Resolution authorizing the Port of San Francisco to execute the settlement agreement between the Port Commission and Bauer’s Intelligent Transportation, Inc. (“Bauer”) to resolve outstanding claims, satisfy two terminated agreements, settle debt in excess of $6,900,982 and allow Bauer to continue and extend its tenancy under Lease No. L-15004 for premises at Pier 50 (“Premises”) in exchange for Bauer: 1) paying Port $859,309; 2) installing a fire suppression sprinkler system in Pier 50, Shed C; 3) paying Port $2,430,477.56 ($2,359,687 plus finance fee equal to 3%) over 60 months; and 4) accepting the jurisdiction of the Superior Court of San Francisco County, which obligations are enforceable through a stipulated judgment.

The Port Commission adopted Resolution No. 26-28, approving the settlement agreement with Bauer, which required Board of Supervisors approval.

Port staff discussed final settlement terms with Bauer in executive session, leading to the proposed settlement agreement.

Bauer surrendered the Pier 96 Parking Agreement to the Port, which was one of the agreements involved in the settlement.

Bauer surrendered the 401 Terry Francois Boulevard Lease to the Port, which was also part of the settlement discussions.

The Pier 50 Lease expired, and Bauer remained in possession without consent, leading to outstanding debts and the need for a settlement.

The Port served Bauer with a 3-day notice to pay rent or quit for the Pier 50 Lease, marking the beginning of formal actions leading to the settlement.

The Board of Supervisors received and assigned the resolution for the settlement agreement to the Government Audit and Oversight Committee.

The committee recommended the resolution for approval, moving it forward in the legislative process.