tv Port Commission SFGTV April 16, 2022 9:00pm-11:30pm PDT
around 2024. >> well, thank you so much. i really appreciate you coming on the show, mr. gray. thank you for giving us the time today. >> thank you, chris, and i really appreciate your time as well. >> and that's it with this episode. you've been watching san francisco rising for sfgov tv i'm chris manners. thanks so much for watching. [ roll call ]
>> clerk: san francisco port commission acknowledges we are on the land of the ramaytush ohlone of the san francisco peninsula. in accordance with their traditions. ramaytush ohlone never ceded, lost nor forgotten their caretakers of this place. as guests we recognize that we benefit from living and working on their traditional homeland. we wish to pay our respects by acknowledging the ancestors, elders and rel actives of the ramaytush ohlone and sovereign rights as first people. item 2 is approval of minutes of the march 8, 2022 meeting. >> we have a motion and second. all in favor? >> aye. motion passes unanimously. minutes magic 8th are adopted. >> clerk: item 3 is pledge of
allegiance. [pledge of allegiance] >> clerk: item 4 is announcements. reminder that masks are required for the meeting. we appreciate your cooperation please be advised that the ringing of and use of cell phones and similar sound-producing electronic devices are prohibited at this meeting. the chair may order the removal from the meeting room of any person please be advised that 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
for remote public comment dial (415)655-0001. enter access 2498 275 6465 # #. during each public comment period the moderator will intricate you to -- instruct you to dial star 3. if you watching this meeting on sfgov tv there's a short broadcasting delay. please dial in when the item you want to comment on is announced. mute your device and listen to the meeting from your telephone which has no delays. that bring us to item number 5, public comment on items not listed on the agenda. >> president adams: we'll take public comment on items not listed on the agenda. is there any public comment?
>> caller: my name is liz diaz. i've been a tenant of the pier for over 25 years we have lease out there it was up in 2020. it did not renew during covid. i'm grateful that you read the letter. it was about seven pages. .the rental increase was 60% ovr 60%. in the prior five years on my lease, you guys increased normal amount, whatever that was quite doable. i'm sustainable business. i made it all the way through covid and to be slammed with 60% rental increase was construed as an invitation to leave. i understand it's not an invitation to leave. i understand that the port wants
to work with me. i like it to be understood that maritime businesses in san francisco are not just the big ones. it's little ones like myself, we go out and work on things. we make large covers. i need empty space to work on that. the rental increase was based on the rates the port did for generalized storage. none of us that are in business out there do store. i will give you a little back story. the pier 40 marine businesses were invited by san francisco redevelopment to be on that pier in that location in double wide trailers that we purchased that the port asked us to place the trailers exactly where they are and we were allowed to do business inside those trailers. we are no in means any fort of
debt storage. we're not allowed to go up or out. we're allowed what we're specifically there to do. because we're such a unique situation, and because i've been in business in san francisco for over 30 years. like to ask you if you have any questions for me while i'm in front of you? >> president adams: unfortunatel y, our procedures we cannot comment on items not onent agenda. we like our staff to contact you and work further and give us a report back on how they can work out a solution. we cannot have any discussion here today at the commission, unfortunately. >> caller: okay. i really look forward to working with all of you and to understand in the future, the maritime community, the small maritime community is going to coalesce. we need to have a more unified
voice. we don't want to be mistaken for storage. thank you. >> we will work with ms. diaz and report back to you. >> v.p. woo ho: public comment? >> caller: my name is margaret. i'm formally the associate for cruises. i'm here representing cal ma marine electronics. there's been extreme rent increase. cal marine electronics has been present in san francisco since 1952. what we do is we repair and install, navigation equipment. anything electronic on boats.
some of our clients include san francisco fire department, san francisco police department, red and white army corps engineers, water taxis. various tech companies. it goes on and on. we are responsive to emergency calls frequently. we keep the boat down and out of commission for a length of time. we do our best to get there as quickly as possible. i bring this all up to say that we're essential, we're needed. we worked through the pandemic. at the same time, we're a very small business. our margins are fine.
we make payroll and pay our rent. no matter what the intent behind it was, if we have to leave san francisco, we're not going able to serve all these necessary businesses. other than that, we've done our best to deal with all the challenges. supply chain issues, inflation and gas prices. this will be kind of the straw that breaks the camel's back. i will point out as liz touched on, the maritime community is what make san francisco what it is. lot of us here who work in the industry kind of below the radar. once we're gone, those skills aren't exactly easily learned. there's not lot of people coming through. these are commodities. there's few places in the bay where you can go and find people
like liz who will make your canvas and find us who can sell you your electronics. it will be such a travesty to see that disappear because we want something newer and flashier there. thank you. >> v.p. woo ho: thank you. we'll have staff work with both of you. thank you. is there any public comment offline? there's one more in the room. we didn't see your hand. sorry. >> caller: i apologize for coming late. i'm here to speak on behalf of north beach marine canvas.
i'm the other small business represented here. i'm asking the commission to make a possible for them to remain on the waterfront. you might have noticed i was wearing this hat what was my father's hat who was a doctor in the navy for many years. it's reminder to me that waterfront is meaningful to people in america. despite that, he became a representative in the navy of the united states when he was shipped to different ports. the waterfront is a place where immigrants arrived and it's a place where who might be discriminated against if other parts of the city can come and hopefully find work. liz diaz and other maritime business people here also wear many hats. they lived near the waterfront as a calling and a business. most of them, i know it's true of liz, will do what they are
doing without being paid. they are so enamored of this place where land and water meet. liz has done things on her own to save the waterfront often without any pay to make it available, to preserve it, to save it for future generations and make sure that everyone regardless of their means, or their race or disability is welcomed. she makes covers for disabled long shoremen. she trains firemen, i know who otherwise would not have been able to support his family. she opens the doors of north beach marine canvas to people with few skill. for these reason and because it seems kind of unfair to raise a rent in a single year so far above the consumer price index, i'm asking you as a 35-year resident of north beach, to reconsider this and to compromise on what would otherwise be an existential
crises for these businesses. >> v.p. woo ho: we'll go to anybody who's here for public comment remotely. >> clerk: at this time. we will open the queue for anyone on the phone who like to make public comment on items not listed on the agenda. please dial star 3 if you wish to make public comment. the system will let you know when your line is open. others will wait on mute until their line is open. comments will be limited to three minutes per person. the queue is now open. there are no members of the public on the phone wishing to make public comment. >> v.p. woo ho: public comment is closed. next item. >> clerk: item 6a is the executive director's report.
>> director forbes: afternoon. i'm e-- elaine forbes. executive director. i want to acknowledge the historic confirmation to ketanji brown to the supreme court. judge brown unique experience as a public defender and defending people of color who are disproportionately arrested, prosecuted and in prison will be at the court in the ongoing fight for racial justice and economic justice. now to economic recovery. we're seeing signs of recovery with more people on our waterfront. first, like many other
businesses located in san francisco, the port welcomed telecommuting back to the offices on a hybrid schedule. this has been good to see everyone in the office and the office workers are increasing foot traffic up and down the port. office workers are able to enjoy our restaurants, retail, ferries, excursions and other recreations. last weekend we welcomed our world champion san francisco giants home. this brings excitement and energy to this city. fingers crossed, the giants will continue deep into the fall. last week, s.f. bloom welcomed events at the ferry building. this was incredibly well received. this month, the cruise industry is back and bigger than ever. last week was a doubleheader.
we're proud to welcome princess and discovery. we are expecting 21 calls in april including the maiden call of the carnival who will home port in san francisco. cruise stood as a stable revenue source. each has brought in thousands of passengers and crew who bolstered vital local hospitality and tourism sectors that are so critical to our city, long-term economic recovery. not only has maritime been busy well crews, they've been busy with the very popular off the boat fish program. unfortunately, commercial crab season was cut short after whale entanglingedments were observed off the coast.
fishers off the boat sales until remaining crabs were closed. i was there on saturday and bought two crabs and i met a couple from tracy who was excited to get their crab. the crab was delicious as it was live and prepared very well. i'm also proud to announce that we have submitted our application for the second funding to the state land commission. we committed an application for $58.2 million and the state lands commission appears ready to grant our request.
we'll know formally at the apri. this funding will keep us from having to execute any layoffs. we're able to back fill critical conditions and we're able to invest and defer maintenance that we had to cut back on during the early days of the pandemic. we've been working very hard to secure other state and federal sources. we're very fortunate last week to meet with the number two at the department of transportation. i met with her and andre coleman with our maritime director and our legislative affairs manager. she provides lot of leadership and strategic vision for the d.o.t. we're hopeful that her visit will begin a relationship that will be very valuable to us in our economic recovery. we're working hard on securing state funds in the governor's
once in a lifetime investment in ports. we're not out of the woods yet. we still face an unconcern recovery. much more confident and responsibility that -- optimistic and incident to thank this commission for guiding us. to equity. when the organization is strong, we're all strong. we're never losing sight of providing economic opportunities for our small business and contractors. we recently hosted the sixth annual contract open house. this event was virtual. this connects our small business to larger contracts. we hosted 115 attendants and nine workshops for participants. i want to recognize commissioner brandon who thought of of this idea. i'm happy to say they've gotten better. you will hear in the
presentation more on this effort. i'm so proud we're executive -- connecting people to jobs. now to key project, commission rock continues to provide excitement for our waterfront. the project team celebrated the structured a building a as well as start of construction on building f. this is figure -- this is significant milestone for our project. we are seeing the outlines of the new communities that we plan with much more open space, affordable homes and waterfront for everyone. i want to thank the port commissioners for your leadership on economic recovery, equity in our key project success that includes my director's report. i apologize for the extra thick mask which is very hard to project through. i hope you heard me. i wish you all a wonderful
spring season. >> v.p. woo ho: is there any public comment in the room on the executive director's report? if not, we'll go to the remote. >> at this time, we will open the queue for anyone on the phone who would like to make public comment on the executive director's report. pleases dial star 3 if you wish to make public comment. comments will be limited to three minutes per person. please dial star 3 if you wish to make public comment. at this time, there are no members of the public on the phone. >> v.p. woo ho: public comment is closed. commissioner brandon? >> commissioner brandon: elaine, thank you so much for your report.
i echo your comment on the nomination and approval of justice ketanji jackson brown to the supreme court. that was definitely a historic date in history. i was able to attend opening day last weekend. it was so wonderful to see everyone at the ballpark. it was a beautiful day. just to see so many people inside and outside of the ballpark was wonderful. it shows that we are on our way to recovery. it's great that the cruise industry is increasing. i think it's phenomenal that we applied for our second traunch of $58.2 million and it's just so wonderful that we had that and other funding opportunities
to keep us on a good road to recovery. thank you for reporting about the open house. i think that is something that the port does that not many of -- many of the department to. it's great way for l.b.e. and minority contractors find out what's going on at the port. we do have so much opportunity. it's so phenomenal mission rock is starting on their fourth parcel. just to see what has happened over the last year and a half, two years is just amazing to see the new community taking form. thank you so much for your report and all that was in it. >> commissioner gilman: thank you for your report. i want to echo everything that commissioner brandon said.
rock. it's so phenomenal and great that movement is happening when you go down there you see that neighborhood. i want to lift up two components of it that they've done incredibly well which is around their l.b.e. contracting. their partnership with city build, the first women's class. the fact that's 40% affordable housing on that site. i hope that's a standard to all of our developments moving forward and we're in negotiations with. i think they're the gold standard. i did want to pause and recognize the atrocities that are happening in our sister port cities in mariupol and odesa. this war is causing daniel to the baltic sea. they are not sister port cities, i hope as port we can support the people of ukraine. that concludes my comments. >> v.p. woo ho: thank you for a very comprehensive report. you touched upon all the corners of the port.
i want to echo what commissioner brandon said, having the nomination of judge brown to the supreme court was historic moment for our country. she is just a wonderful role model. really looking forward to how she can contribute on the supreme court going forward. it's true, we are seeing not just green sprouts i think real growth here everywhere along the waterfront. that's great. it's also to see that people are going back to the office and that is also reviving the port because people need to eat. they need to fit -- they need to get out and walk around. i'm sure there will be lot of people that will continue to have part of the hybrid work model. i imagine ferries are getting more crowded.
i didn't get to go to the giants opening day. i think it's another hometown celebration for san francisco and it brings us back to springtime. it inspires everybody and all the other things you said about the cruise industry, which is very critical to us in terms of not just the cruise calls but what it does for the tourism for san francisco. i'm happy to hear about the off the boat sails. i'm glad we'll transition from crab to salmon. i think it's a wonderful program unique to san francisco. b on the funding side.errifi i want to thank you. it's really heart warming given how much we were hurt during the pandemic for us to find some relief and helps us to get us back on our feet financially.
we continue to cultivate because at the end of the day it's business in term of making connections so we can continue to find sources of funding both at the federal and at state level which is very important. we also continue with the great equity programs that commissioner brandon championed. mission rock, which i think from my first port commission meeting when we were just approving negotiations agreements and development agreements now to see they're actually pushing away is really heart warming. it's like a big jigsaw puzzle. every piece of the puzzle contributes to make a picture of good strength going forward.
of course, we don't do things perfectly. thank you. >> v.p. woo ho: next item please. >> clerk: item 7, the consent calendar. 7a request approval of resolution adopting finallings to allow certain members to attend meetings remotely during the covid-19 emergency and allow certain members to attend remotely for the next 30 days. 7b asks to authorize port staff to modify construction contract 2814r, crane cove park building to increase the authorization for the contract analysis not to exceed an additional $565,000. that's resolution 2217.
7c requests adoption of 2022 uncollectible balance writeoff policy. 7d request authorization for port staff to enter into memorandum of understanding to develop a new fire personnel training facility resolution 2219. 7e, request approval of mutual termination agreement for port l7191 taylor street and port lease number 9171, 360 jefferson street. >> so moved. >> v.p. woo ho: is there any public comment in the room? can we check on the remote
please? >> at this time, we will open the queue for anyone on the phone who would like to make public comment on the consent calendar. please dial star 3 if you wish to make public comment. the system will let you know when your line is open. others will wait on mute until their line is open. comments will be limited to three minutes per person. the queue is now open. please dial star 3 if you wish to make public comment. at this time, there are no members of the public on the phone wishing to make public comment. >> v.p. woo ho: public comment is closed. we have a motion and second. all in favor. >> aye. >> v.p. woo ho: motion passes unanimous. resolution 2216, 2217, 2219, 2020 are adopted.
>> clerk: item 8a request authorization to award hollins construction inc. in an amount not to exceed $3 million. resolution 2221. >> good afternoon commissioners. i'm stephanie hang. i'm the contract and procurement manager with the port of san francisco. i'm here for action item for technical services contract for hollins consulting. thank you to the project manager and elizabeth alexander for getting this item today. i'm here to seek authorization to award hollins construction inc. for $3 million for not to
exceed term of five years. we'll start with four years but the option to extend for one more year. the development project including pier 70 and mission rock advances strategic plan through evolution, productivity, equity and resilience. this slide shows the contract. the port required assistance as needed multidisciplinary engineering assistance. the consultant reviews this submittals of our development partners and look to the scopes that could include planning and mapping, land transfers, reviewing plans for infrastructure as well as looking at all the engineering items during the construction phase. despite process of solicitation, we advertised in january and held the proposal the following week. we advertised to 223 firms including advertising to bipoc organizations. we also advertised to bipoc
trade organizations outside of san francisco. we hosted a pre-proposal conference with 27 participants and sponsoredded to nine -- resd to nine questions. two proposals were received. one proposal was deemed non-responsive due to the noncompliance with the l.b.e. requirement. with the single response to proposal, we could enter into direct negotiations. we did want to ensure an independent panel made a determination on the qualifications of the submitted proposal. as such, the proposal was reviewed and c.m.d. overall the process. hollins consulting scored extremely well. they scored 102.66 out of 100 possible points.
they are a san francisco-based firm. they are an m.d.e., l.b.e. they are certified small firm. the proposed team will have 100% l.b.e. participation. after the request of the award, port will work towards finalizing a contract and seeks to enter an agreement around june 1st. the total maximum term is five years. the resolution before you is 2221 for the award of this contract to hollins consulting for $3 million. this concludes my presentation. i welcome your questions about this contract award. >> v.p. woo ho: thank you stephanie. commissioners is there a motion? >> so moved. >> second. >> v.p. woo ho: now we'll open
up for public comment. is there any public comment in the room? seeing none. >> at this time, we will open the queue for anyone on the phone who like to make public comment on item 8a. please dial star 3 if you wish to make public comment. the system will let you know when your line is open. others will wait on mute until their line is open. comments will be limited to three minutes per person. the queue is now open. at this time, there are no members of the public on the phone wishing to make public comment. >> v.p. woo ho: public comment is closed. commissioner gilman? >> commissioner gilman: thank you so much for this report. seems like you did your process and due diligence. i support this item and i have no questions.
>> commissioner brandon: stephan ie, thank you so much for the report. i want to say that i think i met guy at one of the contracting open houses because of covid, i don't know how many years ago. [ laughter ] at that time, he has not done any business with the port. it's great to see the open house is working. we are finding qualified, experienced businesses that can compete for port projects. i want to say thank you and good luck. >> v.p. woo ho: i have no further questions. thank you. all in avery. >> aye. >> v.p. woo ho: motion passes. resolution 2221. thank you. >> clerk: 8b is informational presentation on local business enterprise contractualing
activitying for quarter one and quarter 2. contracting recommendation. >> i'm back. i'm here for the -- i'm here to discuss the first two quarters of fiscal year 21-22 for the period covering july-december, 2021. unfortunately, tiffany tatum was not able to be here today. she does send her regards. i will try to do her section justice. i'm having some technical problems. here we go. my presentation is going to cover three items today. looking at the contracts that we
awarded, the payments that were made and looking at the development agreement. we're going to look at alignments in the delegated authority and finally we'll talk about our outreach strategy. this slide may look familiar to you. that's because it's the same slide you saw at the last presentation. this is the data that we have on the current proposition on the l.b.e. community. it's exciting for me to present information on the women and minority owned firms. this is a relatively quiet period in terms of two contracts being awarded. one contract was awarded to a w.b.e. firm. i want to share a story about the firm. they previously bid on a project and they did not win. we did a debrief with them. about six months later, they came back and happen to win. this is part of our whole
process of wanting to make sure that we're engaging with firms and making sure there's ongoing learning from bidding and working with potential people working with the port. this slide goes to the payments that was made. as much about $7.7 million of total payments with 38% made on as needed contracts with local businesses. overall, the l.b.e. participation on the contracts and the program was just under 50%. far exceeding goals.
development agreement is $82.3 million for mission rock. this next section of the presentation i will talk to you about some of the changes that happened in chapter 14. this is similar to slide what you saw last time. this was a thank change that waa change that was desired by the community. as a result changing the threshold, the construction threshold in chapter 6 will increase from $706,000 to $1 million. the professional services
non-construction minimum competitive threshold will increase from $127,000 to $200,000. the question is, why am i bringing this to you. the reason why is that the delegation for the executive director for signature and executing contracts is different depending on the statute. in chapter 6, the delegated authority for the executive director automatically increases. as of july 1st, the delegated authority to the executive director will increase to $1 million. for chapter 21 professional services contract, that will only increase with an act by commission. last increased in 2010, at that time it was $100,000. it increased in both 2015 as well as 2020 and will increase again in 2022. to ensure that the port is in alignment with what other city
departments as well as making sure that the contract processes is clear, it is the recommendation of staff to increase the executive director's delegated authority to match that of either the threshold or the competitive amount. there's two other cleanup opportunities that we could make. first is with contract service order. a contract service order is the particular scope of services from as needed contract. generally in other departments that executive director authority aligns with what the threshold is. that will be staff's recommendation. there are also contracts to public entities. these are contracts where the intended purpose of the contract is to do government business. for example, the recent m.o.u. will be that type of contract.
these are the slides that tiffany was going to present. i want to talk and tell you what she would say. about two weeks ago, we started -- let me back up. the contracting and strategy is something we have been working on to ensure that the l.b.e. program is embedded in with the port. what has been exciting, we don't have to initiate the considerations anymore. folks in other acquisitions -- divisions are coming to us. we feel like that's really strong initiative to show that the culture change is happening. i want to talk to you about the contracting open house. we know this event is a signature event of the port.
when we have to do a second virtual event, we wanted to figure out how do we make a virtual event make sense and build on the strength of a virtual event. the first thing we did, coming out the event, all the workshops were recorded. they are now on the port website. you didn't have to be in the room. we were able to really capture what was happening and now it's on the website so that anybody can figure out and can get access to all the wonderful content that we deliver the that day. next thing we did, we partnered with an event management company which does virtual match making.
we were able to let people have one-on-one conversations without awkwardness talking to someone you don't know. i want to highlight a quote that one participant sent to me after the event. said, as a micro l.b.e. formed during covid, we've been struggling to meet with primes. this event provided the chance to finally meet with large prime and hear about the great info on upcoming projects. it allowed for undivided attention from the primes. i myself participated in some of these one-on-one sessions. i could instantaneously look up information and do all of this right then without having to go back and follow-up. what i was talking about, how do we marry the energy of the room with also this ability to have these one-on-one sessions and really great opportunities to
connect? tiffany is not here, i want to give her the -- i want to stay that she has done extraordinary work in making sure how we innovate and improve. that is why we're striving forward with our outreach and equity work. with that, i will conclude and i'm available for your questions. >> v.p. woo ho: thank you. we'll open up for public comment in room. is there any public comment in the room? seeing none. we'll open up for remote participants. >> thank you. at this time, we will open the queue for anyone on the phone who would like to make public comment on item 8b. please dial star 3 if you wish to make public comment. the system will let you know when your line is open. others will wait on mute until
their line is open. comments will be limited in three minutes per person. the queue is now open. at this time, there are no member of the public on the phone wishing to make public comment. >> v.p. woo ho: public comment is closed. commissioner brandon. >> commissioner brandon: stephan ie, thank you again for a very impressive report. the staff report was very good. i read through the entire thing. i want to thank you you and tiffany for doing amazing work. you guys have done a really great job in working with the division and creating opportunities for our l.b.e. community. it's really showing in lot of our contracting. i want to thank both of you and please keep up the great work.
thank you. >> commissioner gilman: thank you so much for this report. i want to say that is super impressive on the networking. 77 individual sessions. kudos to you and the staff. i hope that we learn through covid for many people, virtual event are much more accessible and easier so folks don't have to travel. i had one question. i might have missed it in the staff report. this is informational. it's an action item. on the delegated authority, is there any other director within the city who will not be at the threshold july 1? do we need to take commission action to have elaine director report to be at the same level of department heads throughout the city? >> i can't answer for all the commissions off the top of my head. for both m.t.a. and the p.u.c.,
as of now, they're director has a authority above what the threshold is. the port actually has a relatively lower -- at the time i did an analysis about a year ago, we were the lowest of all the chapter 6 departments. we will be moving up to just what the threshold is. i don't know what the other commissions are doing in terms of with the change they're making. >> commissioner gilman: that's perfect. thank you so much. >> commissioner brandon: what the difference between current and threshold? >> we're able to go -- are you able to pull up the slides? >> commissioner brandon: page 9.
>> the threshold today is what it currently says in the administrative code. the current is the current delegated authority of our executive director. the executive director authority is on the first line, the threshold of the code is on the second line. >> commissioner brandon: we're doubling? >> we're doubling it. it will just be what the threshold currently is. in 2010, when the $100,000 was established, that was the threshold as of 2010. we're just keeping in line what the board of supervisors thresholds are. >> commissioner brandon: when you say currently you meanwhile threshold as of july 1st? >> yes. these are all very complicated specifics. >> commissioner gilman: do we
need to take action at the next meeting or do it automatically goes to the threshold. >> commissioner brandon: it says port commission has to delegate to the executive director. we have to approve. >> chapter 6 threshold will increase automatically. nothing else will. thank you for asking. >> v.p. woo ho: the passion that you and tiffany have comes through. it makes a difference in terms of what see and results of the report that you indicated on the l.b.e.s. i know this is a passion of commissioner brandon. congratulations to be recognized and the fact that on the -- it's another major accomplishment. everybody is now looking to the port to see how we can improve. i love how you have improved the open house.
what we heard about earlier. we had one more activity that is our tradition. what you really done is add some innovative elements to make it much more meaningful. it's helping. you can repeat an activity. it doesn't necessarily get you better results. seems like you're multiplying. it's helping both the primes as well as the l.b.e.s to understand how they can really learn from each other and make this work better. we'll have better quality as a result in terms of people who do business with the port. which really is our goal to have quality work in addition to sustaining these businesses that need to be sustained and the employments and everything else is happening. it's good for the city and for us at the port. i think this is a great report. i think it's very uplifting. especially in this time after covid. it's nice hear to how we can
continue the momentum. thank you very much for the report. we will be happy to vote on the item next item on the delegated authority. it does make sense. we should be in alignment with other departments and cities. unfortunately, since 2010, even though we're facing higher inflation, there has been inflation since 2010. we should recognize that as well. >> something stephanie said, she said other divisions are starting to think about equity and bringing strategy and ideas to stephanie and tiffany. that's the culture change we're looking for. i shared with commissioner brandon many times, commissioner brandon wound ask why is it always me looking at this? why aren't we all doing this
together? why aren't we being equitable for everyone. stephanie, i was rewarded when you say you're hearing from other divisions. that's the culture change you're seeking. i'm really proud of the work that we've done together. thank you commissioner brandon for leading our way. >> culture change is not easy. it's wonderful to see that you're helping to do more. you're making a difference in the city. thank you to both of you and the others on your team, elaine, for making this happen. thank you very much. >> clerk: item 9a an informational presentation regarding waterfront resilience program local business enterprise subcontracting and equity actions. >> good afternoon vice president woo ho, commissioners, director forbes, members of the public and staff. brad benson.
i'm the port waterfront resilience director here to provide quarterly update on the l.b.e. sub-contracting effort. standing in today our program administrator. this is just a brief overview of today's presentation. we want to provide an introduction to the public on where we are in program development. talk about prioritizing equity in the program. giving update about our chtm hill contract and l.b.e. subcontracting within that contract and end with next steps. for those who haven't been following the waterfront resilience program, this is an effort that the port has been undertaking since 2018.
it's a port wide resilience effort. we've got number of strategies in development. we're developing an adaptation plan. we're very lucky to be in coastal flood studies with the army corps of engineers. voters adopted proposition a in 2018 to fund urgent life safety and disaster response improvements and flood improvements in the embarcadero seawall area from aquatic park to mission creek. had been working with other city departments around, slais creek.
our work relates to broader resilience efforts within the port including the historic pier rehabilitation program. we hit a major milestone in december. we presented to the port commission work coming out of our planning effort, identifying 23 embarcadero early projects that we think are the most important life safety and disaster response projects along the waterfront. we recommended 11 predesign using proposition a funding. we're advancing other projects through geographic strategy and coordination with port long-term tenants, capital programs and other city departments. this is really vital to some of
the equity work that we're doing in the program that i'll talk about in a moment. we have three main thrusts of the equity work that we're undertaking now. we have a workforce development and l.b.e. sub-contracting task in the program led by the allan group with support by davis and associates. we're trying to look and strategies to get san francisco residents into the types of job training available in the city so they are positioned for the resilience jobs that we'll be funding along the waterfront over the coming years and decades. we've been trying to identify
subcontracts to match up with prime so their bidding opportunities within the program. we see that coming up on the horizon within the next couple of years. the waterfront resilience program team participated in that contract open house presented about the program. we're really eager to see that match making happen. so that we have strong teams pursuing the work in the resilience program. we're being very aggressive about developing new funding sources so we have an equitable approach to investment along the waterfront. we're really inspired by our colleagues in port and elsewhere in the city who are doing racial equity action planning. we started a new tasks in the
program starting the discovery phase getting the equity team up to speed about all the different work streams in the program including a series of interviews to support development of a road map to equity so we can seek equitable outcomes in terms of program development and investment overtime. we're really thinking deeply about how we engage in terms of the planning effort. we're thinking about big changes to the waterfront overtime. we want to be intentional about inviting people into the public engagement process. you don't normally come to public meetings and participate. turning to our ch2m contract. this is program contract supporting the program. as of this quarter, we've had
total payments to the contract of approximately $31 million. $7.5 million approximately going to our l.b.e. sub-contractors. that represents 23.9% of the payments made to date. is 6.7% of m.b.e. contractors. that number is little over 10% because our subcontractors can register as m.b.e. contractors or w.b.e. contractors. they can only choose one designation. we had about 17.4% go to our w.b.e. contractors with the breakdown by race as you see on the slide.
right now we're in the plan and development phase. phase one of the contract. we're starting it phase two which is preliminary design. in each of the tasks in phase one, ch2m has exceeded their planned expenditures on l.b.e.s overall. they were plan to be 12.2% on l.b.e. expenditures to date. their actual is at final% -- 15% roughly 2% higher than planned. we're on good trend line in the program.
we intend to provide an update on contracting going forward in the waterfront resilience program about the middle of this year. with that, i'm happy to answer any questions that you might have. -- >> v.p. woo ho: thank you for that report. it's good to have the two combined together on a very important part of what we're doing in terms of resilience. we will now open up for public comment in the room. seeing none. we'll open up for remote. >> thank you. at this time, we will open the queue for anyone on the phone who would like to make public
comment on item 9a. please dial star 3 if you wish to make public comment. the system will let you know when your line is open. comments will be limited to three minutes per person. the queue is now open. please dial star 3 if you wish to make public comment. at this time, there are no members of the public on the phone wishing to make public comment. >> v.p. woo ho: public comment is closed. commissioner gilman? >> commissioner gilman: thank you, brad for this thorough report. it's exciting to move forward with the 11 projects you listed in the design phase. i can't wait to hear more detail. i do want to echo what vice president woo ho said, it gives a total snapshot.
thank you so much for the report. i have no questions. >> commissioner brandon: thank you so much for this report. as commissioner gilman said, it's wonderful that it's happening at the same time other contracting reports are happening. it all flows together. i really appreciate the presentation. i have couple of questions. wondering for -- i want to thank you. we are moving in the right direction. i know we started out little slow. but we are moving in the right direction. i think it's great that we are opening up opportunities to more individuals. is your team working with stephanie and tiffany to help with the outreach and outreach
to l.b.e.s and minority communities for contracting? >> the answer is yes. each time we have a new task under the contract, we submit that task to finance an administration and stephanie for review. any time there's a request to add a new contractor with a specific skill set that has to do through the c.m.d. advertising process to see if there's a qualified l.b.e. subcontractor. we collaborate with stephanie on that work. yes, we do collaborate with tiffany in terms of contractor open house training opportunities. she's very active with the city college training program. we're looking for all of those
opportunities to create synergies with the work going on in the program. >> commissioner brandon: how many meetings did you guys have with potential l.b.e.s? >> adam and carlos was there. he's out today. i can't report on the number of connections that we saw with our table. i'll follow-up with the commission on that. >> commissioner brandon: i really appreciate the report. thank you. >> v.p. woo ho: thank you for that great report. i want to comment in general as i hear the two reports today. i think that we at this commission, believe in lot of transparency. we talk about it along with the staff and ms. elaine. the process and openness of contracts relative to other government agencies in the city, i'm very proud of our record in terms of the transparency and
the reporting we do to make sure that we are meeting our equity goals and integrity goals at the same time. i have one question on ch2m hill as the major prime contractor. obviously, you given us report in terms what they are allocating out of this major contract for the waterfront resilience. can you talk about what they are doing otherwise in general? is this making a difference to them in terms of how they are working. not just with us but other parts of the city? >> in prior reports we've talked about some of the equity efforts that ch2m has been pursuing internally. we think they have a pretty strong corporate commitment to equity. what i seen in terms of locally, some of the actions, they came to us with an opportunity to
bring on a new intern, recruited from the bay area so we have a new engineering intern who is ch2m employee who is working for steven reel. her name is lauren. i'm forgetting her last name. she just started last week. we a welcome lunch today. i think entire team is highly motivated to identify l.b.e.s for all the new work that we task under the program. there's a very consistent effort. you saw in it stat each new task in phase one they've exceeded the planned expenditures for l.b.e. work. i think that there's a good commitment there. there's a good ethic within the team.
>> v.p. woo ho: just to get beyond check the box attitude, to really make an effort to sort of improve what we're trying to do here both in terms of the local economy, the city within the port, etcetera. we have clients looking to make a difference in terms of how they pursue their work going forward. >> if it will be helpful in our next report, we can provide an update about some of the prime specifics, equity compliment -- commitments to continue that discussion. >> clerk: item 9b is an informational presentation regarding the san francisco living seawall pilot project.
>> hello. i'm kelly capone. i'm a project manager in the waterfront resilience program. we're very excited to be here today to tell you about the living seawall pilot study. this is our agenda. i like to introduce the project team. i'm kelly capone. matt bell who's an engineer with the water front resilience
program. also is tim felton and luis from the port commission. we'll review some of the native species. we'll look at other projects, over seawall type projects. we'll end with project costs and next steps for this project. with climate change and sea level rise and the need for flood protection, there's movement to focus on nature-based resiliencecy and engineering with nature and attempt to provide a benefit for the environment. this means reimagining how seawalls are designed. we want to emphasize benefits
and improve habitat quality within the bay. this study will help us learn so we can incorporate engineering with nature in our future earthquake and flood risk reduction projects. we have a super great team that you'll hear about through the whole presentation. we're very proud of this project. this is an overview of the pilot study. the objectives is to understand the opportunities for ecological enhancement of seawall and this is a collaboration between the waterfront resilience program, port maintenance, port engineering and the smithsonian environmental research center to develop and design this project. matt will give you more information on the project later in the presentation. in general, this project consists of installing frames to
promote marine growth in three locates. the scientists will study the growth on the tile for minimum of two years of monitoring which will be supported by the port maintenance division. i'm fining to hand -- i'm going to hand it off to matt now who will provide more detail on the design. then i'll talk to you more about the species. >> the current body of research
tell us that surface texture results in more diverse growth. you can see the difference between flat seawall surface. our study in particular has been designed to answer a number of key guesses in the research. most research has been done in the title zone, between the high and low tide. this is a particularly important zone to study because with sea level rise today's intertidal zone is going to become a subtidal zone. lot of current research has focused on a single study site. our study is looking at how the
texture benefits might vary with different wave exposure. we selected three study sites along the embarcadero waterfront to capture the effects of these conditions. most research to date has tested a single scale of texture tile or other enhancement feature. we want to see if there's a benefit to larger scale. we're planning to test both small tiles that are one foot square as well as large tiles roughly 3 feet by 6-foot. finally, most research today focuses species richness in general. our study is going to be monitoring to see whether the texture benefits native expertise more than non-native species. those are some of the things that we're looking for to learn from our study. overall, we want to see what
conditions lead to the greatest growth and diversity on these surfaces a focus on native species. plan is to apply what we learn through this pilot study to future projects. the study results will help us make smart investments in similar surface texture enhancements at the place where they'll have the biggest ecological benefits. pretty clearly, this study is going to be directly applicable to san francisco waterfront. we also think it's going to put us in a leadership role in the growing field of living seawalls. we plan to share these findings. we think they are relevant to other waterfront projects in san francisco bay. it will contribute to the growing global body research on this topic.
here are three sites. there's the seawall south of the agriculture building. there's the southeast beach harbor break water. these three sites met our selection criteria and allow us to capture different conditions in the north central and southern portions of the embarcadero waterfront. now i will talk about the frame design itself. we had a really great team that collaborated together and come up with this design that first and foremost, it supports the experience and supports the science. it's relatively economical and constructible.
bottom row of the tile of the frame are removable. you can take a look at them and put them back. you can see in these photos what you see in the photos is actually prototype frame that our maintenance division built. we invited the scientists from the smithsonian to come out and get testing experience with the frame. we incorporated their feedback into the final design. i will give it back to kelly. she's going to talk about some of the species we'll be monitoring. >> these are some of the native species in the bay and some of the target species for this study.
the native oysters the left are down from historic numbers. they provide food and habitat for other species. they are target species for restoration within the bay. the rock weed is a sea weed that's found in the mid to high intertidal zone. it's considered a foundation species. it provides food and habitat and because of its importance as a foundation species, it's a target for mitigation funding within the bay. i'm sure everybody familiar with the one on the right. the pacific herring. this fish requires hard --
substrate. these are species that are found on rocky shorelines around the bay. with the modifications that were testing to the seawall, we think that it will help promote these species. we expect to see an increase in colonization these species with the modification of the texture surfaces and the mixture we can be treatment for the seawall. similar to the last slide with, these are some of the animals that we expect to colonize the new habitat. top line are grazers and filter feeders. the bottom row are more mobile like crabs. these are some animals that we
expect to see colonizing the new habitat. globally, there's an increase in research related to living seawall. in general, the research finding that the traditional, vertical seawall the research finding that traditional vertical seawalls do not provide good habitat for native species. when seawalls mimic elements of nature or having water retaining features, there's a benefit to native species. this is an example of the sydney harbor seawall. they used these tiles that mimic
mangrove prop roots. this is the elliott bay seattle sea saw which is salmon focused. this is an ambitious project with multiple elements pep it's really something if anyone is interested to learn more about this project. it's a very interesting project. they were finding that juvenile salmon used the area in front of their seawall as a migration corridor. they were avoiding urban area and dark spaces. they were not feeding during the migration. they had a goal to improve the corridor for salmon.
this is at the phases and the cost. we've completed phase one. we are in phase two now. we are doing the permitting and purchasing materials. the total cost for the project is just over $1 million. this is the last slide. this is our next steps. we're going to complete any permitting and notifications, purchase the material, complete a health and safety plan, fabricate and install the frame. there will be baseline survey and two years of monitoring by the smithsonian scientists. at the end of the study everything will be removed from the bay. we'll have a report that help us
design our seawall and be available for allport projects but all projects within the bay and that data is also go into the global research to be used around the world. that is our living seawall project. if you have any questions, we'll be happy to answer them. >> v.p. woo ho: we'll open up for public comment. is there any public comment in the room? seeing none. we'll go to remote.
the queue is now open. there are no members of the public on the phone wishing to make public comment. >> v.p. woo ho: public comment is closed. >> commissioner brandon: thank you kelly and matt for this report. i think this is a very innovative project. it will definitely add to our nature-based projects that we already have along the waterfront. i think it's exciting. i have couple of questions regarding the funding. i'm wondering -- can you tell me more about what the collaboration is? is it that we pay for it and the scientists come and study it? >> we are paying for it. the collaboration was in the design of the study and the frame. this is funded through the work
that will be -- because the design will be used. >> commissioner brandon: that port is paying for it? we're paying for the scientific monitoring also? we're paying the smithsonian to come and monitor? >> we are. we are gong to apply for some grants to try to see if we can get some grants to help with the monitoring. >> commissioner brandon: is this funding include port labor? is that separate? >> it does include port labor. that total includes the port maintenance division for fabrication and labor and use of the port boats for the monitoring. that's part of the collaboration for the monitoring. the port is going to provide the boat for the scientists and some staff. >> commissioner brandon: is that included in the funding here
>> it is included in that. yes. >> commissioner brandon: are you sure? >> yes. >> it is. i don't know if we'll charge prop a bond for maintenance. other costs are prop a funding. right now we're doing it in-kind to the project. the maintenance division has been very excited about the fabrication and being part of the study. >> commissioner brandon: thank you. i appreciate that. >> commissioner gilman: thank you so much for your report. you answered my questions around the funding. that's the question i also had. this is so exciting. look although all these creatures we can bring back to the waterfront.
hopefully we can get some grant and leverage those in-kind services that we're providing. >> v.p. woo ho: thank you for this wonderful report. it's great to know that we are tied to nature and it is a very innovative project. not sure i thought about how seawall contributed to sea life. i want to ask couple of questions. as we are monitoring this, are we looking at how different aspects of these animals and
design of the seawall, how that will affect the actual resiliency of the seawall itself in terms of meeting its objectives. is that something you'll be looking at? obviously we have 100-year sea wall today that is now failing. i don't know if we have any projections if we use this design and construction, what would life expectancy of the seawall be. if that's something we would learn as a result of this in addition to how we're contributing to the ecosystem of the bay, which i think will be useful to know. >> we won't be doing that -- we won't be looking at the structure of the seawall and integrity of the seawall through this project. we're focused on just the tiles
to see if -- we are looking at the seawall through other areas of the waterfront resilience program and coming up with proposals to address the seawall seismic safety and flood risk reduction. this information will help with the design of the actual surface of whatever the ultimate project is. the surface treatment of that project to benefit the environment. it's very focused on just what the surface treatment would be for a future project. >> v.p. woo ho: i'm aware of that. i want to make sure we put it in the right context of when it is. you're just doing a pilot and you only -- doing it in three areas. we want to make sure that is we look at the bigger project, we understand how the surface can impact what we want for the
seawall. i would echo what commissioner gilman said. whether we could involve exploratory or california academy of sciences to include something once you have your results to have this in one of their exhibits. this would be an educational piece that we could share with the children of san francisco and any other visitors so that we would be -- this is groundbreaking news. i think, since we're trying to promote ceases -- species, it's a great idea. do we worry about alien species and how will you control that? i have heard that we had some alien species that will upset the ecosystem.
>> there's lot of nonnative species in the bay. we'll see them as part of this study. it's the condition of the bay. we hope to be able to see if some of the texture surfaces really pep give -- really help give native species -- they are kind of the lifecycle. we will monitor for native and non-native and hopefully make some conclusions that benefit native. >> v.p. woo ho: that leads to my last question, what you're comparing to the existing surfaces to see what does the existing surface promote in
we'll be comparing different tiles to each other in addition to baseline survey >> commissioner gilman: will you come back before two years to give us an update? in particular on the oyster shells versus native species, alien species. everything we do appears incredibly enjoyable and fulfilling. this one in particular we're all excited about. i hope we can get some updates. >> we'll be happy come back. i love to come back to give you
educational opportunities. >> v.p. woo ho: it will be wonderful to hear those. >> clerk: sorry, i have a request for a rest break, five minutes. we didn't have our normal break before opening and closed session. we'll take a five minute break now and we'll come back. [break] [ indiscernible ] >> good afternoon, vice president woo ho. i'm glad we had the break. i was going to try to connect
our pilot project to the seawall project. we have informational item developers solicitation approach. little bit of focus on the two buildings which are vacant now. we have the process of doing informational on the property what the goals will be and then we talked to the community and get input and come back for action item. we want to talk but to the solicitation process and proposal. i want to introduce our development project manager and other port staff member who helped shape the informational
items. >> good afternoon vice president doreen woo ho and commissioners. i'm the development project manager with the real estate and development division of the port. this offering here, i know that there are lot of developers have retail restaurant space. this is about getting your feedback. one of them is ferry plaza east building. other one is restaurant space.
the second building is the ferry please building. it's a two-story building with 18,000 square foot of space. as you know, the ferry building is attraction with over 8 million visitors a year. we think the building will benefit. this building has an incredible view. almost 360-degree view of the bay, beach and city skyline. it does have challenges. the challenges that may be need help of a broker.
permits are required. we need to inform the broker and tenant what the steps will be. those existing permits need to be updated. we'll use the opportunity to invite tenants to gather feedback. ferry plaza is building. we want to be sensitive to that. we welcome your comments. we are here to assist in responding to your questions.
i will conclude the presentation. >> v.p. woo ho: we'll now open up for public comment. is there any public comment in the room? seeing no hands raises. >> at this time, we will open the queue for anyone on the phone who would like to make public comment on item 10a. please dial star 3 if you wish to make public comment. the system will let you know when your line is open. others will wait on mute until their line is open. comments will be limited to three minutes per person. the queue is now open. please dial star 3 if you wish to make public comment. at this time, there are no members of the public on the phone wishing to make public
comment. >> v.p. woo ho: public comment is closed. >> commissioner brandon: thank you so much for this presentation. i remember when we used brokers in the past and i think it was a positive experience. due to the fact that we had less vacancy and we didn't need the brokers. if we were to use a broker it will be for these two projects. would we try to lease them together or separately? >> it depends. good thing about multi-offering, we're able to put the parties out there. you may have a tenant that have a capacity that want to be in
san francisco that take up to two. we expecting that it may be two separate tenants. it depends. we take whatever we get as long as we meet that criteria. >> commissioner brandon: the selection process, i wasn't quite clear on the difference of the selection process between broker r.f.p. and the traditional r.f.p. >> thank you for that question. the difference between the two is that the broker will do the research on the building. they will look at market conditions and they will look at our criteria and they will recommend what they think will work. minimum, they have to meet a minimum requirement. then they will go out and solicit prospect. if they get three or four prospect, most likely a intent
to us. we need to interview those tenants that they understand our requirements and they need minimum qualifications. we'll do the interview and then come back to you which is similar to the traditional r.f.p. in this case, there's no middle person involved. many of the tenants probably do not have the time to go through our process. because that's not how they do business. they use a broker and the broker do the screening for them. this tenant know what they are looking and requirements are. the broker is able to reach the
tenants that our r.f.p. will not reach. >> commissioner brandon: the selection -- the criteria for the selection process will be the same for both? >> yes. >> commissioner brandon: we would give the broker our criteria for what we're looking in a tenant and they would bring us back interested parties? >> yes. except they are doing the leg work like the touring of the property, information about san francisco, its economy. all the info that we summarize it in a r.f.p. they do a lot more. we tell the prospect that they have to do the due diligence.
it takes them time to come find out the info. >> commissioner brandon: is there a standard place for brokers? >> you means terms inform compensation? >> commissioner brandon: yes. >> we're going to work on compensation structure. here, we're going to be looking at what market is currently doing and we're going to come
back to you what we think is the best structure. we may have a table that go from minimum percentage, maybe from 2 or 3% to the maximum that we think it should be. or it can be a fixed fee. we want to incentivize the broker to go out and get this done. we'll come back to you with our market informed composition structure. >> commissioner brandon: thank you. the proposed concept that you have in the staff report, is that the basic criteria we're looking for with both? >> you mean the criteria for selection? >> commissioner brandon: yes. >> yes. usually we want them to have minimum experience that they
have experience with the type of -- [ indiscernible ] for instance, ferry plaza is building, they're proposing to have a night club or a dancing club in the program. they want to have some other activity that is unique to sitting inside and sitting outside. they may have different programs during the daytime, we want them to have the experience doing that or at least bring somebody in with them part of the team that have the experience. we have to look at their resources. is it finance or money out of their pocket. all of the due diligence we normally will do will be specified they need to meet those conditions. as i said, the experience, the
capacity and if the program is actually what they are proposing. >> commissioner gilman: when we come back for an action item, if you all are supportive of us exploring the broker concept, we'll go to department of real estate and get more information about the contract they have in place like we do any bid in order to get the broker on board. when we come back for an action item, to issue the solicitation with the broker alongside us, then we will be more clear like in our previous action items for r.f.p.s. we'll list out the criteria in more detail as well as the scoring and waiting. the broke or would go out and help us get prospects that speech these criteria. if we're open to this concept, in the action item, come back
with something that you're familiar with with some of the other r.f.p.s that we issue where we say the criteria, there's usually four in the area. we want to hear from you and the n.a.c. so we can integrate. we want to make sure there's complimentary knowledge and intentionality in terms of what food is offered there. we're offering particular types of cuisine. >> commissioner brandon: thank you. >> commissioner gilman: thank you for this report. i had couple of comments. i wanted to note, i'm very open to us exploring this.
i like this approach. you hit on some of them. -- bipoc and local businesses. it's my understanding that the embarcadero as a whole is not privy to the formula retail controls that other historic neighborhoods. i would like the staff to explore whether or not we want to put some parameters among formula retail. nothing against them.
i think we need to think about formula retail. so we attract things that are complementary that we trying to cater to both local on the waterfront. we love to may be go little deeper next time you epresent to us. the real estate department uses brokers and other city on property. may be cost benefit analysis. we'll probably use their table for costing for what we pay for the broker. it's really important that our values. these spaces will be restaurant or retail. small bipoc or medium organizations are used to working a broker.
they do all the leg work. i want to use this opportunity to break down some of the barriers that r.f.p. offer for folks. >> v.p. woo ho: thank you. i am supportive of the concept to try it. the fact that we did use it in the past. there's lot of pros for using brokers and there's some cons. we have to be aware of the balance in terms of how we structure this going forward. you have to think of the circumstances too. i'm guessing that if somebody
ended up soliciting us directly you would refer them to the broker. that should be spelled out clearly in terms of the rules of the road in terms of how it will operate. i think the benefit is the brokerage doing the marketing. i think there should be something in the contractual arrangement of how much marketing they will do. i think that while we have not had good response to the r.f.p., these properties have been
through an r.f.p. process. it's accelerating the time to market. what you're trying to do is cut down and accelerate so we're cutting down the amount of time involved in a traditional r.f.p. which failed once. if we went through it again, we're just eating time. these are desirable properties. there should be someone to utilize the concept. we want to know the pricing obviously in terms of how it works. then you have to think about it. if you can lease something six months sooner, if you waited six months to do it yourself, there's a cost benefit in the relationship. that's why the fee makes it worthy. i don't know what the pricing is in the factor -- market today.
you need to know how to construct something where are the deal will last. you don't want to have something that only works for a year and then the tenant doesn't make it. you need to know how to make sure not checking the financial wherewithal. but the broker has to be invested to know that too. obviously, if this works and we like it, we have other properties that we would consider. there's got to be that investment in the relationship in the long-term. i think we'd be interested you coming back and explaining more
about how this will work. >> thank you so much. >> v.p. woo ho: next item. >> clerk: 10b is an informational presentation on an amendment to the pier 70 special use district designed for development without altering the building bulk or height maximums permitted use categories or development capacity of the project as approved by the planning commission on march 3, website 22. -- march 3, 2022. >> good afternoon.
>> pier 70 special use district was approved by the port and city in 2017. it encompasses 35 acres included in 28-acre site partial k north and south on illinois street. special use will include up to 3000 residential units. up with $1.75 million of office space, up to 500,000 space of retail and industrial uses. pier 70 special use district design development was developed in 2017. it provides flexibility how individual parcels are designed.
definition of retail use is amended and clarified. additionally, the definition of office use will be amended to make two clarifications. the amend will clarify inconsistencies. instances where office use related term is used, is in reference to office use definition. the definition will clarify the parcel designated for office use maybe designed laboratory or lifetime of uses. this clarification is only technical in nature. this clarification will bring it in line with the controls governing other agreement
projects. for example, mission rock. in summary, the amendment advances implementation of the pier 70 mixed use project. amendment is consistent with our requirement of inspection of the planning code and general plan. the amendment is consistent with the final e.i.r. and the amendment was approved by the plannings commission on march 3,
2022. that includes the d4d amendment overview. >> good afternoon. i'm kelly presser. i work brookfield properties. it's a pleasure to present today. i'm joined by my colleagues tim bacon and jim. thank you ryan for providing overview of the proposed amendment for the d4d. i'm here to present progress to update of phase one of the pier 70 project. last summer, we celebrated the 10-year mark working on the pier 70 project at brookfield. project was entitled in 2017 and in 2018, we began construction on phase one utilities and
infrastructure. area highlighted in yellow shows boundaries of phase one which includes historic buildings 12 and 2 as well as a loop from 20th street to maryland street and 22nd street. phase one includes a minimum of -- parcel that will include minimum of 100 units of affordable housing. three residential buildings and one commercial building. we made great progress on phase one infrastructure. all utilities and infrastructure have been built including beautiful cobbles on 20th street.
these are few photos to give you a visual of the progress so far. showcasing 20th street and maryland street. another major accomplishment is the installation of building 15. we relocated building 15 to a temporary location in 2018. in 2021, after 22nd street was constructed, the building was restored to original alignment with building 12. this time 10 feet higher in elevation to address future sea level rise. speaking of building 12, we achieved t.c.o. earlier. the building includes 50,000 square feet of p.d.r. uses. rehabilitation of the builting includes repair of the existing historic windows and addition of new curtain wall on the southern facade.
the second level includes the bulk of p.d.r. space in the building. you will notice dry wall and lighting. we built these spaces out to be turnkey for p.d.r. users. going from the second level, new viewing platform and to the ground floor is a new grand staircase. this staircase is painted red for those at home, it is sherwin williams color. the ground level includes 20,00l projects oat thousand square feet public access level. we are proud to report that we continue to exceed our 30%
requirement by partnering with city build as well as sponsoring a summer intern this year more another summer. in terms of l.b.e. utilization, we continue to exceed our 17% goal with a full 29% l.b.e. participation at the end of 2021. as was mentioned in the staff report, brookfield has pursued approvals for three buildings. we proactively invested to advance the design of those buildings, however the office and residential markets continue to remain a challenge. we have positioned the project to move quickly when the market improves. despite the unforeseen challenges, we've done our best to open the site for events and activations. the image here shows the exhibit with 6000 attendees.
we continue to be surprised and excited by the amount of energy and interest in pier 70. we're working hard to make sure to provide opportunities for people to come to see the site starting now. this concludes my presentation. if the commission wouldn't mind indulging me for one minute. this will be my last presentation before the commission. i will be relocating with brook field to denver, colorado and leaving the pier 70 project after nine years. i want to thank the commission, director forbes, mike, rebecca, david, brad, josh and annette, grace, kevin and especially christine for being such wonderful partners to work with all these years. this has been an opportunity of lifetime. thank you very much.
>> v.p. woo ho: thank you for being here today. best of luck to you. now we'll open up for public comment. is there any public comment in the room? seeing none. open up for any remote participants. >> thank you. at this time, we will open up the queue for anyone on the phone who would like to make public comment on item 10b. pleases dial star 3 if you wish to make public comment. the system will let you know when your line is open. comment will be limited to three minutes per person. the queue is now open. at this time, there are no members of the public on the phone wishing to make public comment. >> v.p. woo ho: public comment
is closed. >> commissioner gilman: thank you for the report. i have no questions on the technical amendment. i have couple of questions for you on the ongoing development. i know it's only been two months since you got the t.c.o. is there any tenants that you can publicly disclose to us? how are you doing with the leasing of the space? >> we have been actively leasing the space for quite some time. i definitely seeing more interest on the retail and especially the p.d.r. maker front of things. less activity on the office side of things. nothing that i can officially report yet. we are seeing some good interest and building is so incredible. it speaks for itself. >> commissioner gilman: i had a
question on the vertical construction being delayed. can you walk me through how that affects the affordable housing project. >> the good news is that we are able to deliver the affordable housing pad absent any of the other vertical construction. the infrastructure construction has move on. in recognition of that mohcd did issue an r.f.p. this building is in the second traunch of that r.f.p. that is really in mohcd crease control. my understanding there's a ways to go for predevelopment.
>> commissioner gilman: may be we can invite mohcd here to give us anup update on that. wish you the best of luck in denver as well. i have no other questions. >> commissioner brandon: thank you so much for this report. i notice in the staff report you did a presentation before advisory committee. now they have a few questions or concerns. can you speak about that? >> generally, the meeting that we had last fall, they were really supportive. they did have one concern about how office and life size buildings can look lifeless on the bottom. one of the things they were suggesting make sure it's pedestrian and activated and oriented. one of the responses is the d4d
has the technical standards and guidelines that basically promote street life and pedestrian activity and retail where it's allowed on certain blocks. >> commissioner brandon: thank you. piggy back on commissioner gilman's question regarding the market delay. how does that affect the overall project? >> the down market delay as we talked about over the years, means that brookfield is relieved of time sensitive requirement. because we're in down market, they don't lose the option on the parcel. that's what means. we're going to appraise i think our deadline is coming up in
couple of months. the financial impact is that brookfield has invested quite lot of money in the infrastructure but doesn't make money the way you get money by building vertical and transacting on parcel. they had quite money on the table. it's a testament to their commitment that they are waiting until the market conditions improve so we can take the parcels down. they put in roads and utilities. the way they get money back is transability -- transacting on parcels.
>> commissioner brandon: thank you so much. i appreciate that. in june that will be a new appraisal and hopeful the market conditions would have improved a little. >> i know it's summertime when we come up on a year. >> commissioner brandon: so it's annually. once a year every year until market conditions improve? >> i know that the first one is up to one year out. we will be at one year this summer. since we achieved down market delay appraised value. >> commissioner brandon: i think i'm just trying to figure out how this affects the project overall? the continued activity. >> kelly reminded me that it's up to five years. there's bigger consequences for
both parties after five years. it won't go on any longer than that. the other thing is, the monetary benefit that we get from the project, we've always point the to the items, tax increment, special taxes. basically our portion of the taxes, those are delayed until vertical construction comes into. luckily we weren't making quite a lot from the site before. our money is delayed, their return is definitely delayed and their return will be much lower than they anticipated when theystarted phase one. >> commissioner brandon: i'm wondering if because parcels are going up everywhere and how that
thank you so much for your participation for the last nine years. i hope you're moving with the promotion. [ laughter ] >> v.p. woo ho: thank you so much. i think my fellow commissioners asked lot of questions. i think the amendments i agree with. i'm a particular enthusiast for life science as an industry. i hope you see that coming in the bay area. i think that's a positive thing. i applaud that. as far as the progress pier 70, there have been challenges as commissioner brandon outlined. we hope everything does get back on track. we're very excited to having this kind of neighborhood in
that part of the city. we're all cheering it on and hopes it comes to fruition. hopefully kelly, you're moving on too. hopefully this is a good change for you. we wish you well. thank you. >> clerk: tim -- item 11 is new business. >> first is to come back on the living seawall on updates and the discuss educational opportunities we had through the program. the second is to have mohcd come and discuss the affordable housing project. the final is in the summer or later in the fall for an update on the pier 70 project overall and our strategy to get the full project back on track. is there any other new business? >> commissioner gilman: we ask for a written report in the next
packet around data around the maritime relief program so we can see if there's some barriers we need to break down for maritime tenants. >> v.p. woo ho: okay. is there a motion to adjourn? >> so moved. >> second. >> v.p. woo ho: meeting adjourned at 5:48. thank you. good morning everyone. i'm cheryl