Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Finance Infrastructure topic
No spam. Unsubscribe anytime.
Commission hears extensive capital plan and pier-repair needs; staff seeks funding strategy
Summary
Engineers presented a portfolio-wide Rapid Structural Assessment identifying numerous load-restricted and red-tagged piers, with staff estimating a $21 million package repair for certain piers and a broader unfunded state-of-good-repair need in the hundreds of millions; Port staff proposed $4.3 million in near-term budget adjustments, a second pile-driving crew, and a 10-year capital plan separating conditional seismic costs from needs.
Port engineering and finance staff delivered a multi-part briefing on the Port's fiscal condition, facility needs and the proposed 10-year capital plan.
Shervan (Sherban) Duncan, engineer and member of the facility assessment team, summarized inspections of more than 350 structures and described the Port's rapid structural assessment (RSA) color scheme: green (unrestricted), yellow-with-green-hatching (load-restricted), and red (restricted/unsafe). He identified nine load-restricted facilities recommended for near-term repair (within ~5 years) to avoid shutdown, including the J9/Wolf Deck and adjoining seawall at Fisherman's Wharf, Pier 43''1/2 and Pier 45 comparisons, Pier 35 substructure (1914/1932 elements), Pier 29, Pier 1'' Marginal Wharf, the Agriculture Building aprons, Pier 2 (subject to prior BCDC agreements and demolition requirements), Pier 54 substructure (damaged beams and exposed rebar), and Pier 92 apron sections. For the package he cited an estimated cost of $21,000,000 to perform critical repairs and seismic strengthening for listed substructure items.
Chief Harbor Engineer Ed Byrne and Port staff said some yellow-tag projects are fully or partially funded while many remain unfunded; the Port's annual capital allocation for pier repair historically ranges from $1.5 million to $4.0 million and cannot meet total identified needs. Staff outlined strategies for funding, including prioritization through the 10-year capital plan, pursuit of SB 815 and Infrastructure Finance District (IFD) bonds, securitization and third-party development partnerships (examples: Pier 70, Pier 30/32) to shift some repair costs to development projects.
Elaine Forbes, Deputy Director of Finance and Administration, presented recommended minor budget changes totaling $4.3 million: approximately $151,000 for fringe/salary adjustments, $800,000 as a placeholder for Phase 2 cruise terminal debt service, and $3,000,000 added to capital for critical needs. Staff said $900,000 of that total comes from stronger revenue projections and $3.3 million from fund balance and that the adjustments would bring capital investment to 20.8% of operating revenues, in line with the Port's new capital policy.
Daley Dunham presented the Port's 10-year capital plan, summarizing a revised methodology that separates conditional seismic costs (uncertain until use and design are fixed) from state-of-good-repair needs. He noted a previous estimated need of roughly $2.2 billion and explained how the plan represents state-of-good-repair need at approximately $1.59 billion while treating seismic uncertainties and enhancements separately. Commissioners and staff discussed timing of assessments, how project-level use decisions can trigger seismic code requirements, and the practical trade-offs of avoiding triggers where strategic.
