San Francisco Port Commission Meeting – October 27, 2020

The Port Commission met virtually on October 27, 2020, from 10:00 AM to 6:19 PM PDT, to address a range of items including approval of minutes, closed session, executive director's report, Mission Rock financing, LBE contracting, Army Corps flood study, PG&E sediment remediation, and Pier 70 shipyard update. The meeting included unanimous votes on several consent and action items.

Consent Calendar

• Approval of Minutes (October 13, 2020): Moved, seconded, and passed unanimously by roll call.
• Closed Session: Unanimous vote to enter closed session for public employee performance evaluation and other matters. Upon reconvening, the Commission voted unanimously not to disclose closed session discussions, except to report the appointment of Michael Morton as Assistant Port Director.

Public Comments & Testimony\n- Catherine Riley (Brookfield Properties) expressed support for the Port's LBE program, noting that the Pier 70 project exceeded its 17% LBE goal with 25% participation, totaling over $48 million to LBE firms, with 33% of construction workforce local and 12% from Southeast San Francisco ZIP codes. She affirmed continued commitment to diversity.

• Dwayne Jones (RDJ Enterprises) thanked the Commission for prioritizing LBE participation and highlighted work on Pier 70 and Mission Rock.
• Susan Karathoff (California Native Plant Society) urged that any ecological measures in flood resilience and sediment remediation use only local native plants to meet biodiversity goals.
• No other public comments were made on agenda items.

Discussion Items\n- Executive Director's Report (Item 9A): Director Elaine Forbes welcomed new Commissioner John Burton, reported completion of the Port's listening tour for a racial equity action plan (to be presented in December), noted San Francisco's economic reopening in the yellow tier, and announced $1 ferry fares in November ("Dollar Days") by WETA.

• Mission Rock Community Facilities District Financing (Item 10A): Staff presented a resolution recommending Board of Supervisors approve CFD bond issuance not to exceed $50.1 million for Phase I infrastructure. Phase I includes 560 housing units (202 affordable), 550,000 sq ft office (Visa as anchor tenant), 65,000 sq ft retail, and a 5.5-acre park. The bond is secured by special taxes; appraisal is being updated. The resolution passed unanimously.
• LBE Contract Activity and Strategic Initiatives (Item 10B): Stephanie Tang and Tiffany Tatum reported FY2019-20 contract data: $24.2M in contracts awarded, 62% to LBE primes; $30.9M in payments, 24% to LBE subs, 40% total to LBEs. Over five years, 62% to LBE primes and 40% of dollars paid to LBEs. Outlined FY2021 strategy including improved internal practices, stakeholder partnership, barrier mitigation, and integration with the racial equity plan, with deliverables in January and July 2021.
• U.S. Army Corps of Engineers Flood Resiliency Study (Item 11A): Kelly Capone, Matt Wickens, and Lindy Lowe presented the study's progress. The study covers 7.5 miles of waterfront, is a 50-50 cost share with the Corps, and assesses flood damages from 2040-2090 under five sea level rise curves (up to 6 feet by 2090). The "future without project" analysis includes 2,500 buildings, 11,000 jobs, 350,000 regional commuters, and 13,000 residents (half people of color). Piers unlikely to meet federal cost-benefit criteria. Focused array alternatives include hard/soft measures, ecological enhancements, and integration with seismic measures. Commission guidance requested on non-structural measures, ecological enhancements, and phasing.
• PG&E Sediment Remediation at Pier 39 to Pier 43½ (Item 12A): Catherine Purcell reported on PG&E-led remediation of PAH-contaminated sediments from a historic manufactured gas plant. A remedial action plan (FS RAP) is to be submitted; geotechnical investigation begins. Dredging and capping planned over five years (June-November windows) starting 2023, after design and permitting through 2022. Water Board will issue CEQA documents for public comment in Q1 2021.
• Pier 70 Shipyard and SFPUC MOU (Item 13A): Andre Coleman presented interim use and a proposed MOU with SFPUC for temporary power. After unsuccessful RFPs for a ship repair operator, the Port achieved positive net revenue of $460,000 in FY2019-20 through interim tenants (lay berth, storage). The MOU would provide up to 5.1 MW (86% of remaining power) for 1-3 years, generating minimum $1.1 million annually, to support SFPUC's BCT line electrification. Staff seeks commission guidance on creative repurposing of shipyard assets while maintaining maritime-industrial uses.

Key Outcomes\n- Resolution 2048 (Mission Rock CFD Financing) approved unanimously – recommends Board of Supervisors approve bond issuance up to $50.1 million.

• Closed session actions: Commission voted unanimously not to disclose closed session discussions except to report appointment of Michael Morton as Assistant Port Director.
• Staff direction: Commissioner Gilman requested an informational update at the next meeting on tenant rental relief/forgiveness for community-serving nonprofit tenants. Vice President Adams requested an earlier start time (1:30 or 1:45 PM) for future meetings that include closed session.
• Next steps: LBE strategy deliverables by January and July 2021; Army Corps study to advance to final array in early 2021, with continued commission engagement; PG&E remediation design and permitting to continue through 2022; Pier 70 MOU with SFPUC to be brought as an action item at a future meeting.