Good morning.

The meeting will come to order.

Welcome to the March 19, 2025 meeting of the Budget and Finance Committee.

I'm Supervisor Connie Chan, Chair of the Committee.

I'm joined by Vice Chair, Supervisor Matt Dorsey, and Member Supervisor Joe Ingario, our clerk, it's Brent Halipa.

I would like to thank Seuss Enols from SFGov TV for broadcasting this meeting.

Mr.

Clark, do you have any announcement?

Thank you, Madam Chair, just a friendly reminder.

To those in attendance, so please make sure to silence all cell phones, hand electronic devices to prevent interruptions to our proceedings.

Should you have any documents to be included as part of the file that should be submitted to myself, the clerk.

Public comment will be taken on each item on this agenda.

When your item of interest comes up in public comment is called.

Please line up to speak on the west side of the chamber to your right, my left along those curtains.

And while not required to provide public comment, we do invite you to fill out a comment card and leave them by the tray next to the television by the doors.

If you wish to be accurately recorded for the minutes, alternatively, uh you may submit public comment in writing in either of the following ways.

Email them to myself, the budget and finance committee clerk at B R E N T.j.

Sf G-O-V dotorg.

If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file.

You may also send your written comments via U.S.

Postal Service to our office in City Hall at one Dr.

Carlton because of the place.

Room 244, San Francisco, California, 94102.

And finally, Madam Chair, items acted upon today are expected to appear on the Board of Supervisors agenda of March 25th, unless otherwise stated.

Madam Chair.

Thank you, Mr.

Clerk.

And before we call item number one, just wanted to remind everyone for items that we have budget and legislative analyst report.

We will go to Department Presentation, budget and legislative analyst report, and then we'll take questions from the committee, and then we will go to public comment.

And with that, Mr.

Clark, please call item number one.

Yes, item number one is a resolution adopting findings that the Marina Improvement and Remediation Project are fiscally feasible and responsible under the administrative code.

Madam Chair.

Thank you.

And first uh we have recreation and park department here.

Good morning.

Should I wait for the presentation to load up?

Good morning, supervisors.

My name is Monica Scott, and I'm the project manager with the Recreation and Parks Department for the Marina Improvement and Remediation Project.

This is a joint project between the city and PGE.

This project stems from a final settlement agreement following years of litigation that was approved by the Board of Supervisors in 2021.

I'm here today to provide a brief overview of the project to allow the board to evaluate the project's fiscal feasibility per the requirements of San Francisco Administrative Code Chapter 29.

A PG and E predecessor owned and operated a coal gasification plant in the vicinity of the Marina Green that produced contaminants later found at the East Harbor Marina.

The FSA final settlement agreement was built on three primary goals, one of which being environmental remediation.

On this slide, you can see the extent of the remediation component of the project, which includes dredging and capping areas of the East Harbor to allow for a portion to be rebuilt as a marina.

There will also be a reactive barrier installed along the shoreline, and on the off end on and offshore monitoring will occur during and after the project, followed by institutional controls, which will be established to protect the site integrity following construction.

The other two project goals of the are a fiscally sustainable marina and increased public access to the water.

This slide shows an overview of the marina improvements for this project, which for the West Harbor include the construction of a break breakwater to reduce the ongoing dredging needs due to sedimentation and sand transport, the rein the reinstallation of slips in the West Harbor that had been removed in recent years due to the same sedimentation, and the potential relocation of a fuel dock.

In the East Harbor, we'll be improving and adding pedestrian access to the existing breakwater and adding a breakwater extension, installing small um sorry, and installing new reconfigured docks, installing a community dock that will allow for people with small non motorized crafts like kayaks and paddle boards to access the water in the southern basin, and we'll also be making upland improvements and increasing amenities of the marina triangle.

And we'll also be making upland improvements and increasing amenities of the marina triangle.

Here you can see more detail of the public access improvements with the accessible community dock, a widened shoreline which allows for a nat nature exploration area, and the addition of volleyball courts and an extensive planting to the marina triangle.

We had a robust community outreach process for this project with a record turnout at five community meetings, surveys, and more than two dozen meetings with key stakeholders.

With the modifications made to this project following the ordinance passed by the board in February of 2024, I'm happy to report that the community is supportive of this project, and we've been able to achieve our third and final goal of creating a fiscally sustainable marina.

The direct and indirect benefits of the project include decreased operations and maintenance costs through updated facilities and infrastructure, decrease in health spending by having accessible open space that leads to improved physical and mental health, increased property values for surrounding businesses and residential buildings, and an increase in commerce for local merchants.

The total estimated project cost, including contingencies, is 188 million dollars.

Through the settlement agreement, PGE will pay up to 190 million dollars in project costs, of which the department will repay up to 29.4 million dollars over 30 years, starting three years after the project completion.

All payments are to be exclusively made for marina revenues, and following completion of the project, with planned increases to the East Harbor rates to match the West Harbor, we project the marina revenues will be sufficient to cover the costs of the PG and E debt service as well as all marina operating costs.

The next steps for this project include conducting environmental review to complete a multi-agency permitting process.

The design will be continuing.

Construction cannot commence until the environmental review is complete, and we're looking at about a 22 to 24 month timeline for that environmental review.