Port of San Francisco Commission Meeting - June 9, 2020

The San Francisco Port Commission met on June 9, 2020, at 11:15 AM to address critical financial and operational challenges stemming from the COVID-19 pandemic and social justice issues. Key actions included approval of a drastically revised biennial budget, an opt-in rent deferral program for tenants, and updates on Vision Zero safety projects along the Embarcadero. The meeting also featured tributes to two retiring staff members, discussions on police use of port property, and statements from commissioners on racial equity.

Consent Calendar

• Minutes of May 26, 2020: Approved unanimously by roll call.

Public Comments & Testimony

• General Public Comment (executive director's report): Three callers spoke. Donald Catal raised concerns about Pier 50 being used by SFPD to process protest arrestees, calling it inappropriate use of port property. Tyler (District 6 resident) described being processed there after arrest and supported rewriting the MOU. Joe Bergard (Red and White Fleet) urged the port to advocate for reopening excursion boats as outdoor activities, noting the fleet is ready to resume operations.
• Public Comment on Item 7A (Budget): None.
• Public Comment on Item 8A (Vision Zero): Ronald supported the Rincon Park improvements but urged reconsideration of the Pier 35 design, arguing it prioritizes auto access over cyclist safety.
• Public Comment on Item 9A (Rent Deferral): Multiple tenants spoke: David O'Malley (Coqueta) supported future rent forgiveness; Drew (Spinnaker Sailing) called the budget optimistic and warned of business failures; Kevin Wesley (Louise Fish at Fisherman's Wharf) described dire financial conditions and requested base rent abatement; Pete Sitnik (Water Bar/Epic Steak) stressed the need for rent forgiveness for the closure period; Michael Curello (Coquetta) noted high operational costs; Peter Osborne (Mission Rock Resort) supported a percentage-rent model and forgiveness.

Discussion Items

• Executive Director's Report (Katie Patruccioni):
  • Bond Sale: On June 2, the city sold $49.7 million in Seawall GO bonds at a total interest cost of less than 2%, with interest of under $80,000.
  • Shared Spaces Program: Announced May 26 by Mayor Breed, effective June 12; port staff working with multiple agencies to tailor outdoor seating for tenants.
  • LBE Support: Two programs in development – a grant program (near-term) and a loan program (bridge funding for LBEs performing contracts). Staff will bring an information item to the Commission on July 14, with a request for grant approval in August.
  • Pier 45 Fire Relief: Mayor Breed, Supervisor Peskin, and commissioners toured the site. A $500,000 fundraising campaign was announced for crabbers to order pots for November season. Port staff developing a loan program with OEWD and the Crab Boat Owners Association.
  • Retirements: Tributes were given to Mark Lozavoy (27 years, Asst. Deputy Director for Real Estate) and Amy Quesada (26 years, Commission Secretary). Staff and commissioners expressed gratitude for their service. Mark and Amy both spoke.
• Commissioner Statements on Racial Equity: Following the murder of George Floyd, all commissioners expressed support for Black Lives Matter, condemned systemic racism, and urged equity in port hiring, contracting, and leasing. President Brandon read a prepared statement. The meeting was closed in memory of George Floyd, Breonna Taylor, Ahmaud Arbery, and others.
• Item 7A – FY2020-22 Budget Approval: Nate Cruz presented a revised biennial budget reflecting a 50% revenue loss in the first year and 25% in the second (erasing 15 years of growth). The four-part strategy includes: reducing operating expenses ($12.7M/$10M), reducing capital appropriations (deferring Mission Bay Ferry Landing and other projects), using fund balance (drawdown from $67M to a $14M reserve), and identifying $15M in prior capital defunding. A $10M Economic Recovery Project was created as a flexible fund. Commissioners expressed concern about long-term sustainability and requested clear criteria for the recovery fund. The budget was approved unanimously (Resolution 2028/2029).
• Item 8A – Vision Zero Quick Build Projects: Casey Hildreth (SFMTA) presented safety improvements at three Embarcadero locations: a protected two-way bikeway between Howard and Mission (removing 13 metered parking spaces), a reconfigured loading zone at Rincon Park (with swapped bike lane and loading, plus motorcycle parking), and a protected bikeway at Pier 35 (with removable posts for 25 days of cruise/event operations). Construction begins June 2020; cost estimated at $650,000 (MTA-funded). Commissioners expressed support for the fast-track approach.
• Item 9A – Opt-In Rent Deferral Program: Chrisia Tanoli presented an opt-in program extending deferral through December 31, 2020, for eligible tenants (excluding city MOUs, terminal agreements, etc.). Tenants must submit a financial impact statement, business plan, revenue projections, and information on federal/state relief applications. As of May 31, 2020, the port had received $9.9M in rent; March-April payment rate averaged 47%. The likely financial exposure is $21.4M. Staff also discussed future phases: repayment plans, sector-based forgiveness (especially restaurants and parking), and shared spaces. Commissioners pressed for more data by sector, flexibility in opt-in (partial payment), and a clear timeline for forgiveness/repayment. An amendment was added requiring staff to use collected data to inform further relief policies. The program was approved unanimously (Resolution 2030).

Key Outcomes

• Approved Minutes of May 26, 2020 (unanimous).
• Approved FY2020-22 Biennal Operating and Capital Budget (Resolution 2028/2029) with reductions, fund balance use, and a $10M Economic Recovery Project. Commissioners directed staff to return with a framework for the recovery fund.
• Approved Opt-In Rent Deferral Program through Dec 31, 2020 (Resolution 2030). The motion included an amendment directing staff to collect data and return with further tenant relief proposals.
• Received Informational Report on Vision Zero Quick Build projects; construction to start June 2020.
• Staff directed to rewrite the MOU with SFPD regarding use of Pier 50 as a processing center for arrestees.
• Future Actions: Staff will present LBE grant/loan program details on July 14; bring percentage rent data and sector-based forgiveness proposals; and update on outdoor seating shared spaces program by June 12. Commission expressed willingness to hold special meetings or meet twice monthly to expedite relief efforts.