San Francisco Port Commission Meeting - July 9, 2019

The Port Commission convened on July 9, 2019, to address a range of real estate, engineering, and financial items. Key actions included approval of a long-term lease for Red and White Fleet, authorization to advertise for pre-construction services for the Mission Bay Ferry Landing, approval of bond issuances for park improvements, a supplemental appropriation for the Seawall Earthquake Safety Program, and an 8% salary increase for the Executive Director. Public comment was heard on several items, including strong support for the Teatro Zanzani project (though not on the agenda) and the Red and White Fleet lease.

Consent Calendar

• Item 10A: Unanimously approved the Fiscal Year 2019-20 Monthly Rental Rate Schedule, Parking Stall Rates, and Special Events (Resolution 19-24).

Public Comments & Testimony

• Executive Session Public Comment: A field representative from Carpenters Local 22 expressed support for the Teatro Zanzani project, citing union labor commitments and job creation.
• Item 8 (Non-Agenda Items): Multiple speakers voiced strong support for the Teatro Zanzani project:
  • Aaron Thornton (Letty Madeham Stacey Architects) endorsed the project.
  • Kevin Carroll supported the project and its activation of the area.
  • Bill Hannon (Gateway Tenants Association) gave wholehearted support, citing cultural and business benefits.
  • Laurel Fish (Unite Here Local 2) supported the hotel development, noting the developer's agreement to remain neutral on unionization and use union labor.
  • Bob Hare (Barbary Coast Neighborhood Association) supported the project, commending developer outreach.
• Item 11A (Red and White Fleet Lease): Alan Johnk (Maritime Commerce Advisory Committee) and John William Templeton (historian) spoke in favor of the lease renewal.
• Item 11B (Piers 30-32 and Seawall Lot 330): Alice Rogers (South Beach Rincon Mission Bay Neighborhood Association) expressed general support for development but urged that Seawall Lot 330 not be delayed by the challenges of Piers 30-32.

Discussion Items

• Item 11A – Lease Renewal for Golden Gate Scenic Steamship (Red and White Fleet): Staff presented a 15-year lease with two 5-year options, including $4.6 million in shore-side and waterside improvements. The lease complies with the Maritime Excursion Lease Renewal Policy. Commissioner Macris opposed, arguing the lease should be put out to competitive bid. Other commissioners supported the renewal, citing good tenancy, environmental leadership (hybrid ferry), and community engagement. The motion passed 4-1.
• Item 11B – Informational Presentation on Piers 30-32 and Seawall Lot 330: Staff reviewed the history and challenges, including substructure retrofit costs ($185–290 million), seawall costs ($78.6 million), and sea level rise risks. Commissioner Wuho suggested exploring demolition and replacement of the pier, and allowing RFP respondents to propose alternative configurations. Commissioners supported flexibility, interim pop-up uses, and maintaining maritime berth value. No vote was taken; staff will conduct community outreach and return with an RFP proposal.
• Item 11C – Lease Amendment for Frankie’s Java House: Staff recommended approval of a lease amendment and 10-year extension for a restaurant at Pier 40½, with a new ownership structure. The new terms include a base rent increase to $4,000/month, 12% of net sales, and a $51,000 penalty for delayed capital improvements. The extension is conditional on completing all improvements. Commissioners supported the deal, noting protections against default. Approved unanimously.
• Item 11D – Informational Presentation on Mission Rock Phase 1: Project team (Port, Giants, Tishman Speyer) presented Phase 1 plans: 550 residential units (202 affordable), 240,000 sq ft office, 5-acre China Basin Park, and infrastructure. The project is on track for groundbreaking by end of 2019. Commissioners praised the affordable housing component, workforce development (exceeding 10% LBE goal), and community outreach. No vote taken.
• Item 12A – Authorization to Advertise for CMGC for Mission Bay Ferry Landing: Staff requested authorization to advertise for pre-construction services ($750,000) using a CMGC delivery method to meet funding and in-water work deadlines. Discussion focused on the LBE participation goal of 8% (down from an earlier 12%/6% split). Commissioner Adams wanted to hold the item due to low LBE participation, but after clarification that the 8% was a floor and staff would work on capacity building, the motion passed. Resolution 19-27 approved.
• Item 13A – Fourth Bond Issuance for 2012 Parks Bond: Staff requested approval to issue $3.1 million in remaining bond funds for Agua Vista Park and Heron’s Head Park. The issuance will be combined with an affordable housing bond to save costs. Approved unanimously.
• Item 13B – Supplemental Appropriation for Seawall Program: Due to litigation challenging the seawall bond (Prop A, passed with 82.7% support), staff requested a $11.5 million appropriation from Harbor Fund balance to keep the program running through June 2020. The bond sale is delayed until at least August 19. Approved unanimously.
• Item 13C – Award of Construction Management Contracts to Micro LBE Firms: Staff recommended awarding two $1 million contracts to Dobri, Inc. and Joe Hill Consulting & Engineering Corporation for as-needed construction management services. The solicitation was a micro-LBE set-aside with outreach workshops. Both firms are certified LBEs, with Dobri planning 75% LBE subcontracting and Joe Hill using 100% LBEs. Approved unanimously.
• Item 13D – Executive Director Salary: After a performance evaluation, the commission voted to increase Executive Director Elaine Forbes’ salary by 8% (3% COLA plus 5% additional), citing performance, equity, and comparisons with other port directors and city department heads. The salary will be $301,158 initially, with an additional 1% in December 2019.

Key Outcomes

• Approved: Consent calendar (Item 10A), Red and White Fleet lease (Item 11A, 4-1 vote), Frankie’s Java House lease amendment (Item 11C), authorization to advertise for Mission Bay Ferry Landing CMGC (Item 12A), parks bond issuance (Item 13A), seawall program supplemental appropriation (Item 13B), micro-LBE construction management contracts (Item 13C), and Executive Director salary increase of 8% (Item 13D).
• No vote: Informational items on Piers 30-32/Seawall Lot 330 (Item 11B) and Mission Rock Phase 1 (Item 11D). Staff will return with community input and RFP proposals.
• New Business: Commissioners requested a report on the Giants' LBE contracting for Mission Rock and a presentation from OEWD on the city build program to address barriers for LBEs in maritime construction.