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Port Commission approves multiple resolutions including ferry rate changes, Valero FTZ subzone, leases and procurement authorizations

San Francisco Port Commission · December 14, 2010
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Summary

The commission approved resolutions covering ferry license updates and rate increases, a Valero Foreign Trade Zone subzone application, lease with Andre Boudin Bakeries, Pier 43 advertising, Crane Cove Park RFP authorization, and other routine items.

At its December meeting the San Francisco Port Commission approved a package of resolutions and routine actions covering license updates, leases, procurement authorizations and planning procurements.

Key actions approved by voice vote or motion:

- Resolutions 10‑81 and 10‑82: Authorization to advertise competitive bids for construction contract No. 2727 (Pier 43 Bay Trail Link) and adoption of the 2010 Port Building Code were approved after a motion and second; chair announced the resolutions were approved by voice vote.

- Resolution 10‑77: Staff presented an updated standard license for ferry and excursion operators and a new rate structure. Port staff recommended raising downtown ferry terminal rates by 15% effective Jan. 1 and another 15% on Jan. 1, 2012; for China Basin, staff recommended a $25 per‑landing fee and a $0.25 per‑passenger fee (rising by another $0.25 in 2012). The commission approved the resolution.

- Resolution 10‑78: The commission authorized staff to apply to the Foreign Trade Zones Board on behalf of Valero Energy Corporation to establish a Foreign Trade Zone subzone at Valero’s Benicia refinery. Staff explained expected benefits (customs/duty efficiencies), an estimated 8–10 month processing timeframe, and that Valero would pay application and activation fees and be responsible for operating costs. The resolution was approved.

- Resolution 10‑76: The commission approved a seven‑year lease (L14814) with Andre Boudin Bakeries, Inc., for premises at 2890 Taylor Street. Key lease terms recorded in the staff report included a six‑month construction period without rent, initial base rent the greater of $8,007.53 or 9% of gross sales, a required tenant investment of about $335,000, and a rent credit of $2,000 in exchange for maintaining public bathrooms.

- Resolution 10‑79: The commission authorized advertisement of an RFP to solicit consulting services for Crane Cove Park planning and design (Pier 70 Crane Cove Park), funded in part by Proposition A (Clean and Safe General Obligation Bond) with port allocations and LBE subcontracting goals noted.

- Resolution 10‑80: The commission approved initiating schematic design for Scheme B2 (new Pier 27 cruise terminal); staff will return with funding details when available.

Where the transcript did not record individual roll‑call tallies, the staff reports or chair announced outcomes by voice vote. For items involving contract or franchise terms, staff said no public funds would be expended for subzone setup (Valero) and that proposed tenant insurance and indemnity limits were reviewed by the port risk manager (Boudin lease).

Several informational items also heard included an update on an ExxonMobil corrective action plan for petroleum contamination near 440 Jefferson (staff said excavation of about 800 cubic yards is planned, with remediation expected to take 6–8 weeks, weather permitting). The meeting concluded with no new business and an adjournment by voice vote.