I am joined by supervisor raphael mandelman. Colleague, can i have a motion to excuse supervisor Catherine Stefani today . Supervisor mandelman so moved. [gavel]. Chair fewer thank you. Madam clerk, do you have any announcements . Clerk yes. [agenda item read]. Chair fewer thank you. Mad madam clerk, can you please read items 1, 2, and 3 togethe together. [agenda item read] [agenda item read] [agenda item read]. Chair fewer thank you very much. You are not katie, i think. Introduce yourself, please. Good morning, committee members. Thank you for hearing the items. I am from the Controllers Office of public finance. Ill be here to speak to the financing of items 1, 2, and 3, theyre approval of issuance of 2019b general Obligation Bonds. The purpose of the program was to protect the waterfront, bart and muni buildings, historic roads from earthquakes, flooding, rising seas, and the intent was to repair the seawall, embarcadero, and parts of the city. Based on the total anticipated par amount of 47,010,000, were approximately 63 million of debt service. The city charter has a limit on the percent of bonds, so if the board approves this bond, it would rise approximately. 02 this proposed sale would maintain the citys rate for general obligations bonds below the 2006 rate. Were currently pricing to close the bonds in september. I know these items were introduced for legislation earlier, but were also requesting an amendment to allow the port to be repaid for any additional funds that they need to expend between now and when they receive the bond proceeds. Id be happy to answer any questions that you have over the financing details, but for now, ill turn it over to katie and brad for the items that will be taken over by the bonds. Chair fewer so you have an amendment. Yes. Ive submitted the amendments, and it just pushes the old section 24 to 25. Chair fewer okay. Lets hear from the port officers. Im here today to ask that the board of supervisors approve the first sale of the seawall general Obligation Bond that was approved by the voters in november 2018. The port is requesting approval for a bond sale not to exceed 50 million that will support design and work on the seawall program. The program has evolved considerably over the last year, and im joined by brad benson, the ports waterfront resilience director. Brad will walk the committee through a quick presentation and then i will wrap up the presentation with some details about the requested bond sale. Chair fewer thank you. Good morning, chair fewer, supervisor mandelman. I appreciate you being here today, putting the bond on the ballot. As katie mentioned, the program has expanded quite a bit. We were able to win something called a new start through the federal government with the army corps of engineers. The city and county of San Francisco won one of two flood risk new starts, and through that effort, we are examining flood risk not just along the embarcadero seawall area of the port, but the ports entire 7. 5mile jurisdiction, including to north of the park down to herrons head park. So we have been in a process of community engagement. This is the vision statement that we just brought to the Community Last month of a safe, equitiable, sustainable and inspiring waterfront. Were working with the community on principles and goal for the program, including criteria that well use to select first projects. The ports efforts are nested within citywide broader efforts, including the sea level wise action plan and the hazard resilience plan, which i believe is coming your way. Along the waterfront, the biggest risk is earthquake risk, particularly along fill areas on the waterfront. This chart shows that weve been in a relatively quiet earthquake period since 1906, and we expect this to change as pressure increases look along the tectonic plates. Were also dealing with flood risks. We have lane closures along the embarcadero road way during king tide events. Were worried that a 100year or 500year storm event, with a low probability of happening, that we could face consequences, including flooding of the Embarcadero Muni tunnel. Its that exposure and other flood risk exposure along the waterfront thats the federal basis for studying flood risk along the waterfront, and youll see this is the overlapping jurisdiction of the Embarcadero Seawall Program and the flood study. In the flood study, its a 5050 sharing of costs between the federal government and the nonfederal sponsor, which is the port. We initially started this study, thinking this would be a 3 million effort. In negotiation with the army corps, it looks like to really tackle flood risk along a complicated urban waterfront like this, its more likely that the study cost will be approaching 20 million, and will take five or more years, and well be back before you seeking approval of that final study plan probably this fall. So in order to address these twin risks of seismic safety and flood safety, well developed a planning framework called strengthen, adapt, and envision. Strengthen is what do we need to do today to focus on life safety and Emergency Response in the near term. Adapt will be a plan that we will execute over the next 30 years to address flood risk as that risk increases over time, and eventually, well need a new shoreline along the bay edge, and well be going through a public process to envision what that new shoreline could look like. So returning to the Embarcadero Seawall Program, which is most of the expenditure thats before you today, as i mentioned, the First Priority is life safety and Emergency Response. Were doing our best to look at how the first set of projects in the Embarcadero Seawall Program could align with the Army Corps Flood study so we address both seismic and flood risks at the same time, and we get credit for the local expenditure as a match for future federal funding. Where we are right now is in the midst of a multihazard Risk Assessment that we expect will conclude at the end of the year. A big component of this effort is doing more geotechnical investigation along the waterfront to really be able to pinpoint areas of high lateral spread risk where the most dangerous where we have to focus in terms of life safety and Emergency Response. Were looking at a broad range of criteria, including miss torque resources, Economic Impacts to workers, and urban design as part of that Risk Assessment and that will inform the alternatives that we come up with in the next two years to three years to address flood risk. So through this process, were engaging significantly with the public in three major areas of the wheaterfront. And we are walking along the process with the public so they understand the criteria that well be using to select projects to address these risks. Its been i think the ports most Robust Community engagement efforts. Weve been doing road shows. If youd like us to come to your district and explain the work that were doing, wed be happy to. Im really proud of the work this theyve done. They recently won an award from the aapa, and were really proud of that them. With that, im going to turn it over to katie. This first bond sale will reimburse 6 million of the 9 million loan that the citys Revolving Loan made to the port program. They will also reimburse capital to the program that will allow them to continue seawall work that may not be bond eligible costs. The port has secured 446 million of the phase one budget to date, and we continue to seek other sources for the Program Including contributions through the state, possible participating in a capandtrade revenue. Were investigating looking into additional taxes to fund the remaining gap. This will primarily fund project staff, project planning, such as geotechnical investigations, completion of the multihazard Risk Assessment that brad mentioned, alternatives development, our ongoing public outreach, the start of environmental review, preliminary design, and costs related to the army corps of engineers flood study. We expect that this first sale will fund our work on the program through 2022. We appreciate the boards consideration, and we are happy to answer questions. Chair fewer could we hear from the b. L. A. , please. Good morning, chair fewer, supervisor mandelman. Self r Severin Campbell from the b. L. A. Table two on page 4 of our report sort of summarizes the spending of the 50 million. Table three on page 5 of our report sort of shows all of the phase one funding discussed, of 500 million, of which the bonds are the major source of funding. There is a gap of approximately 54 million. Our understanding is there are other programs that would fill up that 54 million gap. The sale of the initial 50 million in bonds is consistent with the citys debt limit and debt policy, so the one issue we raised in this report was is there was litigation against proposition a. It was dismissed in superior court, but our understanding is there is a 60day appeal period. We do request that the Department Submit a report to the board of the end of the appeal process, otherwise, we approve the amount. So the amendment is to file number 190357, and chair fewer oh, excuse me. I think you mentioned earlier it was 358. Oh, yeah, its 358. I apologize, thats correct. Chair fewer thats okay. Just having a moment here. Chair fewer okay. So section 24 reads the city declares its official twebt to reimburse prior expenses of the city incurred prior to the series 2019 bond to be financed by the series 2019 bonds. The board of supervisors declares the citys intent to reimburse the city with the proceeds of the series 2019b bonds for the expenditures with respect to the project. Each expenditure made on off after that date is no more than 60 days after the adoption of the resolution. Each expenditure was and will be either a, of a type properly chargeable to a capital account under general federal income tax principles determined in each case as of the date of the expenditure. B, a conservationist with respect to the 2019b bonds. C, a nonreoccurring item that is not repayable through current grant revenues. Or d, the grant is not for any entity identified with the city. The city recognizes that exceptions are available for certain preliminary expenditures, cost of expenditures, expenditures by small issuers based on the year of issuance and not year of expenditure, and Construction Projects of at least five years. So thats the section that we added, essentially allowing the bonds to reimburse the port for expenditures made to 60 days before the adoption up to three years after the product is placed for service. Chair fewer so this is the safety plan. Yes. So if theres any further delay in issuing the bonds, and the port needs to expend its own money to continue the project and not have any delays, then theyll be able to reimburse themselves from the bond proceeds. Chair fewer thank you. Any questions from my colleagues . Yes, supervisor mandelman . Supervisor mandelman i want to start by expressing my gratitude for the work that youre doing and my sense that this is extraordinarily important. I want to start with my anxiety, and you be able to tell me that were okay, but i dont think youre going to be able to do that. One of the anxieties that i have i want us to move forward and do this work, but it seems like the scale of what were going to need to do Going Forward and the pace that were going to need to do is several times greater than this contemplated 500 million project, and this contemplated 500 million project takes us through the next 5 to 7 years. Climate change is all about irreversible changes by 2030 or were not going to be around to see it. Youre anticipating the problems that could happen with a 100year flood, but of course were seeing 20, 50, 500year weather events theyre no longer 500year weather events. Part of whats happening with this is getting us to understand the scale of the program and what more were going to need to do and on what timeline, i think. But do you have a sense into how far of dealing with the needs along the waterfront were going to be with this 500 nmillion and how much mor were likely going to have to do . So thank you for the question, and ill do my best to address your anxiety. Chair fewer thats extra. So i think as we initially envisioned this program, due to funding constraints you know, we had always estimated that the cost of improving the entire embarcadero section of the shoreline would be 2 bi billion to 5 billion, and we would undertake that in a 30year program. The initial phase of the embarcadero program was we were going to spend sometime looking at those broader needs, sort of a longrange planning effort but then really quickly focus in on phase 1, which is not the enti entire length of the seawall. It will probably be onehalf to twothirds of a mile. I think what the army corps is looking at, which is 7. 5 miles, and how we need to address this through strengthen, adapt, and envision, is we are really bulking up our planning effort to look over the longterm in a much deeper way. So the army corps study alone, i mentioned that 20 million figure, i think that that is going to look out through at least 2080. Were still working with the army corps on the flood risk analysis that is the pending on that study, but it is looking at the latest california Sea Level Rise curves experienced here locally. Were looking at a variety of storm events through that, taking into account some of the changes to weather patterns that youre talking about, and i think weve got a very robust planning process and analysis process that is going to be looking at what we need to do beyond this phase one to a much bigger project. Funding is the challenge. Supervisor mandelman right. Were pleased that the army corps study very preliminary work is looking like that might generate up to 1 billion in federal investment. Thats not enough, but thats a big amount of money. It would not likely come all at the same time like federal appropriations work. As katie mentioned, were looking at a broad range of Funding Strategies to move this ball bond phase 1 because we believe that there are Strategy Problems beyond just the phase 1 of the seawall program. We feel the urgency. We want to get the seawall in the ground as quickly as possible. I think the way that the public is accepting of this planning effort is really promising. It looks like were going to be able to move forward and address these risks without a lot of controversy, but thats a very longwinded answer to your question. Supervisor mandelman thank you. I dont know if you know this i think he now this, but we may not have 30 years to make significant changes to protect portions of the waterfront, and somehow i think during this phase 1 or in phase 2, i think were going to have to figure out a way to move much more quickly around the things that were doing. And of course the longer we dont do that, the harder it is going to be for the city to respond when there is a terrible event in trying to cleanup the costs of the tunnel flooding and the damage along the waterfront that will happen if there is terrible flooding. You know, we will be spending our money trying to clean that up, and thats a much worse place to be than trying to make that waterfront more resilient on the front end, so thank you for the work that youre doing. Thank you. Chair fewer lets open this up for Public Comment now. Are there any members of the public that would like to comment on items 1, 2, or 3 . Mr. Wright. All right. Lets take care of the first major problem first. Your anxiety, just like ive been saying all the time. When you fill those 17 openings for psychiatrists that you got for the board of supervisors in the city and county of San Francisco, you need to make an appointment to see a psychiatrist. Okay. Now, the seawall, i agree, i watch educational shows, watch Global Warming in places like alaska where we have all these ice treasures, theyre melting, and tonnage of ice is raising the level. And also want to point out sf viewer. Heres an example of the seawall. When youre building the seawall, sir, this fence, really, right here, concrete, thats maybe only 3. 5 or 4 feet high. Thats too low. I believe it should be up at least 10 feet high in order to prevent a flood or hurricane or the water raising up much higher than that. Were zoning activity like this, and if we have a catastrophe like of what youre talking about, its not going to prevent the flooding of the muni tunnels. Thats not the only tunnel you should be worried about. The b. A. R. T. Tunnel, too. That tunnel is seven miles below the ocean surface, and if you have a flood there, the combination of the high power electrical line, it can do some serious damage. And id also like you to expand your studies to this part of the city here. We dont have no seawall here. This is like towards the mission rock area where the baseball at t park there is located. Theres no protection here. Chair fewer thank you, mr. Wright. Thank you for upping my colleagues anxiety level. Any other Public Comment . Seeing none, Public Comment is now closed. Mr. Attorney, i have a question for you. The amendments brought forward, are those substantive . Mr. Givner deputy City Attorney jon givner. No, you can pass them out of committee today. Chair fewer id like to make a motion to approve the amendment as presented by the Controllers Office. I can do that without objection, and id also like to move this to the full board with a recommendation and also with the b. L. A. S recommendation. Okay. Y i can do that without objection . Okay. Thank you. [gavel]. Chair fewer madam clerk, will you please read item number 4. [agenda item read]. Chair fewer thank you very much. Oh, hello. Hi, could