes my presentation. >> president brandon: thank you commissioners, can i have a motion. >> so moved. >> second.

>> second. >> president brandon: thank you now let's open it up for public comment. we will open up the phone lines to take public comment on item 11a for the members of the public joining us on the phone. jenica 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 up 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 opened. 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, jenica. 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. commissioner gilman? >> commissioner gilman: thank you so much for the report. i am enthusiastically excited that we are moving this forward and we are taking this next step in this park, which is beautiful, i've been there many times. so i have no questions and i fully support the item. >> president brandon: thank you commissioner woo ho? >> commissioner woo ho: thank you, carol, again, for always a very optimistic and i think uplifting report from you. we love to hear about all of the things that you're doing to improve the environment. so it's a pleasure and a joy to hear that. and it's great that you're always able to find funding for these great programs. i have no questions. and i also support this and i would love to see how this pans out in the future. so, thank you very much, and no further questions. >> president brandon: thank you commissioner burton?

>> commissioner burton: no questions. >> president brandon: thank you vice president adams. >> vice-president adams: carol, you know that you're one of my favorites and i'm finally glad that president brandon and director forbes listened to me. we put you upfront finally, instead of the end of this agenda. so thank you so much, carol, and i support it. >> thank you. [laughter]. >> that's funny. >> president brandon: yes, thank you so much for a wonderful presentation and congratulations on securing the funding. you have done an amazing job and we really appreciate all of your efforts. and with that, we have a motion and a second. can we please have a roll call vote. >> clerk: yes. [roll call vote]

>> president brandon: the motion passes unanimously. resolution 2138 is adopted. >> thank you so much, commissioners. i really appreciate your support. >> president brandon: thank you call the next item, please. >> clerk: item 12a is an informational presentation on the responses received and the scoring panel results of the request for proposals for the adaptive reuse, rehabilitation, lease and operations of the kneass building and building 49, both located in the pier 70 area, adjacent to crane cove park, generally along illinois street and between 18th and 19th streets. >> good afternoon, commissioners. rebecca benassini, your deputy director of real estate and development. i'll have my staff member go over the meat of this presentation, but i wanted to provide a note of introduction as rfps are such particular processes. so you are hearing an

informational presentation. you may remember the rfp processes that we've adopted in the draft waterfront plans, and it's still in draft form, but the process is that we bring you the scoring results from the panelists who scored at the proposal, with the rfp in an informational setting. we'll hear from you and we'll hear from the public and then we'll bring very similar types of presentation to the applicable advisory group, so the fac, the advisory committee. and coming back to you for a proposed action item. to orient you on what we're going to be asking from you today. you'll hear the presentation and you'll hear the results of the scores that the panelists put together and then you'll have the opportunity to comment and then we'll bring it to the advisory group and back to you. just to orient you on the process and i would like to introduce jamie hurley who is our manager who followed this process closely. jamie. >> thank you, thank you, rebecca. jamie hurley with development

project manager with real estate and development. good afternoon, commissioners. and with rebecca's introduction, i will move forward. next slide, please. this is just the outline for the presentation and i'll start by talking about the strategic plan. and i'll review some information about each of the two buildings that were the subject of this rfp, provide just a general overview of the rfp process. and then get into the scoring panel composition, who was on the panel, and what that process entailed. i'll go over briefly the proposals that we did receive. and the development concepts. and, of course, the scores. and then as becca mentioned we'll talk about future port commission actions coming out of this process that we have just concluded.

and we will have a guest presenter when i get through my portion of the presentation who i will invite to speak and that is the ymca. next slide, please. so you have seen this photo before, and i include it again, just to orient us all and because i loved this photo as it shows building 49 on the left of the photo, the kneass building on the right and the portion of crane cove park that slopes down to the beach area in between. and i won't read these, this is just another slide that you have seen before, but these are the four goals that rehabilitation and the use of these two

buildings would be in furtherance of. next slide, please. and the building 49 on the left of this page, it includes 8,000 square feet on one level. and the port does have a project that is ongoing currently, or underway currently at building 49 to deliver some core shell improvements, including some public restrooms within that building. just to note that on the occupancy limit, the current occupancy limit of the building is 100 persons. and the uses were part of the rfp and it includes human powered boating or water recreation, and food and beverage, and just general park serving, including the bathrooms that i mentioned. and the kneass building is the

larger of the two buildings and approximately 13,500-square-feet over two levels and it's in poor and deteriorating condition. and the uses envisioned there are community serving facilities, and potential food and beverage there as well, and event space and general office. next slide, please. and the fact that this rfp was issued in accordance with the draft waterfront plan process. (please stand by)

>> we hoped to see some economic benefits to the port in particular in these two buildings which would be significant. and then for for the operator to assume the maintenance and repair and operations of the building and then hopefully at least some amount of rent. next slide please. for the scoring panel, we had five members of the panel. i want to give them recognition.

[reading names]. >> their professional afill casings are listed. i won't read them. they brought professional experiences and they were very conscientious and they really did a great job and i really want to thank them for their service. on the right side of this slide, it talks about the slide talking about when we received the responses back on june 9 and then going through reviewing the proposals, scoring the written submittals, and then finally

which took place from august 10. a two-month process to completing the interviews to the end of the process. we received two proposals that met the minimum proposals. one was from the ymca from san francisco, which partnered with dog patch paddle as well as daily driver. the ordinary from ted choy. the other from city kayak, which is an existing tenant located at pier 40. the photos on this slide, you have two views of building 49. the upper one ask -- is more

recent. that is a view looking to the north and then the lower image shows the lower side of the beach area. next slide, please. so the ymca is focused on the water craft, concessions, diverse programming, targeted retail, and educational programs. the public or park-serving uses included in their proposal was the aquatic center, the public rest centers, and then the food provided by daily driver, which as you may know as an out post in the ferry building as well as their flag ship is on 3rd street near the park. 3rd and 20th.

they also have a wellness center in their proposal operated by the ymca and they envision a $6 million investment in the building on top of the port development in the building on top of the $2 million range. the other proposal is the human power boating on san francisco bay. he also envisions this, which is basically an expansion of his city could i aka business, the restrooms, and some other

revenue-generaing uses to be determined. there was an initial investment of $80,000 which is in the realm of viable, given the port work that is ongoing. next slide, please. here you have the scores, the results of the scoring. the table shows the city kayak score on the left and the ymca scores on the second column. the written proposals in aggregate were worth 500 points, 100 each for each of the five panelists. the oral interviews were worth 30 points per panellist or 150 points total. all together 650 points were available. and you see 347 and ymca 472. a large difference separating

the two [indiscernible] -- next slide please. for the next building, we had two responses both meeting the minimum qualifications. one was from a community non-profit known as the friends of dog patch hub and the other commercial construction and development firm called commercial structures.

this is an accessible dog facility that will offer access to all for an array of services and programs offered daily free or at a low cost. so you see a list of the various types of programming that they envision there. they also included some revenues to support their community programming, about 4,000 square feet of commercial office and about 1,500 square feet restaurant orca if any. they offer some community gathering space as well as some community dining and a café. you see their uses within the

facility, but the primarily they're looking at revenue-generating uses and the ongoing cost of the building. about 11,500 square feet of the café. that their investment of $16 million. here you have the friends of dog patch hub on the left and the other business on the right. this was extremely close. at one point separating the two proposals which was interesting, given the very different approaches that they took in highlighting the sort of -- that they each has various strengths and weaknesses. in aggregate, they came out very close.

in ago gait, we will be discussing the nees building in the upcoming october building. i just wanted to provide some reminders about the r.f.p. process. it requires the port to select the highest-scoring respondent or to cancel or reject the r.f.p. for each building. we also as part of the r.f.p. process that was mentioned, we like to invite the proposals to today's meeting. we did invite the respondents to building 49, since we anticipate a recommendation for that building. and the ymca which is the group that we are prepared to move

forward with the recommendation they will be presenting, today ted choy declined our invitation. with that, i will invite the president of the ymca of san francisco and his team to take over from here and i will wrap up at the end. >> good afternoon, president and commissioners. i want to start by recognizing the port of san francisco staff and commission for this thoughtful design process and our vision for building 49. on behalf of the entire team, thank you. my name is jamie bernie miles, president and c.e.o. of the ymca san francisco. and i have with me my

colleagues. not present but essential to community engagement to this project is tamara hicks. >> in response of the port of san francisco's request for proposal, the ymca of san francisco developed a unique service partnership, the dogpatch paddle to present a community approach that will allow a life-changing accessible activation of building 49. our gold is to convert this facility into a community hub based on watercraft. there will be targeted retail to enhance the community experience.

[indiscernible] -- by design with an additional ecological stewardship component in the building design, leveraging the unique access to the bay. our vision to enhance the ymca of sfribleg's mission to build strong kids, communitiesan fran build strong kids, communities. our goal is to bridge communities to enhance access to all in potentially underserved populations. in this partnership we are bringing to the part which will leverage each organizations expertise to focus on conservation in uplifting this community resource. an example of this is really using the over 120 years of the wise experience around water safety and combining with a

community-based water craft organization to ensure all now have the skills to enjoy this park. by combining expertise, they will work together to ensure that the park reaches its significant potential on behalf of all in the bay area and beyond. >> to coincide with crane cove, i started a club to help people enjoy the recreational manner of the park. as a former adventure operator, i paddled these waters for years and know about the dangers and the pure joy of this wilderness. dogpatch paddle club represents these voices. in this spring we began offering commercial services, including

rentals, storage, and youth programs. our youth camp swiftly sold out with over 300 children attending the camps and spring breaks. our weekly lessons are regularly booked up. there was so much positive support that with a lack of nearby retail, we opened a temporary store front. the store front picks up provisions. we observed the community on their desires for 49 and received around 600 responses. their plan represents our interests. i'm a vessel for the community and am overwhelmed by their support. this is a game changer for building 49 by offering combined memberships, we can provide a combined approach.

we believe this will enable us to provide programming to ensure that the use of crane cove will be inclusive. on day one dogpatch paddle will move our operations across the street and will scale it for the wider facility. we are ready to hit the ground running. >> the ymca believes that wellness is for everyone. our partnership model aligns with that vision. our members receive subsidy for gym membership. ymca membership is reciprocaled across the country. there are memberships with many organizations that you the y. to say with confidence that no one is turned away. the dogpatch paddle and the ymca

are serving young people and creating opportunities for healthy living. we keep this central to our plan. we believe all young people growing up in san francisco should be safe. there are free swimming lessons to hundreds of kids each year, while there is skill building and fun while learning about stewardship. this collaboration will provide the opportunity for children of all ages to explore the water front. we see the activation of building 49 as a central gathering space and a wellness space for all. wellness programs like our programs for the athletes and those living well recovering from cancer will be led out of building 49. teens, families, and seniors will be invited for outdoor engagement programming.

the ymca of san francisco is committed to becoming an anti-racist organization aligned with san francisco's equity goals. there is significant experience providing culturally relevant programs to diverse communities and neighborhoods to san francisco and throughout the area, through culturally, linguistally programs, there will be a voice in this project. this is guided by the principle that any door is the right door. on behalf of the ymca, dogpatch paddle and daily driver, we want to thank the port commission and staff team. we believe our proposal will support the dogpatch paddle neighborhood and area. we look forward to meeting the needs of this unique neighborhood. thank you. >> thank you, rachael, and team.

if i could get the next slide, please, which i believe is the last slide of this presentation. i want to come back to what the next steps would be and the future actions. for building 49, we want to thank both of our two respondents. we feel that they are both viable responses. obviously we have a clear winner here with the ymca san francisco. the next steps for building 49, obviously we're here today to hear your feedback and from the public. again, we'll be going to the southern advisory with these results and returning to the commission for the second october meeting. for the kneass building, as i mentioned, two very different approaches. we also appreciated the two proposals we received.

the scoring was incredibly close, could not have been closer. for this building, in addition to hearing your feedback and hearing from the public today and the southern advisory committee, we're going to need to consider our time to consider options here as we don't have a clear recommendation coming out of this scoring process. that concludes my presentation. i look forward to your questions and comments. >> thank you both for the presentation. now let's open it up to public comment. we will open the phone lines to take public comment on item 12 a. from members on the phone. jennifer will be our operator and will now provide instructions to anyone on the phone who would like to provide public comment. >> clerk: thank you, president. at this time, we will open the queue for anyone on the phone who would like to make public comment on item 12 a. please

dial star 3 if you wish to make public comment. 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. >> thank you, jennifer. do we have anyone on the phone? >> yes, we have five callers on the line at the moment. >> please open the lines for the first caller. >> thank you. opening the first line now. >> hello. my name is charles collins and i along [indiscernible] we are a grievous concerned organizations and individuals meeting for over a decade. we are concerned about the

bayview and that area called the southeast [indiscernible] -- we foster actions that have healthy areas. we look at health and wellness, human services employment, economic and business development, arts and culture, climate action, environmental justice, and infrastructure. building 49 and crane cove [indiscernible] -- in particular we support and value the san francisco vision where all are welcome and all barriers of access are just and limited. as we are limited to equitable

access, call on us to bring in the bayview alliance so that all members of the community feel engaged in crane cove park. we want to commend our process and the ymca and daily driver and dogpatch paddle for the incredible proposal brought forward. thank you very much. >> thank you. the next caller, please. >> thank you for the opportunity to speak in support of the y.'s support for building 49. i am a 27-year resident of san francisco and a 17-year resident of this area. this has been transformative for this side of the city, in large

part because of the grassroots effort to activate this space. i personally have an interest in getting out on the water. my gateway to the bay with dogpatch paddle was the first. since then i've taken advantage of all of the opportunities they have offered. my daughter and her friends participated in the summer camp which was a lifesaver for me. stand-up paddle boarding has become a lifesaver. i myself have gotten neighborhood groups of friends out on the water because we were able to rent boards. my husband even purchased a kayak. previously we had to go to

oakland for our kayaking needs. when my parent were here, we got three generations out on the water. if you think about what adam has done with his energy, think about what he and the y. could do to extend building 49. thank you so much. >> thank you. jennifer, next caller, please. >> sending the next line. >> good afternoon, commissioners, president, vice president, commissioners. i am paul osmondson. we are one of the submitters for the kneass building. we wanted to take the opportunity to thank you for the chance to submit a proposal. we're very eager to work with the port staff and the southern water trust advisory community

advisory group to come up with a proposal that meets all of the port's objectives. we look forward to continuing to work with you in the future. >> thank you. next caller, please. >> thank you. opening the next line. >> my name is terry herernin and i am the owner of the dogpatch studio for the last 21 years. i'm calling to support the crane cove park project that is being put together. i've seen the work and i know their level of taste and quality and ability to get things done

and i believe that they'll take the roots that exist in that beautiful industrial building and create a multi-use structure that will be a positive for the community and certainly for business in that area and eventually for the coffers of the city. so they get things done and they do it with incredible taste. so i definitely support this project and appreciate the opportunity to give you my opinion. thank you very much. >> thank you. next caller, please. >> okay. it looks like we have one last caller and i will unmute their line now. thank you. >> good afternoon, commissioners. i am president of the local business association and a member of the dogpatch hub.

[ please stand by ] -- thank you. >> president brandon: thank you jenica, are there any callers? >> yes, president brandon, there are two additional callers on the line.

>> president brandon: unmute the line. >> okay, thank you. opening the next line. >> caller: hi, commissioners, can you hear me clearly? >> president brandon: we can hear you. >> caller: okay, thank you. good afternoon, court commissioners. my name is jeffrey johnson. and i am a community relations manager with luster national. and i look forward to partnering with premiere structures on this great niche building project. we have the experience of working in diverse communities and understand equity is essential in bringing the unheard and unrepresented voices to the table for project success. robert luster and his mother and father, orville and joy, were part of the movement in the 1960s. so we're very much into equity and bringing everybody to the table. we understand that some of the most important tools in the community engagement toolbox are

humility and listening. by listening to the community stakeholders we can learn and understand the dog patch community story and history. this understanding will better equip our ability to partner with community stakeholders to provide a space that will become a community benefit for generations to come. thank you. >> president brandon: thank you next caller, please. >> thank you. opening the next line. >> caller: hello, i am a san francisco native and current city resident. i'm also a member of the premiere structural design proposal for the adaptive reuse, and rehabilitation with the kneass building. with the port objectives we enhance park activities and to deliver rehabilitated and resilient structures, lastly, and to provide a strong financing plan. the design put forth prioritizes

these goals while seamlessly integrating into the highly successful crane cove park. it's exciting to see the development on the eastern waterfront which is opening up access, and that have been previously cut off to the public, and this site is no exception. and the aminities as part of this proposal is a great add to the kneass structure. to have views from an advantage point while being provided a glimpse into the history of the site's past increases as an outdoor amenity. san francisco needs more types of these opportunities and well-designed engaging projects that provide financial flexibility to replicate these. it is the path forward. thank you, and i appreciate your time. >> president brandon: thank you

jenica, are there any other callers? >> yes, president brandon, we have one last caller. thank you. unmuting the line now. >> caller: yes, good afternoon. thank you for the opportunity to speak. my name is jeff carter. i'm a former employee of the shipyard and the bae shipyard. worked there forever. and now working for the port at the shipyard. i just very much appreciate all the efforts that the port has made with the crane cove park area and for this project at building 49. 49 used to be a graf raj where they repaired vehicles, etc., and the ways were interesting, where they built barges and i was involved in building barges and seeing all of that and the area has come a very long way

since the shipyard has left. and the value to the community i think is great. crane cove park, i really enjoy seeing it to be used by kayakers and children. i think that it's very beneficial. and i like just see the history to be preserved and i like the design and stuff. so very much appreciate, you know, everything that the port is doing here and the ymca for building 49 proposal looks very good. thank you. >> president brandon: thank you do we have any other callers? >> president brandon, at this time there are no other callers on the line wishing to make public comment. >> president brandon: thank you seeing no more callers on the line, public comment is closed.

>> yes, thank you, president brandon, and thank you, jamie, for this excellent report and these proposals. i think that the building 49 is pretty clear in terms of where we're headed with that with the ymca and i am supportive and i appreciate the support from the ymca in conjunction with dog patch paddle. i think that it makes a lot of sense. it's very much in line with our thoughts about community equity and activating the waterfront. i think that mainly what you're probably looking for is direction on how to settle the very close scoring on the kneass building and i think that the impressions that i have that were not necessarily in the staff report as well in order to make a better determination of what proposal to accept going forward. obviously, one is a little bit more commercially oriented and

has more commercial space. the other has more community space. and benefits. and i think that -- and the difference of investment. and also what is not in the proposal yet is for us to understand i guess the economic value. i guess there are some numbers in the staff report that there is some rent paid i guess by premiere structures. but the other i think is because the non-profit organization is basically looking to use the facility mostly for community purposes. i think we need to have some sort of economic evaluation of the two proposals to help us to understand how to line them up against each other. they are very different. and i guess that i obviously would have probably had a little bit of a bias in terms of hoping that the port can generate some return, though we do want to achieve some of the community benefits that was envisioned in when we put this out to bid to begin with. so my sense is that i think that

we need more information on the kneass building and what we have right now is difficult to understand, the economics going forward for the port. and i think that it's a question of are you going to vote for more community benefits and space -- and the only question that i have -- i'm not against community benefits -- i think they're terrific. the demand for all of the buildings for community benefits versus where there is some community benefits provided but there would also be other uses that could be easier to predict in terms of their usage going forward. so those would be my basic comments in terms of direction going forward. because i think what you need now is direction of what to do with the kneass building. >> president brandon, may i make a clarification? >> president brandon: yes. >> thank you so much, commissioner woo ho. we wanted to make make your

direction a little bit easier. the way that the rfp process is set up is that we can only select the top scorer from each of the panelists' recommendations. so the choice -- not now, but in the future, it will be select the top scorer which was premiere structures. or because of the closeness of the scores, and they were really on opposite ends of thespect yum as you were -- spectrum, one scored high on capacity to deliver the project. and the other scored very high on community benefits and delivery of community activation and programming. at that point we could choose not to select the higher scorer, which was winning by one point, and potentially re-issue an rfp or do something else. so luckily you won't have to make that sort of a direction that you're pointing at. and i also wanted to note that some of the dollars are shown on table 2 of the staff report, so just to summarize friends of the dog patch wasn't able to provide a base rent that premiere

structures response did provide at $60,000-per-year rent. and dog patch was $10 million in the building, it's a very expensive building. and premiere was $15.8 million, and that is the information that we do have at this point. you might want to wait -- >> commissioner woo ho: let me ask you, rebecca, it does mention somewhere in the staff report that premiere structures, being a commercial entity, sorts of know where their funding and equity partners would be. and friends of dog patch, do you know whether they have the funding in place for $10 million now or would they have to go and fundraise? >> jamie, correct me if i'm wrong, and i'm looking at the table and it looks like they have in hand about $4.2 million of the $10 million. and they have other potential sources at $5.9 million, which i think are are fundraising they would do, whereas premiere

structures has equity partners on the other side. >> correct. >> president brandon, may i add a comment? >> president brandon: please. >> thank you. and to commissioner woo ho in terms of responding to some of your questions -- staff is presenting results, and you've said very clearly for 49, where there's a clear winner, and for kneass we're in an unusual circumstance. we had two proposers. one who was very strong in one aspect of the scoring. and the qualifications or criteria that we used to meet our values for this development and one was really strong in exactly the opposite direction. neither were very high scoring and they were a point apart. so we're looking for direction on what to do in this situation and it's a great dialogue about how this response went. they were both, you know, very, very well thought through

proposals, but neither of them presented the whole picture for what we were seeking in that rfp. >> commissioner woo ho: okay, what you're telling me is a little different than what i heard. you are saying that there are gaps in terms -- that's why they didn't score as high. so are you suggesting that we would be better off to reissue the rfps and get more complete information? >> we may, in fact, land on that recommendation. our idea today is really to hear from the public and to hear your input and advice to us on next steps. so we would consider all of that coming out of today and then make a staff recommendation. >> commissioner woo ho: okay, i don't know how much the financial viability was in the scoring process and whatever and was after the respondents, but you would know coming from my vantage point and usually my

point of view, i would think that that would be something that we need to know more about, and we need to know -- because somebody could score very well on the benefits, but if they can't execute, that's a problem as much as we like the benefits, if they can't execute, or make the project viable and/or not return anything to the port, then i think that's something that we have to understand. but it seems like there's a gap of information right now. so i don't want to jump to any conclusions, whereas the other one is a little bit more you can imagine because there's more square footage for commercial uses, that you can imagine and project that there's probably some revenue coming in that you would somehow sort out as we normally do in some of our other development agreements? >> yes, and just to comment for the team. i think what would be useful for us with we come back with the staff recommendation is to point out some of the analysis. it is embedded in the scoring

and staff understand it very well. the ultimate one-point winner had a much stronger financial package and scored much higher in the financial aspects. and as you have already noted, whereas, the not-for-profit respondent scored much better in the public benefits section of the proposal. and staff has that analysis as well as the analysis specifically of the financials which we can show you when we provide our recommendations next time. if it takes us that amount of time. >> commissioner woo ho: i mentioned one other thing which is not only -- i mean, in the terms of the difference of content and financial sort of resources -- i think ability to execute and their ability to handle a project of this size. i don't know what the scale of their current operations are, but i think that we need to

understand do they have the ability to execute, not only get the funding but the ability to actually put it together in total. and there is a lot of -- i saw some great ideas in terms of what they want to do on the community benefit side. there's also a question of will all of the community benefits be exactly what -- will there be usage? i mean, nobody is going to argue that day-care, after-school day-care, all of these things are all good things that the community needs, but if it all ends up being so much in that bucket and there's just not enough usage or they just can't execute very well -- and, i mean, i don't know the organization, so if anyone from that organization is listening in, i just do not understand and that is not presented as part of the profile here to give us confidence. but at this point, i don't know and it's not an organization that we have a lot of knowledge about. but the ability to execute is as important as what you want to do

as well as the financial resources to pull it off. >> thank you, commissioner woo ho. the only option forever the port commission -- for the port commission is to award to premiere structures because they were the higher scoring respondent. when we come back, whether we would recommend an award or recommend a can cancellation and to start again, we will go out again. so either entity may potentially be submitting on a future proposal. so we will provide you the information we got from our responses with the thought and help and guidance from our city attorney that we may have a future competition between these respondents with the new rfp. so we just have to do some due diligence and we have the

expertise in house, and the creativity to figure out how to answer the questions as completely as we can while providing a fair and competitive opportunity the next time around should that be the route that we take. >> commissioner woo ho: okay, i'll yield my time. >> president brandon: thank you commissioner burton. >> commissioner burton: first of all, i am confused. i think that we're talking about basically one project, two different selections. one clearly has community benefit, everything. and then we have the other one that is in a photo finish, whether money counts or community counts.

i'm probably the only one here that spent time in dog patch when it was in a rundown neighborhood. and now it's fashionable, dog patch. i have seen the hunter's point community in the name of profit drive poor people out without a thought. this in my mind, and i'm looking at the second thing that has a dispute and not the first -- this is public's land, this is the people's land. and i think that it should go more on where those -- and i say that as probably one of the few people except the chair and others who even know who the hell orville was. and i knew orville and worked with him, i can't remember the name -- the project for youth and the headquarters used to be on 15th and kisslen street. so i know the community and i know that the way that this was

presented to us there is one parcel that there's no dispute as to how it should go. and we spent a lot of time on that running back and forth. we have one project that was almost a photo finish. and we still don't know about whether their economics are accurate. we're not sure whether the community one can fit it. and it was very confusing to me as a port commissioner. we should have dealt with the first one up and down, and then the second one, if there's a problem and there seemed to be great problems. because i have seen the community go for-profit and when the people get screwed and the community gets screwed, and somebody walks away with money. and i have just one question for the ymca people. where is the summer camp?

you say that you have the camp jones gulch, and where is your summer camp now? i'm a little y boy, and i even know the ymca hymn. and i went to it within the tenderloin. but these kids from the community will go to? >> well, there's camps all over the city, so thank you for that, commissioner. you're asking camp gullch and point benita that we rent from the grta. >> commissioner burton: is camp jones gulch still -- >> yes. >> commissioner burton: it was -- i can sing that one too. i'm a rager from camp jones gulch. >> i know ragers, thank you, sir.

>> president brandon: commissioner you're on mute. >> done. >> president brandon: commissioner gilman? >> commissioner gilman: thank you for this report. i want to echo my fellow commissioners and congratulation to the ymca for building pier 49. on the kneass building i want to echo commissioner burton's thoughts. i understand that there's flaws in both applications, that there was -- that the commercial use, the for-profit use scored one point higher in the way that i looked at it on the staff report, it was based on their financial capabilities but i would like to see the community serving benefits at both these sites is sort of my point of view on this. and i know that we're not making the decision today, that we'll see staff recommendations and we

have a right as a commission to reject and re-issue the rfp. but i would like to see, you know, a merging of concepts. dog patch and the southeast waterfront for a long time has been neglected as commissioner burton referenced and i think that it is important for both these sites, you know, on this park to have uses so the community embraces. while i think that there are questions on execution and financial feasibility, the fact that the dog patch hub has been able to raise the amount of funds they have, i think that hopefully we can figure out a way where these uses can either come together, can merge, or we can look at a new proposal that has more community benefits attached to it. it's striking how different the proposals are, and i understand the predicament that puts staff

in. so those are my comments and congratulations again on building 49. it's going to be an incredible use. and i look forward to seeing it in operation. >> thank you, commissioner. >> president brandon: thank you vice president adams? >> vice-president adams: yeah, on bill 49, that's a good thing and i've always been a big fan of the ymca. my favorite actor denzel washington, is the spokesperson for the ymca and it helped him as a young man back in his young days to get and to become a fantastic actor going to the ymca and just built his character. you know, my fellow commissioners have all said different things that i agree with, starting with commissioner woo ho. and then, of course, senator burton brought it on home, because he goes back. he has the historical knowledge and can remember and he was right about dog patch back in the day and, of course, i know that president brandon lives back at hunter point. so i kind of am at a crossroads

on my thinking on this project and i'm not all the way there yet, and if we had to start all over, i would like to see a balance, but right now i'll just be honest -- i'm just not there and i would like to see something that would benefit both, but maybe a way to process -- the way that this process was done, i'm still not sure. so those are my comments, madam chair. >> president brandon: thank you again, jamie and rebecca, thank you so much for the presentation. thank you for all the work that you have undertook that went into both of these groups and recommendations, or the recommendation. i really want to thank the y for entering a proposal for this site. i had the pleasure of meeting jamie a couple months ago at the

giant groundbreaking so i know that he's out there and engaged in the community and raising money. and i have had the pleasure of working when i served on the board of the bayview y, so i know what is her involvement in this effort that we will really bring a lot of diverse access to the community. and i just love the sound of having the y. and it's also great to hear that charles collins, the former president and c.e.o., is still engaged in the community and making it a better place. and you guys have a wonderful team, and i'm so happy with the presentation and what you are proposing, what assets you will bring to putting folks first. now regarding -- >> thank you, president brandon >> president brandon: no problem. and now the kneass building, it's like if we had -- if we merged the two, it would be the

perfect response. because whatever happens there, as with the y, it has to have a community asset. it has to be community serving. so, yes, we do want some kind of financial return, yes, we do want an investment, and yet we do need a community component. so, you know, the perfect response would have been a little bit of both. so i'm not sure how it's going to look moving forward, or how you're going to come back, but when you come back, if you come back with the recommendation of one over the other when they do their presentations, then we will understand that recommendation. but it seems like the way that it looks now, neither one is really giving us what we're looking for. so the it will be interesting to

hear what the advisory committee thoughts are and we look forward to you guys coming back. but we're really excited about building 49. so thank you so much. >> thank you. >> president brandon: thank you for your presentations. so when are you guys going to come back with that for approval? >> i think as i mentioned in the -- in the presentation, we're -- we're still trying to nail down the southern advisory committee meeting. it's going to have to be a special meeting because they're pretty booked up in their upcoming regular meetings. but i think that we're looking at the first two weeks of october, which i think that pushes us out until that second october meeting of the port commission. i think that we want to make sure that we've got a meaningful time and space to hear from the, you know, to hear from the

community and to sort of collect our thoughts as well, digest your comments today which we very much appreciate, and then we'll look to come back to you hopefully at that second october meeting. if i may, i just want to take an opportunity -- i was remiss in not mentioning stephanie tang, she is the contracts and procurement manager, and she is the person who ran the rfp process in terms of, you know, the scoring panel, all of that. and i just think that she did a wonderful job. she ran a very clean process. she's very conscientious. i think all of the -- all of the panelists really appreciated her work. and i certainly did. and i think that the respondentas well. so i wanted to mention her as well as our deputy city attorney, rona sandler, joining tonight as i think general counsel to this meeting and

she's been extremely helpful working through these somewhat thorny issues i would say. and the whole team -- rebecca, and now josh keane who is with us now. so i think that we've got a good team and we look forward to, you know, coming back with some good ideas i hope. >> president brandon: thank you to your entire team. so the second meeting in october, if you're able to have the staff meeting in early october, you will come back with a recommendation for both? >> if at all possible. we are happy to have the time to think through the comments that you provided and the options on the kneass building. >> president brandon: okay, thank you so much. we really appreciate the presentation. thank you. >> thanks a lot. >> president brandon: thank you to the y and dog patch paddle and daily drivers team. thank you.

>> take care. thank you. >> president brandon: call the next item. >> clerk: that is item 13a, an informational for a two-year proposal between port of san francisco for a vac iant area of the port pier 70 shipyard. >> good evening, commissioners. and good evening. i'm here for an information at presentation on a proposal to lease a vacant area of the shipyard, which includes tenant improvements and rent credits as well as activating the space for maritime industrial operations. next slide, please. as a quick piece of background on the pier 70 shipyard, staff took over the management in may 2018. we have interim leases to generate revenue, with a couple

of examples shown here. one being an auto dealership using it for storage. and we try to have other maritime industrial short-term activities. the commission was given an update on the shipyard earlier this year by maritime director andré coleman as well as touchstone and the maritime portfolio update. in that presentation it included a near and long-term objectives for the shipyard, which are to have a maritime-focused leasing strategy and to explore opportunities with maritime stakeholders with the hope to fine potential uses to reactivate the shipyard for maritime industrial operations. one of the many stakeholders port staff engaged with was silverado contractors who brought the staff a proposal to lease and activate a currently unused and vacant area of the shipyard. next slide, please. for some background on silverado

contractors -- they are a marine construction and demolition company that operates throughout the bay area and some parts of l.a. long beach. silverado is in good standing and they have worked on several projects, including the pier 52 trestle removal. silverado's proposal includes activating a boat ramp at this shipyard for small water cast removal and disposal operations next slide, please. now let's take a look at the area that we are discussing for the proposal. which is a great aerial shot of the westside of the shipyard. pictures from the north looking to the south. and just to get our bearings, obviously, the last presentation you guys are familiar with crane cove park and you can see not complete yet but almost complete crane cove park on the right side of the photo. the shipyard is a big place. the approximate area is the area

in the green square, which we will take a closer look at in a couple slides after we get into some of the deal terms which are on the next slide, please. so the base proposal would be -- we have been calling this silverado shipyard pilot program, because it is very much a pilot program. and silverado is hoping to use this lease to explore new maritime business operation at the shipyard of small water craft removal and disposal. silverado is proposing a lease of 51,000-square-foot vacant area of the shipyard, including paved land, unpaved land, submerged land, and a non-exclusive use of a boat ramp. it would be for a two-year term and we're going to include tenant improvements that were estimated to be approximately $400,000 in value. mainly consisting of the removal and disposal of large pieces of

debris, including large pieces of concrete, rotted wood from a former pier apron area and disposal of a derelict barge left behind in shipyard operations. the estimated value of this work came from port engineering and a third-party contractor. silverado would receive up to $309,000 in rent credits for improvements. the rent credits were calculated using parameter rates and are based on the performance of these improvements. next slide, please. now looking at the structure a little closer. the top graph here shows the five different parcels and their parameter rates. the rates for the area and the structure was something that staff took some time to work through, as the area is not currently in reasonable condition without the proposed improvements by silverado, and the boat ramp has not been in use for a long time.

we use parameter rates for each of the parcels, assuming they were in reasonable condition. the bottom graph gives us what monthly parameter would be if we leased it as well as annual rent for the entire area which would be $161,000. the total parameter rent for a two-year term if it was leasable space would be $323,000. the last three columns at the bottom show the $400,000 estimated value of improvements and the total rent of $309,000. the rent due to the port for the two-year term not eligible for rent credits, so guaranteed rent, would be $13,680 for the two-year term. the staff understood that this is an area that is not currently bringing in any revenue nor rent, and nor been in a position to do so in the near future without these improvements to remove all of the debris. so with respect to the amount of work needing to be done and

silverado's plans of using this space to see the potential of a new maritime business, staff still work to get some revenue coming in along with the value of the improvements. that is the $13,680, which is the total rent due, even with all of the eligible rent credits. the boat ramp area does not have a parameter rate and it is going to be on a non-exclusive use in this lease once improved. staff will use this time with the two-year term to examine the use and potential ways for charging for boat ramp use in the future. one example of a potential rate structure would be similar to boat landings that have a one-time rate for each time of use across the port water. and the port only has one operational ramp at pier 52, which was grandfathered and can be used by the public free of charge. next slide, please. now we're taking a closer look at the area and the five parcels

which i color-coded and i'll try to match the colors on top to be more specific in just a second. as you can see although it's not currently the crown jewel for property, this area is still an important part of the port's shipbuilding history. the bottom middle of the picture is the boat ramp area which is not currently operational as i mentioned but in a former time it launched brand-new built ships into the bay. you can see the rotting wood sitting on the former apron blocks and other pieces of debris on the land side area, all of which would be removed in this proposal. next slide, please. and just to match parcels with some colors to get a better perspective, this is the area in question. and we can go to the next slide, please.

as mentioned earlier in the proposal, into the in this proposal by silverado is to activate the boat ramp and use it as small water craft removal and disposal operations. they will also use the berth space that would be available once the rotting wood and abandoned barge are removed to moor their own barges and small water craft to support their other maritime operations. as has been called the pilot program, the goal is to see this would be a viable business, and if it is port and silverado can renegotiate a lease for continued use after the two years. next slide, please. it is important to discuss the rationale for this type of use and why there's interest by silverado and port staff for this opportunity. usually we like to put happy maritime pictures of boats on the water and looking beautiful on our waterfront. but, unfortunately, these are some sad boat pictures, and the

reality is that delict and abandoned boats have been increasing in san francisco bay waters. it exposes financial and environmental risk to the bay, and specifically whoever waters that the boats are left behind in. at times boats -- abandoned boats turn into sunken boats with damage for cleanup and eventual removal and disposal of the vessel. and having a location on port property would put the port in a much better position to mitigate these risks and to help grant funded dollars for the removal of abandoned boats in keeping waters clean. it's unfortunate that in our 7 1/2 miles of waterfront but something that we do encounter at the port of san francisco. next slide, please. in closing the silverado shipyard pilot project, which i have to give that catchy name

credit to our very own planning director diane who coined the program name, which is very fitting, but when the port staff began discussions with silverado we thought that it was an opportunity to be creative and to take a step forward to bringing new maritime operations to the shipyard. it is important to note that while the port staff and silverado go into this with the idea it is a pilot program, but, it could be a real win-win either way. the port will get much-needed improvements to an area of the shipt yard and silverado will have two years to see if they're a strong enough business case to negotiate a new deal and continue these operations. if there's not a business case, the port will get the parcels back, improved and ready-to-lease condition with the potential of leasing to other maritime industrial operators. the silverado will have a better understanding of that line of business. next slide.

and with that i conclude my presentation. pending your comments and guidance, commissioners, staff will plan to bring this back in the very new future for potential approval. and i have andré coleman, the director of maritime and operations manager dominic here to assist with any questions. >> president brandon: thank you, brandon, for the presentation. let's open it up to public comment. we will open up the phone lines to take public comment on item 13a. for members of the public who are joining us on the phone, jenica 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 minutes per person. the queue is now open. please dial star, 3, if you wish to make public comment. >> president brandon: thank you, jenica. is there anyone on the phone? >> yes, president brandon, we have two callers on the line at the moment. >> president brandon: please open up the first one. >> okay, thank you. opening up the first line now. >> caller: hi, good afternoon, commissioners. this is ellen junck, co-chair of the mcac. we are having a meeting on thursday of this week, but we wanted to let you know ahead of time and particularly you were discussing this proposal today that our initial reaction to this proposal is very favorable in fact, this pilot program is so creative and one of the most exciting ideas in furtherance of

the port's maritime mission to come across our bow in some time. you know, the locks of the dry dock at pier 70 was a significant loss of maritime revenue and an essential maritime business. and yet we're so pleased to see the port opening up its eyes to the possibilities of how this now vacant area can regain maritime use and revenue. the pilot program we think provides a wonderful opportunity to jumpstart needed reactivation and improvement of the property and foster a promising future. silverado is a long-term tenant and a company that you can rely on to do the best job possible. we support your commission moving this program forward towards its adoption. thank you. >> president brandon: thank you, ellen. next caller, please. >> thank you. opening up the next line.

>> caller: good afternoon. my name is scott clock and i'm a silverado contractor and i'm the [indiscernible] at silverado. i would like to thank the commission for the -- for the possibility of this proposal, and i would also like to thank the staff that are working with us and presenting this to the port for their review and consideration. silverado is formerly zapper company and a member and a partner at the port for several years and we have accepted and completed some challenging projects for the port. we started with j10, and we did that project several years ago. and it was very challenging.

we've also worked with the dry dock when they removed dry dock 2. we did that for the port and that was a very challenging project. and we also just recently completed the pier 45 pilot which was a very challenging project. you have the -- we have the port -- excuse me for a second -- we have the port's vision of the environment to protect, and our neighbors, and we also have the commerce that we have worked with in the past and we have -- we know the sensitivity and we work for the port to protecting all of the port's experiences. excuse me. i'm having a little difficulty.

but, anyway, we would like to acknowledge the commission for the review of this and i appreciate it. thank you. >> president brandon: thank you jenica, are there any other callers? >> president brandon, at this time there are no other callers on the line wishing to make public comment. >> president brandon: thank you seeing no other callers on the line, public comment is closed. commissioner brandon? >> president brandon: thank you so much for the report. i support this item and i have no questions. >> president brandon: thank you commissioner burton? >> commissioner burton: no questions or comments. >> president brandon: thank you commissioner woo ho?

>> did you call me president brandon? >> president brandon: vice president adams. >> commissioner woo ho: i'm sorry, i was on mute. i just realized that i was on mute. can i go first? >> president brandon: sure, please. >> commissioner woo ho: all right, thank you, brendan, it's a very thorough and comprehensive report. i'm glad to see that we're making some headway with this space and i am supportive of the item and i don't have further questions. >> president brandon: thank you president adams? >> vice-president adams: it's good to see we're moving on, and what i mean is for ba, being there for a long time, and i think that it's just sitting there idle and we're finally moving on to the future and i'm very supportive of this. and i think this is a good start and moving forward, so i'm supportive. thanks. >> thank you. >> president brandon: thank you brendan, thank you so much for the report. and thank you so much for this item. it's a great public/private partnership. and i think that it's a great

use of the space. so i know that it's a win-win for us and for silverado. so i look forward to this item coming back so we can approve it. thank you. >> thank you very much. >> president brandon: call the next item, please. >> clerk: item 14a is an informational presentation on a proposed competitive selection process communications policy to support the integrity of the competitive selection process for port contracts. >> hi, commissioners. my name is stephanie thang and i'm here to present this item about the competitive selection process. can i have the next slide, please. thanks. i'm delighted to be joined from colleagues from the controller's office and the city's public integrity review process. and this policy is really a cross-divisional initiative, so

we've had many colleagues who worked on this so i want to thank them. next slide, please. so this item supports and expands the port's policies to ensure integrity and competitive solicitations. of course, this is a policy to ensure fair and impartial and a transparent process, and ensure that our communications do not confer a competitive advantage during the selection process. for this briefing, mark and tiffany from the city services auditor will provide background on the context for this policy and how this fits into our overall city-wide approach. and then i'll walk you through the specifics of our policy. next slide, please. there are really two areas of our strategic plan that this policy touches. one is productivity and ensuring that our tenants and our contracts, that we have a waterfront which has consistent transparent and fair processes. and then, of course, engagement

we want to promote trust and ensure the highest levels of integrity. next slide, please. i am going to turn it over to mark and tiffany to step us through the context and background for this policy. >> great, thank you so much, stephanie. good evening, commissioners. mark delosriosa for the controller's office. and i'm here today joined by our audit manager tiffany wong. thank you for the opportunity, first of all, to briefly present to you our -- some highlights on one of our reports that we've issued in the last year and a half. really the report that we issued in january of 2021 really does provide some context on this on the communication by commissioner and staff with potential bidders during contracting process. just as a background before we proceed, as you may already know about a year and a half ago when

the mohammed nuru investigation became public, we at the controller's office set out to conduct a series of assessments to shed light on the internal weaknesses with the claims against mr. nuru. the overarching goal is to really provide a set of recommendations that would address the internal control weaknesses and improve transparency, reduce the risk of fraud and safeguard public funds. next slide, please. this representation is basicallu with the five reports that we have issued so far. so these are starting in june of 2020 and we issued our very first one on contracting and procurement at the department of public works. the second on gifts to departments from city -- non-city organizations or friends of organizations. the third one from the department process for the city the fourth one that is highlighted is really the one that provides context to the policy that is for you for

consideration today, which is on the commissions and the boards ethical standards with contracting or procurement process. and the fifth one that we issued in april was the one on recology which is our city's refuge process. and we have issued in august of this year a 12-month report with an update on all of the recommendations that we have let so far based on these five assessments. next slide, please. so these are just some of the highlights of the findings that are contained in the four deliverables that i just mentioned which is on the city's commission and boards ethical standards. the one that i highlighted here is really the one that provides additional context for the policy at hand. and really i just wanted to emphasize here based on what we have reported on our assessment

that the affidavit that alleged mr. nuru and mr. nick had tried to have obtain a city lease at the san francisco international airport for a company owned by mr. bolis. during one of those conversations, as we saw in the report itself, ms. creighton was willing to do favors for the relationship they had. and to meet and help a potential bidder by leveraging her position and authority and did not report the improper request for preferential assistance. according to the complaints she met with the proposer during the quiet period which violated the instructions that the airport had. another key element of this finding is that we had the report and rec and park and puc

and the transbay joint authority. and we found that all of the sia or the statement of incompatible activities had selective assistance that only the airport and mta had written policy prohibiting communication with bidders and most importantly is that none of the departmental sias had any of the prohibition for employees for communicating with the potential bidders. next slide, please. given that finding we provided a recommendation for city departments to include in their competitive solicitation documents the restriction, the restrictions on communication by and with potential bidders and enforce the restrictions by requiring commissions and board members to affirm compliance in writing at least annually. as we've noted here, this is basically a snapshot from our 12-month report.

we reported and implemented, given the focus of the assessment was at the airport, however, as we have noted in the report itself, it does have city-wide implications, especially for those departments that are overseen by commissions and boards, which include the port commission. and that really concludes my presentation, but the next two slides are just background providing links to the reports that we've issued so far. and i'm happy to answer any questions that you have. and i'll turn it over to stephanie. >> great, thank you. can i have the next slide, please. and then the next slide. and then the next slide. great. thanks. so let's get into how we're going to implement the controller's recommendation. the next few slides outline the details of the policy. so the policy is to ensure that we have no selective assistance to any individual proposer and that the contract and the lease maintains the highest level of

integrity. so how does this work is this from the time that the rfp and the rfq, the bid, is advertised, what mark referred to as the quiet period, through the port commission taking action or cancellation of the solicitation, no selective assistance can be give by a commissioner, a port employee to any respondent, sub, or anyone in the bidding process. likewise a respondent cannot seek a competitive advantage from staff or a commissioner, and this is grounds for disqualification from the selection process. next slide, please. this slide really outlines the how we are going to make this policy work. and ensure that we each know all of our responsibilities to implement this. so after passage at a future commission meeting, after an action item, we will make sure that the board commission agendas all include an appendix that has a list of all of the active competitive bids and the

expert at the port who is the one who is communicating with the potential bidder. all rfqs and rfp bids will include language that address this policy and the port's requirements. we will also make sure that all of our selection panel who are also part of this process, that we're going to expand the conflict of interest form to include language about this policy. and then for port staff we're going to formalize our existing process and the compliance includes a communications plan to ensure notice of the policy and that they will have access to the same report that the commissioners are receiving. and then, of course, for enforcement, we will use the whistle blower program through the office of the controller, one of mark's previous slides, to ensure that if there are approaches that are made, that that is -- that there's compliance done. next slide, please. i do want to mention some exemptions from the policy which are that communications not

related to the opportunity still have to occur. so we can do normal business. also there's a lot of communications necessary during the quiet period. advertising, pre-bids, questions, referrals for technical assistance, all of those, of course, must continue there are also different types of contracts, pre-qualified pools once there is a pool that is exempt. and, of course, public comment is exempt. so it's a really important opportunity of how the public is able to speak to the commissioners in this public forum and, of course, that will continue to happen. and the overall goal is to ensure that there's no competitive advantage and information in the public domain itself, like through staff reports or a press release, are not proprietary. next slide, please. this is the info item. in the future we'll take your feedback, answer your questions and we'll come back to the port commission with an action item on this policy.

so that concludes my presentation. and i welcome your questions. >> president brandon: thank you, stephanie and mark for your presentation. now let's open it up for public comment. we will open up the phone lines to take public comment on item 14a, for the members of the public who are joining us on the phone. jenica is your 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 up the queue for anyone on the phone who would like to make public comment on item 14a. 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?

>> yes, president brandon, we have one caller on the line. >> president brandon: please open up the line to the first caller. >> okay, thank you. opening that line now. >> caller: my name is francisco de costa. and i hope that what the presenter was saying has been vetted. i hope that you all know that there is a lot of corruption of the highest order when it comes to the bidding. and we can't mention the name of the controller's office because the controller's office has not been doing a good job.

in order for you all to understand what i'm saying, you have to note the corruption at the san francisco public utilities commission. the port authority has [indiscernible] and now they are stating that everything will be transparent. to whom? you have no transparency. some of us have gone to the sunshine task force, the ethics commission, the controller, with no success.

i know you guys. i have an attending your meetings for a long, long time. there is a lot of corruption going on at the san francisco port authority. there's a lot of corruption going on at the public utilities commission. the investigation has to step in. so this competitive selection process communication presentation is a lot of hot air. you may not believe it, but i don't mind sitting down with the presenter and explaining to her what i really mean. it is time that we have real

transparency and not diatribe and hot air. again, my name is francisco de costa. thank you very much. >> president brandon: thank you, mr. de costa. are there any other callers? >> president brandon, at this time there are no other callers on the phone wishing it make public comment. >> president brandon: thank you seeing no more callers on the phone, public comment is now closed. commissioner woo ho? >> commissioner woo ho: thank you, stephanie, and the presenters from the controller's office. i think this is a good policy and i think that we keep wanting to make improvements and making sure that we are going in the right direction. so thank you, mark, and tiffany and so i have no further comments. i think that it is very clear in terms of what we need to continue to do and to make sure

that we are trying to achieve our ethics objectives and fairness. and as far as the caller's complaints and as far as that, that is something that we would need to learn more about, but as far as i'm concerned i think that we feel comfortable that we are doing a fair bidding process at the port. thank you. >> president brandon: thank you commissioner gilman? >> commissioner gilman: thank you, stephanie and staff from the controller's office for the report on echo, commissioner woo ho's statements. public integrity and integrity in contracting, ethics for commissioners and all city employees is of the utmost importance and i think that as a port commission we take this very seriously. we have put together competitive bid process that has integrity and upholds ethics and values. so i appreciate this update on communication.

i think that it is a great and sound policy and i know that we'll move forward working with integrity and ethics. thank you. >> president brandon: thank you commissioner burton? commissioner burton? vice president adams? >> is he there? yeah, it was a great presentation. and one thing that i like about being on this commission is that the public have a right to give their views and as i say integrity is everything that we have and the process has to be above board. so i agree with commissioner woo ho and commissioner gilman and thank you for your work.

and like i say, we live in a place where people can speak their rights and so i would like to stand on what we do at the port. and i say that with pride. thank you. >> president brandon: thank you again, mark and stephanie, thank you so much for the presentation. and i think that i have the privilege of serving with very high integrity commissioners. and i think that we have informally adopted this quiet period, we have been doing it for years, so we're just putting it in writing now. and looking forward to working with the staff, with the commission, to keep that integrity and the ethics front and center. so thank you again for your presentation. and we look forward to you coming back with an action item thank you. next item, please. >> clerk: that would be item 15, new business.

>> president brandon: commissioners is there any new business? nothing pertinent? can i have a motion to adjourn? >> i second that motion. >> president brandon: can i please have a roll call vote. >> clerk: absolutely [roll call vote] >> it is 5:37 p.m. that is great, thank you. >> president brandon: thank you >> thank you, everyone. >> thank you. bye-bye.

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