San Francisco Port Commission Regular Meeting - August 8, 2023
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San Francisco Port Commission Regular Meeting - August 8, 2023
The Port Commission met on August 8, 2023, at 11:15 AM (adjourned at 5:36 PM) with President Kimberly Brandon, Commissioners Gail Gilman, Ed Harrington, and Stephen Lee present; Vice President Willie Adams was absent. The meeting covered the Executive Director's report on summer waterfront events and equity initiatives, an amended debt policy, a comprehensive maritime portfolio overview, approval of a lease for a distillery tasting room at Pier 50, an informational presentation on establishing a Community Facilities District (CFD) for the Pier 70 Historic Core, authorization of a $2.7 million contract for Pier 50 earthquake improvements, and an update on the San Francisco Waterfront Coastal Flood Study conducted with the U.S. Army Corps of Engineers.
Consent Calendar
- Approval of Minutes – July 11, 2023: The minutes were approved unanimously by a voice vote.
Public Comments & Testimony
- No public comments were made in person or remotely on any agenda item.
Discussion Items
Executive Director’s Report (Item 6A)
- Director Elaine Forbes reported on a busy July and early August: events included a Tony Lindsay concert, Ferry Building’s 125th anniversary Summer Ferry Fest (August 17), Crane Cove Park’s new recurring market, and the upcoming APEC summit (November 12–17). She highlighted the transfer of 10 acres of Mission Bay parks, a summer internship program with 21 interns including a maritime cohort, and the Generation Climate youth workforce summit. Commissioners praised staff for activating the waterfront and supporting economic recovery. Commissioner Harrington noted the small staff’s impressive output; Commissioner Gilman shared a personal ferry experience as evidence of tourism return; Commissioner Lee emphasized entertainment’s role in economic recovery.
Finance & Administration – Amended Port Municipal Debt Policy (Item 7A, Resolution 2338)
- Nate Cruz, Deputy Director of Finance, presented an informational and action item to amend the debt policy (first issued 2009, last amended 2016). Changes included updating SEC Rule 15c2-12 disclosure events and terminology (financial advisor → municipal advisor). The port’s active debt portfolio totals about $70 million (original $85 million) with annual debt service of $6 million. Commissioner Harrington asked about future issuances; Cruz noted potential refinancing is unlikely due to current market conditions. The policy was approved unanimously. Vote: 4–0.
Maritime Portfolio (Item 8A)
- Andre Coleman, Deputy Director of Maritime, presented an overview of the port’s maritime business. Key statistics: FY2023 revenues were ~$6 million higher than FY2018–19; record cruise operations – 110 calls, 391,000 passengers, $7.3 million in passenger revenue; auto volumes at Pier 80 up 49% (29,000 units); excursion operations at 80% of pre-pandemic levels; a successful project cargo operation (400 metric tons of fiber optic cable). Near-term objectives include a new ice machine (target late 2024), fuel dock reactivation (TBD), Wharf J9 project (Q4 2024), and a new lease with Martin Marietta at Pier 92. Commissioner Lee inquired about public docking and southern waterfront restaurant opportunities; Commissioner Gilman urged promotion of water taxis. The presentation was informational.
Real Estate & Development – Lease with Hotaling & Co. (Item 9A, Resolution 2339)
- Jennifer G., Senior Property Manager, presented a proposed new five-year lease for a 3,000 sq. ft. tasting room at Pier 50 Shed B Southwest Bulkhead. Hotaling & Co. (a current non-retail tenant) will operate a distillery tasting room, tours, and events. Base rent $3.75/sq. ft. with 3% annual increases and 7% participation rent; 90-day rent abatement for improvements. Total base rent revenue over the term: ~$695,000. The lease was approved unanimously. Eric Gilliland, VP of Operations for Hotaling, explained the company’s history (former Anchor Distilling) and brands (Junipero Gin, Old Potrero rye). Commissioners expressed support and requested an invitation to the grand opening. Vote: 4–0.
Real Estate & Development – Community Facilities District at Pier 70 (Item 9B)
- Wyatt Donald Elandall and Phil Williamson presented an informational update on the Pier 70 Historic Core project (completed last year). Project costs increased from $81M to $140M, but sublease revenues exceeded projections ($44/sq. ft. vs. $29/sq. ft.). The port received $2.5M in 2022 (vs. anticipated $850K in 2024). The CFD would levy two special taxes: a facility tax ($2.73/sq. ft., escalating 2% annually) and a service tax ($0.80/sq. ft., escalating CPI up to 5%), both based on the property’s net leasable area (~322,000 sq. ft.). Funds would support Crane Cove Park operations and maintenance. No action taken; a resolution of intention is expected in September 2023, with formation by early 2024 after Board of Supervisors approval and a landowner election (port votes as sole landowner). Commissioner Lee asked about impact on rents; staff noted the taxes are reinvested into site amenities.
Waterfront Resilience – Pier 50 Earthquake Improvement Contract (Item 10A, Resolution 2340)
- Carlos Cologne, Waterfront Resilience Program Administrator, requested authorization to award a $2.7 million contract to GHD/Structus JV for pre-design and evaluation services for Pier 50 earthquake improvements. The RFP was issued from a pre-qualified pool; four proposals received. GHD/Structus initially submitted a non-responsive bid due to a system upload error, but after investigation the port staff rescinded the non-responsiveness letter, finding the firm acted in good faith. The firm ranked first in scoring. No protests were received. The contract was approved unanimously. Vote: 4–0.
Waterfront Resilience – Coastal Flood Study (Item 10B)
- Brad Benson, Waterfront Resilience Director, provided an update on the Army Corps-led San Francisco Waterfront Coastal Flood Study. The study is evaluating seven adaptation strategies (defend, accommodate, retreat) with an emphasis on equity, nature-based solutions, and multi-benefit plans. Public outreach involved 16 events, 500+ participants, 170,000+ content interactions. Key public concerns: contamination in the southern waterfront, life safety, transportation disruption, and support for higher sea level rise projections. The Army Corps expects a tentatively selected plan by September 7, 2023, a draft integrated feasibility report in November 2023, and a final recommendation in April 2024. Project costs are likely in the billions; federal share up to 65% with 35% local match. Brian Harper, Army Corps Planning Chief, affirmed the study’s importance as a national model. Commissioners emphasized urgency and asked about accelerating timelines. The presentation was informational.
Key Outcomes
- Resolution 2338: Approved the Amended Port Municipal Debt Policy (unanimous).
- Resolution 2339: Approved Lease L-17080 with Hotaling & Co. for a Pier 50 tasting room (unanimous).
- Resolution 2340: Authorized a $2.7 million contract with GHD/Structus JV for Pier 50 earthquake improvements (unanimous).
- Consent Calendar: Minutes of July 11, 2023, approved (unanimous).
- Informational items: Maritime portfolio, CFD formation, and Coastal Flood Study received with no votes; next steps include returning for CFD action and continued public engagement on flood adaptation.
Meeting Transcript
This is a meeting of the San Francisco Port Commission for August 8, 2023. Roll call. President Kimberly Brandon. Here. Commissioner Gail Gilman. Present. Commissioner Ed Harrington. Here. And Commissioner Stephen Lee. Here. Vice President Willie Adams is absent today. The San Francisco Port Commission acknowledges that we are on the unceded ancestral homeland of the Ramaktuchalone who are the original inhabitants of the San Francisco Peninsula. As the indigenous stewards of this land and in accordance with their traditions, the Rwama Tushalone have never ceded, lost, nor forgotten their responsibilities as the caretakers of this place, as well as for all peoples who reside in their traditional territory. As guests, we recognize that we benefit from living and working on their traditional homeland. We wish to pay our respects by acknowledging the ancestors, elders, and relatives of the Ramatushalone community, and by affirming their sovereign rights as first peoples. Item 2A, approval of minutes for the July 11th, 2023 Port Commission meeting. So moved. Second. We have a motion and a second. All in favor? Aye. Aye. Any opposed? The motion passes unanimously the minutes of the July 11th 2023 meeting have been approved. Item 3, Pledge of Allegiance. One nation under God, indivisible with liberty and justice for all. Item four announcements. Please be advised that the ringing of and use of cell phones and similar sound producing electronic devices are prohibited at this meeting. A member of the public has up to three minutes to make 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. The commission will take in-person and remote public comment on each item, beginning with the commenters in person. For remote public comment, dial 1 415 655 0001 and enter access code 2661 235 0803 Pound Pound. Then dial star three to raise your hand to comment on the item being discussed. An audio prompt will signal when it is your turn to speak. If you're watching this meeting on SFGov TV, there is a short broadcasting delay. To not miss your chance to comment, please dial when the item you want to comment on is announced. Mute your device and listen to the meeting from your telephone, which has no delay. Item five, public comment on items not listed on the agenda. We will take public comment on items not listed on the agenda. Is there any public comment in the room? Seeing none. Do we have anyone on the line? At this time, there is no one on the phone wishing to make public comment. Thank you, Corey. Public comment is closed. Carmel, next item, please. Item 6A, Executive Director's Report. For callers who wish to make public comment on this item, please dial star three to raise your hand to comment. Thank you, Carmel. Good afternoon, President Brandon, members of uh the port commission, port staff, members of the public.
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