Congestion of t. N. C. S in our streets for 15 years, so thank you for doing this. Supervisor peskin thank you, supervisor. Chair fewer yeah. I would like to say although this is a tax regulation, this is by no means regulating the business at all. So i think were going to have some of the same issues in ability to regulate the industry. I think its a good first step. Having said that, lets open this up for Public Comment. Im wondering if theres anyone that would like to come on up on item 17. Everyone has two minutes. Good morning afternoon. Im here to represent mothers out front San Francisco. This is my daughter. Mothers out front is an organization working to create a livable climate for our children. We think that San Francisco has an opportunity to incentivize a car it wants to see on the road, seeing as car use is realistically not going away. So we, mothers up front along with several other coalitions, clean air coalition, and others, we support this legislation, but we actually think it should go further. Wed like to extend the time frame. Right now, less than 1 of t. N. C. Rides are in electric cars, and if we really want to address climate change, pollution, and traffic, this has to increase. We just declared a Climate Emergency as a city. Its time for us to stand behind that declaration with even more extreme measures. Thank you. Chair fewer thank you very much. Next speaker, please. You know, its a painful experience being ahead of the carve. If you want to tax somebody, understand me, youre taxing the wrong people. What you should be doing is taxing the department of transportation and caltrans for blowing up the bay bridge and acting like that bridge is going to deteriorate and ineffective services. There was nothing wrong with that bay bridge. And if there was any weak spots located on that bridge, all you had to do was pressure test it and reinforce that area that was not Strong Enough to maintain the amount of traffic thats going back and forth and forth and back across that bridge. Theres nothing wrong with that bridge. Youve got Richmond Bridge where youve got numerous parts of concrete falling down on traffic. Theyre not tearing that bridge down. Theyre reinforcing the weak spots and got that bridge up in running. Thats disgusting. You hired your friends to tear down that god damn bridge up, and then, after you use your last set of dynamite blowing up that bridge, you have a press conference where you want to impose a gas tax. You aint maintaining a god damn thing. Thats where your congestion is coming from. You want to tax somebody, tax them. You didnt have that god damn congestion until you blew up that bridge. You had two bridges side by side by each other, and they aint never had that traffic jams. Chair fewer thank you. Thank you mr. Wright. Any other Public Comment . Seeing none, Public Comment is now closed. I make a motion to approve the amendments that have been brought forth by supervisor peskin. We can take that without objection. [gavel]. Chair fewer and make a motion to continue this item to the next budget and finance committee. Thank you very much. Madam clerk, do we have any other items before us today . Clerk there are no other items. Chair fewer yea we are adjourned. Hi. My name is carmen chiu, San Franciscos aelectricitied assessor. Today, i want to share with you a property tax savings programs for families called proposition 58. Prop 58 was passed in 1986 and it was helped parents pass on their lower Property Tax Base to their children. So how does this work . Under californias prop 13 law, the value we use to calculate your property tax is limited to 2 growth peryear. But when ownership changes, prop 13 requires that we reassess properties to market value. If parents want to pass on their home or other property to their children, it would be considered a change in ownership. Assuming the market value of your property has gone up, your children, the new owners, would pay taxes starting at that new higher level. Thats where prop 58 comes in. Prop 58 recognizes the transfer between parents and children so that instead of taxing your children at that new higher level, they get to keep your lower prop 13 value. Remember, prop 58 only applies to transfers between parents and children. Heres how the law twines an eligible child. A biological child, a step child, child adopted before the age of 18, and a soninlaw or daughterinlaw. To benefit from this tax saving program, remember, you just have to apply. Download the prop 58 form from our website and submit it to our office. Now you may ask, is there a cap how much you can pass on. Well, first, your principal residence can be excluded. Other than that, the total tap of properties that can use this exclusion cannot exceed 1 million. This means for example if you have two other properties, each valued at 500,000, you can exclude both because they both fit under the 1 million cap. Now what happens hwhen the totl value you want to pass on exceeds 1 million. Lets say you have four properties. Three with current taxable value of 300,000 and one at 200,000, totaling 1. 1 million in value. Assuming that you decide to pass on properties one, two, and three, we would apply the exclusions on a first come, first served basis. You would deduct properties one, two, and three, and you would still have 100,000 left to pass on. What happens when you pass on the last property . This property, house four, has been existing value of 2 has an existing value of 200,000, and its existing Property Value is actually higher, 700,000. As i said, the value left in your cap is 100,000. When we first figure out your portion, we figure out the portion that can be excluded. We do that by dividing the exclusion value over the assessed value. In this case, its 50 . This means 50 of the property will remain at its existing value. Meanwhile, the rest will be reassessed at market value. So the new taxable value for this property will be 50 of the existing value, which is 200,000, equaling 100,000, plus the portion reassessed to market value, which is 50 times 700,000, in other words, 350,000, with a total coming out to 450,000. A Similar Program is also available for prepping transfers fl interest r from grandparents to grandchildren. If youre interested in learning more visit our website or test test test test test i pledge of allegiance to the flag of the United States of america. To the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. [reading items] we do have speaker card. Aaron thorton and then kevin carol. Hello my name is aaron thorton. I am from stacy architects. Im speaking on behalf of of the project today which has been continued. Im here to speak anyway. Ive been to the groundbreaking of the ground project that came before the Court Commission about a year ago. Really excited to see that project started on a really look forward to the groundbreaking. They have been great partners as we have been developing the project area im excited to see that freeway site developed. I just wanted to add our support to the project. Thank you very much. Thank you. Kevin carol and then bill hannon good afternoon commissioners. I am the president and ceo of the Hotel Council of San Francisco. Im here to speak in support of the project and the Kenwood Hotel project to get we believe and have believe that this is an incredible project that will bring a new entertainment venue as well as a place for our visitors to stay when they come here to San Francisco. Its been very well planned out. Theres been a lot of Community Meetings on it. The project is something that will help activate an area that can use activation as well. Hotels obviously bring good job to an area. They bring activation and it is something our board of directors and our members support as well. Im just here to wholeheartedly support the project that is before you. Thank you. Bill hannon and then laurel fish. Good afternoon. Im bill hannon with the gateway tenants association. Our members that live in the gateway residual complex located two blocks south of the site. Im here to repeat our wholehearted and enthusiastic support for the project. It will be Good Business it will be good for the court cultural life of the city. We needed the beach like it babylon is folding up its tent. We enthusiastically support this and hope you will support the lease and the meetings to come. Good afternoon. My name is laurel fish with unite here local 2. The hotel and Restaurant Workers Union in San Francisco. We are here to audit support to those who support the proposed hotel, as a Union Representing hospitality employees it is our utmost concern that new jobs created in the industry will serve to lift up the community by providing leading wages and working additions for the hardworking people who work in our cities hotel. Hotel developers have historically supported the creation of job by agreeing to remain neutral. These agreements represent a double win for our community. They ensure that jobs created are good quality job and they also guarantee that Hotel Developments are free from costly labor disputes. Local two has had a longstanding collaborative relationship with the developer of this object who has worked proactively with our union to sign such an agreement. The developers have also agreed to build the hotel with union labor. As such they are setting an example for the developer of the future hotels in the city and for these reasons we are pleased to support the project. Good afternoon commissioners. Im representing the Barbary Coast association in full support of the project. We certainly want to complement the developers because they have been very accommodating as far as outreach to the community and listening to any concerns that we may have and resolving those. Secondly, i think the theater itself is a unique architectural item that will bring some variety to the area, and of course obviously is going to bring some entertainment to which we believe this wholesome entertainment will be a real benefit to the neighborhood. With full support, thank you. Any other Public Comment on items not listed on the agenda . Public comment is closed. Good afternoon members of the commission, members of the public and port staff. Im the executive director and i have one item to report today. That is just this afternoon, port staff and i come and commissioner gelman attended the groundbreaking 488 broadway as well as 735 davis street. The port staff is especially proud of 88 broadway because it is our land and that will be home to 125 units of Affordable Housing for families earning 30 percent to 120 percent ami. They will be projectbased section 8 housing vouchers in the project. Senior housing and units for formerly Homeless Individuals we had i know the commission and i are very proud, mayor breed was out the groundbreaking along with supervisor aaron peskin and the developer jon stewart and company. We are just very proud that we can be part of solving the Affordable Housing crisis in the city. It was really the community who came to us many years ago now to say that they felt that our under lot underutilized seawall lots would be a Good Opportunity for housing. And then we began to work with the state legislature which in the tradition of delancey street allowed us to provide our surplus poverty for housing. We are very proud of the groundbreaking today and congratulations to everyone who was involved in that project. That concludes my report. Any Public Comment on the executive directors report. I would just like to add june 18 through twentieth, the American Association of Port Authority have their seminar for port governing boards. I attended. I was happy that San Francisco could host the repair. There were probably 85 commissioners on their significant others. Most of them came to San Francisco days before the event and stayed days after. They help the economy here in San Francisco. They hosted a reception for everyone, which was really nice and then director forbes did a panel on infrastructure on steroids and Lessons Learned along with the present ceo of the port of san diego. They did a phenomenal job. Everyone was happy and wants to come back to San Francisco. Thank you, elaine. Item 10 a, request approval of fiscal year 2019 through 2020 monthly rental rate schedule, monthly parking stall rates and special events. Do i have a motion . Second. Any Public Comment on this item . All lives matter one favor . Resolution 1924 has been appropriate request approval of lease number lone six five four seven 515 year term with two five year options to extend with golden gate scenic Steamship Corporation located at pier 43 and a half in fresheners wharf area good afternoon commissioners. Mike martin, real estate and development. Joined today by j edwards, our Senior Property manager who has led this negotiation. As well as our deputy City Attorney who has given us a ton of assistance on the way. This is a followup to your may 28 meeting where we heard information item on this lease renewal. We went into depth at that meeting regarding the appraisal by art blom and associate and how we incorporated those financial metrics into the lease. At that meeting you directed us to go negotiate a final lease which we have done. We are back here today to seek your approval. Rather than going through all of those financial metrics again i think i will give you some background on the lease again for the publics benefit. Give you a bit of the background for our recommendation. Im obviously happy to respond to any questions as we did obviously put the Financial Information in the staff report and obviously if you have questions i can respond to those yet moving forward as we talked about in may. Families have continuously with maritime businesses in the location since 1974. 400,000 passengers a year getting out to go and enjoy the bay. They keep port of the Maritime Mission to bring visitors to this unique waterfront. Red white fleet operates a fleet of five vessels some of the most recent is pictured here. A hybrid electric drive vehicle that greatly reduces emissions and obviously is a great step forward in terms of the ports excursion fleet in terms of its sustainability. The project includes a significant Capital Investment in the facility on the shore site. The project, approving the lease would authorize subject to regulatory permitting the tenant to perform improvements to the shoreside to replace the current ticket booth facility with a new birth booth as well as improving the staff facilities as well as the customer cueing in relation to the nearby Public Access. This would rationalize the site greatly along the highly trafficked corner of the waterfront in this area. The estimated cost of the shoreside improvements is 1,600,000 and they would proceed immediately after approval of the lease renewal. Phase 2 of the project would follow on the water side. As we have discussed with you the may 20 eighth item as well as the prior information item. Pg e is performing some Environmental Remediation in the water in this area and on the land. That is proceeding in the near term. What we have structured the lease to allow is when that remediation is done, the tenant can move in and perform the water site improvements. These improvements are critical to our expectations of improvement in these operations. They will expand the number of births from three up to four. Which would greatly improve the efficiency of passion or loading on the overall operation. Eventually resulting in further revenues to the port. In addition, the estimated cost of these improvements is 3,000,000 dollars. The next two slides give a pretty good depiction of what they are doing. Basically here is the existing facility, somewhat cramped next to pier 45 to the left of the overhead here. This is a depiction of what the proposal would have, sort of tilting both of the floats outward so that it can be used productively and effectively. We would also ask and the lease area on the water side to allow for exclusive use of this area for the passenger boarding. Wanted to take a moment to discuss the maritime excursion lease renewal policy which was described in the staff report. I think it formed the basis of port staffs negotiations of this opposed transaction. August 2010 the Port Commission adopted the policy to establish internal guidelines for excursion leases the policy sought to ensure that maritime excursion leases are fairly valued, generating revenues to the poor serving residents and visitors to get there are seven pacific additions that we laid out in the staff report we actually attach the policy as well. The proposed lease renewal satisfies all of those criteria. The policy also calls out to what needs to be in the lease in terms of lease obligations. Using the appraisal a restaurant earlier we ensure that the business terms matched up with the fair market value of what can be expected at this point because for a lease such as this one. We look at operations on only here in severances but elsewhere in calif