As first peoples. Item 2, a approval of minutes and july 11, 2023 Port Commission meeting. So moveped. Second. We have a motion and second. All in favor . Aye. Any opposed . The motion passes unanimously. The minutes of the july 11, 2023 meeting have been approved. Item 3, 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, indivisible, with liberty and justice for all. Item 4, announcements. Please be adviceed the ringing of and use of cell phones and similar sound producing Electronic Devices are prohibited at this meetling. A member of the public has up to three minutes to make Public Comment on each item, unless the Port Commission adopts a shorter period. Public comment must be in respect to the current agenda item. The commission will take inperson and remote Public Comment on each item beginning in person. For remote Public Comment, dial 14156550001 and access code 26612350803 , then star 3 to raise your hand to comment on the item discussed. Audio prompt will signal when it is your turn to speak. If you are watching the meeting on sfgovtv there is a Short Broadcasting delay. Do not miss your chance to comment, please dial when the item you want to comment on is announced. Your device and listen to the meeting from your telephone which has now delay. Item 5, Public Comment on items not listed on the agenda. We will take Public Comment. Any Public Comment in the room . Seeing none, do we have anyone on the line . At this time there is no one on the phone wishing to comment. Thank you corey, Public Comment is closed. Next item, please. Item 6a, executive directors report. Callers who wish to comment on this item, please dial star 3 to raise your hand to comment. Thank you. Good afternoon president brandon, members of thePort Commission and staff. Elaine forbes the port executive director. First i want to acknowledge a very busy month of july and early august. It has been also remarkably beautiful weather here. I want to thank staff for making it really safe vibrant and clean during these big event days we had. We welcome mayor breed to our waterfront several times including National Media interviews, conversations with Business Leaders on economic recovery, her love of the waterfront shining bright and expressed appreciation for all the work we are doing in the city economic recovery. One of the strategies as you know is to activate this waterfront. It takes a invasion and post covid environment to see that through. Our newest activation is pier party at the wharf, a exciting outdoor concert series, 26 fridays. It has been Getting Better every time. The team is innovated and iterating to make sure it is a great space. Last friday 11 timep grammy award winner tony lindy from santana played. We have lots and lots of people join that event. Starting august 19 well have this event saturday as well 26. It is free. Come out and enjoy the wharf and music. The Ferry Building is celebrating its 125 anniversary as you know and having its first ever summer ferry fest. This event is all through august. Sorry, the event is august 17 from 5 to 7 30 at the Ferry Building. Enjoy what the grand building has a offer. We also started market place in crane cove park this past weekday. This is a new reoccurring market which feature local makers rkss food activities musicians. It is organized by the Sf Parks Alliance and sunset mercantile. The park market will feature 4 theme markets from august through november so please come out and enjoy the park. Last month has been a boom to the port with 4th of july firework, concerts, movies at crane cove park, pier party at the wharf, the Ferry Building 125 celebration, the Women World Cup viewjug so much to come. I again want to thank port staff. It has been quite a lot of work to prepare for these events and this vibrant waterfront is helping the tenants succeed. Now, more to economic recovery. Apec mayor breed announced the city will host the Asian Pacific cooperation this fall and feature several high profile events including events on our waterfront. The leading forum in the Asian Pacific facilitate trade, investment, Economic Growth and regional cooperation. President joe biden and more then 20heads of state will visit our city from november 1217. We are collaborating with the city carefully to insure we pr prepared to do our part as the world will have its eyes on San Francisco. We are extremely excited for this opportunity and we will continue to work with the Mayors Office and City Administrator Office to be part of the team. And well keep you informed as we know more. Mission bay park transfer is a responsibility of our ours to connect residents with the city waterfront and in doing so we have 150 acres of public parks along the waterfront that we care for. We were happy to welcomedential 10 acres of parks into the portfolio in the mission bay neighborhood. I especially want to thank david indiscernible planning and environment and commissioners who worked so diligently to see the transfer. These are beautiful parks and transformational. The port is prioritizing the waterfront making more inclusive which includes mentoring Young High School students. We are all impressed with the summer Internship Program. Our team put in time to make sure there are meaningful opportunities for our students. We hosted 21 interns across our divisions. We also had for the first time our maritime intern cohort. They went to various maritime places, learned key skills, and learned a lot about the maritime industry. At the end they were able to showcase their learnings in a formal presentation and it was a 6 week program. It was very very exciting and our maritime tenants participated to have pathways to the maritime trades and also that they have pathways in general in their future to whatever their career path is. Now turning to resilience. We have brad benson the director of Waterfront Resilience Program here today to talk about the army corp study, and carlos will be representing the authorization for our contract award for pier 50 for earthquake improvements. This is a exciting time to both talk about the flood study and our Resilience Program related to seismic concerns. I want to also thank the team for hosting generation climate with youth workforce and enterprise summit this past friday. This was a forum to make Climate Change and adapting to Climate Change more accessible and relatable to young people. On a indiscernible commissioners consistent with the write off policy adopted pursuant to resolution 2211 port staff provided you a report summarizing one recommended write off account to this month. If you haveyou have 30 days to let me know if you have questions or concerns and ill schedule a future Commission Item if you do. In closing, we continue to tackle many challenges and opportunities that we have related to economic recovery resilience and equity and i think we are acceling due to port leadership and Excellent Team we have and thank you as we continue to advance our bold Strategic Plan. Thank you, that concludes my report. Thank you elaine, great report. Any Public Comment on the executive directors report . Corey, do we have anyone on the phone . At this time, there is no one on the phone wishing to make Public Comment on this item. Thank you. Public comment is closed. Commissioner harrington. No questions, but i am always amazed what you can do with a relatively small staff for all the stuff you are in charge of. Pretty impressive so thank you very much for your leadership. Also very impressed thatsorry, in some commissions it seems the executive director takes all the credit. It is nice to share that with the staff. Thank you. Commissioner gilman. Thank you elaine for that great report and it is so great to see that we have events coming back to the waterfront that we are as we say always a vibrant city in San Francisco despite what others want to pigeon hole us into and someone who took water transportation to get here today and was on that ferry, tourism is back, at least local tourism. Families who were so excited to be pulling into San Francisco, hearing stories how the bridges were built before world war 2 from the captain of the ferry built. I want to say embarcadero is back, Ferry Building was alive and jammed and hard to get lunch today so excited for us and staff we get to share this incredible waterfront with everyone. Im really excited about apec coming as well. I have hopefully not unrealistic idea i want to throw out about the maritime cohort that just happened. I hope we can maybe reconvene the cohort. It would be great if we convince the partners add fleet week that maybe those young people could participate or go to special activities or maybe be able to really take advantage of fleet week coming if they have a maritime interest. It was a way of maybe connecting that to their experience and thank you for your report. Thank you. Commissioner. So, yeahthe port is doing really well. I was talking to president brandon how summer is all most over and just got started with entertainment. I was with you that friday and it was great seeing the people out and entertainment was great. Im still very partial to entertainment. It is my blood. The activation with entertainment is what brings the economy back and im glad that they are spending the money bringing good talent for that. As you could see across the street there are empty storefronts so we have to compete against them to fill our store fronts and our restaurants so we still got a lot of work to do, but im glad we are using entertainment to bring people back. Great report and i wish we had another month of summer. Thank you. Thank you so mump for the report. It is wonderful to hear how the waterfront is activated, the northern and southern waterfront, how so many people are enjoying the waterfront and i want to thank the staff for all the hard work you are doing to create a safe space for visitors and for residents to come and enjoy the waterfront. I think we are doing a phenomenal job helping the city towith the economic recovery and success of the city, so i really appreciate everyone. I too thank you elaine for including the staff, because they are doing the heavy lifting and hard work and so, it is just great to hear about all of these activities at the waterfront and july was so busy it sounds like it will bejust as busy august through november, so still a lot of work to do. The port is activating. Thank you elaine. Carmel, next item, please. Item 7a, informational presentation to consider and possible action to approve the amended port municipal debt policy and that is resolution 2338. Good afternoon commissioners. Inate, Deputy Director finance administration. By way of background, the debt policy was first issued in 2009 and amended in 2016. The reason we are here today is because part of the policy is every 5 years we reaffirm or amend that policy. I should have been here in 2021. We were busy with covid and catching up now, so that is what is driving the visit today. Overall the policy just discusses how we issue and manage debt. It talks about some of the structuring considerations, how we trade risk versus borrowing, how we maintain with the indiscernible we issue debt to support the Strategic Plan, water Land Use Plan and 10 year capital plan. One thing in the staff report is a error i wanted to point out at the moment, reference in the staff report that the race equity action plan is also a plan that could be used to use dent dbt to support that plan. That should not have been included in the staff report because it is redundant. The race equity action plan is part of the Strategic Plan, and so calling out wasnt necessary, it is already there. That was a staff report error. I are apologize for that. Lastly, i wanted to call out in developing this plan originally as well as the current amendment in front of you, we did work with the City Attorney office and office of public finance. So, to get to the meat of what is changing and honesty, there isnt a lot of substuative changes here. This is just meeting the 5 year obligation to reaffirm the policy. The first has do with fcc rule, rule 15c212, a whole list of events that if they occur we have to tell bond holders they have. If we miss a Debt Service Payment or obligation somewhere under our debt cuv nns we have to tell people that happened. In 20 i think 19, the fcc added two more events to that list, so now we need to update our list so it matches what the scc list is. Those two additional items are fairly broad. The original 14 events were very specific to bonds, to Revenue Bonds issued. The last two have to do with morebroader events that might indicate any form of Financial Difficulties we are supposed to disclose that to bond holders and enter into any other financial obligations that may effect the bond holders we have to tell them too. Argue that those concepts were something we would have communicated to bond holders but the scc wanted to be explicit. The other is miner terminology update, what i caused Financial Advisor is now called municipal advisor. All the other changes are about structuring the document to make it more accessible. Still not as accessible as it could be, but it used to be a very academic tone of terms and conditions i think we made a little more accessible. So, thats really the changes that we are going through and fairly miner. I thought i reflect for a moment on the deblt we have. The table you are looking at is the active debt that is paid for by the port. We have other debt, but i want to focus on this first. So, these 5 debt instruments are the debt that we pay through our own budget. When you approve our budget we are paying off this debt. The total original issuance is 85 million roughly. Today we over time paid those down. Today that balance is a little under 70 million. That is what we really consider port debt. We also are involved where the city issues go bonds and the city pays the debt service but we manage the proceeds like the Resilience Program. There is hundred million roughly of go bonds issued to finance resilience so those aret noour debt portfolio but very much involveped in that debt. There aortcategory of special tax district debt specifically for mission rock with a independent entity, a special tax district that issues the debt, pays it off, does not flow through our budget but we are involved in the issuance, management and use of proceeds of the debt, but they are separate. Rating agencies dont look at that debt as our portfolio. With that, that concludes my presentation and happy to take any questions you have. Thank you naet. Commissioners, is there a motion . I so move. Second. Thank you. Lets open up for Public Comment. Any Public Comment in the room . Seeing none, corey do we have anyone on the phone . For callers who wish to comment on this item, please dial star 3 to raise your hand to comment. At this time, there is no one on the phone wishing to comment on this item. Thank you. Commissioner gilman. I have no questions. Thanks for the report. Commissioner lee. I have no questions at all really about this. Maybe just one. When this debt service was 84 million, basically it comes out of whatever rent incomes we generate from maritime, anything that goes into paying this, correct . That is correct. The 84 million is the loan amounts. How much we borrowed. The annual payment is closer to 6 million a year. But you are right, that is a expense that gets paid out. We bring in rents, pay salaries and all kinds of things and debt service is a line item. When we are short on rent or we have writing off rent it effects that. We still have to pay the 6 million a year . Absolutely. Okay. Thank you. Commissioner harrington. Thank you. A comment and couple questions. We had this discussion a lot in different places how much debt you take on because it is a fixed cost when there are issues or any kind of uncertainty it is hard to have a large fixed cost. Rating agencies in my experience have actually been more interested to make sure you maintain your assets and have a huge amountthere is a limit to how much fixed cost and debt you should have. They are often more interested in the fact you are fixing the system even if issuing debt to do it. It isnt the goal, but when i was in charge of the Water Department we went from having maybe 15 percent of the budget debt to 50 percent because we rebuilt the water system. 3 and 3 and a half billion you cant take out of rent in a year so interesting tradeoff to make. A couple questions. When is the next time or what plans for future issuance of debt . Do you have any . I was hoping to refinance. We have certificates of participation an