Call . [roll call] chairman commissioner adams . Hes on another call. Hell join us later. Chairman okay. Commissioner gilman . Yea. Commissioner macros . Yea. Chairman commissioner wuho . Yea. Chairman the approval of the minutes, march 10 and march 19, 2020, minutes . So moved. Second. [audio background noise] the pledge of allegiance . I pledge allegiance to the flag of the United States of america, and to the republic for which it stands, one nation, under god, i indivisible, with liberty and justice for all. Okay. The pledge o pledge of allegiance. Chairman item 4. [the pledge of allegiance said again] [audio breaking up] okay. Please be advised that a member of the public has up to three minutes to make pertinent comments on each agenda item. Please note that during the Public Comment period, the moderate will instruct dialin part parents to partici. Audio promps will signal to dial in when they are enabled for commenting. Item 5, executive directors report. Good afternoon, commissioners, michael martin. Ill keep my items very brief, and then ill hand it over indescernable for the revenue projection. I just wanted to say thank you. The first thank you is to all of the port staff that have been serving as service workers, including our executive director elaine forbes. Weve had 46 additional staff in addition to executive director forbes, answer the call for the city, and weve been involved in doing whatever we can to help respond to this crisis. It just makes me real proud to be a board employee, and being able to pitch in, as we have. And the second group i want to thank is the rest of port staff, who helped me greatly as ive stepped into this role as acting director. There is a lot going on, and i certainly couldnt do it without their help. I wanted to extend that thanks. With that, ill hand it over to katie move ahead with the revenue updates. Good afternoon, everybody good afternoon. Can you hear me . Yes. Good. Im so pleased to be with you all this afternoon. It feels like a little bit of normalcy, which im really excited about. Im katie patrishioni, and i hope that all of you and your families are all safe and healthy as we continue to shelter in place. So in light of the economic disruption that has been caused by covid19 and the subsequent shelterinplace order, staff thought that it would be helpful to give the Commission Just a brief update on revenue projections for the current fiscal year, and to share some of our preliminary thinking on how it will affect revenue for the next two fiscal years. The city is going to the next slide, please . In the current fiscal year, staff is projecting that revenue will fall short of the budget by 17 , which is about 20. 8 million. This shortfall is going to come from a combination of loss to maritime revenue, reflecting the fact that there will be no cruise calls through the end of this fiscal year, as well as the fact that tesla has furloughed its factory, limiting auto exports at pier 80. And also from the real estate division, which is seeing losses throughout its portfolio. I do want to note that covids impact to our real estate portfolio will be discussed in greater detail in item 16, real worlding renrealregarding rent. The port expects to cover this revenue shortfall through 9. 4million in expenditure savings, which includes salary savings from some vacant positions, savings to work orders with other departments, as well as reduction of Contractual Services to procurement of equipment, and to materials and supplies. We are also projecting that we will defer contributing 11. 4 million in Net Operating Income to future capital needs. And so with these changes, staff expects to be able to balance the ports budget for the current fiscal year. The next line, but, of course, all of these revenue reductions are going to have an impact on the port and on our budget for some time to come. It is still quite early to understand what those impacts will be, but the finance staff has begun to develop revenue projections for the next two fiscal years. We have used an approach outlined by the controller, the Mayors Office and the budget and legislative analyst in the citys joint report to model two different economic downturn scenarios. The first scenario is an extended impact scenario, which proposes a sixmonth recession, followed by a long recovery, through calendar year 2021. This scenario represents the low end of the revenue range that we would expect. The second scenario is a more limited impact scenario, with a less severe sixmonth recession, and this scenario represents the higher end of our revenue range. You can see that this table compares projections from fiscal year 2021, and 21 22, to the budget that this Commission Approved in february. You will note that the extended impact revenue scenario projects that we will see nearly 50 less in revenue next fiscal year compared tw to what we budgeted. The limited impact scenario projects a 34 reduction to the revenue we have budgeted for, in the budget that we submitted in february. Next slide, please. So staff believes that it is prudent to budget to the worstcase revenue scenario. We have three levers at our disposal that will help us address this financial challenge. First, we have approximately 67 million in Available Fund balance that can help to support the budget in the next two fiscal years. Second, we have the ability to constrain operating expenses. And, finally, we can reduce the funding that we were proposing to allocate Capital Projects next year and the year after. Used together, staff believes that these tools will allow the port port. To live within its reduced revenue, it will allow us to protect existing staff from layoff, and it will support the ports efforts to meet the challenges that will come with recovery from covid19. Next slide, please. So, as i mentioned, the Mayors Office has notified departments that the citys budget process is going to be delayed in order to allow us all to revise our revenue and expenditure projections. We still dont have a final schedule from the Mayors Office for the budget process. But we expect that they are going to ask us to submit a revised budget in june. Some time, my guess would be in the first couple of weeks of june. The Mayors Office has also notified departments, including the port, who would normally have what is known as a closed twoyear budget, that we are going to be expected to prepare a full budget again this coming winter. This will allow departments to continue to refine our revenue and expenditure estimates as we get more information about the impact of covid19 to our revenue. Yesterday the finance unit asked each of the ports divisions to start to review their budget and to submit proposed budget reductions, equal to 50 of their discretionary nonsalary spending. Staff will compile this information into a revised budget proposal, and will bring that revised budget to the Port Commission for your review either at the end of may or the beginning of june, depending on the schedule that we get from the Mayors Office. So thats my quick overview. And now nate cruise and i are happy to answer questions. Chairman thank you, katie. We really appreciate those reports. And thank you so much for stepping up and supporting our staff and the port during this time. Thank you for the weekly updates, and thank you for the new newsletter that is going out this afternoon indescernable that states what is going on. We really appreciate you stepping into this role. With that, i would like to open it up for Public Comment. We will open the phone lines, and take Public Comment from members of the public who are joining us on the phone. Dennis will be our operator and provide instructions now for anyone on the phone who would like to provide Public Comments. Do we have any Public Comments . Is zenika with us . Jenika, are you there . Chairman her line is muted, so. Can you hear me . Now i can, thank you. Chairman at this time, we will open the cue for anyone on the phone who would like to make Public Comment . You will be entered into the system in the order you dialed 10. Others will wait on mute until their line is opened. Comments will be limited to three minutes per person. The cue is now open. Please dial 10 if you wish to make Public Comment. Commissioner brandon, you have one caller on the line. Thank you. Chairman let me activate them now. Commissioner brandon, that caller has left the line. At this time, we have no further callers on the line wishing to make Public Comment. Thank you. We will now close Public Comment. Chairman excuse me, we do have a few coming in now. Would you like to take the callers . Yes, please. Chairman one moment. The line is now open. How many callers do we have on the line . Chairman we have four callers on the line. And there is one caller open. Can we check if their phone line is bridged . It sounds like the two are not connected. Please stand by and i will try to reconnect the Public Comment line to this meeting. Sounds like it works. Kevin, do you need any further testing on my side . No. It sounds like it is bridged over now. Chairman okay. There is a number dialed into the cue. Last four digits, 1169, is that a test number or not . Why dont we open up for Public Comment, please . Chairman okay. Ill do that. Ill take that first question. It looks like there are three callers in the cue at this time. Ill take the first question. Caller hi, can you hear me . Chairman yes, we can. Yes, we can. I hear nothing. Can you hear us now . Jenika yes . Can you unmute the 6558 number. I cant hear anything. Jenika, can you unmute the 6558 number from the participant list . Im looking for that number now. Thank you. Kevin, i dont see a 6558 number. Is there a 5875 number . Chairman yes, there is. Ill unmute that line. Yes, please. Your line is now unmuted. Okay. So now, caller, can you hear us, caller . Caller i can hear you. Can you hear me . Yes, thank you. Please proceed. Caller hello . Yes. Am i the one youre talking to . Im not sure. Yes. Can you please introduce yourself . Caller my name is susan malaney, and im calling regarding the lot 344. Is that intended to be a permanent im sorry homeless shelter. Susan, we do not have that. Caller i cant really understand what youre saying. I think you said youre not talking about that . No. Can you hear me . Caller yes. Okay. We have not gotten to that item yet. We are on the executive directors report. Caller oh, i see. The item youre to is item 6b. We really appreciate you calling. Caller yeah, i just didnt understand the way this was written, i mean, this schedule. So i didnt understand that. But ill stay on the line for when you get to that. Thank you. Thank you. Okay. Claire w chairman we have two other callers on the line. May i take the next caller . Yes, please. Chairman thank you. Good afternoon, commissioners. I just wanted to pipe in to say that this is very difficult to follow for the public. And we cant hear clearly what is being said. And everybody has got different items that we are calling about. Hopefully this will go smoother, but if the audio continues to be in and out, then i do suggest that you continue it because the public does have a right to public speaking and to understand what is being said. Thank you. Thank you. Are there any other callers . Yes, president brandon, we have one last caller on the line. I will open up that line now. Good afternoon, commissioners. This is larry collins. Calling from down here at pier 45. I run the San FranciscoCommunity Fishers association, which is the coop down there. I was present for 35 years, and now im letting the next generation take that over. But were still very, very involved in commercial fishing at the wharf. Ive been on here since we started at 3 15. I mean, you guys had six weeks to get it together as far as, you know, not having meetings where indescernable . Im an okie, and, you know, i dont understand this new modern communication. [audio is breaking up] i wanted to talk to you about commercial fishing in the future here in San Francisco. You guys can you guys hear me . Yes, we can hear you. Caller okay. I wanted to talk to you about what is going on with the supply chain and the seasons coming up and everything. And i dont know if this is the right place to talk about that . If you have a question or you want to make a comment, please do. Caller yeah, i do. Ive been fishing 40 years out of wharftown here, and ive never seen times like this. Weve got the salmon season starting may 1st, and we i cant find a market that will commit. Its hik like i said, ive never seen anything like this. After 9 11, we saw a month and a half of the market difference. But there was a light at the end of that tunnel. But the way this is going now, we were not sure what is going to happen. We cannot we unload for the producers coop out of billingham, and they can pack a lot of fish into the freezer. But without the restaurants the restaurants used to by like 60 , 70 of this, the wild salmon. With the restaurants all closed, were a wholesale buyer and we sell to distributors and to restaurants and that. That market is gone. [buzzer] youre time is up. Caller everybody down there sir, your time is up. Thank you for your comments. We will now move on to the next caller. Caller oh, wow, okay. Are you still there . Caller im still here. Okay, larry, thank you so much for calling. This is a very difficult time for everyone, and we totally understand. The port is here to work with you. So if you need some type of help, please feel free to contact the port, okay . Ive been trying to contact the port, and i havent gotten any calls back from anybody. Okay. Amy, can you make sure that you follow up with larry . Yes. Will do, commissioner. Thank you, larry. Thank you for your call, and take care. Caller okay. Thank you very much. I appreciate it. Byebye. Bye. Jenika, is there anyone else on the line . President brandon, there is one more caller on the line. That line should be open now. Is there a caller on the line . Yes, the line is open. Caller, are you there . I think the call has dropped, and there are no further members of the public wishing to make Public Comment. Thank you, jenika, seeing no more public on the public phone, Public Comment is closed. Thank you. And thank you to everyone for your patience. Im sorry. Weve had three practice sessions, and this never happened. So, of course, they any practice makes perfect, but not in our circumstances. So thank you for bearing with us. I will open it up to the considerations. Consideration wuhal . Angio. All right. Alall right. Im going to try tod through my questions, because were so far behind as far as time. Katie, i do understand what you said as far as this coming year, that you could make it up through your spending the fund balance and cutting operating expenses and cutting Capital Projects. So that covers us this year. I also want to know what would our cash balance be. On slide three, can you just make sure that i understand the three columns, the cy, the by, and the b1, what they stand for . Yes, i can. So cy is the current first cal year, so fiscal year 1920. , and whaand what that is tellig you is that top line, we believe that we started this fiscal year with 67 million in fund balance. And at the conclusion of the year, we will have about 52. 7 million in fund balance available, which then can be used to support by, which is fiscal year 2021, and b1 is fiscal year 21 22. And our fiscal year is through july . Yes, maam. What is the cash position youre projecting at the end of this current fiscal year . The ending fund balance number, which is the final line on this slide, is that we would have 52. 7 million in cash available to spend in the next two fiscal years, if necessary. Okay. Because i always get confused if fund balance is truly all cash yes, it is. It is truly 100 cash . Yes. Yes. Okay. So you can cover, i guess what our shortage will be as a result of this unfortunate situation that were in. If you project out, which you have not told us yet, i want to make sure i understand the presentation, you have not yet told us how were going to manage through next years budget and the year after because now the cash position is going to look a lot worse. Yes. So we what were saying is that we are going to dip into fund balance, or those cash reserves, to help support the next two fiscal years. But that we are also proposing to reduce our operating expenses and that we would propose to significantly reduce the Capital Budget that we appropriate in the next two fiscal years. So the budget that the Commission Approved in february assumed that we would a ap appropriate it will help address the shortfall. Even though you dont have the details in total yet, and youre going to continue to work on the next two years budget, how will it help to make the bond service . We will absolutely continue to make our Bond Debt Service payments. We will be out of compliance with the bond covenants for our revenue bonds. We will not be able to meet our coverage ratio, which is something that we, of course, will have to disclose. You probably have not yet had conversations regarding that i guess at this point well, it also affects our rating, too. That eventually will affect our rating. Yes, it may. We have been communicating with the rating agencies have all reached out to the port for an update, and weve been communicating with them. We have not yet provided disclosure, but we thought that we should get through this meeting with the commission today. And then we actually really do need to put our budget together because its the ne Net Operating Income that will drive our ratio, and we dont know what that will be until we put together a revised expenditure budget. So we when see this again, as you said youll be revivin revising this, the numbers could change again. This is a preliminary look . This is absolutel