San Francisco Port Commission Meeting – September 24, 2019
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San Francisco Port Commission Meeting – September 24, 2019
The Port Commission met on Tuesday, September 24, 2019, at 3:30 PM UTC (9:30 AM local) to consider a range of items including the Mission Rock Phase 1 budget approval, a contract amendment for the waterfront resilience program, updates to the Port Commission Rules of Order, and a proposed art installation. The meeting also featured reports on awards, fundraising for Crane Cove Park, and a proposed bond refunding.
Consent Calendar
- Approval of Minutes – The minutes from the September 10, 2019 meeting were approved unanimously.
- Pledge of Allegiance – Led by the Commission.
Public Comments & Testimony
- Mission Rock Project (Item 7A): Several representatives of local small businesses (LBEs) expressed support and eagerness to participate in the project. Bruce Giron (GECMS/Juron Construction) highlighted his firm's experience with underground work and parks, and requested contracting opportunities. Carl Gordon (working plastering) and Tana Harris (Harris Wasting) also spoke in favor of LBE inclusion. Jacob Wallace, a community member from District 10, praised the developer's outreach to the community. Ken Nim, Director of CityBuild at OEWD, thanked the Commission for support and invited members to the upcoming CityBuild graduation on October 17, 2019.
- Crane Cove Park Fundraising (Item 7B): Ever Otta Mora of Historic Pier 70/Ortun Development voiced full support for the partnership with the San Francisco Parks Alliance.
Discussion Items
- Executive Director’s Report (Item 6A): Executive Director Elaine Forbes announced two awards: the California Preservation Foundation selected the Pier 70 Design for Development Agreement for a 2019 preservation design award, and the Port won a 3CMA Award of Excellence for innovative communications regarding the Embarcadero Seawall program (including a partnership with Ritual Coffee and Black Hammer Brewery). She also promoted National Public Lands Day on Saturday, September 28, 2019, at Heron’s Head Eco Center.
- Rules of Order Revisions (Item 6B): Amy presented two alternatives to the current two-year term limit for Commission officers: (1) eliminate term limits entirely, or (2) extend to four years. Commissioners debated the merits. Commissioner Gilman favored eliminating term limits (Alternative 1), citing flexibility. Commissioner Macris supported Alternative 1. Commissioners Adams and Wuho leaned toward Alternative 2 (four-year term). President Brandon proposed trying four years initially. A motion for Alternative 1 failed (2 ayes, 3 nays). A subsequent motion for Alternative 2 (four-year term limit) passed (3 ayes, 2 opposes). Additionally, the Commission approved updating the rules to allow the Secretary to delegate meeting attendance.
- Mission Rock Phase 1 Budget & Parks Plan (Item 7A): Rebecca gave a detailed presentation on the revised Phase 1 scope, which includes 560 rental units (202 affordable, 40% below market rate), over 550,000 sq ft of office, retail, and a 5.5-acre park. The maximum horizontal expenditure is set at $145 million, with a 2-year completion target and a 5-year deadline to avoid default. Two resolutions were proposed: Resolution 1939 (approval of Phase 1 budget and parks plan) and Resolution 1940 (support for nonprofit status of the utility entity for district energy and blackwater treatment). Commissioners praised the project but stressed the need for transparent LBE reporting and workforce development. Commissioner Brandon noted the absence of LBE metrics in the staff report. The project team committed to providing regular updates. The resolutions were approved.
- Crane Cove Park Fundraising (Item 7B): Chris and Drew Betcher (CEO, SF Parks Alliance) presented a partnership to raise $6.3 million in private contributions for a tot lot, riggers yard, dog run, and crane tops. The project has a total budget of approximately $36 million, with $16 million already spent. An MOU is expected in winter 2020, with park opening and campaign kickoff in spring 2020. Commissioners expressed strong support, noting the long history of the park and the Alliance's successful track record.
- Seawall Program Contract Amendment (Item 8A): Brad Benson presented a $19.99 million amendment to the contract with CH2M Hill Engineers, bringing the total to $59.98 million, to support the Embarcadero Seawall Program, Army Corps flood study, and port-wide resilience work. The amendment includes $5 million for CH2M’s work, with the remainder for LBEs and workforce development. Commissioner Macris opposed, arguing the amendment circumvents the city's 12X ordinance because CH2M is now headquartered in Texas (a covered state). Staff and CH2M representatives explained that the amendment is allowed under the ordinance, and that CH2M maintains strong LGBTQ-inclusive policies. After debate, the amendment passed 4-1 (Commissioner Macris opposed).
- Proposed Bond Refunding (Item 9A): CFO Katie Petruccioni reviewed a plan to refund $23.5 million of 2010 revenue bonds to save approximately $13 million over the life of the bonds (net present value $8 million). The new bonds will have a maximum interest rate of 6% (expected ~3%) and maintain existing maturities. Bond counsel Russ Trice briefed the Commission on disclosure responsibilities. No action was taken; the item was informational only.
- Temporary Art Installation at Pier 14 (Item 10A): Dan Hodak presented a proposal for a one-year temporary art installation titled "Quite Tower" by Sean Orlando and Tanya Seabrook. The 30-foot sculpture will feature repurposed Victorian doors and windows, painted with a gradient of colors, and interior vignettes by eight local artists addressing San Francisco’s housing crisis. The Port’s contribution is the location; no funds are provided. Commissioners welcomed the project and requested better promotion and clearer port-wide art guidelines.
Key Outcomes
- Rules of Order (6B): Approved amendment to extend officer term limit from two to four years consecutively (Alternative 2). Also approved delegation of secretary duties.
- Mission Rock Phase 1 (7A): Approved Resolution 1939 (Phase 1 budget and parks plan) and Resolution 1940 (nonprofit utility entity support). Staff directed to provide clear LBE and workforce reports and brief the Southern Waterfront Advisory Committee quarterly.
- Seawall Contract Amendment (8A): Approved Resolution 1941 (amendment with CH2M Hill) by a vote of 4-1, authorizing $19.99 million increase to $59.98 million, with a 21.2% LBE goal. Staff to report back after lightweight cellular concrete pilot project.
- Bond Refunding (9A): Informational; staff will return for final approvals in October 2019.
- Pier 14 Art (10A): Informational; staff to develop port-wide art guidelines and schedule ribbon-cutting in late October/early November.
- New Business: Agenda items scheduled for upcoming meetings: Pier 30-32 RFP authorization (November 12), update on vacant restaurant, Pilara photography lease open session update, ethics training, and Pier 70 status.
Meeting Transcript
Here. Commissioner Victor Machurst. Yes. Item two approval of minutes for the September 10th, 2019 meeting. So moved. All in favor. Okay, Blitz of Allegiance. One nation, under God, indivisible, liberty and justice for all. Please be advised that the ringing of and use of cell phones, pagers, and similar sound producing electronic devices are prohibited at this meeting. Please be advised that the chair may order the removal from the meeting room of any person responsible for the ringing of or use of a cell phone, pager, other similar sound producing electronic device. Please be advised that a member of the public is up to three minutes to make pertinent public comments on each agenda item on a support commission adopts a shorter period on any item. Item five, public comment on items not listed on the agenda. Is there any public comment on items not listed on the agenda? Seeing none, public comment. Item 6A, Executive Director's Report. Good afternoon, President Brandon, Vice President Adams, members of the Commission, members of the public and Port staff. I'm Elaine Forbes, the Port's Executive Director. I have a happy report today because I get to talk about two awards given to Port Staff and to announce an event this weekend. So first, uh the California Preservation Foundation, the CPF has selected the Pier 70 Special Use District Design for Development Agreement for a preservation design award in the category of cultural resources studies. The Pure 70 Design for Development Agreement was created through a long partnership with the Port, San Francisco Planning Department, Mayor's Office of Economic and Workforce Development, and Brookfield Properties and their project team, including but not limited to Site Lab Urban Studios, David Baker Architects, James Cornerfield Operations, Architectural Resources Group, and AECOM. The design award jury was comprised of top professionals in the field of architecture, engineering, planning, and history, as well as renowned architecture critics and journalists selected to uh look at various submissions and to make their selection. And I want to read to you from what they said about our design for development agreement. The port the report tackles a lot of issues. It's ambitious, it's groundbreaking. This work at addressing the issues of what to do with places that have historic structures and need infill. It's less about the preservation of the historic resources and more about the infill and creating vibrant public spaces. It's a very ambitious tool to try to encourage the right type of compatible infill. It's going to be fascinating to see the next 10 years as the project emerges. We're also excited to see the project emerge. This award will be presented to the project team Friday, October 18th at an award ceremony, a 30 the 36th annual gala at the Intercontinental Mark Hopkins Hotel in San Francisco. I'd like to really congratulate the Pier 70 team in particular, David Beaupre. You're in the audience. It's nice to see you. I know David worked his heart out on the D for D, as well as Diane Oshima and Brad Benson and other port staff involved, and to congratulate the design team, the consultant team. This Saturday, September 28th, is National Public Lands Day. National Public Lands Day is to be celebrated annually on the fourth Saturday of September on local, state, and federal lands throughout the United States. We will be participating along with our partners at Wreckin Park to provide a day of service, connecting nature through service at Heron's Head Eco Center. Please mark your calendars. So it should be a fun day to celebrate out at the park. Finally, I'd like to announce another award that Port staff and our consultant partners earned. This is from 3 CMA. This is City and County Communications and Marketing Associate Association. This is the 2019 Savvy Awards competition to agencies that are committed to public service, engaging residents in the work of their governments and finding creative, inspiring, and outcome-based communications strategies. The Port of San Francisco won an excellent award of excellence in the category for most innovative communications for the embarcaderous seawall program. Specifically, the this association was very excited about our makers partnership. And as you will recall, our port staff worked with local makers in San Francisco who were willing to put their own energy and effort into our seawall program, specifically ritual coffee and Black Hammer Brewery. And they made seawall themed specialty drinks and coffees to get the word out about the program. Black Hammer hosted a Meet the Engineer Happy Hour to promote their beer, Seawall Puppy, and also to get the public engaged in and connected to our engineering team working on the program. The Seawall Stroll Blend was available anywhere ritual coffee was sold during August and September of 2018. It included five locations in popular grocery stores through San Francisco, but importantly, the label told the story about our seawall and introduced the public to the Seawall program in a really in a way and touching audiences that we wouldn't traditionally touch.
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