THIS PRINT COVERS CALENDAR ITEM NO. 7A MEMORANDUM
April 23, 2021 TO: MEMBERS, PORT COMMISSION
Hon. Kimberly Brandon, President Hon. Willie Adams, Vice President Hon. John Burton
Hon. Gail Gilman Hon. Doreen Woo Ho FROM: Elaine Forbes
Executive Director
SUBJECT: Request and approval to amend and restate the existing Memorandum of Understanding with the Department of Public Health for use of Piers 30-32 as a CityTestSF COVID-19 testing site in support of the City’s public health response to COIVD-19 to: (1) clarify that rent for use of the site is due for the entire term beginning April 6, 2020; (2) reduce the premises to approximately 172,400 sq.ft. of open pier deck effective April 1, 2021; and (3) extend the term through no later than June 30, 2022, on a month-to-month basis.
DIRECTOR’S RECOMMENDATION: Approve Attached Resolution No. 21-19
Executive Summary
In the time since Mayor London Breed issued a declaration of emergency on
February 25, 2020 the City and County of San Francisco (the “City”) has been engaged in an escalating battle to slow the spread of the virus that causes Novel Coronavirus 2019 Disease (“COVID-19”). A key initiative in this effort was the establishment of the first testing site for health care and other essential workers, CityTestSF. In support of the City’s efforts, Port staff worked with City agencies and private parties delivering this initiative by making Port land available to the City’s Department of Public Health (DPH) on an urgent basis for a COVID-19 test site at Piers 30-32.
DPH has requested an extension of the MOU term through no later than June 30, 2022, on a month-to-month basis. In addition, Port staff have been working collaboratively with colleagues at DPH and the Controller’s Office to include rent for this use at Piers 30-32 in the City’s reimbursement requests to the Federal Emergency Management Agency (FEMA). The City’s cost recovery team has received positive indications from
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FEMA relative to reimbursement for such rent. Accordingly, the Port and DPH have included clear language in the proposed amended and restated MOU that rent is due for the entire term dating back to the commencement of the MOU in April 2020. In addition, due to an increase of testing and the availability of vaccinations at local hospitals, clinics and mass vaccination sites, daily testing numbers at the site have dropped. As a result, DPH has reduced the size of the test site’s footprint so the proposed amended and restated MOU will address the reduction in premises and rent accordingly.
Port staff recommends approval of the attached resolution because:
• the MOU charges parameter rents for space ($220,000 per month from April 6, 2020 through March 31, 2021 and $68,960 thereafter),
• the testing services provides an important role in the City’s COVID-19 public health response, and
• the reduced footprint will allow maritime berthing to occur at the east end of the pier public parking to resume on the south end.
Strategic Objective
The proposed Resolution supports the Resilient goal of the Port’s Strategic Plan by improving the Port and the City’s response to natural and human-made risks. The proposed Resolution also supports the Stability goal by approving an amended MOU with rent payment equal to Port’s parameter rates.
Background
On February 25, 2020, Mayor London Breed issued the Proclamation by the Mayor Declaring the Existence of a Local Emergency (the "Mayor's Emergency Declaration") under Sections 8550 et seq. of the California Government Code, Section 3.100(14) of the San Francisco Charter, and Chapter 7 of the San Francisco Administrative Code, establishing the existence of an emergency within the City and County of San Francisco due to the ongoing spread of COVID-19.
Since the Mayor’s Emergency Declaration, the City’s public health response has ramped up considerably and the Port has supported these efforts with its staff and property. Two signature initiatives essential to the City’s response to the pandemic have been hosted on Port property. The first initiative is the establishment of temporary shelters and appropriate isolation locations for people who cannot safely isolate in their current living situations. Port, the Human Services Agency (HSA), DPH, and the
Department of Homelessness and Supportive Housing (HSH) staff worked with the California Office of Emergency Services to establish a 3.4-acre site for trailers and recreational vehicles for this purpose on a portion of SWL-344, in the Backlands area. HSA is the Port’s tenant and manages and operates the site in partnership with HSH and DPH provides essential COVID related health and sheltering services to vulnerable District 10 people experiencing homelessness at no charge to the public.
The second initiative designed to slow the spread of COVID-19 is the intensive testing of frontline health and public safety workers whose public-serving duties require them to
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risk exposure and other populations deemed appropriate by the City’s Health Officer. By testing these populations frequently, the City hopes to keep essential health and safety services operating at a robust level, avoiding situations where asymptomatic carriers of the virus infect large numbers of their co-workers. This effort culminated in the establishment and operation of the Piers 30-32 CityTestSF site by DPH on April 6, 2020, with the specific uses for Piers 30-32 described below.
MOU with DPH for Use of Piers 30-32 Overview
Port and DPH executed the original memorandum of understanding on April 27, 2020. Following installation of tents, storage containers and other equipment to support the operation, the CityTestSF facility opened on April 6, 2020. Exhibit A shows a depiction of the site as initially proposed under the original MOU. Exhibit B shows the current configuration under the amended and restated MOU (30-32 MOU). The site offers drive through and walk-up tests by appointment. At the height of the pandemic, the site tested 2,200 clients per day, with an average of 2,000. Due to the increase of testing at local hospitals and clinics and the availability of a vaccine, DPH estimates testing at Piers 30-32 has been reduced to 500 - 800 clients per day.
The 30-32 MOU is similar to the Original MOU, but now includes parameter rent of $220,000 per month from April 6, 2020 through March 31, 2021, which is reduced to $68,960 per month effective April 1, 2021, as a result of the reduction in the lease premises.
The 30-32 MOU provides appropriate agreements to address regulatory concerns and limits the Port’s liability. The 30-32 MOU includes indemnities for the Port’s benefit and insurance and hazardous materials requirements in line with the terms approved by the Port Commission for routine leases. The 30-32 MOU also incorporates an operations plan so that the parties have shared understanding of how the operations will be
managed. The parties assume that the site will wind down before the completion of the full extended term; accordingly, the tenancy will become month-to-month through no later than June 30, 2022, allowing DPH to terminate the 30-32 MOU anytime with 30 days’ notice to the Port. The Port may also terminate anytime after the rescission of the Mayor’s Emergency Declaration with 30 days’ notice to DPH. The 30-32 MOU is on file with the Port Commission Secretary.
Permitted Uses
The 30-32 MOU permits use of the premises for the operation of a CityTestSF drive-through and walk-up COVID-19 testing facility.
Site Operating Plan
The test site provides both drive through and walk-up testing of essential workers for COVID-19 and other populations deemed appropriate by the City’s Health Officer. Drive through clients are greeted at the entrance to the site where they are asked if they have an appointment. If they do, they proceed to the registration tent. At the registration tent, they keep their windows rolled up and hold their ID against the window for a staff
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specimen collection tent where testing is completed. The client exits the test site and samples are then batched and transported to the lab daily for processing.
Walk-through clients are greeted at the walk-up entry where they are asked if they have an appointment. They then register at the registration tent and are directed to the specimen collection tent where testing is completed. Clients are then directed to the site exit lane and samples are sent to the lab.
Staff Analysis
DPH commenced operation of the CityTestSF facility at Piers 30-32 as a matter of public health urgency. This was done to keep essential health and safety services operating at a robust level by avoiding situations where carriers of the virus infected large numbers of their co-workers.
Continued use of a portion of Piers 30-32 to provide testing for COVID-19 is essential to the City’s overall response to the ongoing pandemic and will help mitigate the impact of the virus. In addition, amending and restating the Original MOU to make clear that the Port’s parameter rent for the portion of Piers 30-32 leased to DPH is due and payable for the entire term is a significant benefit to the Port’s present budget conditions. Rent under the 30-32 MOU from inception through March 31, 2021 is approximately
$2,600,000. Use through the remaining extended term would be an additional $965,000.
Port Staff Recommendation
In view of the ongoing crisis and the City’s commitment to include parameter rent in the amended and restated 30-32 MOU, Port staff recommends that the Port Commission adopt the proposed resolution authoring execution of the amended and restated 30-32 MOU under the terms described in this memorandum.
Prepared by: Kimberley Beal
Senior Property Manager For: Rebecca Benassini
Deputy Director Real Estate and Development
Exhibit A: Site Depiction - Original MOU
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PORT COMMISSION
CITY & COUNTY OF SAN FRANCISCO
RESOLUTION NO. 21-19
WHEREAS, Charter Section B3.581 empowers the Port Commission with the power and duty to use, conduct, operate, maintain, manage, regulate and control the Port area of the City and County of San Francisco; and WHEREAS, On February 25, 2020, Mayor London Breed issued the Proclamation
by the Mayor Declaring the Existence of a Local Emergency (as supplemented, the "Mayor's Emergency Declaration") under Sections 8550 et seq. of the California Government Code, Section 3.100(14) of the San Francisco Charter, and Chapter 7 of the San Francisco Administrative Code, establishing the existence of an emergency within the City and County of San Francisco (the “City”) due to the ongoing spread of the virus that causes Novel Coronavirus 2019 Disease (“COVID-19”); and
WHEREAS, The Mayor’s Emergency Declaration, which was concurred by the Board of Supervisors, and subsequent COVID-19-related orders have sparked a number of coordinated public health actions in an effort to slow the spread of COVID-19 and safeguard the health of City residents during this pandemic; and
WHEREAS, These COVID-19 efforts include the development and operation of testing infrastructure within the City to help identify who has been infected by the virus; and
WHEREAS, The City’s Department of Public Health (“DPH”) has been operating a COVID-19 test site at Piers 30-32 (“CityTestSF”) since April of 2020 for frontline workers pursuant to a memorandum of understanding (“MOU”) between Port and DPH; and
WHEREAS, Port and DPH have negotiated the terms of an amended and restated MOU that extends the term on a month-to-month basis until no later than June 30, 2022, , clarifies that rent for use of Piers 30-32 is due and payable for the entirety of the term, reduces the square footage of the lease premises effective April 1, 2021, and includes other such terms, all as described in the staff memorandum accompanying this Resolution and a copy of the amended and restated MOU (“Piers 30-32 MOU”) is on file with the Port Commission Secretary; now,
therefore be it
RESOLVED, That the Port Commission hereby authorizes the Executive Director to enter into the Piers 30-32 MOU that extends the term on a
month-to-6
month basis through no later of June 30, 2022, clarifies that rent is due and payable for the entirety of the term, reduces the square footage of the lease premises effective April 1, 2021, and includes the terms substantially as described in the staff memorandum accompanying this Resolution; and be it further
RESOLVED, That the Port Commission authorizes the Executive Director to enter into any additions, amendments, modifications or ancillary agreements to the Piers 30-32 MOU that the Executive Director, in consultation with the City Attorney, determines, when taken as a whole, are in the best interest of the Port, do not materially increase the obligations or liabilities of the Port, and are necessary or advisable to complete the transactions which this Resolution contemplates and effectuate the purpose and intent of this Resolution, such determination to be
conclusively evidenced by the execution and delivery by the Executive Director of such documents.
I hereby certify that the foregoing resolution was adopted by the Port Commission at its meeting of April 27, 2021.
THIS PRINT COVERS CALENDAR ITEM NO. 7A Exhibit A: Site Depiction - Original MOU
8 Exhibit B: Site Depiction - Amended and Restated MOU
Space Not Part of MOU
