San Francisco Port Commission Meeting — October 11, 2022
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San Francisco Port Commission Meeting — October 11, 2022
The San Francisco Port Commission met on Tuesday, October 11, 2022, beginning at 10:15 AM. The meeting included presentations on waterfront climate adaptation, several real estate and development projects, and financial matters. Commissioners unanimously approved the consent calendar and adjourned in memory of community advocate Michael Hammond.
Consent Calendar
- Resolution 2248: Approval of findings under state urgency legislation to allow remote meeting attendance by commissioners during the COVID-19 emergency. Adopted unanimously.
- Resolution 2249: Authorization of a maintenance dredging contract (2022-2024) with Dutra Group for $7,238,750, plus a 10% contingency ($723,875), for a total not to exceed $7,962,625. Adopted unanimously.
- Resolution 2250: Approval of a retroactive month-to-month license with San Francisco Community Fishing Association (2,424 sq ft shed space, 1,602 sq ft apron space) at Pier 45 Shed D. Adopted unanimously.
Public Comments & Testimony
- Item 11a (Waterfront Adaptation): One caller raised the risk of tsunami waves (35-50 ft) and suggested learning from other countries. The caller was thanked for their comments.
- Item 12a (TZK Broadway Hotel): Hip Digame, research analyst for Unite Here Local 2, expressed strong support for the developer, noting a model agreement ensuring a neutral unionization process for future hotel workers.
- Item 12c (YMCA Building 49): Tamara Hicks, owner of Daily Driver (bagel and cream cheese business), spoke emotionally about the partnership with the YMCA and her love for San Francisco. She thanked the commission and staff.
Discussion Items
- Executive Director’s Report (Item 9a): Director Elaine Forbes highlighted economic recovery successes: Fleet Week attendance, record cruise calls (119 projected for the year), Portola Music Festival (though noise complaints received), and the reopening of historic ferry Klamath at Pier 9. She also noted a $25 million state investment announced at Mission Rock to support women and underserved populations entering construction trades. She honored Vice President Kimberly Brandon’s 25 years of service and her upcoming induction into SF State Alumni Hall of Fame. The report concluded with a remembrance of Michael Hammond, a long-time port advocate and SAC member.
- Waterfront Resilience Program (Item 11a): Deputy Program Manager Adam Barrett described seven draft adaptation strategies (A–G) to address coastal flooding, seismic risk, and inland flooding. Strategies range from no action (A) to managed retreat (G). The port is working with the U.S. Army Corps of Engineers on a coastal flood study. Public engagement will continue through winter 2022–2023, with a preferred plan expected by summer 2023. Commissioners asked about coordination with other city projects, equity considerations, and backup power for pumping systems.
- TZK Broadway Hotel (Item 12a): Ricky Tijani and developer Jay Wallace provided an update on the mixed-use project (192-room hotel, Teatro Zenzani theater, 14,000 sq ft open space) at Seawall Lots 323/324. COVID-19 delayed construction; financing is being reassembled (estimated total cost $162 million). The developer reaffirmed commitment to labor neutrality and community engagement. Commissioners expressed support and encouraged continued progress.
- Autodesk Lease (Item 12b): Property Manager Don Kavanaugh presented a proposed 12-month lease renewal (with a 12-month option) for 30,590 sq ft at Pier 9. Rent will increase to market rates (approximately $124,000/month). Autodesk has invested $3 million in improvements. Commissioners supported consolidating associated agreements into the new lease.
- YMCA Building 49 at Crane Cove Park (Item 12c): Jamie Hurley and YMCA representative Tekaija Gardner detailed a proposed multi-use lease for Building 49. The YMCA will be master tenant, with subtenants Daily Driver (food) and Doll Patch Paddle (water sports). The YMCA will invest at least $5 million in tenant improvements, with an additional $1 million recommended for seismic upgrades (50% cost share with port). Initial term 10 years, with extension options up to 34 years and 9 months. Year-1 base rent is $93,500; percentage rent applies to subtenants. The YMCA will maintain public restrooms. Commissioners praised the community benefits and equity focus.
- Mission Rock Recycled Water Purchase Agreement (Item 12d): Phil Williamson and Josh Keene explained the agreement to purchase non-potable water from Mission Rock Utilities for China Basin Park and other port areas. The system treats wastewater on-site, saving 43,000 gallons of potable water per day (13.9 million gallons/year). Port’s annual cost is estimated at $615,000 (capacity charge $550,000 + usage charge $65,000). A special service tax from Mission Rock development will backstop the obligation if the port must manage the park directly. Commissioners asked about financial risks and benefits; staff noted the structure avoids direct port expenditure through assignment to a park tenant.
- Finance & Administration (Item 13a): Acting Deputy Director Nate Cruz reported that the port failed its debt coverage test in FY2021 (operating loss of ~$44 million) but passed the second test using fund balance. A consultant recommended adjusting leasing practices, seeking interagency savings, and refining expense categorization. Staff propose increasing the operating reserve requirement from 15% to 50% of operating expenses to better prepare for emergencies. Commissioners supported the increase and noted the port’s strong recovery trajectory.
Key Outcomes
- Consent Calendar: Unanimously approved Resolutions 2248, 2249, and 2250.
- Executive Session: Commission voted unanimously to enter and later reconvene in open session; no disclosure of discussions reported.
- Adjournment: Meeting adjourned at approximately 6:12 PM in memory of Michael Hammond.
- Next Steps: Staff will return with final versions of the YMCA lease (target approval early 2023), the Autodesk lease, and the Mission Rock water purchase agreement (to Board of Supervisors in 2023). The waterfront adaptation team will conduct public outreach through winter 2022–2023, with a draft plan due summer 2023.
Meeting Transcript
Roll call, Carl. President Willie Adams. Here. Vice President Kimberly Brandon. Here. Commissioner John Burton is excused. Commissioner Gail Gilman. President. Commissioner Stephen Lee. Here. The San Francisco Port Commission acknowledges that we are on the unceded ancestral homeland of the Ramatishalone, who are the original inhabitants of the San Francisco Peninsula as the indigenous stewards of this land and in accordance with their traditions. We have a motion and a second. At this time, we will open the queue for anyone on the phone who would like to make public comments on executive session. Please dial star three if you wish to make public comment. Others will wait on mute until their line is open. Comments will be limited to three minutes per person. The queue is now open. Please style star three if you wish to make public comment. Carl, next item, please. Item number four is executive session. There are three executive session items, all conferences with real property and negotiator as agendized. Commissioners, may I have a motion to go into executive session? So move to second. We have a motion and a second. All in favor, say aye. Aye. Opposed. Motion passes unanimously. We are now in closed session. I second. All in favor, say aye. Aye. Aye. Opposed. Motion passed unanimously. We are in open session. Carl. Item number six is the Pledge of Allegiance. Under God, in a visible, liberty and justice for all. Item number seven is announcements. Please be advised that the ringing and use of cell phones and similar sound-producing electronic devices are prohibited at this meeting. Please be advised that a member of the public has up to three minutes to make pertinent public comments on each agenda item unless the port commission adopts a shorter period on any item. Public comment must be in respect to the current agenda item, and the commission will take in-person public comment first, and then remote public comment for each item. For remote public comment, please dial 415 65501 and enter access code 2496 7759091 pound. And then during each public comment period, our moderator will instruct you to dial star three to be added to the queue for that particular item. And then an audio prompt will signal when it's your turn to speak. If you're watching this meeting on SFGO TV, there's a short broadcasting delay. To not miss your chance to comment, please dial when the item you want to comment on is announced. And then mute your device and listen to the meeting from your telephone, which has no delay. And that brings us to item eight, public comment on items not listed on the agenda, where public comment is permitted on any matter within port jurisdiction that is not an agenda item, but no commission action can be taken on any matter raised.
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