San Francisco Port Commission Meeting - February 6, 2024
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
San Francisco Port Commission Meeting - February 6, 2024
The Port Commission met in regular session on Tuesday, February 6, 2024, with President Kimberley Brandon presiding. Commissioners present: Brandon, Vice President Gail Gilman, Ed Harrington, and Stephen Lee. Commissioner Willie Adams was absent. The meeting included approval of minutes, an executive director's report, two major informational presentations — the San Francisco Waterfront Coastal Flood Study draft plan and the FY 2024-25/2025-26 biennial budget — and scheduling of future agenda items.
Consent Calendar
- Approved the January 23, 2024 commission minutes without opposition.
Public Comments & Testimony
- No public comments were made during the meeting. Public comment periods were opened and closed with no speakers in person or on the phone.
Discussion Items
Executive Director's Report
- Director Forbes reported that the Port has returned to pre-pandemic revenue levels and is focusing resources on a clean and safe waterfront, including four new assistant superintendent positions in maintenance to advance race equity and career ladders.
- Resilience: On January 26, 2024, the Port and U.S. Army Corps of Engineers released a draft plan to defend 7.5 miles of waterfront against sea level rise. The public comment period runs through March 29, 2024, with community meetings, walking tours, webinars, and a roadshow.
- Upcoming initiatives: Trades Career Fair for high school students and transitioning youth; expansion of Pop-ups on the Plaza for Black-owned businesses (February 17, 2024); Crane Cove Park playground conceptual design 95% complete; Amador Street project to be advertised in March 2024, using the Port's first-ever federal infrastructure funds (PIDP/MIRAD grant).
- Director Forbes reported an early-morning attack on Andrew Cotter near Beach and Hyde Street on February 2, 2024, and wished him a full recovery.
- Commissioner Harrington suggested modeling the career fair after Bay Work, a regional water/wastewater career-path collaboration. Vice President Gilman wished Mr. Cutter well and acknowledged Lunar New Year and Black History Month.
Waterfront Coastal Flood Study Draft Plan (Item 10A)
- Informational presentation by Brian Harper (U.S. Army Corps of Engineers), Adam Derrett (Port planning lead), and other team members. It summarized the Draft Integrated Feasibility Report/Environmental Impact Statement released on January 26, 2024.
- The plan proposes adaptations across four reaches: floodproofing buildings and adding short flood walls at Fisherman's Wharf; elevating the Embarcadero shoreline to defend against 3.5 feet of sea level rise; elevating shorelines in South Beach/Mission Bay and Islais Creek/Bayview to 1.5 feet initially, with later adaptation to 3.5 feet; adding closure structures at bridges; and incorporating nature-based features where feasible.
- Estimated total cost: $13 billion, with a 65% federal cost share. The plan is not a detailed design and does not yet include design details, phasing, or inland drainage costs.
- The team emphasized that non-monetary social metrics — such as community identity, health, and social vulnerability — were used in plan selection, a first for an Army Corps study.
- Public comments on the draft plan are due March 29, 2024. The final feasibility report is expected by the end of 2025, with a goal of inclusion in the 2026 Water Resources Development Act. Pre-construction engineering and design would occur from 2026 to 2030, with construction beginning after 2030.
- Commissioner comments raised: the need to integrate nature-based solutions throughout, avoid premature cost fixation, coordinate with the SFPUC on stormwater management, prepare for emergency scenarios, mitigate impacts on small businesses and tenants, and phase the work so partial completion still yields risk reduction.
- Staff committed to report back on phasing, tenant disruption, and long-term funding strategies.
FY 2024-25 and 2025-26 Biennial Operating and Capital Budget (Item 11A)
- CFO Nate Cruz presented an informational overview of the proposed two-year budget. The Port has returned to pre-pandemic revenue levels ahead of schedule, led by leisure tourism and record cruise passenger volume.
- Operating budget: proposed 8% increase in FY 2024-25, with inflationary labor costs accounting for about half; the second-year increase is nominal. New investments include:
- In-house security model: four new Port security positions at approximately 2% cost increase.
- Parking management shift to SFMTA-run multi-space pay stations and flat-fee operation contracts; expected to boost net parking revenue by about 50%.
- Equity investments: four assistant superintendent positions in maintenance, a machinist helper, doubled training budget, and a 10% increase in race equity training.
- Capital program: the 10-year state of good repair need is $2.25 billion, with a $1.6 billion unfunded gap. The 5-year Capital Improvement Program includes a $16.5 million Mission Rock development capital contribution, reallocation of $11.7 million in ARPA funds to capital, and resilience investments of $1.7 million in FY 2024-25 and $2.6 million in FY 2025-26.
- The budget does not meet the commission's 25% capital investment-to-revenue policy (expected ~14%), but it exceeds the 50% operating reserve policy (126% of annual expenses).
- The Southern Waterfront Beautification Fund unpaid balance will be fully repaid to zero during this biennium.
- Commissioners asked for more granular reporting on security and parking enforcement, and for a consolidated presentation of all restricted funds (resilience, beautification) with the budget. President Brandon requested a detailed plan for the use of $70 million in resilience funds.
- No action was taken; an action item will return for approval at the end of February 2024.
New Business (Item 12)
- President Brandon recorded two future items: an update on parking program performance (if the parking model is approved) and a detailed resilience program budget at the next budget approval item, in addition to Southern Waterfront Beautification Fund details.
- Vice President Gilman suggested a future joint presentation on the in-house security model and how it incorporates the Port's equity framework.
Key Outcomes
- Approved the minutes of January 23, 2024.
- The flood study and biennial budget were informational; no formal votes were taken on those items.
- Staff were directed to return at the end of February 2024 with an action item to approve the biennial budget, plus reports on parking performance, resilience budget transparency, and beautification fund balance.
- The public comment period on the flood study continues through March 29, 2024.
- The meeting was adjourned.
Meeting Transcript
The San Francisco Port Commission for February sixth, twenty twenty-four. Roll call, President Kimberley Brandon. Here. Vice President Gail Gilman. Present. Commissioner Ed Harrington. Here. Commissioner Stephen Lee. Commissioner Willie Adams is absent today. 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, the Ramatishalone have never ceded, lost nor forgotten their responsibilities as the caretakers of this place, as well as for all people who reside in their traditional territory. We wish to pay our respects by acknowledging the ancestors, elders, and relatives of the Ramatishalone community and by affirming their sovereign rights as first peoples. Item two is the approval of minutes for the January twenty third, twenty twenty-four port commission meeting. Any opposed. To the flag of the United States of America and to the Republic for which it stands one nation under God and indivisible with liberty and justice for all. Item seven is announcements. Please be advised that the ringing of and use of cell phones and similar sound-producing electronic devices are prohibited. 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 comments must be in respect to the current agenda item. The commission will take in-person and remote public comment on each item, beginning with commenters in person. For remote public comment, dial one four one five, six five five zero zero zero one, and enter access code two six six one six nine zero zero four one four 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. Mute your device and listen to the meeting from your telephone, which has no delay. Item eight is public comment on items not listed on the agenda. Is there any public comment on items not listed on the agenda? Do we have anyone on the phone? Public comment is closed. Next item, please. Item nine is the 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. Good afternoon, President Brandon, Vice President Gelman, members of the commission, port staff, and members of the public. Today, Port CFO Nate Cruz will present our proposed budget for the next two years. As you know, the pandemic had really an unprecedented challenge for the port, and we met this challenge with very difficult spending cuts, with successful pursuit of stimulus, and with use of our fund balance or our savings account. This new method will improve safety and security of our waterfront. We're also making a major investment in race equity with the addition of four new assistant superintendent positions in the maintenance division. This will establish a promotive pathway into management for our staff and the trades and will make more efficient the deployment of resources so jobs are easier to do, and we should also improve the waterfront with this investment. So you'll see today when you hear the budget that we're really aiming our resources at our clean and safe waterfront, which continues to be our top priority. To resilience, we have a big year ahead for resilience, and we've already had a big milestone. Last month, the Army Corps of Engineers and the Waterfront Resilience Program published a draft plan to defend our seven and a half miles of waterfront against sea level rise. After six years of intense analysis and investigation, the Army Corps and Port staff have completed a plan of solutions. And the solutions are tailor-made to the varying conditions along the shoreline. On Friday, January 26th, the Port and the U.S. Army Corps of Engineers hosted a press conference to announce the draft plan. Speaker Emerita Nancy Pelosi, our mayor London Breed, Lieutenant Governor Alenny Kunalakis, South Pacific Division Commander Colonel James Hondura, State Senator Scott Wiener, Board President Aaron Peskin, City Administrator Carmen Chu, and Vice President Gail Gilman joined to give remarks on the significance of the milestone, all expressed their support and reaffirm their commitment to advancing this work. It was a really great press conference for us, and we had two featured articles in the SF Chronicle. Congratulations to the comms team and Port staff on the resilience team for pulling that event off. Getting the word out is so important for the public's engagement on this transformational project. We're with the release of the plan, public comment period is open, and that will be until March 29. We have a big robust community engagement plan, which includes four community meetings across town, walking tours on the waterfront, webinars, social media campaign, and a roadshow for community-based organizations across the city.
openpublica.com