The Port Commission to order.

This is a meeting of the San Francisco Port Commission for January 13, 2026.

Roll call.

President Gail Gilman.

Present.

Vice President Stephen Englund.

Here.

Commissioner Willie Adams.

Here.

Commissioner Stephen Lee.

Here.

And Commissioner Ken McNally.

Here.

Item 2 is approval of minutes for the December 9, 2025 Port Commission meeting.

Do I have a motion?

So moved.

Do I have a second?

Second.

We have a motion and we have a second.

All in favor?

Aye.

The motion passes unanimously.

Next item, please.

Item three is the land acknowledgement.

The San Francisco Port Commission acknowledges that we are on the unceded ancestral homeland of the Ramatish Ohlone,

who are the original inhabitants of the San Francisco Peninsula.

As the indigenous stewards of this land and in accordance with their traditions, the Ramatush

Ohlone 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.

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

Ramatush Ohlone community and by affirming their sovereign rights as first peoples.

Item 4 is Announcements.

Please silence all cell phones and sound producing devices.

Each member of the public may speak for up to 3 minutes per agenda item unless a shorter

time is set by the Port Commission.

Comments must relate to the current agenda item.

Public comment will be taken in person first, then remotely.

To comment remotely, dial 1-415-655-0001, enter access code 2662-267-6002, pound pound,

then press star 3 to raise your hand.

An audio prompt will signal when it's your turn to speak.

If watching on SFGov TV, note the broadcast delay.

To avoid missing your turn, dial in when your item is announced, mute your device, and listen from your telephone.

Item 5 is public comment on items not listed on the agenda.

Thank you.

Is there any public comment in the room for items not listed on our agenda?

If there is, please make your way to the podium.

Again, if there's any public comment in the room for items not listed on the agenda,

please make your way to the podium.

I see no public comment in the room.

Jenica, is there a public comment on the phone?

Yes, we have one caller on the line.

Welcome, caller.

Hello there.

Can you hear me?

Yes, we can hear you.

Okay, thank you.

Hello, my name is Josue.

Thank you, board members, for being present.

On November 6th, I sent an inquiry

through the Ferry Building's online forum.

I did not receive any information requested.

Instead, employees from the Ferry Building

ignored my request and informed the person

I was investigating about the inquiry.

I'm investigating the nonprofit organization

Bureau of Council San Francisco.

I apologize on the mission.

I'm investigating the nonprofit organization Imperial Council San Francisco for financial

discrepancy.

On June 26, 25, the San Francisco Ferry Building employees invited the elected official Empress

Africa America to perform at the Pride event.

I'm investigating Africa received payment for their performance.

is not allowed to financially gain from their title, and if they received and kept the payment,

then it's fraud. I'm also investigating if Nathan, the Aguilar, and Mixkiki Crunch received payment

for their performances as well. Your employees in the Ferry Building have ignored the request.

If Africa didn't receive payment, then a simple no would have survived. I can only assume that

it's trying to cover up fraudulent activity. So I am requesting an investigation for the following

information. How much money did Africa, Nathan, and Natsuki receive for their performances?

Name of the employee who invited them to perform? Name of the employee who provided them with a

pay note? And name of the employee who ignored my inquiry and warned Africa about my investigation?

Thank you very much. If you have any questions, please ask me now.

Thank you, caller, for your remarks. I'm going to ask staff to make a clarification.

Caller, this is Michael Martin, the acting executive director.

I believe we can help you understand who the right person to direct your inquiries to,

but it would be helpful, I think, to talk with you offline to get more details about your inquiry.

I'm not sure how best to do that since you're on the phone.

if you would like to reach me at

the best way to reach me would be to call tomorrow at 415-274-0400

and they can route the call to me and I can try to give you better information

about where your inquiry stands. Does that work for you?

hi there yes that worked for me do you mind just repeating the phone number one more time so i can

write it down sure i'm happy to it's uh 415-274-0400 and my name is michael martin m-a-r-t-i-n

thank you so much i appreciate your time thank you thank you caller

Jenica, are there any other callers for public comment for items not on the agenda?

No other callers. Thank you.

Okay, then public comment is closed.

Next item is 6A, the election of Port Commission President and Vice President.

Thank you, Jenica.

At this time, fellow commissioners, I am going to call for nominations for the President of the Port Commission.

I nominate Gail Gilman for President of the Port Commission.

Second that.

Are there any other nominations for President of the Port Commission?

Any other nominations?

Nominations for President of the Port Commission are now closed.

We will now take public comment on the nomination for Port President.

Is there any public comment in the room on the nomination for Port President?

Is there any public comment on the phone?

No callers on the phone.

Thank you.

Okay.

Then public comment is closed.

We have a nomination.

Thank you, Commissioner Adams, and we have a second.

All in favor?

Aye.

Aye.

Thank you, and thank you, fellow commissioners.

I look forward to serving you with humility, transparency, and collaboration.

Now, I'm calling for nominations for Vice President of the Pork Commission.

Do we have any nominations?

Madam President, I'd like to place my colleague Stephen Inglom's name in consideration to be the Commission's Vice President.

Thank you. Do we have a second?

I second that.

Thank you. We have a motion and we have a second.

Any other nominations?

Move to close nominations.

Thank you. Nominations are now closed. Thank you.

Is there any public comment in the room for Vice President of the Port Commission?

Is there anyone on the phone?

No one on the phone. Thank you.

Okay. Public comment is closed. We have a motion and we have a second.

All in favor? Aye.

Thank you. Our officers are elected for this year.

Jenica, next item, please.

Next item is item 6B, the Acting Executive Director's Report.

For callers who wish to make public comments on this item,

please dial star 3 to raise your hand to comment.

Good afternoon, and I guess let me be the first to congratulate President Gilman and Vice President Englund on their re-election.

Good afternoon, President Gilman, Vice President Englund, commissioners, and members of the public.

I'm Michael Martin, and I'm the court's acting executive director.

The report today is a bit long, so bear with me, but I have a lot to say.

I'm pleased to be here at our first Port Commission meeting of the year,

and I begin in 2026 with a strong sense of optimism and genuine Port pride

following what was a truly remarkable year in 2025.

Commissioners, the Port's success last year could not have happened

without your leadership and guidance combined with the dedication

and professionalism of Port staff across every division.

Reflecting on the year over the holidays, I felt a deep appreciation

for what we have accomplished together.

Our progress reflects what makes the port such a strong public institution,

clear vision, effective partnerships that extend our reach,

and a shared commitment to excellent public service.

When people look at the port, it feels like it's been here forever.

But the lesson of the past five years is that we can evolve quickly

when the moment of opportunity is before us.

Because of that foundation, the port enters 2026 exceptionally well-positioned

for continued success while meeting the challenge of stewarding our one-of-a-kind waterfront.

This year promises to be an exciting one. The Port will partner with the City to Hope Super Bowl

60 with the waterfront serving as the backdrop for many of the week's major events. New leases

at Pier 29, Pier 26, and throughout Fisherman's Wharf will come online, bringing new energy and

economic opportunity. We will continue advancing major waterfront investments including opening

a new public plaza in Fisherman's Wharf in time for the summer tourist season.

We are so proud to be delivering a wide range of significant shoreline and facility improvements

funded by pandemic-era grants, which represent a major increase from our usual baseline of

capital renewals.

We are on track to complete these improvements on time and on budget, and I look forward

to providing further updates as we approach this challenging but important achievement.

I'm particularly excited to break ground on the Mission Bay Ferry Landing, an important

investment that will expand maritime service and support growth along the central and southern

waterfronts three of the action items on today's agenda will together represent a key step forward

towards that excited moment exciting moment our maintenance team is also managing procurement

and construction for a new crane barge and other critical equipment upgrades that are essential to

stewarding our historic infrastructure while maximizing the value of that our own staff can

provide to protect us from contracting cost inflation. We will also build on our momentum

in public art, events, and cultural programming with a full calendar of live music, community

events, and waterfront activations already underway. Taken together, these efforts reinforce

our commitment to a waterfront that is thriving, resilient, and welcoming to all. Commissioners

and port staff play a vital role in shaping the port's future, and I'm sincerely grateful for

your dedication, expertise, and teamwork. Can I have the slides, please?

Stepping away from the broad look ahead, I'll now turn to today's updates, beginning with New

Year's Eve on the waterfront. Despite rainy conditions, thousands of people welcomed 2026

along the waterfront, and I'm proud to report that the port helped host another safe and

successful New Year's Eve celebration. We even got to see the fireworks, despite Mother Nature's

best efforts to hide them. The port was also home to New Year's concerts at Pier 80 this year.

Our Southern Waterfront saw 70,000 people come together at our Pier 80 facility for these

concerts, and the events generate over $11 million in economic impact. The positive outcome from all

the New Year's Eve festivities reflects extensive planning and coordination among our maintenance,

maritime, and security teams. Pier 1 served as the operations center, and I want to thank everyone

who worked on New Year's Eve and supported the effort in the weeks leading up to the events.

It's the behind-the-scenes work of port staff that makes these moments possible while keeping

the public safe, and they delivered once again. I also want to commend these very same teams even

further, because at the same time as we were gearing up for these great celebrations,

we were also providing an exceptional storm response to the series of events that happened

in December and January. The port exemplified teamwork, collaboration, and that unmistakable

can-do spirit, with several employees even working on Christmas Day to ensure the waterfront

was safe and clean for the thousands of people enjoying the holiday season.

These storms underscore why resilience remains a core port priority.

In that vein, port staff hosted two public engagement efforts focused on royal tides,

also known as king tides.

In December, more than two 600 SFUSD students visited the waterfront to observe tidal conditions

and explore tiles from the port's living seawall pilot.

We thank our partners from the Exploratorium, SFUSD, and the Smithsonian Environmental Research Center.

And of course, in January, weather conditions brought even higher royal tides,

with some flooding of the Embarcador bike lane and one of the travel lanes northbound near Pier 14.

While this level of flooding is not totally unusual,

and we have a good operational playbook with our sister agencies to keep the public safe,

It does focus our attention on the important work the Waterfront Resilience Program is doing

to plan for the future line of defense as sea levels rise and these impacts become more frequent and more severe.

In that regard, the San Francisco Waterfront Flood Study continues to advance.

In December, we completed the U.S. Army Corps of Engineers Agency Technical Review

and the final Integrated Feasibility Report and Environmental Impact Statement.

A lot of work went into these important documents, and this month we begin the Army Corps Policy Review

and look forward to welcoming Senior Army Corps leadership to the waterfront in February.

Last but not least, our busy waterfront resilience program is also participating in the Water Futures exhibition

from January 8th through January 25th, including a public event on January 15th.

As I mentioned in the opening, the port is actively supporting a series of high-profile waterfront activations tied to Super Bowl 60,

reinforcing the waterfront as a premier destination for major regional and international events.

this includes hosting Wasserman lives NFL sanctioned premier event featuring

large-scale night night nighttime projections on this iconic ferry

building that will transfer from this landmark into a centerpiece of Super Bowl

programming additional coordinated events are planned at Pier 39 and

throughout Fisherman's Wharf these activations will drive visitation

generate economic activity and showcase San Francisco's waterfront to a global

audience. To take a step away from the prepare remarks for a second, being engaged with the city

on this event, it reminds me a lot of APEC and how much went into sort of putting our best foot

forward there. And the thing I'm most excited about is that event in some times and in some

places was meant to keep the public away. And this event's trying to bring the public in. And I can't

wait to be down here on the waterfront seeing that energy that whole week, but especially that

weekend. And I encourage everybody to come down. Please take transit. There's going to be a lot of

people around but it's a time to be here and it's a time to really see what's

what's great about San Francisco turning now to an exciting development we had

crab season delayed but it did open last weekend down at Fisherman's Wharf we had

a tremendous turnout for the first off-the-boat crab sales opportunity at

Wharf J9 off how else come away and we were happy to be joined by our district

three supervisor Danny Sauter for the event also the port launched a new pop-up

up fish market in Fisherman's Wharf, responding directly to public interest in purchasing locally

caught seafood at the waterfront. Operations began Saturday, January 10th, and will continue

every Saturday through the spring at 101 Al Skoma Way. Beginning January 17th, the market will also

offer on-site cooked dundas crab sourced directly from local fishers. Operated by the fishing

community with support from the Fisherman's Wharf Community Benefit District and the port,

this initiative supports local livelihoods while enhancing the wharf and the visitor experience.

Also in Fisherman's Wharf, we continue advancing Fisherman's Wharf forward.

Demolition work has begun on the former Aliotto's restaurant.

Work to salvage equipment, shut off utilities, and remove hazardous materials began in November,

and exterior demolition is now underway, as shown on the slide here.

With the completion is expected in January, and the port's goal to open a new public plaza on Taylor Street in summer 2026 is on track,

featuring seating, picnic tables, interpretive signage, lighting, landscaping, and space for food and beverage service,

all just in time for our tourist season.

Here at the Ferry Building, I want to highlight the third annual Black Holiday Market held on December 13th.

The port partnered with FoodWise to host this event, welcoming Mayor Daniel Lurie and members of the public.

The market supported 15 local Black-owned food and craft businesses by reducing barriers participation

and one of San Francisco's most visible marketplaces.

This effort is part of FoodWise's Building Equity program,

which has helped 17 black, indigenous, and people of color entrepreneurs

become permanent Ferry Plaza farmers market vendors.

The port values the partnership and works forward to continuing work

that supports inclusive economic growth.

Turning a bit to the south, the Mission Rock neighborhood continues to attract new businesses.

In 2026, we expect several new tenants to open, including MNT Studio, Apolati Studio, and Chipotle.

Fieldwork Brewing Company has also begun operations, expanding from its Berkeley headquarters

and adding to the exciting energy of the growing Mission Rock neighborhood.

I encourage everyone to check it out.

Further south, Crane Cove Park saw exciting improvements in December as well.

On December 12th, Supervisor Shimon Walton, Commission President Gail Gilman, and Port Staff

celebrated the opening of the new children's play areas and dog run.

Despite funding challenges, the port delivered these long-plan features,

enhancing a popular waterfront park for families and the surrounding community.

And all of that equipment got used from, like, minute one after we cut the ribbon.

It was pretty awesome.

Finally, I want to highlight how partnerships continue to bring art and vibrancy to the waterfront,

with two new attractions opening this week.

In partnership with the San Francisco Arts Commission,

the port recently completed installation of Mareas by artist Ana Teresa Fernandez at Pier 27.

Funded by the 2012 Parks General Obligation Bond, the artwork is now part of the city's

civic art collection. A ribbon cutting will be held on January 16th at noon. In addition to Mareas,

Pulse Portal by Davis McCarty will be installed this week on the south end of Pier 27. This

temporary piece is the newest addition to the biggest art loop portside, the newest addition

to the big art loop portside, and we expect even more pieces to arrive over the course of this year.

We are honored to partner with the Mayor's Office and the Sabrandi Foundation on this valued

initiative, bringing even more energy and creativity to our beloved Bay waterfront.

But Pier 27 isn't getting all of the shine. As many of you have already seen, last month,

the Beneath the Bay mural at Pier 19.5 was unveiled. One of the largest murals

Commission citywide. This mural is delivered in partnership with Levi's and 1AM projects.

Celebrates the Bay's history, communities, and natural beauty.

Two final items before I conclude. First, I'd like to thank the Port Commission for the item on today's agenda,

codifying the use of remote public comment in the Port Commission's rules of order.

The Port benefits greatly from engaging with the community, and our work with the public through meetings of this commission

and our advisory committees is critical in creating pathways towards a portfolio that is more responsive to the needs of the city.

Allowing the public to be heard remotely when they cannot attend these meetings in person is a great thing for the commission to safeguard going forward.

In that same vein of community engagement, I would like to announce to the public that the port will hold its two-year fiscal budget public hearing on Tuesday, January 27th.

We hope our stakeholders and the public can join us for the informative meeting and to share their input as we look for building an even better port.

That concludes my report, and I'm happy to answer any questions.

Thank you.

Thank you, Mike, so much.

I'm now going to open it up for public comment on the acting director's report.

Is there any public comment in the room on the acting director's report?

If there is, please make your way to the microphone.

I am not seeing any public comment in the room on the acting director's report.

Jenica, do we have any public comment on the phone?

I do have one caller.

Hi, caller.

Please make your comment on the acting director's report.

Hi.

I'm not sure I was told to go.

I did have a comment.

Thank you, Mr. Martin, for your very great overview.

You did mention the port's communications with the U.S. Army Corps and that you're expecting to do further documentation in January on policy.

Is there any intermediate time plan for when the U.S. Army Corps says, okay, this can go to Congress now?

Or, you know, is there a light at the end of the time or calendar date?

With the permission of the commission, I'd like to answer and say this is a critical year.

This next set of reviews will hopefully finalize the report for the consideration of the chief of engineers.

And it's his decision on whether to send it to Congress, but we're very hopeful that that will happen this year.

Great. Thank you very much. That's it.

Thank you, caller.

Jenica, is there anyone else on the phone?

No other callers. Thank you.

Okay, then public comment is closed.

Commissioner Lee.

great report

especially the beginning of this year we got so much to

be thankful for for 2025 and

already things are moving with the removal of the

Alioto sign which is kind of interesting because I've lived with that

coming to San Francisco when I was a teen now to see it

gone but then again to look at what the possibilities are especially

with all the news and all the happy faces of the fishermen

selling off the boat. At least it now opens the door that we can actually

see it from the middle of near Pier 45.

But I just want to comment that the entertainment part of it

is going to help, and we're probably going to end up doing more, I'm sure,

to help bring a lot more attention to the port,

which is really moving forward. I'm happy about that. It seems like

with that many people and really no incidents to report is really good.

I think what we've got to really look for is, as we are focusing on Fisherman's Wharf forward,

is to more support for the fishermen.

It looks like with always the delay of crab season,

I'm actually talking to a few people in Sacramento to see if we can even extend their food.

fishing their crab season a little bit longer because of the delays, but you know how long

that takes. I think we've got to work on more newer opportunities that we still got some empty

storefronts, but I think the good thing about it is that our wharf, our waterfront is feeling very

comfortable and safe. There's more people running on the promenade, so I look forward to more public

safety measures and making sure everybody feels comfortable so we could fill those empty storefronts.

That also helps us increase our revenue.

We've got to think outside the box.

And I saw on the mayor's Instagram yesterday interviewing one of the actresses that came up.

They're shooting a movie in San Francisco.

and she mentioned that we need more sound stages in the city

so we could bring more movies back or a TV series back to San Francisco.

I remember the days of Nash Bridges being shot on the port.

I think we do have some empty shed space that I've been pushing

to see if we can even have a studio in there, whether it's temporary or what,

so I think we should look at that.

and I think beyond that I mean we have a lot of work to do I look forward to

to doing it but I think there's a lot more opportunities for this port and

we're going to be that model to bring more commerce to the city and I think it's working

and I'm glad to be on this commission to help you and the staff and we have a great staff and the

rest of the commissioners so thanks for the report look forward to 2026.

Thank you.

Commissioner McNeely.

Yes, Mike, thank you for that report.

Excellent.

I'd like to thank you publicly and the staff for all the great work that you and the team did around the holidays,

specifically New Year's Eve, being away from your friends and family during that time,

but making sure that the waterfront was safe for all residents,

and also additionally during the storms as well, significant impact.

We continue to be reminded of the need for our resiliency plan,

and every time we have a storm like that, it's a constant reminder.

So I appreciate the work that you and the team have done around that

and keeping us all informed and the work that you will do in the future

around the Super Bowl, the upcoming Super Bowl,

and all that will be entailed in that

and showcasing what a great waterfront we have

and how it really symbolizes the Phoenix of the city returning.

So I appreciate all the work that you and the team have done around that.

Thank you.

Commissioner Adams.

Yeah.

Mike, excellent report.

My fellow commissioners have highlighted several things.

But, yeah, the work of the viewing of staff and the team,

And that was a lot of rain we got, but we needed it, right?

It was really good.

But it's also good to feel the vibrance of the port coming back.

You can really feel that.

And I'm really excited about 2026.

I hope it's a year of high octane.

President Gilman, Vice for Emblem, congratulations on your re-election.

And it's awesome that we're going to have the Super Bowl here.

I'm hoping the 49ers will be in the Super Bowl.

That would even make it sweeter if they make it.

And they definitely did go to Philadelphia,

and they definitely did silence some critics.

But now they're going to be up in my own stomping grounds in Seattle

to see what they do up there.

But I think they got a good shot.

I'm really glad about the crap season finally coming to fruition.

And then the third annual black holiday market, that's really good.

And then I just want to acknowledge Demetrius Williams.

Demetrius is the current president of Local 10,

and I want to thank you for working with Mike and former director Forbes and everyone.

Demetrius will be leaving office as the president of Local 10 as they have in their elections,

and Mike Villagiani will be the new president, and I hope he introduces himself to you.

Mike, I know Andre knows Mike Villagiani and the Villagiani family.

They've got about 50 members of their family in the union, so you can't help by knowing them.

And so hopefully that will continue to work. So thank you.

Thank you. BP emblem. Thanks, Mike. Great report. I guess what was coming to my mind, just sort of, you know, layering on what other commissioners have said is that I think the through line between being able to talk about these sort of, you know, making it look easy during a very difficult season is the constant work.

and not just near-term stitching together the short-term,

responding to things that are beyond our control,

but being able to do that, being on the front foot,

and you mentioned that this is five years' worth of work being prepared.

I think that's a really good thing to remember,

especially in the face of the work with the Army Corps.

We have got to keep up the urgency,

because these plans sometimes feel like people get numb to thinking about them

because of such long time frames and such big budgets.

But the reality is we're the front line of the entire city being able to talk about

being an economic success turnaround story.

If it weren't for the preparedness of the waterfront, we really risk all of that.

And so I think that's, you know, just thank you to the team for not just the short term being there during the season,

but also the, you know, running the marathon of working on these plans and keeping the urgency afoot.

So I think that's, you know, just what came to my mind.

So thank you for everybody for all the sustained efforts.

Thank you.

Thank you, Mike, for an amazing sort of look back and look forward to what we have ahead in 2026.

I'm really excited.

Fellow commissioners, thank you again for your faith and confidence in me.

As president of this commission, we have a year of a lot of work to do.

I really also want to echo all the comments of my fellow commissioners and uplift that I had the opportunity to be at the ribbon cutting at Creighton Cove Park,

to be at the Black Makers Market and to, well, I miss most of the fish because I'm not a morning

person, to see the activity and vibrancy on Saturday along the Fisherman's Wharf and the

Promenade. And there is just so much happening down there. It is back to life. And a little

disconnect for me, I don't understand why, but line out the door for the new Taco Bell.

So if you want to go there too, you need to get there early. So really excited for everything

that's happening both on our southern, central, and northern waterfronts.

I also want to echo one thing that Acting Director Martin said,

which I think is so special that we're going to codify on our consent agenda.

As far as I know, and I should be corrected if anyone knows differently,

we're the last commission in the city and county of San Francisco

that allows remote public comment.

And I'm sure for many people,

to come down here at 315 on a workday can be a challenge.

and the fact that we feel so strongly as part of the public trust,

as part of the Burton Act,

to have participation from the residents and those who use our waterfront,

we are codifying remote public comment as part of our rules to order

so that one day when I'm not on this dais

and I'm just kicking back drinking a beer at Taco Bell

and sitting in the plaza,

I can call in for public comment on my cell phone

to let my thoughts known in about a decade.

No, I'm joking.

But I think it's just really important to really realize how much we offer through our advisory committees

and all the hard work of the hundreds and hundreds of volunteers that help us shape the waterfront every day.

So I just did want to say that before I end my remarks.

I also do want to say equity is also still part of our director's report, and it was touched on.

But I do think we'd be remiss as a commission if we did not acknowledge what's happening right now in this country, in Minneapolis.

And so I want to extend my solidarity and support to the hundreds of people in Minneapolis and in St. Paul who are standing up to injustice and standing up to protect their neighbors every day.

As someone who holds a civic post here in the city and county of San Francisco, and I think our namesake, St. Francis, would want us all to do the same.

On that note, Jennica, next item, please.

Next item is item 7, the consent calendar.

For callers who wish to make public comment on the consent calendar,

please dial star 3 to raise your hand to comment.

7A requests authorization to advertise for competitive bids

for construction contract number 2892,

Mission Bay Ferry Landing Phase 2B and Agua Vista Park

for an anticipated contract amount of $26,500,000.

This is resolution 2601.

Item 7B requests approval to execute an amendment to the professional services contract with Cowie OLMM Joint Venture

for architectural and engineering services for the Mission Bay Ferry Landing Project

to extend the contract term through June 30, 2028.

This is resolution 2602.

item 7c requests authorization to enter into a memorandum of understanding with a term of 66

years between the port of san francisco the san francisco public utilities commission and the san

francisco fire department in connection with the construction operation and maintenance of new fire

suppression infrastructure located adjacent to the mission bay ferry landing near the intersection

of 16th Street and Terry Francois Boulevard.

This is resolution 2603.

Item 7D, requests for approval of amendments

to the Port Commission rules of order

to codify remote public comment

and incorporate inclusive gender-neutral language.

This is resolution 2604.

And item 7E, requests approval of a proposed retroactive

no-fee license to use South Beach Harbor

with the Bay Area Association of Disabled Sailors, Inc.,

for approximately 2,892 square feet within the Pier 40 shed,

and no-fee berthing agreements for six berths,

approximately 750 square feet of dinghy dock space,

two lockers, each for a term of 10 years,

commencing retroactively to July 1, 2025,

with two five-year mutual extension options

for the operation of an adaptive sailing program

for individuals with disabilities.

This is resolution 2605.

I have a motion to move the consent agenda.

So moved.

Second.

Thank you.

Is there any public comment in the room on the consent calendar?

If so, please make your way to the podium.

I am seeing no one in the room make public comment on the consent calendar.

Is there anyone on the phone?

We have no callers.

Thank you.

Okay.

Public comment is closed.

Commissioners, we have a motion and a second.

All in favor to move the consent calendar.

Aye.

Aye.

Consent calendar moves unanimously. Resolutions 2601, 2602, 2603, 2604, and 2605 are adopted.

Jenica, next item, please.

Next item is 8A, which is an informational presentation on PG&E Beach Street offshore sediment remediation projects.

For callers who wish to make public comments on this item, please dial star 3 to raise your hand to comment.

Thank you good afternoon commissioners my name is Catherine Purcell I'm a project manager in the

port environment on and planning division I'm pleased to be here today to provide the

port Commission and our public an informational update on the PG&E remediation Beach Street

offshore project. This work is being performed by PG&E in compliance with

requirements under the San Francisco Bay Regional Water Quality Control Board

with the port cooperation and oversight. I want to give my appreciation to Luke

Vernagallo here today from PG&E supporting us and for his team's

continued commitment to this project a brief overview today I'll cover a

little bit of project background regulatory requirements outreach and

engagement and and then I'm really going to focus on the 2025 remediation work

that's just been completed as shown on this slide the site is located on the

ports northern waterfront, and it sits between Pier 43 and a half to the north, or to the

west, I'm sorry, and then moves east to 43, 41 and a half, and the west and east marinas

of Pier 39.

A little bit of background.

In 2011 and 2013, polycyclic aromatic hydrocarbons, what we call PAHs, were identified during a

pre-maintenance dredge investigation within the marinas.

Subsequently, PG&E, with the poor cooperation,

completed over five years of remedial investigations

to determine impacts from a former Beach Street manufactured gas plant

that sat just upland from the offshore area along Beach Street.

By the end of 2021, we had completed the remedial investigations

and a feasibility remedial action plan that basically recommended cleaning up the offshore area by dredging and placing capping of over a thousand feet of offshore area.

briefly the san francisco regional water quality control board is our lead agency for this site

and in february 2022 you may recall they issued an order to compelling pgne as the primary

responsible party for the pahs and the port is the property owner to complete remediation

and implement the work plan.

What you see on this figure here is a view of what we call our offshore remedial areas.

We basically have five areas, A through E, again, starting at Pier 43 1⁄2

and working your way east to the East Marina.

The timeline for the cleanup is basically to initiate remediation in 2025,

and then each year progress to the east to complete the other remedial areas.

Importantly has been outreach and engagement.

The key to success of such a complex site with a long-term timeline

is briefings and communication with the agencies,

with the advisory committees, and with our stakeholders.

When I was last here to provide you an update, it was, I think, July 2024.

Since that time, we have continued to work with the Water Board to implement the design.

Port staff have worked with PG&E Project Team on over 42 progress meetings, working with tenants directly impacted by construction.

This has included San Francisco Maritime National Park Association,

who sits at Pier 45, where the USS Pomponido is docked,

Red and White Fleet at 43 1⁄2, Blue and Gold Fleet moving over to 41 1⁄2,

and then in the future with Pier 39 West and East marinas.

What's critical here is that each remedial area,

the team has worked to identify and minimize impacts to the tenant operations

and the community uses in each of these areas.

I'm going to shift now and kind of share with you what we accomplished in 2025.

Remediation of Area A and B, as you see here,

we had to start by temporarily relocating the red and white fleet,

which sits right on top of where PG&E needed to remediate Area A.

And in order to move red and white over to Pier 45, we first shifted the Pomponito north on Pier 45, followed by the red and white fleet.

That work took place as scheduled this past January through May 2025.

Immediately following that, PG&E began mobilizing waterside equipment and installing all of the environmental controls, monitoring devices, temporary piles so they could put up turbidity curtains.

And then they brought in, as you see on these photos, kind of a floating city of construction equipment.

This is pretty amazing to see this kind of equipment directly offshore of our promenade and our public access walk area.

As soon as they removed our permits where you can start in water construction June 1 of each year,

they began removing debris and dredging impacted sediment.

And what the photos show you are the different pieces of equipment where you have debris buckets scooping up the debris and putting it into scows.

And then you do clamshell dredging where you have to very methodically dredge bounded lateral and vertical areas to bring up sediment.

What was so challenging with this work is all of the dredging and the debris removal work was conducted inside a zone of turbidity curtains per the permits,

and then the scouts were moved further over and transferred to larger equipment for off-site disposal.

What this figure shows you is the sediment ended up going to a material handling facility

up in Montezuma, which is about 50 miles up the delta near Collinsville, California.

And so once PG&E had removed debris and removed the impacted sediment and put it in water-bearing

scows. They transported it up and handled all of the dewatering and eventual disposal from Montezuma.

While that work was going on, they then turned to putting in slope stability pen piles. These

are basically 25-foot timber piles. About 120 got installed along the barrier of near the shoreline

of 43 and a half, and this was really a post-construction measure to ensure strengthening and stabilize

slopes if there was a future earthquake.

And then finally, the capping.

After you've taken out the contaminated sediment and the debris and you've put in the pen piles,

the areas were capped with a clean sand layer, and then on top of those varying areas of

what we call armor stone.

and these show you the material barges that brought in the different material

and the placement very methodically of the cap.

And then finally, in November, all of this work was performed basically June 1 to November 30.

We had to be out of here because of the permits.

All the turbidity curtains came out, the piles, and all marine equipment was demode from the site.

I think what's truly remarkable about this level of a construction project in water was all of the compliance monitoring that PG&E's team were very diligent in implementing.

That was water quality, air monitoring.

They worked under a noise ordinance.

They worked with a marine mammal monitoring and then dust vapor and odor control.

They also implemented their own health and safety and transportation plans.

We had, I don't think we had any public complaints.

We had quite a bit of interaction with the public and communication

and all very interested in what the work entailed.

You know, the stakeholder coordination,

both leading up to the implementation of construction through this construction season has been critical.

We had an information kiosk that PG&E's communication firm manned,

and they were getting 30 to 40 inquiries a day from tourists, tenants, public,

wanting to know what the equipment was doing, what the project was about.

We had signs posted.

We did coordination with the Marine Mammal Center, in-person briefings,

and a plethora of stakeholder emails on progress every two weeks,

and then weekly updates came to the port and to the water board.

And that concluded the work in 2025, successfully, safely,

and without environmental problems, which is remarkable.

I think where we go from here, as you're interested in, our next step is we march to the right to Area C, and Area C is the Pier 41.5 Blue and Gold fleet terminal.

and pretty much the work I've just walked through that was completed in 25

will be repeated in 26 mobile will be mobilizing June 26 performing

remediation through November 26 and then put blue and gold back following the

completion so with that that's pretty much my update on you know construction

Project completed phase one and we'll be moving on in 26 to the next phase any questions

Well Catherine thank you so much for your report before we go to Commissioner questions

We're going to actually open up for public comment because it's an informational item

So you can sit down for a minute and then we'll see if there's any public comment and then we'll see if there's a

Commissioner comment. Thank you for your report

report so is there any public comment in the room on this item before we enter

into Commissioner just make your way up conversation thank you I'm Ellen junk I'm

here as a co-chair of the maritime Commerce Advisory Committee and also

here personally I've been a consultant and on continuing as a consultant on

this project for a few years now and I have to say and I want you to know I

I have been so impressed with the leadership by the port staff and communicating with the tenants.

It's been a horrendous job and very complicated permit process, and they have been absolutely terrific,

along with the leadership of PG&E, Luke, and his staff.

They've been absolutely terrific, and this process will continue.

And I really want to have us all at some point – where's Catherine?

Where did she go?

There you are.

make a presentation to the Bay Conservation and Development Commission

because we are, with the port and all, saving the bay.

Thank you.

Thank you.

Is there any other public comment in the room on this item?

Okay.

Jenica, do we have any public comment on the phone?

We do not.

Thank you.

Okay.

Now public comment is closed.

Commissioner McNeely.

Oh, sure.

I think I just had my question answered I was going to ask Catherine about the

impact on the the lessees in the area and and whether or not they felt

supported and sufficient communication but I think I've just heard that but

that because of the great work of you and our friends at PG&E it seems like

the outreach has been thorough thoughtful and consistent so thank you

for that. Commissioner McNeely, I would also voice that we have spent the past five years meeting with

and identifying temporary impacts to tenants and working with PG&E on cost reimbursement agreements

for tenants directly impacted. And that has certainly gone a long way in helping temporary

relocation and put back and interruption to any business during the project. Thank you for that

and kudos to PG&E.

Thank you.

Commissioner Lee, do you have any comments?

Yeah.

So when you get to Area D, I'm just curious for my own, maybe some of the public.

So the nonpaying tenants like the SEALs?

So when you move into that area, I'm sure, I mean, you're not going underneath what they lay,

but I'm sure with all the equipment and everything, how does that impact the SEALs?

And would you do that mainly maybe the work more in the winter where they're not coming?

Or how do you guys coordinate?

I'm just curious how do you work with the Mammal Center so there's less impact there?

Very good question.

Area D, which is the West Marina at Pier 39, which houses the docks where the sea lions love,

that's going to be a more complex staging and organization.

We're currently working with PG&E, Port Maritime, Port Real Estate, and tenants on how we put our so-called floating city,

and probably it'll be on the other side of the breakwater.

And then per the permits with all of the NOAA Marine Mammal, National Marine Fishery, and other agencies,

there are setbacks requirements for work that can take place in proximity to those docks.

So the design will all meet those requirements.

Unfortunately, all work has to be completed between June and November.

And so the minimization and mitigation measures and the marine monitoring will all take place to ensure that there are shutdowns if there's problems with noise or impacts.

But otherwise, the project is designed to address that concern.

So basically you're going to move their little docks further away,

and so there's no place where they can actually land during the construction?

No, the docks that the sea lions currently reside will not get moved.

They're not in an area that has to be dredged and remediated.

Most of that is closer to the shore.

I see.

So we're going to work to the west and to the south of the sea lions

and keep the distances required.

I mean, they're quite large.

I mean, how do you keep them from wanting to go there?

I mean, it's like their home, right?

Yeah, I mean, they could continue to cohabitate and not be impacted.

There are technological requirements for pile driving, soft start, bubble curtains, et cetera, to minimize noise.

Noise is the primary impact.

And then you do the work during the work windows.

I see. Do you know when, I'm sure in the summertime you get the most migration there, but is it a lot less in the winter?

They move on to certain points?

It's typically very, very quiet June, July, and starts to pick up in August, September, October.

So we'll try to do as much of the work in advance to when they return to the docks, which is August time period.

I see okay it's very based on weather fish etc all right okay that's all the

questions I had again be great if you can do it before they all come in but you

know how that goes I know construction they're very curious yeah okay thank you

mr. Adams Catherine the only thing I have to say is job well done excellent job

from you as a project manager and the team and the staff excellent work and

And I'm looking forward to the work that you're going to do at Pier 41.5 in Area C.

Thank you.

VP Emlum.

Catherine, thanks for the presentation.

Sorry, VP, could you use your mic, please, so we can hear you better?

Thank you.

How's that?

Much better.

Thank you.

Catherine, thank you for the presentation.

I guess I have some questions about how does this important work dovetail with, say, the sea level rise work?

Because I think my sense is that this is a very good kind of engineering, very technical report that is very complex,

and you helped us understand it.

But I think there's a communication story here

that we could leverage to tie to the importance

of this being enabling work that has to be done

as we advance into this multibillion-dollar seawall program.

And I guess I have a lot of questions like,

if this work is done, I assume,

or it's work that doesn't have to be undone when we do the seawall, right?

So I think that's a really important message to get out to the public.

And I think it's a way for us to maybe even communicate with all of our strategic partners

in the really important year ahead that we just heard about,

what a critical year it is to talk about,

that we're already taking action with strategic partners like PG&E to get this work done.

And I guess I would just ask that, you know, we put a sort of economic development and a long-term strategic communications overlay on everything that you presented today and just come back with a how do we communicate this to strategic partners for that work.

And then also I feel like there could be a really interesting communications program for all the tourists that are walking by to say, you know, this is now clean for our seals or for people to swim in.

You know, it's like, you know, if we weren't to do this work, what's at stake?

Like somehow just communicate.

Like I feel like there's a really big opportunity here.

like this is very technical and very meaty, but I think we need some way of maybe there's

a sister document to this that is already doing that.

And so that's kind of my kind of overlaying comment.

So thank you, but also a little bit of a challenge.

Or let us know that that's already in play, and that would be fantastic.

Yeah, we have collaborated extensively with our resilience program on the design and the

work here to be performed in advance of the resilience and outside of the footprint with

the intent not to disturb the remedial remedy post-construction.

We could also definitely review some benefits and other components to the program in future

presentation.

Great.

Thank you.

Catherine.

Commissioners, I'd like to chime in on this because it's a very interesting and good point.

First of all, I really want to commend PG&E for the work they did on site.

It became this great attraction of what's happening offshore,

and normally it's like I'm worried about what's being cleaned up,

but people saw the improvements happening.

But, VP Englund, your connection to the resilience plan is very apt

because one of the rules of the Army Corps' partnerships with local sponsors is

the local sponsors are obligated to see through the cleanup.

The federal project does not take that.

They want a clean site to work on.

And so the port is a place that a lot of industrial, a lot of fueling,

a lot of heavy things have been done over time,

and there's a lot of hot spots we're going to need to work with the responsible parties to clean up.

And I'd like to hold this out as one of the great opportunities or the great examples of how to do it.

I think it's gone really well.

I think there are things we'd love to improve, including how challenging it's been for them to dispose of the materials.

But ultimately, this is going to dovetail with the resilience program very closely, and I think your point is a really good one.

Catherine, thank you so much.

I just have sort of more observations than questions.

So I just want to say, first of all, like really great job and all the coordination.

and I think sort of dovetailing off VP Emlyn's comments,

and I think this is just more me, you know,

understanding that we are a small and mighty team of, you know,

only about 250 staff who do everything from dealing with the,

we heard earlier in today's meeting, you know,

the crisis of the environment that happened with the storms that came in,

having employees have to come in on their holidays and Christmas,

and we have a very small communications team.

I actually would like to put out there that I think PG&E,

since this is their responsibility,

and I think doing an amazing job

and I think could also use a lot more positive press these days,

and this is a positive thing.

Your communication team maybe could take the lead

and work with our team to kind of help navigate this narrative

around how this is contributing to all the work we need to do

around sea level rise and resiliency.

So I think I'd like to see it sort of in the inverse, PPMLM,

just from a capacity perspective,

that maybe PG&E can take the lead and coordinate with our team to help write that narrative and

write that economic impact since well it's not the people sitting in this room but the historic

reason of why we're happening this you know is because it is a PG&E responsibility I think they

could benefit from uplifting that they're doing this well and right in light of everything else

that's been happening in the city and County of San Francisco so I did want I did want to make that

comment and I did want to say your kiosk is someone who walks the waterfront all

the time got a lot of attraction because people actually did think there was ice

cream in there I was a little disappointed personally it was an ice

cream cart so but great gimmick and I do hope Catherine you can come brief us I

know it's years out or a brief the Commission before you get to the Eastern

marina okay I think we need to remember that that is the last marina in our

portfolio while we don't manage it that has live aboards and I think the

mitigation for them is going to be almost as much as our mitigation for our

sea lions and for our mammals but I mean the impact for the individuals living on

those boats is going to be very different than the Red and Gold Fleet or

Blue and Gold or the Pompania which our businesses so I'd love to see a game

plan for that prior to outreach so that we can be supportive and offer that

public venue for people if they have concerns.

Well done.

Thank you.

And I also wanted to say when

VP Emblem brought that up, you should have seen

Brad. Brad almost came out of his chair

because a light bulb

went off and I could see him back there. He's about

ready to get up and hit the mic on what

you said, tying the two in.

So that was excellent. But I just saw

Brad. He's like, yeah.

Hopefully in a good way.

I think Brad gets excited whenever we

talk about resiliency. Yes.

Yes. So thank you so much for your presentation.

Thank you.

Jenica, next item, please.

Item 9A is an informational presentation on dry dock number 2

and the emergency declaration for stabilization repairs and future demolition.

For callers who wish to make public comments on this item,

please dial star 3 to raise your hand to comment.

Good afternoon, President Gilman, VP Engblom,

Commissioners, Acting Director Mike Martin, and members of the public.

My name is Andre Coleman, and I'm Maritime Director, and I'm joined by Wendy Proctor,

Deputy Director of Engineering, and Megan Wallace, Interim Deputy Director of Finance and Administration.

This is an informational presentation on dry dock number two and the emergency declaration for stabilization,

repairs, and future demolition.

We were last before the Port Commission in 2024 for an item on the dry docks regarding the supplemental appropriation.

As a reminder, just as far as the ship repair facility and the purpose of the dry docks then,

traditional ship repair facility that operated for over 150 years up until 2017 when operations ceased.

once the then operator of the shipyard closed its doors the port issued

unsuccessfully two RFPs following the closure for a new operator we then moved

to a sole source solicitation which was unsuccessful and in 2023 we shifted our

focus to sale of the dry docks with two unsuccessful RFOs and then another

sole source opportunity. On slide number two you'll see the dry dock, dry dock

number two and Eureka. The focus of this presentation is on dry dock number two

over 900 feet in length and 200 feet in width. I mentioned the abandonment or

the discontinuance of ship repair in 2017 and the multiple efforts that the

report is made to reactivate the shipyard facility.

So as I mentioned, in 2023, we shifted our focus to the sale of the dry docks with those

two RFOs being unsuccessful, then leading into a negotiation, sole source negotiation

with Desan Shipyards, who is a foreign entity.

However, given the complexity of those negotiations, we discontinued those discussions, and here

we are today.

I will say throughout all of the efforts that the port has made that I've just described,

we have continued with interim leasing at the site with both maritime and non-maritime tenants,

along with the essential caretaking of the property,

primarily with Port Maritime staff, Pier 50 staff, and the engineering team.

And with that, I will turn it over to Wendy Proctor,

who will provide a detailed timeline of action taken by port

to address the deteriorating condition of the dry dock.

Thank you, Andre.

Good afternoon.

President Gilman, Vice President, fellow commissioners,

Acting Director Martin, Wendy Proctor, Deputy Director of Engineering.

I am joined here today by Tony Abouyani,

who is our DPW partner, project manager, helping us out with the project.

We're very grateful for their assistance in this emergency contract.

Previously, Patrick Forrester was also here.

He's our boots on the ground, calmly handling the issues at Dry Dock on a day-to-day basis.

So here on this slide, I will sort of go into a little more depth

about what's been happening with the dry dock over this period of time

since the shipyard has closed, as Andre had described,

from an engineering perspective.

So in June of 2021, we had one of our first emergency contracts

to stabilize a crane that the top was spinning uncontrolled,

so we had an emergency contract to pin that down.

And then from there, that prompted us to, we had another listing event shortly after that,

and we hired a dry dock expert to do a condition assessment in May of 2024 that was reported,

which then in turn provided the information that we needed for which mobilized the team,

the port team and Nate Cruz to come to the commission in October for that supplemental appropriation

because it became clear that report gave us the information we needed to know how much it was going to cost

and what effort it would be to take care of this dry dock.

From there, once we got that funding, we were able to bring on and reengage with the GHD Structus Joint Venture contractor,

along with Herbert Engineering and B.K. Cooper, to prepare a conceptual work plan and cost estimates for removal designs for the DryDoc 2 and Eureka.

and then meanwhile we have now had yet another

and there was one other small emergency contract for a stair tower demo

which was another listing event where the dry dock had hit the stair

and was at risk of taking out the power source that feeds the pumps

which is essential.

So from there, then we had this most recent listing event,

and the consultant team who's helping us with these conceptual plans is now helping us to respond to the emergency.

And let's see.

From here in the timeline, we have now a report from the conceptual design,

and then we'll be in the future continuing to work on the demolition project.

This is a slide that was included previously in the October presentation,

but I want to point out a few things here.

So the east side is where we have the bulk of the damage and the tears.

It's open to the water.

It gets a lot of exposure, and it gets hit pretty hard by the water.

So we have that worst-case scenario in that pump number 40,

which is in the upper left-hand area of the slide,

which also has an inoperable pump.

So that's especially troublesome when we get a lot of water in storms.

And then in the right-hand side, that area also has a lot of tears,

and valves that aren't working.

So that area is also listing.

But also I want to point out in the bottom of the slide,

there are four circles along there,

and those are the four mooring points,

which is the sole method in which this dry dock is pinned down.

So that means that there's just these four points that keep it in place.

So this photo is representative of what a listing event looks like.

So this is, you can see, quite out of level.

When you have these listing events, many things can happen.

You're stressing out the mooring points because you're seeing it's tilting towards the east.

The mooring points are on the west.

It's pulling on them very hard.

and in addition it might hit like the stairs or other it's also damaged these some of the

dolphins that hold those mooring points so this most recent listing event that we had in november

we had the first storm of the year and significantly listed and we had to install

some auxiliary pumps but with that first storm we had the already known tears became larger and

then we got some new tears and then also the dry dock flooding created what we defined as an actual

emergency which I'll explain a little bit further in these next slides so thank you to the commission

and all who helped sign that declaration so that we can make some emergency repairs

to address the uncontrolled flooding of this vessel.

So as an immediate response to this most recent,

the pumps that were existing were no longer adequate on their own.

So the port staff brought on auxiliary pumps, industrial size,

along with additional staff to operate them.

After the most recent king tides, we have now gotten to a point where we're doing 24-7,

so our emergency contract is very timely.

And in the emergency contract, the contract will be addressing dewatering as a priority.

so this is kind of to make to the the emergency declaration

sort of made points on three three key issues of the uncontrolled flooding so you can see in the

photo we have some pretty significant size tears that are where water is able to enter in

this is middle photo is what the mooring keeper looks like and it's it too is in a corroded state

of corrosion, so there's only four of these, and the risk is, with the uncontrolled flooding,

that these could tear off and cause the vessel to go adrift.

And I just was doing a comparison of what the size of this dry dock is, 900 by 200 feet,

is actually bigger than this ferry building, which is sort of an interesting concept.

Ferry Building is 659 feet long, and this is a 900-foot vessel.

The other thing that's a concern is these wing walls have cranes on them

that are tethered to rails on that wing wall.

So with listing events, those two could be at risk of falling.

So we want to get those stabilized.

So just a timeline on the emergency contract.

So on the 9th, after we signed the contract on the 8th, we met with Public Works to mobilize the team on the emergency contract agreement.

and then we created a list of seven marine contractors.

So we outreached to them immediately.

The team met with them on site on the 18th.

And then on the 5th, we received proposals.

We received three proposals out of those seven contractors.

and then immediately the team that's working on this project reviewed those proposals and based on

because it's an emergency contract we are looking at approach we're looking at experience we're

looking at safety records resources available and the schedule that they would be able to do it in

so we had out of the three one very responsive proposal from power engineering construction so

So the team is now moving forward and working on a contract to go into contract with power engineering.

So that's in progress.

And they're anticipating that will be finalized by the end of this week.

And then we'll be able to sign that next week.

And meanwhile, all these things are, the actions are already starting to take place.

so something to sort of the question that comes up a lot is we're doing the emergency repairs

with this contract so we can keep this dry dock in place while in parallel will we will still be

continuing to work on design for the interim repairs that would be needed for the ultimate

demolition of the dry docks both dry dock to and the Eureka and with the

budget approvals then that helps us with the funding that we need to then come

back to the Commission later with the actual to advertise for that demolition

and then demolish and with that I'll turn it over to Megan who's it tell us

about the funding

Good afternoon, Commissioners.

Director Martin, I'm Megan Wallace,

Interim Deputy Director of Finance and Administration.

So I just want to be able to give an overview

of how we're paying for this work.

I don't know if we've actually referred to the bottom line

of how much we believe this is going to cost.

We're estimating $61.2 million

between this immediate stabilization

and then moving into removal and demolition

of both dry dock number two and the Eureka.

That's a sizable amount.

Not at my talking points, but just as a quick reference,

we're happy if we appropriate $20 to $30 million for our capital program each year.

So this is a sizable investment that's going to address major risk,

recognizing the exponential cost if any of these vessels were to submerge.

So just in terms of the benefits of us moving forward,

I just want to make note of those things.

This port commission authorized $18.5 million in October of 2024.

Additionally, we have $1.5 million available of BAE settlement funds,

so that gives us $20 million of initial funds to work with.

In December, Mayor Lurie helped us introduce a supplemental appropriation ordinance

to the Board of Supervisors.

We're now taking that through for board approval.

And so once those funds are in place, we will have $20 million.

We're anticipating $10 million will help us get through this initial stabilization phase,

give us some contingency for unknowns.

And then I'll be following up with you very soon, beginning in February,

following up with additional appropriations of $41.2 million in the upcoming capital budget.

I should note that we're anticipating the approval for the emergency contract will move faster than the supplemental appropriation ordinance

We've identified

Sufficient funding to help us in the short term so we can move forward with the contract as soon as we're ready

And then when the supplemental is in place will restore those funds to their original place

So we can follow the plan as shown on your screen. So I'm happy to answer questions. Thank you

Thank you, Mike. I mean, thank you Andre, Megan, and Wendy so much. So before we go to Commissioner comments, we're going to open it up. Is there any public comment in the room on this item? I don't see any public comment in the room on this item.

Jenica, is there any public comment on the phone for this item?

We have no callers. Thank you.

Okay. Public comment is closed. Commissioner Lee, do you have a question about this item?

Oh, yeah. So my question is right now, I mean, how we're pumping out water now. Is that using fuel like gas pumps? Are they hooked up to electricity? I guess what I'm getting at is, yeah, I'd like to.

Good afternoon Tim Felton deputy director of maintenance division so currently the dry dock has a series of onboard pumps that it was built with those are 12 inch pumps that run on electric

so it is running on shore power so that is our primary pump when it can't keep up or we have a storm swell that comes in and floods the some of the tanks on that east side we install the sick we have

We have right now two six-inch diesel-powered pumps that help get the water off so we can get that end back up.

So it's using diesel fuel?

Yeah, so it's an intermittent.

Oh, it's not on all the time?

Not all the time.

Okay.

So just when we get in an event where we take on a lot of water at one time we have to get off, we put in the six-inch diesel pumps.

Okay, so my question is, since we've kind of, we try to sell it, we try to haul it, we try to, you know, now we're patching it.

I mean, all this money seems to be going to waste.

And it says, why can't we just start to demo?

But the money we have, why can't we just start taking it apart now?

I mean, do you have to wait until all the funding's there?

I mean, obviously, we're not going to sell it to anybody.

and it's like if we're you know i remember when we appropriate the money last year it was like

millions of dollars just to patch a hole you know which i thought was ridiculous and now we waited

all this time and we're spending fuel electricity to keep this thing afloat already in the picture

it looks like it's sinking so i'm just curious that why can't we just use the existing money we

have and it's just either start dismantling it and a stockpiling the the materials that maybe

somebody will buy the metals.

It's just that, you know, trying to keep it afloat.

I mean, maybe at the next storm, the whole thing might just sink,

and it's going to cost us more money to bring it back up.

So I'm just – my question is, how come we can't just start demoing it now?

Well, you hit on that point.

You have to stabilize it in order to demolish it.

So, you know, we have the good fortune of actually being able to do this quickly

through the emergency contract, even though it's an emergency.

But regardless whether we didn't get the storms and it wasn't taking on water,

we would have to still stabilize it first and then be able to demolish it.

So we couldn't take off the sides and kind of make it like a barge

rather than start taking the sides, maybe take the crane off,

take the weight off the bottom so that it doesn't further sink

and then we've got to keep pumping water out of it.

Part of this is what qualifies as an emergency and what does not qualify as an emergency.

When we went through the decision-making process to get to this point of having an emergency contract

is the actual sinking of the vessel or going adrift or having a crane fall or, you know, those high-risk things.

So it wouldn't be considered an emergency to take some of the weight off?

Right.

But meanwhile, well, because it ballasts, it's designed to ballast.

So to get it stabilized, what's the estimate cost?

We have the emergency contract is for not to exceed amount of $10 million.

Wow.

Yeah.

But this will contribute to the stabilization needed for the demolition.

Then when I say interim repairs and demolition for the ultimate contract,

that is if there's additional repairs needed because between now and then more storms more

so do you think the 10 million will be able you know to before then you know what happened we get

started and then we get the 10 minute it just falls into the ocean and then we need another

10 million to bring it back up i'm just you know time is you know i mean there's a lot of holes here

I mean, I'm just kind of concerned.

Commissioner, I'd like to chime in here.

And as a layperson, I had these same questions since I am not an engineer or a maritime expert.

And what I was educated on is while that dry dock seems big and immobile in the pictures, it's moving around.

And to get someone to go out and, you know, cut apart a bunch of metal, some of it very high off the water, you need it to be stable.

and so there I mean it's it's actually a challenge even for our staff to go out

there and put the pumps out there so this this this stabilization is is is the

foundation to do anything on the water I like you wanted to jump to the solution

but I think we've got to start with the stabilization so that we can then

contract with someone to safely demolish it and avoid the impacts that

you're describing this was definitely something it wasn't a a legal application

of the Declaration of Emergency structure.

It was really, how do you do this in a way that a contractor would do this?

Because a contractor would not jump out on it in its current condition

and start demolishing it.

That just isn't something anyone would do.

I mean, it looks, in a year, it's gone way, it's gone so fast, you know,

that it looks so much different from a year ago that I'm just concerned

that we're running out of time and it's going to cost us more money.

We completely agree.

We feel very – I mean, the name Nate Cruz was brought up earlier in the presentation, our former CFO.

It was his driver that brought us to you to say – to have that hard meeting with you in October of 2024 because we saw this day coming.

Our hope was this day was another year away, but unfortunately it's here,

and our staff has worked hard to keep us – to have a chance to do it the right way.

But you're absolutely hitting on the right questions that we've been asking ourselves,

is how do we do this fast, safe, and as cheaply as possible?

So once we get the $10 million or the emergency funds,

how long will it take to actually take this thing apart?

We have just received that conceptual design proposal from our naval engineer,

and they gave us multiple options for the disposal,

which we'll now need to evaluate,

which are going to be based on a lot of the time is going to have to do with environmental permitting

and related to the methods.

So once we get this emergency work underway,

we will then turn to how do we deal with the next step, which is the demolition,

and make a decision on which approach we need to take.

But despite the permitting process, just the actual work,

will it take a year to tear these apart?

six months?

Remediation, there will be

the repairs and there's different

methods that can be implemented

for the actual taking it apart

which will mostly be taking the wing walls

down and then from there

you have to dispose of the pontoon

at the bottom, which is the hardest part.

Okay.

I'm just concerned about

hurrying it up. We know

we want to get it done and it's costing so much money

and the space alone

and it could be another terminal for us, right?

I mean, it could be another cruise ship terminal that we need.

So in many aspects, it has to be done,

but I hate throwing good money after bat and all that,

and let's get moving.

So I'm just curious, but I guess it has to be done.

It's just outrageous.

Like last year, we were just talking millions of dollars

just patching a hole.

So, okay, that's all the questions I have.

Thank you.

Commissioner McNeely, do you have any questions?

I have no questions.

Thank you.

Thank you for your presentation.

Commissioner Adams.

That was a good one.

Yeah.

Commissioner Adams, do you have a comment or a question?

Well, maybe to ease Steve's pain a little bit, I've been on the commission since 2012,

and I remember when this thing was fully functioning, and the late Senator Dye and Finest,

and may God rest her soul, used to get funding from the government for that.

and at the time we had over probably a thousand people working there from 11 different unions and

it was very very private and just know what what happened was it was cheaper to go to

Portland or Seattle or Alaska and we just couldn't keep up with it and so this thing has been going

on for about nine years and Steve I feel your pain and stuff like that but the port was trying

to be creative, so was the commission to try to reinvent something that we could do to save it

or to make something out of it. A lot of things came up about the trainers, so just a lot of

things that we can maybe provide jobs for the community. But unfortunately, something like this

takes time, and I'm going to tell you something. You don't want to do anything that the port winds

up getting sued. We do something in a hurry, and you got to think about the ramifications of that.

and the expertise that it takes, not everybody can do something like that.

It's a specialized, it's very specialized.

It really is.

It's a hard thing to do.

And I wish it was just that easy that we could just go tear it down like that.

But it's not like that.

And I support it.

This is well thought out.

It's painful.

But we have to do it the right way.

And nobody gets hurt.

We do it, you know, right.

And eventually maybe something else can go down there.

But I agree with you. This thing needs to go. But we have to do it in these steps and stuff like that.

And we want to make it safe and we got time to think about it.

But I hate to see it go because it was a historical landmark.

It was a part of history. It was a part of the, you know, Hunter's Point.

And it provided a lot of jobs for residents, for apprenticeships and stuff like that, that people couldn't go to college.

And it was just a great thing. And then Senator Feinstein, she had her trademark on that.

And she took a lot of pride in that.

So when it comes, I'm going to support it.

It's painful, but I understand that a lot of that stuff takes a lot of expertise,

and not anybody's going to go out there and do that kind of work.

It's really people that really, really have to know what they're doing,

and like anything, it costs.

So I'm good.

I understand it.

It's a long process.

I mean, nine years later, but that's just some of the things that I've seen

since I've been on the court commission,

and it's got to be well thought out.

So thank you.

Thank you for the presentation.

I guess, yeah, it's,

when I first moved to San Francisco,

I had the opportunity to work

as the port was transitioning

and negotiating with the new landowners at Pier 70.

I remember being a young urban designer

and just looking at this area and saying,

what are we doing with that area?

and everybody's like nope that's ship building that's sacrosanct we're not doing anything there

or ship repair sorry um so here we are this is you know i think we all know the answer there's

the the work plan is in front of us the cost of the reality of this is is here but i think we

need to give people a little bit of hope here like what's next i was just quickly doing the math and

you know just based on the rough numbers this is about between the two uh uh docks it's about five

and a half acres of area, just those Eureka and Dry Dock 2.

That's half the size of Pier 3032, right?

So the cost of this seems to be in line with, you know, if I remember right,

the enabling infrastructure repair at Pier 3032 is a very big number,

but it's a billion-dollar real estate opportunity.

So I guess what I would like to know is how do we do this hard work of getting this done,

but what is our vision?

What are we going to do with five and a half acres right in front of the area of the city that's demanding the highest rent in the entire city?

This is very desirable areas.

And in December, I was remiss to say this in the earlier comments, like in December, I had an opportunity to go visit the cruise terminal on a rainy day when I learned a lot about how that facility, as much as we're celebrating at 10 years on, is not going to keep pace with the future of the cruise.

So, you know, picking up on what Commissioner Lee's comments about, you know, maybe a cruise terminal.

You know, I don't know what the right answer is, but I'm not sure if this is in our waterfront plan.

Like, what are we doing with these areas?

So I would like to, like, just sort of challenge us to say, what is this going to be?

Like, how do we reserve the rights?

Because I think we know what we need to do to get this dangerous facility.

You know, it's our responsibility to take care of this.

So we have to do that.

But I think it also gives us the responsibility to say, what is next?

Because maritime protection is one thing, but I've used this term before, maritime projection.

What are we going to do next?

What's next?

It's the next generation of jobs.

So whatever it is, is it open space?

Is it whatever it's going to be?

Those are huge numbers of areas.

And it's really painful just to talk about costs.

But if we shift and we start saying this is the next billion-dollar real estate opportunity,

then all of a sudden it's like, okay, well, we can see the future.

So we're investing $60 million, but we're unlocking the opportunity for a billion-dollar real estate opportunity.

Thanks.

I have no questions.

Thank you so much for your presentation.

I think everything has been said.

Jenica, next item, please.

Item 10 is new business.

I am recording coming back to the commission to talk about

Pier 68 and what is next beyond the challenge we face with

disposing of what's there. Is there other new business?

No, I don't think I heard any other new business. I do think it would

be appropriate for us globally to adjourn our meeting in solidarity

with the people in Minneapolis and St. Paul

who right now are putting their lives on the line to uphold the values this country was founded

on if my fellow commissioners support that.

So moved.

But can I have two new business I just want to, before we close.

I'm so sorry, Stephen.

Cut me off, but it's okay.

I didn't see you, didn't raise your hand.

Oh, it's okay.

But anyway, I'm just curious, with all the floodwaters coming up and everything

and thinking back at the 89 earthquake, do we have a set emergency plan

in case the bridge goes down again?

Because, you know, our ferry terminals are going to be the way to get out.

So I'm just curious, do we have something that we work with emergency services

that's already in plan rather than trying to do it by the hip?

I'd like to see if there is some kind of possible emergency plan

to use our ferry terminals as a way to get out of the city

in case something like that happens again.

Or is there something already in place?

So that's number one.

Number two is I just need a progress report on the maritime size,

about the ice machine for the fishermen,

and maybe where we're at with the reactivation of the fuel dock,

because it seems like that's kind of on the mind of the fishermen right now

to get more of them to be more engaged with us.

So those are the two items I'm just curious about,

if we could get some follow-up on that.

Thank you, Commissioner. I apologize. Is there any other new business from commissioners? Because I feel bad now.

I do, so I'll do my adjournment again.

I did also want to announce that it's listed in the look forward in your documents, but I did want to uplift it as we talked about the fact that at our meeting on January 27th,

27th we will be doing a public forum on our two-year budget as required

Under city rules and regulations, but that also meeting will have another informational presentation

Which I hope that we have large public turnoff for and port staff turnoff for which is we will be doing an informational presentation

Because it just went live as we were sitting in this meeting on the

job announcement and job recruitment for the next port director for the city and county of San Francisco

So Berkeley search and DHR will be coming here and do a formal presentation

informational only

And to receive public comment that will inform the Commission as we look in screen candidates and interview them for this incredibly important role

So those will be our two informational public items that are meeting on January 27th

So we hope to see the public here and then with that note

We close our meeting today in solidarity with our brothers and sisters in the city of Minneapolis and St. Paul who are standing up for the values that this country was founded on.

Liberty, the right to protest, and the freedom of speech when they see tyranny.

I close this meeting in adjournment.

Thank you.

Thank you.