tv Port Commission 121316 SFGTV December 31, 2016 2:00pm-4:01pm PST
people want to do or eat only provide the skills and the tools in case that's something people are 2rrd in doing. >> you can't buy a box of psyche you have to put them in the right vein and direction with the right kids with a right place address time those kids don't have this you have to instill they can do it they're good enough now to finding out figure out and find the future figure out and find the future for [horns honking] announcer: big dreams and good grades aren't enough to get into college. there are actual steps you need to take. finding someone who can help is the first and most important. for the next steps, go to knowhow2go.org.
go? >> call to order. roll call commissioner adams, here. brandon, here. kounalakis, here. katz >> she will be here. we have a quorum. >> approval of the minutes. >> moved and seconded. >> >> second. all those in favor say, aye. >>[chorus of ayes] opposed? >> this will be delayed until the next meeting. there are no minutes. >> okay. that's fine. we will go to public comment on executive session. any public comment on executive session? seeing none, public comment is closed. mdm. clerk >> executive session.
>> moved and seconded. >> all those in favor say, aye. >>[chorus of ayes] opposed? we are now in executive session 5 min. after 2 pm. >> >>[closed session] >> item 5 reconvene in open session. >> i moved to reconvene in open session >> >> second. >> all those in favor say, aye. >>[chorus of ayes] opposed? >> i move not to disclose anything in close session >> second. >> b weber >>[chorus of ayes] opposed? >> next item. >> pledge of allegiance. >> >>[pleage of allegiance] >> mdm. clerk
>> >> item 7 announcements could please be advised somebody's telephone prices are prohibited at this meeting the chair may order the removal from the meeting room many person responsible for the ringing or use of a cell phone and pager or other similar sound producing electronic device. please, be advised a member of the public has up to 3 min. to make pertinent public comment on each item, each agenda item, unless the port commission adopts the short period of time on any item. item 8 of the comments not listed on the agenda. >> is there any public comment on any items not listed on the agenda we seeing none, public comment is closed. mdm. clerk next item >>
>> item 9 executive director support >> good afternoon. i'm elaine forbes executive director of the port of san francisco and my first item to report is on november 19 one of our very own commissioners, vice president commissioner brandon received a very prestigious award from the san francisco naacp for professional and excellence achievement professional and business achievements. the san francisco naacp is committed to pursuing diversity and reaching the next generation of civil rights leaders. it's really no surprise to me that commissioner brandon received this award. for those of you watched the commission closely, you know how howard commissioner brandon works to ensure our own contracts accrue to local businesses here in san francisco following the spirit of the obe speed is to show
what also works very hard to see that our port activities connect closely with the neighborhood. the neighborhoods here in san francisco. she also mentors port staff. so i am sure that what you do here on the commission goes on to the other aspects of your business life. we are very very proud of you to director actively honoring you today can we want to express our appreciation and we also want to express the appreciation of the larger city family. so i've a proclamation from pres. lyndon brinkman i'm going to bring it over to because president adams is going to help me. >> the city and county of san francisco proclamation in recognition of the san francisco
naacp professional and business awards tuesday, december 13 2016 whereas the city and county of san francisco traditionally recognizes individuals who have demonstrated a strong commitment to excellence and made a positive difference in the lives of san franciscans. i am pleased to recognize kimberly brandon vice president of the san francisco port commission and wealth management morgan stanley senior vice president and whereas the commissioner brandon's leadership the port of san francisco has been instrumental in fostering international trade relationships with sisters reports which including participation in delegation to the people's republic of china, vietnam, argentina, chile, ghana, and mexico. whereas, and eight of of san francisco has dedicated her career to social justice and economic empowerment commissioner
brandon always prioritizes our cities underrepresented communities, citywide community outreach efforts, including promoting diversity staff time and contracting to ensure the port is represented of the city and county of san francisco and whereas commissioner brandon's years of experience in celebrating diversity and advance the quality for our city residents especially in underserved communities, makes her a model residents an exceptional recipient of honor from the naacp and whereas by bringing countless good ideas to like commissioner brandon has been committed and dedicated to addressing the and doubt naacp's mission to ensure that political educational social and economic equality for everyone she is an unsung hero who was worked tirelessly to improve our diverse communities and our cities now
therefore on behalf of the city and county of san francisco i, london breed president of the san francisco board of supervisors do hereby recognize the breath of her career and on behalf of the san francisco branch of the and of all acp and the entire city, london breed president of san francisco board of supervisors on tuesday, december 13, 2016 kimberly renne next there will be a 20 year commissioner by the longest-serving commissioners in san francisco. a true hero. >>[applause] >> commissioner finn and would
you like to say a few words queen >> no. >>[laughing] i'm at a loss for words. >> okay. >> i'm going to get it together. anybody that knows me knows that i don't like to the limelight i don't like direct recognition. i do it what i do because i do it for my heart. so i really appreciate it. thank you. >> you are welcome. >>[applause] >> commissioner kounalakis >> it so your work is so important to our city. the ,
you do a wonderful job commissioner using your experience and your knowledge and almost 20 years of experience on this commission to deal with very complex and important issues that come before us to read their basis. so bravo to you and thank you for your service and to be continued during >> thank you >> i would like to say that when i came onto the commission five years ago commissioner brandon reached out to me and a partner lifelong partner tim is here today and kim is a lady that works very diligently. 20 years of experience. she's an inspiration to this commission she speaks very highly and one of her goals was the development of the southern waterfront and now that it starting to take place: i think about someone who put in almost 20 years on the commission you went through 3-4 mayors and she is constantly delivering i
think she's very solid and very committed to what she believes in. this year when i went to through the process of ad hoc committee when we were looking for a new port director, kim right partner, she gave up her whole summer like i did, in the pursuit of excellence to find a good director for this port tomorrow for this community and for the people and i can only think of for her friendship and loyalty and she's very honest with me and as you all can see, that i'm really outnumbered i have for women commissioners and eight port directors avail number and maybe that's a good bounce but i just want to say thank you and it's okay to keep me on top of my game. i just want to say, timidly, so proud of you. thank you. it's just sure service. it just so many people that benefited from that in our latest deal with
[inaudible] and hopefully when i get up and running that are being district 10 not be of close to 100-125 jobs in the community, for district 10 resident. just maybe we will take guns and we will take bothers in the negative things that a lot of these communities and we will be able to provide jobs and its kimberly brandon her vision and pursuing and making sure we provide jobs and economic empowerment for the community. thank you. >> thank you >> thank you we know we don't like to be the limelight because we found about this on accident. >>[laughing] we are glad to do this retroactively. congratulations. >> thank you >> next item is regarding monofilament fishing line stations. i want to let everyone know on november 21 the port have a small president with activist judy arvind she's a filmmaker known for the
telegraph hill. here to celebrate the monofilament fishing recycling stations that we installed at key locations along port property. while it's a small effort it's very important to wildlife year. the fishing line recycling stations will help keep our wildlife safe and all residents to continue the use the port as a recreational fishing venue. i'm very proud of the environmental stewardship of this port and this is just one small example of the work we do get so huge thank you to tom carter, tim felton, and kristin--enter maintenance division that actually manufactured the recycling stations themselves. the next item is to provide some good news to the port commission and the public relative to our national park service term sheet get on november 29 04 board of supervisors endorsed the term sheet for agreement between the board of san francisco national park service for a 30 year operative agreement and to 10 year renewals to invest and improve piers 31, 33. as you
know using this project and you sent it along to the board of supervisors endorsement is a key milestone in the multi-year effort. the goal is to keep alcatraz on port property and develop a much higher caliber facility for the public and we are now well on our way. we expect to be back mid-2017 with two leases for you your review. and special thanks to byron mark rebecca-j edwards and rona center we keep along and progress is swift. i now would like to ping your attention to bae ship repair. bae san francisco san francisco ship repair has been a port tenant since 2005. in 2015 this port commission approved a 20 year lease extension get since 25 bae has performed well for us and ship repair has been very important business line for the
port and we've extended drydock two, insured shoreside power to reduce pollution to bae is a large company and they operate major shipyards in norfolk virginia and san diego. recently there've been some market changes which have made bae less competitive and less profitable here in san francisco. notably in portland they opened a new shipyard. as a result bae has become not profitable and has reached an agreement to sell other san francisco operation to leah moraine. leah is a small company with the facilities in bellingham and tacoma washington. they do have a 20 year record can they have a very good reputation and they believe because they are a small, neither be able to win federal contracts that bae cannot win due to federal subsides and their overhead is
substantially lower than bae as a small company. so they believe that they will not experience the headwinds that bae faced your at the shipyard. they also will honor all the terms of the bae lease and all the collective bargaining units that are in place for the workers. port staff is reviewing the purchase sale agreement doing due diligence now and will keep the port commission and the public abreast of our progress, but we are excited about this new chapter in san francisco ship repair. okay. now that brings me to the california association of port authorities annual meeting that was held november 29 at i attended a meeting with peter dailey and i want to let the public and the port commission note that west coast directors met that day to talk what the priorities of port
and ensure we are rowing in the same direction. one of the key things that capitalism went for california ports is creating a narrative all the benefits that the ports by to the economy and streamlining the legislative request both at the state and federal level. it was a very twofold meeting and it's very meaningful to have our port rep represented among this group to be sure that were lobbying in our interest. okay. now at this time the port commission would like to recognize and congratulate carolyn corrigan the president of blue and gold fleet. carolyn is retiring at the end of this month after a 40 year career in the san francisco eight maritime industry. gold fleet is the largest passenger belt vessel operator in california caring pre-point 7 million passengers this year
with 97% on-time arrival. i wonder if there's any other public transportation facility that could mark those kinds of on-time percentages. carolyn was raised in new york but then she settled in the bay area. she is someone who worked her way through the ranks. she began with crowley maritime initially answering phones and she was soon loaded to a dispatcher. she correlated vessel movements organizing crews supervised maintenance and ensured all the boats ran on time. she joined blue and gold in 1997 when they acquired much of crowley ferri and tour boat fleet as well as key staff. in 2012 as she became president of blue and gold fleet after working her way through the ranks under her leadership blue and gold operates ferry services for cities such as opened out of
meeting and a ladle as was the water emergency transportation authority. carolyn is an absolute pleasure to work with you she loves the industry. she is a fierce woman in the maritime industry which is always great to see and she is a true friend of the port we will miss her terribly and i would like to please congratulate her and we have this okay with blue and gold ribbon. >>[applause] >> carolyn, i let a couple talk and i'm going to save the best for last. that will be held in good then veronica than anybody else that was to speak to i think that is monique moyer back there? x executive. hello, bonnie. she's the one i raised her hand. welcome,
monique. ellen? >> good afternoon on ellen johnck cochair of the maritime commerce committee and am pleased to bring some words of tribute from the maritime commerce advisory committee as was my own personal thoughts about carolyn. this is a great day for maritime with the recognition of kimberly. i think that is wonderful and now carolyn. you know, when carolyn i think of you and we think so many people maybe have a stereotype of the maritime industry get a lot of hard scape infrastructure metal con concrete, wood, hard lines but there's a big heart on the waterfront. and a lot of charm and you are the embodiment of that. that is my first thought. of course, my second, you mentioned in your remarks, the
superior performance of the company. the customer service and your dedication to the public and say, we are going to run these votes on time and we are going to deliver a great product which only the port is basking in. the port can only reflect the glory and the shine of that operation. then i want to thank you for your dedication and constant attendance at the and cac. your such keen insight and intelligence and she was there ever sale and when we had to the board of supervisors are couple years ago and you have just been there all the time giving the strength and vigor to our whole maritime industry. so i want to thank you. i'm going to miss you so i hope we see you up and down the embarcadero. thanks so much. thank you. >> thank you, alan. veronica?
>> mr. pres. members of the commission veronica sanchez offering words of appreciation and thanks on behalf of of the master mates and pilots and i think i can speak on this one for my sister marina on behalf of the ibu was having their holiday party today. they can't be here to join you. you have heard about these statistics on legal and gold standing in terms of number of passengers and it carries and its on-time rates, but i would like to add another important statistic in that under carolyn's tenure at blue and gold, it is now one of the largest union operators at the port of san francisco. the mmp alone has 175 employees right now at blue and gold and in addition-that ranges from
captains to the customer service reps to the people that work in the box office and of course our sister union the ibu has the deck hands. as a speak with our members they unanimously say new and gold is a union company today because of carolyn oregon because of her persistence commitment to providing employees the best station and wages and they 08 lot of gratitude to her. additionally, the crews will say that there are a lot of guys and women who owe their jobs to carolyn because she stands for giving people a second chance which i call that the spirit the embodiment of which-was always about. giving people a second chance at a motion, she is always setting her own example of moving up the ranks of the company from dispatcher to president, she is
set that example and so now we have deck hands, people started as the cancer no captains that has promoted the most diverse workforces of people of color that i've seen on this waterfront. so carolyn has been there as a problem solver for our cruise, as a compassionate person. they respect her and if you know something about maritime, the crews they don't respect a lot of people. >>[laughing] especially the captains once they're in our wheelhouse. they are in charge with a respect carolyn and are very very grateful. finally, i want to add add my personal thank you and appreciation to her because i had the privilege of working with her for many of those years and when i was at the port i would remember the cup that phone and saying we
need up over a public tour to promote the waterfront and she was always there without boat or just to listen and to be there when we needed to advocate or we need a letter of support. so thank you very much. >> thank you. i think i see our former port director, monique moyer could welcome. >>good afternoon pres. adams vp renne commissioner, welcomed the things my first commission meeting with you and is honored to be on this side of the dais. thank you for having me. dir. forbes it's great to be back. first of all congratulations commissioner brandon. outstanding really well deserved. i to come today to honor and say thank you to my friend carolyn from blue and gold you for some great things about her purse from a vein than from veronica and of course from our always president
: and we are wearing red for good luck for you but always but good luck for you in your next event. the waterfront as we all know is full of big personalities. it's also full of quite confident small personalities. i would pick carolyn in the latter. she is someone who has quietly gone about her business and gone about it extraordinarily well for four decades. are we announcing a quick okay, good for many decades. and has been a great honor to everyone. really glad veronica mentions her partnership with her employees and her colleagues but she has really moved the needle forward. she has been there for the port over and over again to every situation that has been called upon whether it is been for fun on fleet week or for fun on the america's cup or whether it has been for tragedy which i won't go into or whether it just in response to a strike at bart or
impact on the bay bridge. those are really long gruesome hours but i have to say always found comfort when i would see carolyn go marching by my office day after day very quiet pursuit of good health and exercise and probably the key to keeping her good cool calm. so i echo the sentiments of the speakers went before me in all that she is contributed and carolyn it's been such an honor and privilege to work with you. i think you for all you did for me personally. all that you did for port tenants and all that you did for the port sap but also that you did for the bay maritime community. so i wish you happy sales, strong winds behind you and blue sky in front. good luck. >> is there anymore public comment? please, dana come up. >> i just want to take the opportunity to salute these two women of the waterfront. the mission or brandon and carolyn.
commissioner brandon, you been the beacon that is really guided the port for all the improvements and transformation of the southern waterfront the open spaces and the jobs. just the way the community and the port commission of and able to work together over the years having been there to watch you and to be guided by you just want to express my appreciation for all that you put into your job here over the years and carolyn, i don't think i can exceed anything that's been described for all your contributions. all i can say is that in her retirement really glad you're staying on the waterfront plan working group. and you will keep teaching us. so thank you very much. >> commissioners, and port sap, i hope you will indulge me. i've written a little ode to carolyn. cheers to carolyn
as she gets ready to retire. it's been 43 years and maritime industry since he was first hired. who would've known that boats in the water would capture her heart. was a job of secretary and dispatcher where she got her start. from red and white fleet to blue and gold, carolyn continued to learn and thrive working in a man's world made her, alive. she's a feisty determined and strong little gal. i'm so very proud to call her my pal. i laugh and sunny disposition can light up a room could however don't cross her that she does not forgive and forget soon. with great respect i will bid her ado. she always brought to light a new perspective a new point of view. carolyn loved the boats, the water and her hard-working crew. yes, she also loved the glass of chardonnay or two. it's a testament to carolyn towns and her dedication i do tell. we will miss her great
sense of humor and sharing speeches under her watch new and gold is performed extremely well. it's a testament to carolyn or talents and her dedication i do tell. we will all miss her great sense of humor and sharing it laugh or two. traveling walking and enjoying her grandkids is now what she's destined to do. so glad we had the opportunity to work together over the years. i offer my heartfelt congratulations in front of your peers. in joint of this new exciting chapter of your life it may be good filled with good health, happiness and not an ounce of strike. congratulations. >>good afternoon commissioners to j edward senior property management carolyn, have the real estate division i can't
tell you how many times we've had to give you a call with not always the best news and sometimes that's part of her job and you take it so graceful. you've always understood is that there listens . you offer good counsel view helped us to solve problems. way to partner in every way for the port, for the community could you serve on the sustainability community which i chaired for the fisherman's wharf community benefit district you should've the countless events. social events. you have such a great team with you. every time we interact with your organization, we really positive experiences and we are going to miss that. there's no replacing that no matter what you do and thank you so much for everything you brought to the port to the city of san francisco and to our organization. >> is there any more public comment read i'm kind of looking straight ahead but am wondering if the new president of blue and gold is he going to say anything? i'm calling him
out. >>[laughing] >> thanks, commission. so we had quite a few events for carolyn over the last few weeks. wishing her fun farewells and i think said this last week when we were having a little get together for her. from my standpoint, i hope people that only a that a similar upbringing through the company starting and working my way up and so carolyn and her boss made the decision to put me in charge and i think her so much for that and the trust she put in my-the faith in the two leading organization going forward. big shoes to fill. carolyn, you have been a mentor, a friend, an educator for every day that i've known you. i told you last week i only had two bosses at blue and go. first one is my father. the second one is obviously mice
appeared thank you so much. it's been a wonderful ride and blue and gold suite is really on the correct course because of you and i can only just hope i can steer the course correctly going forward. >> thank you. any more public comment? if not public comment is closed. the woman of the hour, carolyn. >> so i will a commissioner danaj don't really like public speaking. i just want to-i just over 10 say thank you so much to the ports. this denigrates career. i love the waterfront. i work with wonderful people. that is can do his next optional job i've no doubt. i think that working with the port i think we've always thought of us working together to an end and i think that's why we've worked really well together. i feel like i've been so lucky. i've worked with such wonderful people in such a wonderfully industry. thank you very much.
>> commissioners, any comments? >>[applause] >> so i am the newest member as you know but it sounds like you're going to be staying involved in the waterfront group so that's great news and i will be looking forward to seeing you around in your retirement. thank you for your service. >> i just want to say congratulations and you will definitely be missed. good luck on your retirement. >> clearly, carolyn you're retiring in a blaze of glory and clearly we all oh you a debt of gratitude 43 years is a long time. i do know if we can ever say thank you but i'm glad were all alive today to be able to say that to you. thank you so much for all you have done and the true test of a leader they leave other behind it will to carry on and pat will carry that torch. he has it and i know you'll always be around if we need you for advice and stuff like that. you may retire
but you will never retire from being involved in this port and the waterfront. this is your life and a lot of wisdom and we will always call upon you for your wisdom and your insight and please enjoy your family. just once again, thank you so much for everything that you have done. we appreciate it. thank you. >> okay. the last item is the schedule of the port commission meetings for 2017. i want to call out that it's attached to the agenda and list all of our 2017 meetings. please take a look and plan accordingly. that concludes my report. thank you. >> thanks. any public comment on the executive directors report? seeing none, public comment is closed. mdm. clerk next item >> item 9b port commissioners report >> i would like to start off. either heavy heart today. it's
a tragedy [inaudible] the ghost ship warehouse in oakland with 36 young people lost their lives. there were staff members and part of the staff family that had friends that died in the fire. i think about myself that i've lived a lot of my life but a lot of those young people were just beginning to live their lives. last week sen. feinstein presented a resolution 637 about the loss of those 36 lives and our prayers and hearts go out to the family. mayor libby spencer avenue in the city of oakland said there is no time to blame which is sad to know it's more than them grades than people. so as we reflect when we adjourned we will adjourn in
the memories unless my colleagues have something to say like of a moment of silence for the 36 victims perished in the fire on december 2. >> >>[moment of silence] >> may they rest in peace. i will finish my report and i make it brief. then i'll yield to my fellow commissioners if they have something to say. november 21 we had congressman jared huffman. the port. we were glad to have him. we had bread listen, steve and director forbes and daily and
congressman hoffman wanted to know what we were doing with sea level rise and port sapping presentation and he was really interested, have a lot of input to say about that good you made it clear that the port is under reader poses jurors that he will work with leader allows eight and congressman-having to do what we can do. i think brad and steve did a great job of explaining and showing him what can happen with sea level rise if we don't get out front. then we had an opportunity to take them out on a tug we showed him the waterfront and he gave his input. he also talked about is getting going after more grants that he wants to support the port of sport san francisco pier 80 and congressman hoffman is an environmentalist. so we really cares about the environment and things like that. it was just really good to have him here. so i'm hoping
in the spring when director forums since adulteration with the chamber back to washington dc that we will lobby on our issues and he understood that. i think we have to continue to invite our congressional delegation i know director forbes has an invite out to incoming us sen. kamala harris and others to come down to our port so they can understand the importance of of the port of san francisco in this region and how we need this money. we don't know when this new government takes place what is going to happen. but one thing that has been said is they may cut back on grants for sanctuary cities. we are century city and we make no apologies about that. so is la and a lot of place. we are hoping there's a lot of rhetoric being said but we need the funding for our port for sea level rise and even though it might be 2 billion if it was a disaster and we do nothing about it may be looking at
seven or $8 billion. we need 3-4 things on that list and we need to go after it. i just want to update you on what we are doing as a commission. we are time to be proactive when not sitting around to install lori for cells could the port of stephen has to keep moving forward. recently met with the port of oakland. we had lunch. director forbes chris light of the port director from there the president of the port commissioner and the vice president and myself and leslie katz. leslie started that and we even talked about looking at san francisco in oakland as a region because were not in straight competition will get they are a container port were more of a boutique report that has all type of things but we have to look at our interest in northern california. so as i said i don't know what the dynamics of the politics are going to play out in washington but i know that for this region we have to go out and take care of the things that are vital to
the port of san francisco and we need to infrastructure with the sea level rise, tiger grandson whatever we need to do to help our piers that a phone in and look after this review we even talked about maybe at some point to in a joint port commission meeting with the port of oakland and the port of san francisco and not looking at each other as competitors but looking at each other as trying to be on the same page to move forward to a friend and maybe director forbes and director-out of open baby they can sit down with the new secretary of treasury determinant, alain troutt and talk about our issues that are important to northern california. we've got to be very strong about that eight no apologies. we have to keep the look after our port. colleagues, commissioner danaj or commissioner kounalakis? >> in the essence of time i will leave my raise my
>> okay. mdm. clerk next item >> items on the consent calendar 10 a request approval three amendment the 2016 port building code resolution number 16-45. 10 b request authorization for the port executive director to enter into a memorandum of understanding with the san francisco they water emergency transit authority for the planning and particularly of the missionaries very limited resolution number 16-46. item 10 c request authorization to advertise for competitive bids for construction contract number 2784 b. 23 roof repair project, resolution number 16-47. >> moved and seconded. >> >> second. >> any people look on 1645,
1646, six and 47 seeing none, public comment is closed. colleagues, the favor all those in favor say, aye. >>[chorus of ayes] opposed? speak speak mdm. clerk that passive. next item >> >> item 11 a information presentation proposed 2017 state and federal legislative priorities. >> good afternoon commissioners. port special projects manager. i am here today in follow-up to our presentation of september 27 two layout the port propose legislative priorities for the coming of both federal and state. as an update as i
mentioned we were here in september and ran through some more recent questions as well as what we are looking for prospectively. in the interim also we had the port federal lobbyists--and lori-come out and spend a day with staff going over there is things at the federal level and how we can move forward and help us craft our propose legislative agenda. pres. adams as he mentioned congressman jared huffman was out in november and [inaudible] minority leader congresswoman nancy pelosi. lord edmondson out for meeting with the port to review our activities we are looking forward for at the federal level. starting with our state primaries, proposed a priorities, our focus is really on the seawall and sea level rise. there is for some history in california california has shown itself to be a leader in
recognizing climate change three piece of legislation. recently fitting greenhouse gas emissions targets new transportation policies and cap and trade. also greenhouse gases and setting additional targets out for 2030. the port has an existing ifp powers going back to 25 ip meeting infrastructure financing this. in 25 we sought successfully to set up these districts to allow us to capture tax increment [inaudible] like property tax in order to support his work preservation and infrastructure development for the port's assets. in 2010 we successfully sought extended powers for the pure pier 70 took associate at the moment capturing the state state increment to the pedestrian [inaudible] works out to be a quarter on the dollar. the
project we are looking at for the seawall two-$5 billion for to adapt to sea level rise. should such a big number. i think everyone eight knowledges 20 efforts at the federal level, state-level and local level. so in pursuing the state share of tax increment california really has a chance here to become a leader in climate adaptation not just in recognizing sea level rise as we go out this would be the first urban area that has current flood risk that we would asking the state to step in and have an infrastructure financing district that is the seawall itself is an eligible use. so this is really our targeted its new legislation going to the to sacramento and going this year. the idea would
be that was piers 70 legislation to capture the states increment on--and recognizing that this is such a big investment by the state to show local commitment we would be reporting to the california natural resources agency for oversight. really what we are looking at here to generate the tax and commenced be port the moment project we have several but really mission rockets went to the primary generator and nominal dollars, the contribution is estimated to be $213 million. potentially very big contribution it however it is based on the growth of tax increments we need to do it quickly otherwise be ace year where we start from will lose ground if the development proceeds to far before we are able to get started on this process. so to get their these
are the steps were looking at. when he to find an author someone who's willing to carry a bill for us. we do expect that the state lands commission and bcdc are going to want to be actively engaged with us. we are expecting to conduct a robust fiscal analysis to demonstrate the cost of doing nothing is higher than the cost of the state weighing in and contributing the state share of--. coming in generate a set of briefings of those agencies the governor's office and then key legislative staff. committee staff in sacramento, legislative staff and give them a full tour of the seawall and let them know what were up to. give them the full breath of our efforts over the level rising sea level adaptation. so that's the seeing none, that's most of our push we do other things going on. earthquakes are not just for san francisco. we are hoping there will be a seismic safety bond that could be applicable to our sea level
seawall which is really a piece of resiliency infrastructure not just sea level rise but seismic resilience as well. mission bay ferry landing ivory of the mayor's office. we have two sources of funds we are chasing after there. the first in partnership with the water emergency transit agency could three funds that are funds designed to believe really pressure from the bay area's bridge systems. so the exam we can divert passengers to fairies that is lessening that pressure and we think we ever could project there a good argument there. decapitate funds are designed to reduce greenhouse gas emissions. we are looking to do the same, take cars off the road get people on fairies. lastly, we have a housekeeping bill for the housing some technical amendment would like to take to
sacramento in this next cycle. moving on to the proposed federal agenda, the united states army corps of engineers is really we are looking to for the big pot of money. they've got a lot good it is a lengthy process, though, to get general investigation funding. there are four steps. you have to get authorization to study the problem. then you have to go ask for money to store the problem. then you have to get authorization to construct a fix and then you have to go ask for money to construct a fix in these legislation the authorizing these allegedly used to roll out every seven years. as you can imagine to get anything done your talk about a two decade, timeframe. congress has start to speed this up more hopeful we are hopeful were back on track for every two years. that sort of the pace of things. there is also smaller part of funds that dealt its discretion to the
local army corps of engineers commander the continuing authority programs are we on one underweight of those as well get one with a local district for the seawall. so that is the process we are engaged in exactly the prospect where we are with our continued authorities. we are one of three projects that the army corp. of engineers just cannot in november with a report saying, yes, they agree there's a federal [inaudible] it's where to save the federal government more money than it will cost them if they execute this project on our behalf. so we are moving forward with them to conduct a formal study and figure out what the project will look like. in terms of the big big pot of funds, the seawall general investigation, that force the process i talked about them a the first of getting authority to study it for so we have windows already. was a broader army corps study from sometime back that satisfies that requirement. next up would be getting
funding to study the problem and those anytime there's new money coming for a new project they call that a new start in the army corps. they're very hard to get. so without any certainty about windows funds might come online in the army course spanning three years to study a problem, though port is looking to sell fund that study move through the process and accelerated rate and it doesn't say this that much money [inaudible] but really to engage with them to make sure their review process that they can take what we can and mighty end of the day and accept it as it is and allowed to move to the next phase which would be to get into that next water bill to authorize the construction does. that is really the plan to be able to be ready for 2018 or 2020. that
is the second bullet point. the first expedite review of the feasibility study that's working with a core on these other agreement that the state facilitate their being able to accept what we hand in. other source of federal funds to help contribute to the seawall issue. national park service and the internal revenue service. this has to do with historic tax credits intelligibly to build the seawall. fema has a couple different sources of funding that allow for work on seismic hazards and reducing the amount of risk in seismic infrastructure. department of homeland security office of infrastructure and that's new to us. we are looking into. the name sounds promising and a department of chance rotation has the ability to low interest loans should we need those to lastly don't port of the federal agenda agenda were proposing date this have to do with a superior central basin oscar batson so present on that in a minute. we have another pier removal project that if you recall there moving pier 36
to facilitate a larger development project could give another one in the hopper with the court but $27 million is what we are asking for and we can advance that as far as we can. we are hopeful we can get funding for the project. your client for tiger funds for the mission bay ferry landing and federal source and another grant source. the fast lane program which beach about the southern waterfront eco-industrial park cargo weight is what were targeting there to help facilitate moving a freight goods in the southern waterfront. then the port security grants which we have made our preference known that those state port only grants and they don't get diluted by being folded into a larger pot of funds. that's the proposed agenda as we put together. since the last meeting here. the next step would be to get your input make any adjustments.
then take the product of that to the mayors state and federal legislation committee which meets tomorrow. so we are hoping-happy with what we presented and we can integrate your feedback quickly. thank you very much. >> thank you, brad. any public comment on11 a? any public comment seeing none, public comment is closed. colleagues? >> this is really-sorry about that. i'm going to try not to touch that. this is really helpful to have this kind of an overview and understanding what the priorities are what we are working on in terms of our activity and advocating for issues with state and federal government. so thank you for
preparing it and i think would be great if we had some kind of- if not even quarterly update to all these things. doesn't have to take a long time but i think it's incredibly important and very helpful critically for the seawall project could my one kind of question just my own understanding is how exactly does our teamwork with the city team on advocacy? are you meeting with him regularly? is it more of an informal conversation? when there are questions like figuring out who offers legislation at the state level? ifd, is that our responsibility? do they do it quick to the lobbyists? how do sort of work together? >> will we stay in close committee sure the mayors office. they have a staff specifically for state and federal issues and they are the
owners of the cities loving contractor state lobbying. generally for something like working looking for an author we would work through the mayors office consult with cpap ideas run it, consult with their lobbies generally to the mayors of the we do talk to them directed from time to time. usually, it's connected with the mayors office. >> okay. >> does that- >> it does. i will make sure were firing on also there's an maximizing the expertise here but also the members of the commission to get out and about in the community and i certainly know that as a commissioner and as a citizen of the friend, these things are so incredibly important that if i've have the opportunity to engage and to add my support
for the things that the city is doing i certainly would be more than willing to do that so again it starts with being informed but i also just want to make sure particularly with the seawall that we are in particularly in light of the current political environment that is so uncertain that we are using all of our capabilities that we have our disposal to work on what's going to be very challenging but critical piece of infrastructure for san francisco. >> commissioner brandon >> brad benson peschel project we would like to take you up on that offer. the ask
particularly at the state level for the state chair of tax increment the seawall is a big ask and california can be a leader in this but we are getting need your help in communicating that message on a. so thank you for the offer. >> i think we will all agree to help you in whatever we can because it's so important. thank you so much for this briefing. i agree with everything commissioner kounalakis said that this such valuable information not only us but the public knows what it is were looking for and what we need and can help us. i think the priorities laid out here are really good ones and now that we are all aware of them i think we can all work together to also make sure we can get funding for these projects. so thank you. >> thank you. >> commissioner katz >> want to thank you both. issues near and dear to my heart and i agree with my colleagues. we certainly want to do whatever we can to be of
assistance and help us as were out and about. i also think is really helpful having this report and perhaps i know not to put more on your plates but perhaps you could get an update x quarter on sort of where things stand, where we are with these various matters and then lastly as i look at the heavy lifting that's going to be needed with the seawall and given that it has such a significant impact positive if we do it right, negative if it is not, on a lot of the companies that have now located in the south of market area but wonder if there's some opportunities to also i know this not part of the legislative agenda but it does bring up the need to look at various funding sources and i wonder if there are some others that we might joke to public by
the partnership kind of concept to get some more support from some of the headquarters that will be based there they'll be benefiting from our efforts to shore up the seawall there will have such a significant impact for them. you might want to get them in roles in both our legislative advocacy efforts and see if there may be some ways it might help with additional money. >> i know you guys been coming quarterly and thank you very much. clearly we know you guys didn't dig down into the corps of engineers for some money because they're going to have to hope us that this is some health code heavy lifting we also may need upon done alone but also the public that's your guy that's always been a certainly very helpful being advocates for talking to everybody and towing them in ringing the drum we need to be like paul revere, ringing that bell that says it's coming to live get ready i just want to say thank you i look forward like three months like scott about this helps us, too. i
appreciate. very well done. mdm. clerk next item >> >> item 12 a request authorizing the executive director to enter into a project partnership agreement with the united states army corps of engineers for dredging of the central basin providing access to united states army corps of engineers for that purpose and waiting applicable competitive bidding and contract requirements subject to approval of the board of supervisors. resolution number 16-48 >> good afternoon again commissioned special projects manager. i am here to discuss the agreement with army corps of engineers which will allow us to at long last move the central basin project forward.
just for the broader audience really quickly the pier 70 shipyard is the longest continuous operating shipyard on the west coast. it employs 250 skilled jobs, 10 maritime labor unions. it's a great picture the very ship turned out 1885 there was just 20 years after the assassination of abraham lincoln. the central basin itself, it is the driveway to the dry dock and navigational point of entry. 32 feet is the depth is been dredged a couple times but not very top difficult memory often because it difficult to dredge. currently has 26 feet and some spots more shallow than that. it does limit the size and type of vessel that can be accepted at the shipyard. it is a detriment to business. dredging
in overtime not economical. it's just not something that the shipyard tenant has been able to take onto their books. neither has the port really. it is not itself part of a channel but it's adjacent to a federal channel. so how we get started with this. the conjoint authorities program which i mentioned on the legislative agenda. that is a couple of different small programs that miguel is delegated to the district get the 107 program has you with navigation. and 2009 i wrote for then a second director on the boy at the first letter of request for assistance to the army corps of engineers under this program and soap we are pretty far into it. it started just under the first years of the obama administration. talk about two years about the initial federal interest determination where they decided that it really is worth more to the federal government to undertake this
project and it is to not do so. in 2011 we exceeded the cautionary agreement and those two years were promised not appropriate any money to get to give united with the funding comes from every year there are 7-8 of these cap programs funded at the national level and then we just queue up with other projects a competitive process is taken that long for us to get to the top of the cube get ready to get fun. there's a couple years where they just did not fund it at all. to get some idea of that last year congress appropriated $4.5 million for the whole country for everyone of these in the country and ours alone is over 6 million. the digital project which the army corps produces where 50 different alternatives where they could read this, what death they
could judge it whether the misposted savanna robust process. the upside of it taken so long they're very thorough during that time. what they selected was about a $9 million dredge it down to 32 feet and at the end of the day they determined that every dollar they spend it's worth $2.87 back to the federal government. that's the dredge footprint that's what we are looking at. you can see some of the high spots. you mentioned that ship moved all the way up to the north there so that it could come straight into the dry dock it runs out of room. we are here today because to make this happen we are down to the very last agreement that we need to execute. it's called project partnership agreement and we have been accelerating the authorize agent profit process with the board of supervisor so that we can properly book and despite it started under the obama administration we have
the authority to execute it before the obama administration is officially over. what we are required to do is give a 25% match for the initial deepening dredged to get it down to 32 feet. after that we make another small contribution for 10% of the initial dredge, and with that the federal government takes over the channel. essentially federalize as it gets rolled into their standard >> no. spiel and him and upper books forever market there's few things that to commit to that are pretty standard they want to make sure the shipyard is so going to be there. they can be judging the channel. easy for us to say yes to. there's any asthma is there that are discovered along the way we need to take care of those and again not a problem. the dredging has gone to all the same processes that all the rest of our drudging does. the
sediment is thoroughly sampled. we know it's there. it's been dredged before. we don't expect anything unusual. what we get out of it. drudges 232 feet are optimal to the show but they take the dredging off our books. and that 30 year value of this it's about $20 million. the initial dredge is not million but essentially the annualized cost of maintaining at that depth is about $400,000 trip so that's not ours anymore. indefinitely. if the value of this project that's taken a long time to get here and while we are trying to accelerate it to make sure it gets there. speaking of acceleration we introduced that the board. it was has got no no vote. you can to the board of supervisors earlier unanimously approved were waking waiting for the signature pending your approval your willful authority to issue
and from there we headed back to the army come corps of engineers and help them to accelerate so that the it gets executed by the top officer of the army corps prior to january 20. lastly, we are pretty familiar with stretching here at the port this is leftover from the board slide when it says we are waiving the environmental code by ordinance causes him concern but really is to reiterate all the permitting all the rage. regulation consumes a lot. so i thought the standard processes that we go through when we dredge. it's been thoroughly tested. the army corps is taken on-added the ceqa issues who we are ready to go. been working on this for a long bit of a delighted to answer the questions we have. i also understand if you don't have any also. thanks. >> so moved >> second. >> is there any public comment on resolution 1648?
>>[laughing] >>[inaudible] [off mic] >> i want the public record to reflect that this is a once a congratulations to the staff are working on this. not just since 2009. ellen johnck cochair of the maritime committee but before you came we can't start: the army corps of engineers attention to the dredging needs in the central basin. so i am just absolutely thrilled that this is reached the pinnacle of where it is today. does it so tough as you said, so talk to get this money for this kind of project. so congratulations. thank you and i heartily endorse this agreement >> thank you is there any more public comment on 1648? seeing none, public comment is closed.
commissioner katz >> great presentation. thank you. i've a lot of hard work went into it. look for to seeing the results. >> commissioner duran >> congratulations to everyone involved in this but this is absolutely wonderful and hopefully we can find more funding like this. >> commissioner kounalakis >> i agree. it's tremendous. ellen you said is a great day for maritime syndicate this is terrific news so thank you for all your hard work and what a great boon for the port and the city. >> only thing i can say, great work, guys. thank you. colleagues, all those in favor say, aye. >>[chorus of ayes] opposed? resolution passed six and 48 has enormously bedeviled mdm. clerk next item >> >> item 13 a informational
presentation on contact to suck 27 six with conceptual repair project at pier 31 >> good afternoon pres. adams and fellow commissioners. my name is wendy proctor senior architect of the port of san francisco budget management at pier 31 within structural repair project. i'm here today to provide an update on the project and to advise you on a budget and time index due to additional anticipated critical repairs. this project we bill gates 898-year-old asset important resource to the embarcadero distort district. the project supports us to do clinical renewal. the notice to proceed i'm sorry this
underutilized site will soon house the department of elections national park service and continue to have public parking. the notice proceeds the project was part seven of 2016 substantial completion is planned to be october 2 with final completion on december 1. we are anticipating that substantial completion be closer to december 23. during construction the number of anticipated critical repairs were found which is impacting the budget in the schedule and at this time the project is 95% complete get the current anticipated substantial completion will be december 23 weather permitting. we are expending a lot of rain at this time. these are the existing conditions. the facility of status moved 70 years ago in 1946. the shed superstructure has suffered significant deterioration from extended water intrusion and was-in early 2009. port maintenance installed at that time port
engineered shoring which held the building in place until the repair project was able to commence the project is providing living wage jobs for san francisco local business enterprise did the project supports our strategic plan goal livability. the general contractor robot construction from entry of the project subcontractors performing roofing, window and structural repair work or certified lb contractors located in the ninth ward 924 zip code area providing 87% local participation of the contract amount. the percentage amount will increase once a project is complete. it's worth noting prior to this project well but contractors for this project successfully treated three other port projects on-time and on budget. some examples of the
additional undersea and dry rot. we had a number of additional beings ledgers pose the required of repair and replacement. once the deck was uncovered a number of these were additional to what was observed during this site investigation was found. special ordering of materials impact the schedule additional materials and associated eber also impact the cost. in this photo you can see this project is using best practices for construction which the port goal is sustainability the contractor is reusing wood that are still in good condition on the roof deck. and also that reduces construction waste and then with members in good condition but cannot be reused are being made available to lumbar recyclers. some of the work that is causing that was found was trust repairs and
this is one of the subcontractors that the local lb doing that trust repair work on site. so we have one major trusts repair design and we had three additional trust repairs. this drawing is the document that's been used by our construction management team is doing a fantastic job tracking very diligently each member that was part of the contract and what was additional to the contract so that we are working very collaboratively with the contractor to track what is additional words per contract giving credit where due so that were really minimizing the additional cost and time. in short we have about 43 additional beings, 12 additional columns, and 10 additional diagonal braces that were found the unanticipated design. also once the roofing
was material was removed we found that the deck surface was much more uneven than we had ever seen on any other project that we had done before. with the port due to the extended time between the last roofing and this roofing. so that required we put in sparrow which is the photo in the upper left-hand corner. not deck, retrofit board which provides a leveling service to put a new roof on. so that was an additional cost material. once the roofing material was removed we found some various concrete had stalled and that picture inverted corner where it had to be repaired and then in the lower left-hand corner there was some signs that were hung off the back of the building that had sort of split the concrete little bit. i
required repair. then once the roofing material was removed we found an expansion joint that wasn't readily observable and that required a special detail which will be custom-made. it was also not on the original drawing. once the roofing material was removed we also found that the was dry rot on the two towers that flank each side of the arch on the roof side of those towers. so we had to rebuild the backs of those repair the deck underneath it. we also have rerouted the water so it won't settle there anymore. then in pier 29.5 due to some settlement in that area have a gap that was revealed that had to be filled in with a custom cut boards then inside
pier 29 underneath that we found more columns to be out of plumb than we had originally anticipated. so a detailed to stabilize those in place we can continue to use that facility for public parking. is going in.. then, last week when we removed the roofing material hopefully that picture in the upper right-hand corners of large enough size that you can see that once there was taken off it reveals there's a large exciting area. when we investigated was underneath that we saw that one of the trusses inside pier 29 had been run into a piece of equipment and bent the metal bar and separated it from its trusts. the bre was sagging incident was under the area where we were doing the roofing work because we have to go beyond the expansion joint, that area needs to be repaired. so all this kind of will by little added a little time, as little bit of material, labor special
ordering required. so the project is near completion and the contractor's been very collaborative with us and due to this on for scene work it's anticipated we will be completing the work at the end of december weather permitting. our additional costs are approximately 4.7 over the 10% contingency and then after the final determination of our budget and schedule we will be returning to you with a request for an extension of time, beyond the 10% and an additional increase of contact cost. if there's any questions am happy to answer them. >> thank you is there any public comment on 13 a? any comment on the 13 a? up if not public comment is closed..
commissioner supanich >> thank you for your report to i know when we first did this week-how close was the next bidder or thethis is between the beds when we received this one? i know we asked if this could come in on time and under budget. so i am just wondering, if we have selected another bidder, if there was some close proximately with this to be an issue? >> yes. absolutely. because the contractors bidding on the contract documents. the contractor will always generally -they won't give their work away for free. these are uncovered conditions that were not in the contract documents. so if there's additional ledger being and so forth that i think
you know it's discovered because the deck is being removed, there was no way that that would be a bidding issue. that would be a contractor side. >> to answer your first question neither wendy or i remember how the bids come in on pier 31 terms of the pricing of the second place bidder but we can provide that information to you. >> so the total change orders are ignorant 6 to 3000? 863,000? >> we have a total change order process to date of 500 city three-yes. we will have an additional 300,000 approximate. >> this is because of what we did not foresee? >> correct. very difficult when we go into the facility 20 is paid every repair because
often especially with the roofing when you take the material off you are seeing-we can take the roof off to do the investigation member doing the design. so the contractor doesn't-there's usually the concrete is following revealed or additional dry rot is a most always revealed. >> thank you >> commissioner kounalakis >> thank you great report. can i ask you something. on your summary of the history of this, the shed was red tagged in 2009. does replacing the roof change the status of the shed been red tagged or is it other things as well? >> often roof is the mind with a structural repair project because the age of our facilities. not all of them. like the one at pier 23 that's on the agenda today also is writing 36 facility and it doesn't have the level of water
intrusion because was roofed in 1976 or so. so this one along with pier 33 we did 10 years ago, those projects have to go hand in hand the structural repairs because they are all wood structures and so they tend to have areas where the said confluence of horizontal over vertical where water will sit and get in there and it will be dry rot >> in answer to question a woman will remove the red tag. >> so this will end up to earn income fairly soon >> yes. there's already a leasing plan could wendy went through some of the future tenants, the department of elections which is a city agency. national park service and there may be other tenants as well. >> the public parking will be back in place imminently. it should be in place by the 19th of this month. >> thank you
>> commissioner katz >> thank you it was disheartening when we see the change orders exceeding what we anticipated but certainly understandable. i have a question you might not be the right person to answer this but perhaps for future it just occurred to me when we select a bidder on these projects do we have a way of determining how they charge us on the change orders? in other words often are projects do see increased trust because these are such old buildings and is only hidden surprises. i know we were often selected a lower bidder but do we have any way of corralling him how much we get charged when unforeseen circumstances increase the cost? >> what we do do is we have a way of getting the contract which we did on this project.
we provided a allowance amount for unforeseen-specific for on pursing dry rot and we try to it is paid reasonable amount for that. that is-when we negotiated the additional amounts of dry rot beyond when we exceeded that amount exceeded for this project we had an allowance of $150,000 specific to dry rot repair. when we exceeded that amount those continued dry rot repairs were negotiated at that rate which is a better rate than would be it was a straight change order based on the contracting that's used. >> that answers my question. perfect. thank you. it's exciting we will be having this back online soon. ps >> i just want to say thank you very much. appreciate it.
thank you. mdm. clerk next item >> item 14 a informational presentation on the port 10 year capital plan for fiscal year 2018 through 2027. >> good afternoon commissioners. dir. forbes and i'm amanda hirsch capital manager at the port here to present on the update to the 10 year capital plan. like the rest of the city the port updates the tenure plan every two years. so before you today as an informational item will come back to and seek approval on january 10 with your approval it will be integrated into the citywide plan which ultimately goes to the board of supervisors for approval. before i look ahead to the coming 10 years, take a brief moment to go over some capital
cushions from the two years between this and the prior plan. it's excitingly, we've had things with the commission's approval largest capital budget ever at the depart which is been largely contributed to the port surplus revenue towards capital improvements. we have also have approval on the first ifd for the port which it will help to puzzle facilitate relocation of pier 70 which is historic public image. other, shouldn't include work on the historic pier 35 will cut building and shed including work on two elevators and addressing water intrusion there. as we see a picture here promote the with the opening of the bayview gateway project made possible largely with general obligation bond dollars for the parks improvements. now looking at to
the coming 10 years, the capital plan is divided into two main categories of needed state of good repair and enhancements. on the state of good repair site, there are three main categories get the backlog, which represents deferred window work, the riddles which are the work that ideally would happen over the coming 10 years, and a category for one-time costs will be captured the compliance issues and non-cyclical means. if we look at those combined in the light blue column here we see the tenure state of good repair need for the port is projected about $1.5 billion. that is down from 1.6 billion in the prior plan. changes come from a few different factors. one is work completed by the port import tenants. the other updated cost estimates from her engineering determine which can increase or increase decrease costs for passive in and find the passage of time get the renewal project for injunctive years of those do not happen they move into the backlog and costs are escalated annually that they were as late at 5% each year inconsistent with the city's capital plan. then we look at-turned to the other half of the heat equation we
look at enhancements. the enhancements similarly have broken into three categories here. there's the seawall resiliency project which i'll touch on a bit more in the . broader enhancements to port facilities as well as conditional seismic conditional size that may or may not be required to deny whether a change major rehabilitation which would trigger new building code requirements. if we include that number the total enhancement need is about $1.8 billion. that's a decent change from the prior plan again for three reasons get updated cost estimates reflected here include things like development projects which are now in vision to spend more and make greater enhancements. there's an increase there. also the newly identified needs which i will touch on a bit more in the next life in the passage of time and simply the cost of doing business increasing over time. if we take the enhancement made in state of good repair need together and include that potential conditional seismic need we get to a total grand
total of about $3.3 billion need over the next 10 years. looking weekly a bit more those newly identified needs in the plan. this capital plan first time we've incorporated value associate with the resiliency project. added $500 for the eight-tenure project to significantly improve the way safety and performance of the embarcadero seawall provide your time club protection agreements and plan for long-term zoo in c and annotation of the northern bayfront. in addition we added that she may ferry landing which is captured in the enhancements: and the port staff continue to work to secure full funding for both projects. turning from the need to the devil resources, in this 10 year plan we project $1.3 billion in the funding to be available. that includes about $350 million which if you look
at the blue wedges in this chart you'll note our direct --the vast majority towards repair improvements to the $940 million in extra sources are largely dedicated to enhancements but they also make an important contribution to state of good repair. nearly equaling in dollar value the internal funds directed toward that important work. taking a slightly deeper you dive into what's in those different source categories, we see that the internal sources are primarily port capital project and the port tenant from his business paul was there for port bonds this represents expense your previous issuances in the caterpillar on the external source side, we see the development projects are the primary computer. this category includes developer investment in the public finance associate with the development project. think back to the prior slide about a third of those development dollars are going towards state of good repair work and the rest are enhancements. so if
you can't do math and please gone along there's a significant funding gap is or has been in prior plans. you have about a total revenue of $1.3 billion and combined need of as much as 3.3 billion. we look at this chart we see the yellow are the funded sections. pull out the unfunded conditional, which again may or may or may not be needed. we have project sources for about half the total need about 4% of the state of good repair that we are funding for and that 60% of the hands needed on the enhancements i the capital plan generally in the past is included only in instance for which we've had revenue but in this plan we've added mission bay ferry landing and seawall because they're such important to the port and to the whole city family and so that's what we see some of the gap on the enhancement side. this time and
recently port staff has a conversation about what can we do with our limited resources to deal with the backlog and stretch our dollars as far as possible in terms of state of good repair. so i'm going to just touch on some of the ideas that we generated out of those conversations. these fall into three broad categories. one is to increase funding sources. the others to use existing dollars more efficiently and finally to decrease our responsibilities. in the area because those are rather broad- to give more specifics in the category of increasing funding sources may include work by seeking additional external funding wheel to improve our capacity to do this by starting to plan out our priorities for which we will seek external funding sources. something we hope to do through a new five-year capital improvement program must cip, which megan when she comes up and talk about the five-year financial plan could also get to increase funding sources. we talked about pursuing more prepaid
leases that money now to spend on these important renewals. in the area of using existing doors dollars for officially this could include things like trying to get things like the roof on pier one 3170 because we see if you wait to get more expensive and so adding that including a lens we think about what posix to fund when the light will cost us more. in the area decreasing a responsibility we have talked to explain things like transferring responsibility. something we heard about it more with central basin today. it also we talk about take the form of looking to other city department who might have more expertise in certain kinds of facilities that we have such as parks and senior visible from and long-term maintenance at some of these facilities. here, finally, pursuing additional public private partnerships which of the great ability to both contribute to state of good repair work happening and also in some cases developers take a longer-term maintenance
sponsor those good is moving a seminar responsible the office port. that wraps up my presentation. be happy to answer questions. > >> thank >> thank you is there any public comment on 14 a? any people that on 14 a seeing none, public comment is closed. commissioner kounalakis >> that was very compressive and very useful. also really very well laid out. so i may think of something to ask after hearing my fellow commissioners but this really is very good so thank you. >> it really was very clear and very well laid out. i really appreciate this and the good news is that we have 1.3 billion and we only need 2 >>[laughing] >> sounds better doesn't create >> >> yes. sounds better >> commissioner katz >> >> thank you it was very clear. appreciate all the work
that obviously went into making. it's not easy to make it as clear as you did so thank you. it's much appreciated. i agree. the numbers are a little west daunting than they have been in the past good so the glass is half-full. i also appreciate the efforts to look at the alternative sources and figuring out ways and i know that's been something that the staff across the board have been really focused on and it obviously shows. i think there's a number of opportunities look forward to thinking of other ways we can try to put a further dent in these numbers by looking at other partners an option. but thank you very much. >> first of all i like to apologize about my phone going off. i'm sorry about that but when i was looking at you in the audience i thought you were someone's daughter. you look so young. really, you just look so huge i could not believe it. i
was like what is she going doing going up there. i thought you are megan's daughter or something. you look so young. really, you do. excellent work. i've never seen you but you present borough please come back and was excellent work. i looked down at ambassador kounalakis- >> on the say it's a sign of getting older when the staff looks younger and younger. >>[laughing] >> that's all. terrific >> i think does a backwards compliment. with such a tremendous presentation. >>[laughing] >> great work. thank you. >> >> item 14 b informational presentation on port fiscal year 2010-2022 five-year financial plan. >> good afternoon
commissioners. director sadlowski-garza i megan was port finance and procurement manager i will say she's not my daughter but am very proud to have her on her staff >>[laughing] >> good shot, making >> today i'm here to follow up on the capital plan the five-year financial plan. i we back in january. requesting final approval of this plan. today i walk through city outlook, talk with the details of what was assumed in the port plan to talk about some strategies to consider moving forward. so first of all the city is required by charter to prepare a five-year financial plan on every odd fiscal year. so this year the city is preparing to release the citywide plan. it is actually tomorrow. i'm going to avoid going into details about of
that plan before the mayor releases an official press release, but there were specific details a guided departments on their preparation of individual plans. some of them really are starting with the assumption that the economy continues to be strong but it's tempered from the prior plan which we were really seeing enormous revenue growth as a city and echoes for the port as well. another piece is that employee benefits a really major driver of expense citywide that recent actuarial data shows employees are just living longer. so departments really have to start putting away higher rates of contributions to employee pensions. that's a rate of growth of 20% approximate per year. so just and additionally for health possible for current employees and retired employees, we are looking at 9% and 7% annual inflation. then other
personnel costs just as a city that they're coming in higher than they were in the prior financial plan should previously the consumer price index was up and leave around 2.75 pretty well below 3% both of lee speaking and other averaging out about 3%. the financial overview at five the city financial assumptions for the city's financial out in the base case as and moderate revenue growth. there are port specific details that we applied with regard to leases and growth in specific business areas but i ended up applying the citywide assumption for personnel and nonpersonal cost. but then separately i looked at ain high case scenario would be finally get an economic downturn. a very long growth period so in economic downturn
is somewhat expected in the near future and then i assumed that would've hit our revenue projection particularly in the high case i try to assume really just the best case. as you can see from the graph based on high cases there's really very stronger we can feel good about assuming those cases but in the event of an economic downturn we see some pretty sharp drops and deficits. so this graph depicts the base case. the top of the chart effects are expenditures in blue, light blue shows projected surpluses. red and gold indicates our revenues. so this is actually a balanced budget. it is saying that articles were new initiatives on port revenue streams are actually really hoping was that light blue operating surpluses
and those surpluses, we also could wait to capital each year. so having that money additional surpluses is really important for having the base case achieve an average $70 million capital budget. but i really have to highlight the third year of the revenue in the plan achieve 125 million. that's both operating revenues and south beach harbor that is a strategic goal for the port to achieve 125 million in revenues and i want to emphasize upfront that not only is it great that were projecting to achieve that goal so soon but it's critical given the rate of growth on our expense. if it had not been for these new revenue streams we would actually be seeing some shortfalls even in the base case. so this helps depict
where our revenue growth is coming from. on the left you can see a chart that shows base case growth. if we cannot bring any new facilities such as pier 31 online which is projected to generate more than $1 million once it is leased and filled and operating, we are base case growth would be much smaller. these new initiatives on the right really highlight kind of the diversity of our income stream and these are the things that are really boosting our outlook. you can see we have everything from-and growth in--to bring in the back lands on board in the southern waterfront we are projecting up to $4 million by the fifth year of the financial plan coming from the back lands. new pier leases and interim parking. so this is really the northern waterfront historic facility is bringing them online. this is the peers 19 all the way to 31. we have a good deal of new
lease revenue projected coming from that area. of the revenue growth, the uses of those funds are shown here to say that-or the growth in our uses, and really how we are using our money,. you can see the personnel salaries and benefits really are capturing a great deal of that expenditure growth. nonpersonal and work orders is a smaller slice it is really just driven primarily by cpi. just regular inflation. but the designation of capital is important to recognize. that this is really links to our o revenue growth based on ou capital policy where we've committed to spending 25% of our operating revenues on capital. either spinning it out right in our capital budget or putting it away through this designation. this this funding
identified in this pie chart is really showing how much we need to spend in the five-year window in order to meet that capital policy. so in those i just want to show that expenses would greatly exceed revenues in most years of the plan. expenses are shown here in blue. revenue are in red. in the event of an economic downturn or percentage rents are most vulnerable and we could potentially not initiate we seen in our northern waterfront facilities. what is not really shown in this graphic is this assumes our commitment to achieving our capital policy. so we would actually still sustainably strong capital budget of over $15 million on average but that is because based on capital policy we would be committed to putting away at least 25% of operating reserves even if that means making cuts on the
operating side. on the high side, you can see that if we assumed savings on the labor and enhanced revenues from doing even better on our initiative that we could see even better outlook and all those projected surpluses are assumed in the capital plan to go into our capital program. so finally figured out how we are going to make investments moving ahead but i really want to touch upon both the debt versus paid go because that is something that came up when the stock right you the debt policy and also talk about our capital include and plan. first of all debt versus paid-go we have a debt capacity of approximate 120 million but staff advised that we do not believe that we could actually absorb that additional
debt service in our operating budget. as you can see from the base low and high cases, because particularly because of the capital policy you're making a commitment to have the pay go program and we don't have the additional money in our ongoing projections to really be able to take on over $9 million of additional debt service per year. but looking at the base case, we found we could reasonably increase our debt service by up to $2 million per year which would generate approximately 24,000,000 in of debt proceeds we could commit to our capital program. but it's really important to think about those trade-offs particularly this associate with a low case that if we took on that additional that we would just run that much closer to running into an operating deficit and won the best ways staff believes to protect ourselves from that is really just making sure that if we did pursue a debt issuance
that we were committing those funds to programs or projects that would generate enough revenue to offset the additional cost. really looking at the return on investment over the life of that project. finally for the capital improvement plan the idea here is to really lay out the five-year plan of projects. the detailed not only phases of projects and help us understand what the potential revenue streams were risks to current revenue streams are with pacific facilities but thinking about we are opportunities for going after grants, public-private partnerships other external dollars that could really just enhance the work that we do and build a robust capital plan. with that somehow be to answer some questions. >> thank you, megan. is there any public comment on 14 bravo?
any people at? seeing none, public comment is closed. mr. katz >> again very clear. it so hard to predict how the economy is going to do. so we had a lot of surprises of late. is there anything you think we should be paying particular attention to or be prepared for? i guess alternate back to you that you have not included in the report? >> i think that i really did try to capture all elements of both revenues and expenditures. i think the been able to rely upon the city's financial plan assumptions while i put this together really adds a nice level of comfort on the expenditure side. i had no idea that her pension costs would be so high at this point. so the comptroller's office really serves as a wonderful guiding post for all of this but i think
as a result is really the revenue side where we really need to keep in night and not only try to meet our goals in terms of completing projects and generating revenues that are projected here but actively trying to find new projects that can help defend our revenue base. but that is all creates a cycle that we then need to have the capital dollars in place to make that investment. so i think if anything it's really just trying to stick to the goals laid out here in tubes of timing when we bring facilities online. >> thank you >> commissioner kounalakis >> again to the thank and well-prepared summary and it's also just very good to see there is the capacity for work at if necessary to know that buffer is there. so great job,
great presentation and generally pretty heartening to see the profiles the financial profile of both port. thank you. >> thank you, megan. this is very easy to read about being for the high case. >>[laughing] most of our properties leased out and making money for us. did you say you want to reach 125 night in three or five years? >> three that's where the judge and we will hit >> would you think will be in five years? b was in five years, let me look at my table good i think it was 100-133 million approximately >> wonderful. that's great. >> i remember back when commissioner woo ho was hoping to win 100. >> it wasn't that long ago >> megan, once again great
work. very meticulous but this is very very great news and really thank you for this report. thank you so much. >> one question i did not ask it just occurred to me at work looking at best and worst case scenario. in terms of increasing our debt and maybe this is something we can do but given that the cost of that is lower now that's likely going to increase is there a scenario where we can lock in anything the current lower rate week with that make sense? >> we can talk something about to our financial advisors about. i mean, yes. interest rates are projected to grow but i think that pending delete identifying projects that would just capture the return on investment really short order
we would want to particularly lay out the capital improvement plan and try to strategize and hone in on those projects that would really get us the farthest in terms of issuing debt as opposed to using our own paid go program. >> right. thank you. >> >> thank you mdm. clerk next item >> item new business >> colleagues, anything on the forward calendar because commissioner katz has a special point of privilege. she would like to speak a couple minutes about the ghost ship warehouse. anything on the forward calendar commissioner emanuel commissioner katz? >> other than nothing i think then we mentioned about the meeting >> i did record a request that the legislative team comeback quarterly and we've already had been planning for updates but you specifically asked for a status report on where the initiative is listed today and we will be happy to provide that next quarter. >> thank you commissioner katz
>> i apologize over here during our moment of silence for the victims of the ghost ship tragedy in oakland and on a macro level when i first heard about it it was certainly tragic and we all know somebody wonderful artists and dynamic young people and then unfortunately a few days later i realized it had hit a little close to home with a family friend perished in the fire. another bright young man that had so much i had of him and his embodiment of the kind of wonderful young people that were lost in the tragedy. again i hate to say it there but for the grace of whatever, we could be there and i know many years ago we took lot of flak when we shut pier 38 down rather quickly but it struck me that
we acted appropriately as soon as we learned of all the extension cords and poor electrical systems there. it just shows how it really could happen anyplace, anywhere and we all have to be vigilant in taking care of those that are more vulnerable in terms of needing to find and expensive place to live and other think i think it's incumbent upon all of us to recognize the opportunities that we had to take care of those that are more vulnerable. but again my heart goes out to all the families and friends of those that perished in this fire. >> i would like to adjourn the meeting in memory of the 36 lives lost in the tragic opened fire on december 2 2016. >> so moved >> second. >> all those in favor say, aye.
>> 7 and a half million renovation is part of the clean and safe neighbor's park fund which was on the ballot four years ago and look at how that public investment has transformed our neighborhood. >> the playground is unique in that it serves a number of age groups, unlike many of the other properties, it serves small children with the children's play grounds and clubhouses that has basketball courts, it has an outdoor soccer field and so there were a lot of people that came to the table that had their wish list and we did our best to make sure that we kind of divided up spaces and made sure that we kept the old features of the playground but we were able to enhance all of those features.
>> the playground and the soccer field and the tennis fields and it is such a key part of this neighborhood. >> we want kids to be here. we want families to be here and we want people to have athletic opportunities. >> we are given a real responsibility to insure that the public's money is used appropriately and that something really special comes of these projects. we generally have about an opportunity every 50 years to redo these spaces. and it is really, really rewarding to see children and families benefit, you know, from the change of culture, at each one of these properties >> and as a result of, what you see behind us, more kids are playing on our soccer fields than ever before. we have more girls playing sports than we have ever had