October 8th board of supervisor agenda. Thank you, item number one . Resolution of amended for the java house restaurant and increasing the Monthly Base Rent to 4,000 and no change to the initial term through august 31st, 2023. I believe we have mark to present today. Madam chair, chair members and board members, im the assistant Deputy Director of real estate and development for the port of San Francisco. The item before you today regards java house restaurant, a small restaurant at pier 40 1 2 located next to south beach harbor. The java house restaurant is a long standing port restaurant which has been operated by the family for over 33 years. In 2006, by their daughter. The java house currently operates under a 15 year lease with the port that expires august 31st, 2023. The original lease covers approximately 14,090 square feet. The original lease provides for the port to receive the greater of guaranteed monthly based rent or percentage rent. The current base rent is 3,314. The percentage rent is set at 7. 5 of gross sales for food and beverage. For the period ending 12 months, the 12 month period ending may 2019, the java house reported average monthly gross sales over 17,000, which did not result in percentage rent being paid to the board. Percentage rate has not been paid to the board for quite some time under the lease. Also, pursuant to the current lease, java house was required to make Capital Improvements of at least 346,000 to the facility. Due to personal, family issues and difficulty in raising financing, the java house has not been able to complete the Capital Improvements currently under the lease. These are the signs of a struggling operation which is having a hard time making ends meet basically. In the latest phase of ongoing dialogue with the port regarding coming into compliance for Capital Improvements and overall desire to improve the Operational Performance of the restaurant, the tenant has approached the board with a proposal to restructure ownership and bring in a new investor. Under this proposal, the entity would complete the previously required Capital Improvements and construct an addition to allow outdoor seating and alcohol sales and to make amendments to the lease which improve the financial metrics to the port and provide the tenant with an initial lease term. To that end, the owners of the java house have engaged in negotiations to sell the original lease to a new entity which the current owners retain 15 ownership stake. The new entity would be called frankies java house, llc with the owner being a well known business Man Associated with the insurance industry. The frankies proposal seeks to resolve the Current Issues related to the completion of Capital Improvements and reposition the restaurant into a viable business enterprise. The proposed amendment would require them to make a Capital Investment of no less than 737,000 into the facility and includes the previously not completed improvements of 346,000. He is willing to condition the extension of the lease on the successful completion of the Capital Improvements first and to provide a personal guarantee for the cost of all the construction. Upon 100 of construction and completion of Capital Improvements, which must be completed in one year of commercement date of the amended lease, frankies has the right to extend the lease term for 10 years. The direct benefits to the port are the base rent increased to 4,000. The increase Capital Investment from the original 346,000 into the facility to 737,000 into the facility that also includes an expansion which doubles the Seating Capacity of the restaurant. So now that 737,000 is put toward an improvement that actually grows the business, creates more sales and hence brings more back to the port. The port will receive a 12 of the proceedings of the sale, which is approximately 63,000. The 12 was negotiated up from 10 originally in the lease. That was negotiated up from 10 to 12. And finally the port will receive 51,000 as a penalty from the original tenent for not completing the tenant improvements in a timely manner on time. The port is 100 in accord with the budget Analyst Report and supportive of it. If theres nothing else, i have ill be here for questions and i have a representative from the tenant to answer questions also. Thank you very much. Colleagues, any questions or comments, if not, lets hear from the ble please. Good morning chair fewer and members of the committee. This resolution approved amended and restated lease between the board and a new buyer frankies java house, llc for the java house location on pier 40 as the representative from the port stated, this would set rent at 4,000 a month in the first year increasing subsequent years and provide 7. 5 rent on gross sales. The new buyer would be required to put in about 737,000 in tenant improvements. If they put them in within the first year, they do have the option to extend the lease by an additional 10 years from 2023 to 2033. We summarized the rent component on table 2 page 4 of the report, it would be about 1. 4 million to the port over the 10 years. We want to call out, this is a sold force lease. There was not a competitive process to select the tenant. There is a port retail policying that allows for sole source if its a tenant in Good Standing and financially reasonable to do so. We summarize that on page 5 of the report. The current tenant couldnt be considered a good tenant in standing, but the assumption if they make the improvements and get the additional 10 years, it will be a benefit to the port, because its consistent with the ports retail policy, we recommend it. Lets open this up for Public Comment . Seeing none, closed. I have one question. Just for clarification, so it looks as though there are 12 years left on the current lease. This started in 2007, is that correct . Yeah, it expires in 2023. So, they would do improvements and if they do it within a year, they have the option to actually extend it for another 10 years. Correct. Would that extend it not to 2023 but to 2033. At that time when they renegotiate have the option to extend it for another 10 years, a rerenegotiating then, another rental fee . You mean after the 2033 . So if in a year, they decide to we offer them the 10 year extension and then are we then negotiating at another rate for the additional what happens when they exercise the if and when they exercise the option, the base rent would rachet up to basically 85 of the percentage rent experience for the past three years. So theres a racheting up and that also happens in year well, year five of the option. So half way through the option, theres a market its a market to market adjustment. So the lease constantly goes up with the market. I think you mentioned, i could be wrong, 15 of ownership will be with the original owners or leasees, is that correct in. Yes. If they extend it for 10 more years after the 2023 date, would 15 of the ownership still be would we still see the 15 of ownership is with the existing tenant now . Thats probably no guarantee, if the person may sell out at some point. Its a partnership ownership. So its hard to predict what would happen. Theres no requirement. Correct. This has been in the family hands for so long. This is the kind of thing that we actually this handoff, of a struggling business, that is an institution in San Francisco. I think it has been recognized as very much beloved institution along our waterfront and the family has invested so much into the building of this, the name and also i think some of the great affection that San Francisco has for the java house, right . So my question is just about the 15 ownership because it would be really nice if they could continue to be part still of what they originally developed. We are losing so many of these institutions in our neighborhoods and it would be nice to see that the original owners would still have 15 ownership. Thats the only reason i ask. And i think they they have experienced personal family difficulties, you know, the spirit has gone away a little bit but they still want to hold on and be a part of it. Kind of nice. Thank you very much. No more Public Comment. No questions or comments from colleagues, i would like to move it with a positive recommendation to the board and we can take that without objection. Thank you colleagues. Madam clerk. Resolution approving bond or loan for California Municipal Authority not to exceed 65 million to refinance outstanding debt and refinance the acquisition construction and improvement located within the city owned and managed by healthright 360. And we have michelle from the office of Public Finance. Thank you very much. Good morning. From the Controllers Office of Public Finance. Thank you for considering the item today. And in attendance, representing the healthright 360. He can speak in more detail about the project if theres specific questions about that. Just as a reminder for you and the public, the tax and financial act allows the Tax Exemption on interest of certain types of debts. In this case, proposed financing through the California Municipal Authority through which San Francisco is a participating member. Notes and bonds and certificate of depreciation. This resolution is before you because federal tax law requires that the governor body in which the project is locating approve the finances after providing opportunity for a public hearing before bonds can be issued on tax exempt basis. The city and county of San Francisco is not obligated for payment on the bonds. Hearing notice was published on september 6th. The public hearing held at the office of Public Finance on september 16th and no comments from members of the public were heard or received. Ill give you background on the borrower. Healthright 360 arose out of a merger between two clinics. They started in the 60s to serve adolescences and young adults and opened in 1967 as the first Free Medical Clinic in the country. They were an innovator to giving Healthcare Services to those who could least afford it under the guiding principle that healthcare is a right and not a privilege. It was to help homeless and runaway adolescences. Today it treats people with Mental Health and Substance Abuse problems at various centers throughout california, including prison treatment programs and providing drug and alcohol treatment and Mental Health services for people transitioning back into their communities. Like the free clinics, they have served people who are underserved, homeless and those with h. I. V. And aids. They merged in 2012 and have subsequently added additional clinics and programs that serve San Francisco to its portfolio, including Asian American recovery services, lion martin Health Services and Womens Community clinic. So the project, proceeds from the sale of the bonds will be loaned for the following purposes, to refinance all or portions of outstanding debt obligations financed and refinanced, furnishing of clinics and Treatment Facilities at hayes street, buena vista west, haight street, coleridge all within the city of San Francisco managed and owned by healthright 360, a California Public non benefit corporation with Residential Treatment Services in the city and equipping and maintaining such facilities may capitalize interest on the bonds and pay certain expenses incurred with the issuance of the bonds. They would issue the bonds to not exceed 69 million. Bond council on the transaction, the bonds do not con constitute a debt of the city. If there are questions, ill be happy to answer and the borrower is here as well. That was very thorough. Thank you. There is no b l. A. Required on this. Opening up for Public Comment. Any Public Comment on item number two . Seeing none, Public Comment is closed. Colleagues, any questions or comments . Seeing none, i would like to move it to the board with a positive recommendation. Thank you good to see you. Thank you madam clerk. Call item number three. Resolution retroactively approving the contract for electric Monitoring Program for term of three years from august 1st, 2019, through 2022 with two one year options to approve. We have the Sheriffs Department here. Good morning supervisors. Im here requesting retroactive approval of a contract we have with sentinel. We were here in july and this body approved the Program Scope and legislation today approves the contract as a whole, not simply the scope. Otherwise it is unchanged. But still ill give program history. Electric Monitoring Program to provide alternatives to incarceration. Fee structure was originally based on ability to pay. In february of 2018, the sheriff waived fees for sentenced participants and in february 2018 an apellet court ruling required courts to consider ability to pay and non monetary alternatives when setting bail or release conditions. This resulted in a significant increase in the number of people who came on to and into electric monitoring as ordered by the courts. Monthly participation increased from about 100 before the ruling to roughly about 400 per month now. And as i said, we were here in july, this body approved the Program Scope for the contract to begin august 1st and were here today simply to approve the contract as a whole, which we should have done back then. I have two other slides that before you that show the growth and monthly participation that resulted from the Appellate Court ruling. Fees went up, we struggled with this for the budget last year but have budgeted for it in the current year. The Mayors Office, mayors Budget Office was generous in their funding of this, thank you. And finally this last slide before you, just shows the increase in releases on alternatives. Back in september, late september 2016 we had total justice involved population of about 2150 of which 1350 were in jail and about 800 were out on some sort of alternative. In september 2019, the total number of justice involved people is up to over 2700, the jail population has gone down by about 75, but the individuals out of custody on pretrial release or sentenced to alternatives has gone up. That means that our the percentage of people on alternatives has increased from 37 to 53 which is higher than youll find in other counties in the bay area. Thank you. Yes . Supervisor stefani. Thank you chair fewer and thank you for the presentation. Can you talk about the success rates of electric monitoring . Have you noticed anything obviously we know why the number of people on electric monitoring have gone up, but im just wondering if theres been problems and if you could briefly touch on the success rates . Well, theres been quite a bit of there have been news reports about some of issues that have come up, but overall, for people who are put on some form of pretrial release, over 90 show up to court. I think overall the program has been successful. Continues to be successful. And what happens i know it says something about the Sheriffs Department staff will respond and enforce compliance of the programs rules. If in that 10 situation, what happens then . Then we have a warrant Services Group and the warrant Services Group responds as needed. Okay. To people who are not responding in the way they should. Thank you. Any other comments or questions. Bla please . Yes, the proposed resolution retroactively approves the program as stated excuse me. As was stated, the board did previously approve the terms and conditions of the program but not the contract itself. It is below the charter threshold for board approval but the california penal code does require approval. It would be for three years with a maximum amount of 3. 4 million. There are two, one year extensions subject to board approval if they exceed the 3. 4 million maximum. We recommend approval. Im sorry. Thank you very much. Supervisor mandelman. Thank you chair fewer. This is a little outside the scope of the contract, but im curious if the Sheriffs Department has thoughts on what accounts for this pretty significant increase in the estimated job population without alternatives to incarceration. You dont have to answer that. Its not related to the contract. I think actually if i were the one answering asking the question, it would be why is the justice involved population going up so much. I think the fact that alternatives to incarceration have gone up speaks to the citys commitment to alternatives to incarceration. But the increase in the total justice involved population . Id speak to any number of issues but i would be my expertise is finance. Im not sure i would want to venture into that area. I didnt totally expect you to answer that. But it is a marked increase. Thank you. Certainly. I think that there are many questions that i have about this and just about the program in general and why are there some people who can be released without it and why courts are requiring it and what is behind that and have we done analysis or advocacy for those who dont need to be electronically monitored who are employed, have families, stable. I think its a larger question and the question that supervisor mandelman had, i dont think you have the answers to that today. But it think it calls for a larger and deeper discussion about the demographics of the people released and the ones not released and for what offenses and the outcomes, too. Anyway, today i know you are in charge of finance, open up for Public Comment. Any members of the public like to comment on item 3 . Seeing none, it is closed. I will move to the board with a positive recommendation and take without objection. Thank you. Good to see you again. Madam clerk, item 4. Resolution authorizing the execution and acceptance of the First Amendment to a lease buy between lexington lion of San Francisco and the city for the Real Property at 350 rhode island street north facilitating the provision of rent credit to the city in consideration of waiver of real estate afforded to the city under the lease. Thank you very much. Im going to make a motion to continue the item but before i do that, i would like to open for Public Comment. Any members of the public want to comment on item 4 . Seeing none, it is closed. I would like to make a motion to move this item to the next meeting next week. Thank you madam clerk. Thank you. Madam clerk, call item 5. Resolution approving easement agreement between Pacific Gas Electric company for the exchange of easement areas at airports west of bay shore for the replacement of a natural gas pipeline. So we have deanna with us today. Im sorry, my notes say kathy wagner. Please. The airport is requesting approval of the quick claim agreement with pg e over the airports west of bayshore property. The original easement was conveyed in 1953, it includes a natural gas line, in accordance with u. S. Department of transportation departments concerning pipeline integrity. Its necessary to bring the facility into compliance with the federal mandate. A 3700 foot section of gas pipeline will be replaced installing alignment. Im happy to answer any questions. Thank you. Theres no bla required on this. Open for Public Comment. Any members of the public want to comment . Seeing none, its closed. I would like to make a motion to move to the board with a positive recommendation. Thank you madam clerk. Item 6. Item 6, resolution approving a 2011 Lease Agreement between the city and El Al Israel Airlines limited, effective the following day of the first month and expire june 30, 2021. Exclusive use space and joint use space and rent and landing fees. Thank you very much. The airport is requesting your approval of a new lease with El Al Israel Airlines as a significanttory to the 2011 Lease Agreement for approximately 1 year nine months. Through june 30, 2021. This agreement is the mechanism that allows airlines to provide Flight Operations and rent terminal space at the airport and has a common set of lease provisions such as rent and fees and terminal space and provides Legal Framework to make an annual Service Payment to the city. The airport projects 1. 1 million in exclusive space rent over the term of the lease and 889,000 in joint use rent which is determined annually by formula. Im happy to answer questions. Thank you very much. Can we get a report please . Yes, the proposed resolution approves adding El Al Israel Airlines to the agreement at the airport, this is the agreement that all Airlines Sign on to that are operating at the airport, they started operating under permit of may this year. This Lease Agreement sets the terms for rent and for landing fees and as you see in table 2, page 15 of the report, rent over the remaining term of the Lease Agreement through 2021 is 1. 1 million in addition to allow paying landing fees to the airport. There will be the total Lease Agreement for all airlines does expire in 2021 and a new document coming forward to the board. Any members of the public . Seeing none, it is closed. Any questions or comments supervisors . Only to say if my grandma were alive, she would be excited about this item and i want to move forward. We can take that without objection. Thank you very much. Madam clerk any other items . No other items. This meeting is adjourned. Thank you. The new friday farmer his market is in the u. N. Plaza. It features the best of San Francisco. Grab fresh foods and veggies from the heart of the farmers market. Shop from marker local vendors. Engage in free diy craft sessions and grab lunch representing cuisine from around the world. [ ] we offer 60 varieties of organic fruit and 30 varieties of conventional. One of our best sellers so sellers is our manager in. It is super sweet. We sell 600 pounds a week. One of the things they like about the market as i get to see my regulars on a weekly basis. I get to meet their families and kids and it is really good to be here. San francisco won my heart. One of our vegetables that is very popular is kale. A lot of people go for dino kale our mission is to make sure we have access for everybody to get organic foods, no matter your financial status. We make greeting cards, invitations, enamel pins, and we do workshops. I am participating in this market because it is a great opportunity for local makers to sell to a really Diverse Community of people in San Francisco. They partnered with the market here and invited us to come out and reach out to the public. We are going to do a full event of workshops where you get to arrange your own bouquet. We will teach you all the tricks and techniques and you will be able to take home a bouquet of your own. You. [ ] we really are wanting to bring opportunities to the community to introduce these local makers to a larger audience. This is my own pakistani recipe. It goes with rice, chicken, lamb we have a very delicious drink. We have a lots of variety of foods. [ ] we do lots of different curries. We do three different types of wontons. Spring rolls, too. Thats right. It is really great they are bringing out local artists from around the city to participate and really help us making our business more successful. Chairwoman good morning, everyone. The meeting will come to order. This is the september 25th, 2019, regular meeting of the budget and finance committee. Im sandra lee fewer. And im joined by supervisors stefani and mandelman. Madam clerk, do you have any announcements . Yes. Please make sure to silence all cell phones and electronic devices. Speaker cards and any documents should be submitted to the clerk. Items acted upon today will appear on the october 1, 2f supervisors agenda. Can. Chairwoman item number one. Resolution authorizing the office of Contract Administration to enter into a First Amendment for marketplace purchases between the city and computerland to increase the total contract not to exceed 23 million, with no change to the threeyear term, with two oneyear options to extend. Chairwoman madam clerk, could you always read number two. Authorizing the office of the Contract Association to enter into a First Amendment marketplace purchases between the city and xjv. For a total contract amount not to exceed 44 million, to expire on december 31st, 2021, with two oneyear options to extend. Chairwoman thank you very much. And i believe we have lauren how do you pronounce your last name . Endigraphenfreed. Chairwoman thats a mouth full. Thank you. Is supervisors. Thank you for hearing this item. Im going to give you a brief overview of the tech marketplace, and thats when these contracts come from, and also providing you an overview of the structure, and things like that. Im going to give you an overview of the way weve spent the money so far under those contracts in the tech marketplace, and also providing you a focus on the way that the city and the contact Monitoring Division and my office has been working to get more of the local businesses involved in those contracts, and then in the second half, if you will, of this presentation, ill do more of a deep dive on the to contracts that were asking to be as amended. And so the tech marketplace is whats known as Computer Store in the 1990s. It is made of eight to nine firms, into something that, as my office has been doing, and for several years, has been trying to find ways to grow the tech marketplace, and to increase the number of firms that are actively involved. So i think what youve seen is over the last 15 to 20 years, weve grown the number of firms that are involved in the tech marketplace from what was once eight to nine formers, ifirms,it is now up to, and we have them competing at various different levels. It more or less acts as a prequalify pool of firms that can provide services in certain areas. For example, if you want to buy an h. P. Product, we have have products, and various other products. That includes both local firms and larger firms. Chairwoman so the departments are able to choose from this pool of people, is that correct . Yes. Chairwoman thank you very much. The main thing weve been doing is trying to ad transparency, and were trying to increase the number of local firms that have been involved in that pool. And so, again, this is really as a prequalified pool, that involves a rigorous process, and boo whic by which e firms had to submit a written proposal, and there was a round of oral interviews as well. So it was a very thorough process. At the end of that process, the firms were awarded what is what we call is a term contract, but it is a laymans terms in laymans terms, it is as needed contracts. This contract isnt for any one and specific project because at this point, weve given them as a blanket contract, and the departments will then come to us over the course in the last months, and theyll be doing it in the future, saying hey, we have this project we want to advertise to the firms that have been qualified in the tech marketplace. And so, again, this is used across the city, and were actively engaged with 60 plus departments in trying to address their needs. And, again, this has a range of opportunities that are involved, and there is a competitive and bidding process on all contracts where there is a there is a competitive and bidding process on all projects greater than 25,000. However, we do have it a little more however, we do have as a streamlined process involved when were dealing with the micro and l. B. E. S. And for those, we dont do Competitive Bidding until you get to 10,000. And thats to encourage the departments, if they can, to award the project to the micro l. B. E. S. And the basic structure i was talking about and the levels, the tier one are the larger firms. You have 19 firms in that tier, one of which has a joint venture that involves an l. B. E e. Firm. These contracts are the initial the contract of value was 20 million. The firms in that tier can do all of the products and services in the various departments. However, there is, as a hard cap, on the size of the project. If the project exceeds 2. 5 million, those projects must go outside of the tech marketplace, and we require the department to do as a standalone for those. So this is really intendseintendedfor the smaller. The tier two are the midsized firms, if you will. In that tier two, we have two firms that are primed by every Small Business here in San Francisco. They have because these are smaller firms, they have a smaller contract value, up to 3 million. But, again, it is basically the same. And the services those firms are allowed to provide, with the exception of the cloud services. And the third tier is the micro setaside, and thats are for small and local businesses, firms that have been certified, and the Contract Division we have 14 firms in that tier. And because of the there is, a a hard limit on those contracts, and the adman code says every 600,000, but i can tell you as my office, and partnering with the contract Monitoring Division in the last several months, have been trying to find ways to increase the size. [audio shut off off] in the last nine months, we spent approximately 72 million in the tech marketplace, which includes tier one, two, and three. But, again, there is a limit on the size of those projects, that you cannot spend 2. 5 million per project. But at the same time, we also wanted to highlight that this isnt a bunch of contracts im sorry, the same contracts these are a lot of small transactions. Weve seen 1,600 every 28 individual transactions with an average value of about 44,000. So these are a lot of small transactions, buying computers, buying software, and other things to support the various departments in i. T. And of those transactions, 80 of them have been awarded through some type of a competitive process. Where there was a bid received, there were proposals received, so this isnt just departments giving out the department or the projects to their buddies, their best friends, or the firms they like. There is a competitive process that supports all of those. And then of that of the projects that were awarded, and for 64 of that represents dollars, where theyre going through things where you couldnt have an l. B. E. Subcontracting goal. If, for example, you wanted as a Scheduling Software made by company x, you would thing bring that opportunity through the tech marketplace, go out to bid for it, for someone to procure that for you. And for Something Like that, there is not opportunity to have a subcontracting goal because youre buying a thing. However, if youre going through the tech marketplace, saying we want to buy a particular software, and we also need some services to help us have it be installed and programmed and things like that, if the services portion of that project where we get the l. B. E. S involved. And 35 or so of the spin weve seen so far this year is those opportunities to get the l. B. E. S involved. And that portion of the spend, the Contract Division has set a 15 goal for the l. B. E. S to be involved. Of the 72 million i was referring to before, the services portion of that represents about 25 million, and 15 of that would be 3. 9 million as a goal. The actual that weve been able to achieve so far has been about 12 . So, you know, it is not perfect, and were not quite at the goal yet, but were seeing from the l. B. E. Spend at the subcontracting level, were getting ever close to the goal. Now, the one thing that i would like to emphasize, though, we had 3. 2 million at the subcontracting level, and were achieving the l. B. E. Participation at the prime contracting level, when were dealing with the firms in tier two and tier three. So that being said, weve had as a 5. 2 million going to l. B. E. S in the first nine months of this contract. And weve had 3. 2 million come at the subcontract level for tier one. And 1. 3 million go to l. B. E. S in the tier two, and weve had every 600,00,000 plus go to the l. B. E. S at tier three. If you add all of that together and thats where we get in the total spend to the l. B. E. S over the first nine months of this contract of the 5. 2 million. And so and the contracts that are sorry. Chairwoman eye wantei wantedto ask you, what. Is what percentage of that same spend, from february to september . It would be 5. 2 million and the 70 million im sorry, math is not my strong suit. Chairwoman its kind of crazy. 5. 2 million, divided by 72. 3 million, equals 7. 2 . Chairwoman 7. 2 from the total spend . Yes. Chairwoman is the that up from last year . From the old contracts, i believe it is up. I can confirm that and let you know. Chairwoman okay. And because we increased the size of the contracts that the l. B. E. S were able to be involved in, they were originally on the old set of contracts, and they were capped at 100, and 600,000, so we have more opportunities. Before, the l. B. E. S, when they hit the 110, they were basically put on the bench and they couldnt get more work. Now were finding more ways to get them involved and any have to give credit to my team, who have developed ways to get l. B. E. S more involved. The ideas of saying were not going to have a Competitive Bidding for the micro l. B. E. S up to 110,000 things like that provides all of the incentives for departments to direct funds to the l. B. E. S. Just as a matter of practice, and typically as a contracting standpoint, you try to find the easiest weig way to go forward, and we believe that will have a big impact. Chairwoman thank you very much. So in the contracts that are before us this morning, were requesting an amendment to the contract to start. That contract, weve seen about 19. 9 million spending, and the bulk of that spending is associated it has gone through some type of competitive process. As you can see here, 87 of that, and 46 of that spend is associated with things that are considered passthroughs, which means that you wont see a lot of the l. B. E. Participation on that section of the work. However, there is a portion of that, 7. 10 million, the area in green, which would you see the l. B. E. S involved in. Of the 10. 7 million, there is a 15 goal on that and i think they have done a great job of getting the l. B. E. S involved. To date they have an l. B. E. Participation that is at 14 , which equals 1. 5 million. I also want to point out that x tech was a form her l. B. E. Thats what you want to see, a firm that grows out of the program. I believe because of that, and that the firm believes in the l. B. E. Program, and things like that. The next contract, were asking for an amendment to is the c. C. T t. T. Technologies. Were asked for an amendment because theyre getting close to the 50 spend on that contract today. The bulk of those contracts the bulk of the transactions under that contract were awarded through some type of bidding process. Again, it is the same kind of story where there is a large portion of that work done through passthroughs, but there is 4. 3 million that is available for the l. B. E. Participation. And for for them, it is even a better story. To date, weve seen 18 of the work that is able to be bid out not bid out, but able to be partialed out to the l. B. E. S. So theyre over the goal. I mean, so there is obviously a lot of money being spent with these firms. However, these firms are showing that theyre able to get the l. B. E. S involved. At the end of the die day, the thing were asking for is an amendment to these two contracts. C. C. T. , were asking for an amendment up to 3 million. And for x tech, were asking for an amendment up to 24 million. And thats really just based on the run rates that weve seen to date. However, thats just as an estimate. Because, again, as i was saying before, these projects were going to be bid out under a competitive process. And we dont know, over the next nine months, if it is going to go to x tech or c. C. T. , or some other firm. Thats it. Im available for questions. Chairwoman thank you very much. Lets here from the b. L. A. , please. Good morning, chair and members of the committee. This legislation before you would increase tease two Tier One Technology contracts, c. C. T. Technology would increase by 3 million, not to exceed the amount from 20 million to 23 million, and x tech will increase to 44 million. This is the Spending Authority allowed under these contracts. This would give sufficient Spending Authority through june of 2020. We summarize this in table one on page three of our report, and we recommend approval. Chairwoman thank you very much. This opens it up for Public Comment . Seeing no response, Public Comment is now closed. Any questions or comments from my colleagues . No . Thank youthank you so much. I just want to say thank you for taking the time out to meet with my staff and give us a deeper understanding what of these contracts are about. And i appreciate all of the incentives for the l. B. E. S, and this was something we were very concerned about in january with the 20 million contract. It seems as though were making progress. And im hearing from the b. L. A. That more likely you will come back. That it is more than 72 of the total spend. So maybe you can get that up higher. I would like to make a motion to move items one and two to the board with a positive recommendation. And we can take that without objection. Thank you very much, colleagues. Item number three, resolution to ap priewchg and authorizing the Mayors Office to approve documents to provide financing for predevelopment activities for the construction of a 100 affordable 137unit multifamily renting housing project, known as 4840 mission. Chairwoman thank you. We have supervisor safai with us. Im going to say a couple of words. I just want to put a couple of things on the record. This project, 4840, which is right near the balboa bart station, represents the first opportunity in the history of district 1t1 to do 100 of Affordable Housing. Were really excited about this opportunity. When i came into office, the developer had been chosen, and we looked at this site as an opportunity to maximize as much Affordable Housing as possible. Many of you probably know we went through a couple of rend ditions. Therrenditions. We were trying td the number of affordable units by partnering with a private developer on the safeway site, and it would have netted us an additional 75 100 affordable units on top of what you see today. But safeway unfortunately refused just for the record, safeway wanted five years of free rent. They were going to get a brand new store, and they wanted five years of free rent on the new site. The developer proposed two years of free rent, and safeway walked away. So thank goodness for sba 35, because for that legislation, we have not lost any time on the project. The Mayors Office and bridged were ablbridge were ablo back and working with my office, we were able to expand the units, and we netted an additional 123 units. And we were able to expand the footprint of the commercial space, on top of the nonprofit partner, which is Mission Neighborhood health centres. It has about 5,000 square feet, and they will move to this location and almost double their footprint, and include free dental care services, which sa really big deal is a rl four or neighborhood. There isnt that Service Currently available. And the construction type changed. Many of you know supervisor fewer and i were involved immediately in a citywide conversation about project labor agreements and modular housing and so on. Because of the design of this project, it changed from modular to the typical type of construction, that changed the Construction Costs greatly. And, also, over the last three years, and the b. L. A. Will probably note this, Construction Costs and labor costs have gone up over 30 in the last couple of years. So the size of the project, the total number of units, the footprint of the commercial space, the construction type, and, you know, i know this is a bad word to say in this chamber, but we did have to add some parking because in our neighborhood we actually have parking wars, and people get into physical altercations. Weve gone through a yearlong process of instituteding anofinstituting rl parking. Two projects down the street, which are