Transcripts For SFGTV BOS Budget And Finance Committee 20240713

Madam clerk, do you have any announcements . Pleplease silence your cell phones. Items today will appear on the january 14th agenda unless otherwise stated. Thank you very much. I want to welcome everyone to the first Budget Committee meeting of 2020. I did want to note the committee will be recessing today before 11 00 a. M. So you may attend inauguration of mayor breed. We will reconvene after the inauguration to finish the agenda. Can you please call item one. Resolution approving and authorizing 50 year lease with one option tone the Port Commission and tzk broadway llc at seawall lots 323 and 324 with a minimum base rent no less than 1 million to commence following board approval. We have with us today rebecca. Thank you. And your assistant Deputy Director of Waterfront Development for San Francisco port. Good morning. As chair fewer said i am with the port. I am proud to represent the project team today. The resolution before you authorized a 66 year lease for hotel and theater and public open space. It shows the site at the corner of embarcadero and broadway this Brown Building would be the future site if approved. A bit background. The existing site is a 60,000 square foot surface lot. Proposed is a four Story Building where we would have 192 hotel rooms, 14,000 square foot open space and 30,000 square foot theater space where we would have the new permanent home for zinzanni. A little about the project layout from left to right north end of the site shown with the 14,000 square foot park. That would be closely bordered by this Pedestrian Access way. It would be a new way from the street down to the embarcadero. The theater would be right in the center. The hotel at the corner of the site. It is important to stop for a moment. Siit is an important theater for more than a decade until 2011. They were moved under agreeable terms to terminate if lease to terminate the mer cuscup and we have been working to find a new permanent home for them. This project has been going on for nearly five years with numerous approvals to date. The rent filing stones are planning, Port Commission approval late in 2019 as well as consistency finding with the locally noted Historic District in the area by the Preservation Commission which found this new build to be consistent with the historic nature of that district. Just a quick overview of the financial structure of how this project will be financed and structured. The team would finance the entire development. They would be required to pay the port the greater of base rent. About 1 million per year with annual escalations or percentage rent. That is equal to gross revenues time percent beginning at 3. 5 . I want to sing. 3. 5 rising up to 6. 5 by year 20. We will participate in upside so to the extent the tenant is selling or refinancing we participate when the equity is returned and they get return on the equity. The partnership between the port and developer will be sfgovtv earned by two documents first is lbda a contract that will require us to enter the lease so long as certain conditions are fulfilled including the tenant paying our costs and transaction fees. They must secure the financing and then close escrow to assure they will build what is proposed to be built before entering the lease. The ground lease would govern up to 66 year relationship between port and tenant. Port would pay rent. Use site consistent with approval and Public Trust Doctrine and numris other numerr documents for approvals. Lease revenues projected. Minimum rent is light blue set to seek qualor greater from the circus parking lot. Percentage rents going up over time and we participate in per order dickey events like pier ope thedriver behind the projs bringing back this popular cultural asset helped produce consistency to attract people to the water front. There is also the public open space. The project team agreed to 17 local enterprise goal for contracting. A local hire of 30 . Using the first source hiring for jobs along the waterfront. Revenues 8 million in impact fees upwards of 4 million per year in annual general fund revenues. I want to conclude prepared remarks with the photo from the time in San Francisco. We would like to have them back. I would like to recognize my project manager and j wallace to answer questions from the development team. Thank you so much. Thank you. Colleagues comments or questions . Supervisor walton . Thank you for the presentation. You may not be able to answer this. In terms of permanent jobs do we have a breakdown how many hotel, hospitality . Are we there yet . I cant answer the sector break done we estimate 120 permanent jobs. Developer entered into agreement with local 2 for hots workers. Hotel workers. I dont know that they have a projection yet. Could we have a bla report, please. Good morning. Budget analyst office. The board of supervisors is asked to approve the ground lease between the port and tzk produce way for development of seawall lots. We summarize those in exhibit 2 on page 4 of the report. In addition. This is referenced the port approved the lease and disposition agreement to cover the construction of the project. That is not what the board is asked to approve today. The ground lease subordinate to that lease and disposition and Development Agreement until the completion of construction. We do outline the terms in exhibit 3 on page 5 of our report. Again, what was in the port presentation, the rent is based on minimum annual rent to the port that starts at 12 million 1 million and goes up to 1. 4 million plus percent 2. 5 up to 6. 5 and 3. 5 . There is also participation rent when the developer received the return on equity. The uncertainty if this would be based on the financial projections be received when this would go into effect. There would be some participation if the Hotel Developer were to sell the hotel and the city port would participate in future proceeds from the sales. We summarize on exhibit 4 on page 7 of our report the annual revenues to the report and other revenues that would come from inclusionary fees and tax revenues, which are summarized on page 8 of the report. We recommend approval. Thank you. Lets open this up for Public Comment. Any members of the public like to comment . Seeing none Public Comment is closed . I would like to move this with a positive recommendation to the full board. Without objection thank you very much. Madam clerk item two. Ordinance amending the environmental cod to require all electric energy sources. I believe we center cindy from the department of environment. Okay. Good morning, i am cindy c. U. Mmerford. Here to request your support to amend the environment code to require new construction and major renovations on Municipal Buildings to be all electric to help the city move toward Climate Action and create a healthier environment. I would like to acknowledge my staff. The Municipal Building coordinator and charles our chief policy officer. Lets look at San Franciscos emission sources today. We can see 44 of our overall emissions come from buildings. If we break that down, we can see in our Municipal Buildings 94 of the emissions from natural gas. In our commercial and residential sectors it is about 84 . So this illustrates it is crucial to move away from natural gas. Natural gas was once a bridge fuel. As we have moved away from coal, we now need to move away from natural gas. We have so much more research and information in the last five years about the impacts of natural gas. We see that the Natural Gas Industry is as potent as the coal industry. Let me talk about impacts. First natural gas impacts climate. The major criteria po pollutants methane. It traps more heat in a faster time than carbon dioxide. Methane traps 8 six times as much heat as carbon dioxides in a 20 year period. There are safety issues. Natural gas is combustible and hazardous. In the United States a gas or pipeline catches fire every four days resulting in injury every five days and explodes every 11 days, leading to paytalty every 26 days. We have seen these issues in frap. In february we had the hall of justice. Last year we cant forget about sanbruno where 8 people died from gas explosion and wiped out a neighborhood. In addition to climate and safety we see health impacts. We know that communities living next to extraction sites suffer from respiratory disease, Neurological Disorders and digestive disorders. A pollutant nitrogen dioxide increases respiratory disease and also trigger asthma. Now we learn that it can lead to asthma in otherwise healthy children. This is gas power appliances in homes such as stoves. The policy proposal for us today is to basically eliminate natural gas from new construction and Major Construction in Municipal Buildings. Every three years the state of california revises housing codes. Cities do this to make sure we meet the state mandates. In addition, cities have the opportunity be to do a reach code. A reach code is efforts beyond the state code and are done for environmental reasons. For 2009 the department of environment worked with supervisor stefani to develop this ordinance. The proposal is simple. It will require all New Buildings and major renovations to be all electric and not allow mixed fe fuel buildings. It is important to lead by example. We raise publish awareness and set the tone where the market is going tgoing to go. It is important to note we have a waiver process. If there was an instance where new construction or major renovation was not able to construct all electric, we have a process for emergencies if it is cost probative or alternative compliance pathway. The waiver is well defined in chapter 7. We would work the project sponsor to make this as easy as possible for success, if necessary. I know the bla report will cover cost and benefits. I will go through this because it is important. We had arab do a small costeffectiveness study to look at the types of buildings we would foresee the city constructing. What we saw as we looked at equipment costs, the cost of constructing the building would probably be cost neutral plus or minus 1 ther 1 per square foot. It was limited in scope and did not include savings from not including natural gas infrastructure. We extrapolated that from the 2019 cost effectiveness study. In a Large Office Building that would be less than 200,000 in savings or translated to 35 cents per square foot in saving. We would see annual Energy Savings from 9 to 48 . That is Lower Energy Bills each year for Municipal Buildings. It is important to note that this ordinance was done with a range of stakeholder engagement. The intent is to illustrate the ways we have connected with people. For example, we had six green desk force buildings, met with the code advisory, we have also just met individually with city departments to make sure that we listened to input, concerns and heard about the great work they have been doing. In july the municipal Green Building task force recommended to the department of environment we include this in chapter 9. I want to cuff touch on a i want to touch on a couple examples. We have a couple departments that are all electric. These are in construction or already developed. What really gives me encouragement is buildings are going all electric without regulation. This is the right time for this ordinance. In addition to city buildings, there is an array of Public Private sector buildings, too. This slide illustrates Affordable Housing sites. I looked at the agenda later there is a multifamily affordable rental site. It is on Treasure Island that they will talk about. That is a great example for this presentation. Lastly, i want to talk about our next step was around the elimination of natural gas. This ordinance marks an important step in creating buildings of the future. We are initiating several workshops and work groups to better understand what the opportunities and challenges and solutions are. We are hosting the first Public Private workshop this afternoon to look at elimination for natural gas citywide. We also know that we need to address hurdles around transitioning away from natural gas in existing buildings, too. We have had two buildings around de carbonization and equity that looked at Work Force Development and Affordable Housing and we will have those discussions this year. We think it is important to do out reach and education. I want to let you know on february 25, our department will host an electrification expo for homeowners, renters and builders to come to learn about how to transition their home to being fossil free. The implementation is crucial for the city to meet climate goals. It will rechoir a lot of require a lot of political courage. I want to briefly introduce two colleagues. Julie from the department of of public works to speak on behalf of their department and heather green from longterm capital planning. I will be available to answer questions afterwards. Good morning, committee members. I am julie lowy. I am the architect and manager for the bureau of architecture at San Francisco public works speaking in support of this ordinance. I have been working in the field of architecture for 34 years and have project delivery of many buildings. I joined this seven years ago. As an architect in the building industry i can tell you buildings are the Biggest Energy hogs on earth in materials, construction and operationally. This ordinance is just one small step towards addressing this critical issue of getting us toward net zero ca carbon for buildings. Some say we passed the point of no return. I am an optimist. This is critical for our environment. You know, one thing i learned when i joined the city is good enough for government work is not what some people take it as. It means good enough for government work. We need to lead the charge in the city and county of San Francisco and set an example of this Important Initiative like this one. Our buildings need to be built to last. At the Bureau Architecture we take great pride in building the buildings with highest quality and durability. Government buildings last 50 to 1000 year o 50 to one hundred years. Lead gold is the lowest common denominator. We need to do better and get to net positive, which we are trying to do. Some of the buildings on the screen. My staff have worked on like Southeast Community center is net zero, all electric. I think that i want to thank you for your time. Happy inauguration day. Thank you. Good morning. I apologize heather green. Thank you on this busy day. I want to thank the department of environment and cindy and debbie for their efforts. Environment Capital Committee presented this. Not surprisingly through the bla, the cost is a concern. Building in the city is extremely expensive. We appreciate the attention paid to making sure we are doing this where we should on the whole building major renovation. Not that every time we parent the law we need to electrify the building. It is an important distinction to make this fiscally feasible for the city. This helps advance our greater goals as the city. We drafted the hazard plan for San Francisco and a chiefing the Greenhouse Gas targets is essential for us all. This helps get us there. Thank you. Any questions . Could we hear from the bla, please. Yes, the board of supervisors is approving the amendment to the environment code to require the construction of city owned buildings or major rehabilitation to be all electric. They covered the fiscal impact in the report. Based on studies provided by the department of environment. There is a range on the Construction Costs depending on the infra structure and building from decrease in cost in increase of 1 per square foot and other cost reductions associated with not installing the natural gas infrastructure. We were provided a range depending on the type of infrastructure summarized in the report. With Energy Savings there could be some increase depending on the type of electric infrastructure installed to savings generated over time. This is a new policy for the board of supervisors. We consider this to be a policy matter for the board. Supervisor mandelman. Clarification on the department of environment presentation. The all electric examples i am assuming are illlus trative. I dont think this will apply to Affordable Housing developments, correct . Right. That is the range of the buildings built in the city. I appreciate the thoughtful way the department of environment approached this. I think it is worth saying as we move through the stages through Municipal Buildings and new private construction we are probably at some point going to have to circle back to retrofitting public and private buildings. Over time it will be unacceptable that we have buildings emitting Greenhouse Gases. It is an important first step in bite sized chungs. Thank you. I have just would questions. One is that in these buildings i have been asked by actually people my residents who want to switch to all electric in Single Family homes. I have a tank less water heater in my home. I am wondering are we using for this construction for these large buildings, how are we doing our water Heating Systems . Are they all electric and how does that work . I have been told that actually there is not a system for all electric water heaters. Explaining that in a minute,if you could. I will. The technology we would use is called heat pump water heater. It is like the inverse of refrigrator. That is my best laymans terms of explaining it. I will invite a colleague for a more technical answer. Heat pump water heater. It is working as inverse of refriggerrator to give out heat that circulates water to heat the house. The electrification fair on the 25th will have a lot of vendors with heat pump water heaters, spacing, cooling and electric stoves which is a big issue. That is great. Because we also have a pump in our home, an electric pump to circulate the water. The hook up is gas. This is what my residents are asking. Is this a new Technology Just on the market to you can do this for large buildings . Yes, we believe we can do it for large buildings. It is not new technology, but it has been improved vastly in the last couple years as the Electrification Movement has taken place. Costs have come down. They are comparable to natural gas appliances at this point. If you would send that information to my office about the fair we will get it out in the monthly newsletter. I wondered how we were doing it. I had not heard for the large buildings. The developers said there are no options to have it all electric. You are here telling me there are options in multi Story Buildings . This afternoon we will host a workshop with engineers and architects to talk about the technology and options. There will be 80 team coming to learn about the technology. Maybe the next question. I want to ask about are we tapping into any solar energy on the New Buildings . Are we putting on solar panels . It seems if we are doing the new construction on Municipal Buildings we should look at capturing solar energy. I would assume we are doing that because the department of environment would be the department that would insist we do that or bring forth an ordinance to require that all municipal facilities being vastly renovated or newly built that would be a requirement. Is it a requirement . I will have our breen building coordinate Green Building coordinator apply to that. We have the better roofs ordinance that requires some portion of solar on the roofs. As alternative there is an opportunity to apply twice that area in living roof but most projects opt for the solar option. That is in conjunction with. When we say that there must be some solar panels, what is the we have no measure or bar or minimum or is there that they must comply with . It is percentage of the roof area. It is not relative to the operations of the energy demand, it is based on what is available to the project outside of the mechanical footprint on the roof. Thank you very much. Lets open up for Public Comment. Any members of the comment like to comment on item two . Seeing none, comment is closed. I would like to move to positive recommendation and add my name as sponsor. Please call item 3. Resolution authorizing the general manager of the Public Utilities commission for a contract for cdm smith with planning andy sign and engineering support for the no Water Treatment plant ozonation for project for an amount not to exceed 15 million for six years mar2020 through march 2026. We have bryan de sore, project manager. Good afternoon. San francisco public project manager. This item s sfgovtv could we have the slides on the screen . This is a request to authorize the general manager to executes a professional Service Agreement with cdm smith for professional Engineering Services on the ozonation project. It is one of the Treatment Facilities along the sfpuc water transmission system. The plant treats water stored at the san antonio reservoys prior to the transmission system. In recent years it has experienced more frequent taste and o door event odor events from the byproducts of al gee in the two reservoirs. The photos of the reservoirs both in california as well. The purpose of the project is to improve the plant reliability and address the taste and odor events. It was recently constructed at the plant. The facility is located in the yellow outlined area on the photo on the bottom left. The photo of the powder activated carbon facility is in the right. The ozone facility will be constructed as longterm solution to the taste and odor issues. It is in the outlined area in orange. The ozone facility will consist of an ozone building, liquid oxygen tanks, generators, injectors, Contact Chamber and associated piping and control systems. It is part of the 10 year Capital Improvement program, and the budget is 165 million. The duration is approximately six years. This slide shows components that make up the system. Starting at the top left is the liquid oxygen tanks and vapor risesser. To the right is the ozone building. Bottom light is ozone injectors which inject ozone into the water prior to the Contact Chamber. To the bottom right is the ozone de construct system which treats the ozone not dissolved in the water. The Ozone Project requires Planning Services. In june 2019 request for proposal was issued for the services. After the interview process cdm smith was the highest ranked proposeser. In november of 2019 the San Francisco Public Utilities Commission Approved the selection of cdm smith and award of the professional Services Agreement. They are here today to approval the 15 million six year term of professional Service Agreement with cdm smith for the planning and Specialized Services on this project. Thank you. I will be happy to answer any questions you may have. Colleagues questions or comments . Could we hear from the bla, please. Yes, the board of supervisors is asked to approve the six Year Contract to provide engineering and Planning Services for the Water Treatment and ozonation project which was summarized by the representative from p. U. C. Briefly. The cdm was selected through competitive for 15 million which is summarized in table one on page 16 of the report. Of that 15 million, 2. 8 are optional costs for engineering support during construction of the plant. The total project cost is 165 million, which makes this contract 9 of the total project budget. We consider that to be reasonable and remember approval. Thank you. Supervisor mandelman. This contract raises a question for me as i was briefed by the bla. It is more of a question for the mayors Budget Office or controller. Which is 160 million project. We are asked to approve 15 million worth of the cost for the design personal Services Agreement. I was thinking about, you know, why is it that the larger 80 Million Construction contract doesnt come to us but the small relatively smaller personal Services Agreement does . I dont think this is particularly the p. U. C. Or the City Attorney question actually. I guess the City Attorney can address the legal reason why that is. I wonder if the controller and budget analyst can speculate if it is sensible. The City Attorney. Section 9. 11 a requires the board give approval to large contracts those that have a term over 10 years or 10 million. That provision of the charter exempts Construction Contracts. Those are not required to go to the board for approval, regardless of duration or amount. Over to controller or mayors Budget Office, what is the theory as best you understand of why we would look at a relatively small part of the project but not the big giant part of the project . As the deputy City Attorney said charter section 918p. Code section 6 has the outlining of the processes the departments must follow in order to go forth with Construction Projects. It only applies to about five or six of the citys main infrastructure departments with very detailed minimum bidding and fairness requirements for those departments to ensure it is a fair process. I think it might be helpful for the p. U. C. To explain the public process they will be going through for the larger construction project so we can understand what departments do in terms of public process for large Construction Projects like this. One of my questions, also, this is the next phase. The 80 million have to go through your commission . Yes. The process is going through the bid or design bid then build process. We complete the 100 design and openly advertise to contractors who then review the package, prepare proposals and submits their bid for construction work. We do outreach to various contractors and firms that may be interested. We will have a prebid conference with the contractors. This gives the contractors an opportunity to learn more about the project as well as engage with subcontractors who also attend the prebid conferences. Then contractors will prepare the bids, submit and open bids and identify the lowest responsible bidder. We will evaluate the bids. When the bidder is lowest ranked is selected we will go to the San Francisco Public Utilities commission requesting the authorization to award a contract. With that contractor. A contract like this design contract does not go through that process at the p. U. C. Or it does . This project will go through that process. For all of it, design and construction, all of the contracts . Maybe back over, and again if that process is good enough for Construction Contracts and we trust that it can work the way through the commission process and that there is transparency and that is enough for that. Why isnt that enough for the design piece . Any thoughts about why that gets elevated to the board of supervisors peboard ofsuperviso . The City Attorney said because of the charter you must. Deputy City Attorney ann pearson only the construction piece is exempted. The Services Related to contradiction arent considered construction contract. Those dont fall in that exception. I will stop. I am having a hard time conceptually understanding why one piece of the project, which is design, seems to be something where we dont rely on a Departmental Commission process. Setting aside legal requirement what is is the right way to deal with this, the design has to come here but the construction which is larger doesnt. I will stop. I am done. Thanks. Thank you very much. So lets open this up for Public Comment. Any members of the public like to comment . Seeing none, Public Comment is closed. I would like to move with a positive recommendation to take without objection thank you very much. I think we have time for one more item. Please call item 4. Resolution declaring intent of city to reimburse future bonds and authorizing the director of the Mayors Office of housing and Community Development to submission documents for Residential Mortgage revenue bond not to exceed 24 million for 1223 webster street. Thank you very much. Christina m un n is here today. I am here to present on the proposed bond issue resolution before you to fund the rehappy birthday of the marketplace which is an existing 120 unit Affordable Housing apartment complex at 1223 webster street in fillmore district. It would approve the submit of application to secure an allocation of bond the state and that bond issue would be conduit financing that would not require city funds to repay bonds. It consisting of substantial renovation of apartment complex built in 1996. There is many tenants there a long time. Average tent is there 14 years. Under the rehaband refinancing 10 units will remain affordable to households earning no more than 60 of the income and 108 must be no more than 50 of a. M. I. The scope including replacing windows, boilers, repair water system, upgrading fire alarm systems and building exterior work and no displacements or relocation of residents. They will remain in place. Timeline. They will return to the board for bond issuance approval in april. On behalf of the project sponsors in hfsdc thank you for consideration. I am joined by the representative lisa grady. We can answer your questions. There is no bla report. Lets open for Public Comment. Any members of the comment to comment item 4 . It is now closed. I would like to move to board with positive recommendation without objection. Thank you very much. Having said that, we are going to now recess this meeting and then we will reconvene after inauguration of mayor london thank you very much. Ondon this is the january 8th, 2020 meeting of the budget and finance committee. We are reconvening now and supervisor mandelman will be joining us shortly. Thank you for the patients showed joke your patience as we recess to see the mayor being inaugurated. Madame clerk, can you please call item five and six together . Resolution authorizing the execution and delivery of a multi housing revenue and in one or more series in aggregate for providing financing for the construction of the 108 unit multifamily rental Housing Project. Item number six is a resolution approving and authorizing the director of property to acquire Real Property on turk street from turk 500 associates for 0 in exchange for 12. 2 million in credit and placing it under the mayor to do office of housing and Community Development for Affordable Housing for San Francisco. Thank you very much. We have joyce lynn from mohcd. Is that correct . Welcome. Good morning, supervisors good afternoon, supervisors. My name is joyce, project manager with the mayor to do office of housing and Community Development. Im here to present items five and six related to 500520 turk street and 5555 larkin street also known as 500 turk street project. It is a 108 affordable multifamily new construction project located at the corner of turk street on larkin street. The project is being developed by the Tenderloin Neighborhood Development corporation. All units will be affordable and will serve households averaging 60 of the San Francisco county Median Income would 27 project voucher units reserved for residents wishing to move from Public Housing to the project and will include a mix of studios, one, two, and threebedroom units. Item number five is the first resolution before you requesting authorization to issue multiFamily Housing revenue in an amount not to exceed 53 million to provide Construction Financing for the residential project. The transaction fundamentals have not changed since they presented projects to this Committee Last june. The issuance is still conduit financing with no recourse for the citys general fund. The project continues to be compliance with a few city requirements including prevailing wage and requirements since then, the project developer, a california limited partnership, collectively with us are known as the developers. We secured a debt allocation from the developer to the california debt allocation limit community. And with the city, identified a Financing Team including a lender and Equity Investor and other attorneys in the citys municipal advisor. The team has met several times and develop substantially final documents in the legislative package before you. The resolution before you requests approval and authorization for three actions. This is item number six. Number one, the acquisition of the property for 0 to be paid to the developer in the form of a 12. 25 million credit to the loan. Number two, a grands lease to the property back to the developer for lease term of 75 years with a 24 year option to extend in an annual base rent of 15,000 with affordability restrictions for 99 years and three, a gap alone in the amount of not to exceed 32. 4 million of the developer to finance the construction of the development. Construction closing for 500 turk is expected at the end of the month when the bond and loan documents will be executed. The project will Start Construction june soon after with the completion expected in january of 2022. Here with me is amy from mohcd, claudia from the Real Estate Division, and jacob from the Tenderloin Neighborhood Development corporation. We will be glad to answer any questions you may have about this request on behalf of mohcd and the developer. We would like to thank you for your consideration here today and look forward to your support thank you very much. Any comments or questions . Supervisor walton . Thank you. This is a quick process and a problematic question. How will the residence be selected for the vouchers and will this also be able to apply for safety transfers . Youre talking about the 27 project lease voucher units . Those residents are living in our existing Public Housing project and will voluntarily move to the project. If there is 27 vouchers and lets say we have 50 people that want to transfer, what is the process looking like . That is a good question. Can i get back to you on that . Of course,. I want to make sure about the public initiative. And also a followup, if you can let me know if these will also applied to safety transfers in the future. Thank you. Thank you very much. We dont have a b. L. A. Partner for item number five but we do have one item number six. Could we hear that, please . Item six, this resolution does three things. The main three things it does is it proves approves the city to purchase from the current owner which is a conjoining neighborhood corporation, which is part of turk 500 associates. It approves an amended Loan Agreement increasing the loan amount that is currently being allocated to this project. It approves a ground lease for a longterm ground lease for the property. In terms of the Loan Agreement, we show this on table one of the report. The funding for the Loan Agreement is 32. 4 million. The incurrence the increase is being approved today in the existing Loan Agreement. The total project amount is shown on page 21, table two of the amount. The total project is 95 million the net of the loan, it is the 32. 4 million loan. There is about 1. 2 million that is pending as a bridge loan pending other loans being made available to the project. The other part is that the appraised value of the original Purchase Price was 12. 25 million. That amount, when the city assumed ownership, will be credited against the loan amount the actual payback will be that much less. This is on table three, page 23 of the report. City funds are third of the cost of the project and we recommend approval. Lets open this up for Public Comment. Would any members of the public like to comment on number five or six . Public comment is now closed. Colleagues, any comments or questions . I would like to move these items to the board with a positive recommendation. We can take that without objection. Thank you. Please call item number seven and eight together. Seven is a resolution authorizing the issuance and delivery of multiFamily Housing Revenue Bonds in an aggregate principal not to exceed over 44 willing dollars for the purpose of providing financing for the acquisition, development, and construction of a 105 unit affordable multifamily Residential Rental Housing Project currently assigned the street address of 401 avenue of the palms. Item eight is resolution and approving a Loan Agreement in an amount not to exceed 24 by 5 million for a term of 57 years to finance the construction of 100 affordable, 105 unit multifamily rental Housing Development for low and moderate income at 401 avenue of the palms. Thank you very much. Today we have joan from mohcd. Welcome. Thank you. Good afternoon. I am with the Mayors Office of housing. Im a senior project manager. Im here to present on item seven and eight related to the project to located at 401 avenue of the palms. Its the first newly constructed Affordable Housing development for veterans on Treasure Island. The project is being developed by chinatown Community Development center. The building will include 104 affordable units serving households below 80 a. M. I. And to give you an idea, for one person, 68,000, two, 78,000, three, 88,000. And for a family, 98,000. The rent will probably be lower targeted populations. Thirtynine of the units will be available to current Treasure Island households who will be relocated to the building when it is built. Sixtyfive units will house formerly Homeless Veterans who are new to the housing. Affordability will be maintained for the life of the project which is our new standard for restriction. Item number seven is requesting authorization to issue multiFamily Housing revenue notes in an amount not to exceed 44 million to provide Construction Financing for the residential project. The transaction fundamentals have not changed since the project was approved by the board of supervisors and the mayor in august on august 9 th, 2019. The issuance is still a conduit financing with no recourse for the citys general fund. The project continues to be in compliance with all city requirements for the issuance of taxexempt debt including prevailing wage and l. B. E. Requirements. Since submitting the application for bond financing, the developer has secured a debt limit allocation and with this city, identified a Financing Team including a lender and Equity Investor, bond council and other attorneys, and the citys municipal advisors. The Financing Team has met several times and developed a substantially final issuance stock in the legislative package before you. Item number eight is requesting approval of a gap loan to the developer in an amount not to exceed 24 million. Construction closing is anticipated to take place either at the end of january or very soon after the beginning of february. This certificate of occupancy is expected in august of 2021 when the building is complete with all units leased up approximately around december, 2021. Here with me today are joanna from chinatown c. D. C. And leon, the project developer. Leon we will be glad to answer any questions you have about this request. And on behalf of mohcd and the project developers, we would like to thank you for your support and ask for your continued support. With that, i end my presentation thank you very much for your presentation. Colleagues, any comments or questions . Seeing none, but i have a report on item number eight as there is none for item number seven . Item number eight, the legislation specifically approves a Loan Agreement between mohcd and the apartment for the Community Development. There is currently an outstanding loan of 6. 5 million this would amend the loan and increase it by 17. 7 million to a total loan amount of 24. 3 million. You can see that an exhibit 2 on page 27 of the report. The sources of funding include the egress money that came in and other sources of funds shown in this exhibit. The total project budget is 74 by two millions of the loan amount is about one third of that amount. The housing subsidy is about 231,000. As you can see on page three of our report. We recommend approval. Thank you very much. Lets open this up for Public Comment . Seeing none, Public Comment is closed. I see no questions or comments on the roster. I would like to move these items to the board with a positive recommendation and we can take that without objection. Thank you for the presentation today. Can you please call item number nine . Nine is a resolution authorizing the Mayors Office of housing and Community Development to submit a Grant Application for the California State Department of housing and Community Development for funding in the amount of 5 million under the cal home program. Thank you very much. His gene here . Im with the Mayors Office of housing. Please speak into the microphone. We are trying to apply for a grant on the state of california for 5 million, which is to bring 5 million for firsttime homebuyers. [indiscernible] thank you very much. Is that your presentation or do you have more . That is that. Thats great. We have no b. L. A. Report on this any comments or questions from colleagues . I see no questions. Is there any members of the public would like to comment on this item . Public comment is closed. I would like to move this to the board with a positive recommendation. We can take that without objection. Please call items 10 through 18 together. Item 10 through 18 is a resolution authorizing the mayor s office of housing and Community Development on behalf of the city to execute a Grant Application under the department of housing and Community Development Affordable Housing and sustainable communities for the Affordable Housing projects. And the Community Development infill infrastructure program. That is it . That is great. Hello. Are you jonathan . Yes. Please, welcome. Thank you. Good afternoon, committee members. My name is jonathan and i may project manager with the Mayors Office of housing and Community Development. Before you are resolutions, items 10, 11, 12, 13, and 14 to assume liability and apply for funds from the California Department department of housing and Community Development Affordable Housing and Sustainable Communities Program commonly referred to as asic. These funds will go towards a falling Affordable Housing projects in the city. 131 units of Family Housing located at 2340 san jose avenue as known as balboa park upper yard developed by mission Housing Development corporation and related california. 157 units located at potrero hill the potrero hope s. F. Site mac. Developed by bridge housing. Eightyfour units of Family Housing located at the sunnydale hope s. F. Site as known as sunnydale block three a also developed by related california. Eightyfour units of Family Housing also located at the sunnydale hope s. F. Site known as sunnydale block three be. And 70 units of Family Housing with 35 units for homeless families as known as 266 fourth street. The Program Transportation and Land Preservation projects support infill and Compact Development that would reduce Greenhouse Gas emissions. The fund is established by the state and is known more generally as cap and trade funding. In order to be highly competitive, the project will be submitting joint applications with the city for up to 20 million each. For each project, the award is broken up into two major components. The first is a loan awarded to support the Affordable Housing development in the and the second is a grant award to go towards transportation improvements for associated Greenhouse Gas reduction measures included in the application. For balboa park upper yard and others, each housing award request is for up to 20 million and the transportation Grant Application is for up to 10 million. For 266 fourth street, the request is for 13. 6 million and the transportation grant request is for approximately six my 5 million. The application requires that applicants for the project will be held jointly and be liable for completion of the project. This means that those parties are liable for the completion of the entire project in either either party may need to take additional steps to have the housing or transit portion completed. Balboa park upper yard is located across from the balboa park bart station. It currently serves as an sfmta employee parking lot. The team expects to begin construction in the spring of 2021. Potrero block b. Is part of the hope s. F. Site and will be the second new construction project built under hope s. F. The nations first largescale Community Development and Reparations Initiative aimed at creating vibrant and inclusive and mixedincome communities without mass displacement of the original residents. Sunny block is also part of the hope s. F. Site and will be the third and fourth new construction project in the revitalized sunnydale community. It will be located on an sfmta site mac located directly above the sfmta subway station currently under construction. They issued a request for proposals for the site in august of 2017 and construct construction is anticipated to begin fall of 2021. In addition, before you are resolutions to assume liability and apply for funds from the California Department of housing and Community Development infill infrastructure program. Commonly referred to as i. I. G. These funds will go towards the following projects. Balboa park upper yard for an amount not to exceed 4 million, potrero block b. Not to exceed 15. 6 million and sunnydale block three a for an amount not to exceed six my 5 million, sunnydale block three be for an amount not to exceed six my 5 million and Treasure Island major sub phase one for an amount not to exceed 30 million excuse me, are you speaking on item 19 . We have representatives from Treasure Island to develop and authority he will speak more about item 19. Let me pause you for a second madame clerk, did we call item number 19 . Please call into the record now before we hear the rest of the presentation on item 19. Nineteen is a resolution authorizing the Treasure Island develop Mint Authority on behalf of the city to execute a Grant Application under the department of housing and Community Development infill infrastructure as an applicant or joint applicant with the San Francisco county Transportation Authority and or the Public Utilities commission for a qualifying Infrastructure Project within Treasure Island major sub phase one. Thank you very much. You may continue. Thank you. The Program Provides funds and supportive infill projects in mixedincome housing as well as mixeduse infill developments. Thank you for considering each of these resolutions to apply for these critical sources of funding. We are excited to leverage these funds and reduce the amount of city funding necessary to build these important projects. And to see Affordable Housing for did into solutions for Greenhouse Gas production in combating climate change. The teams are working to complete funding applications by the deadline of february 11th 2020. This concludes staffs presentation. The sponsors are available for questions should you have any and bob back, the director of the Treasure Island Development Authority will speak further about item 19. Thank you very much. Thank you. If it pleases you, i do have some slides i could present. The project we are applying for is the widening of hillcrest, promoting widening transit and bike access from that side of the project area. Thank you. There are no reports on any of these items. Lets open this up for Public Comment. Would any members of the public like to comment on items 10 through 19 . Public comment is now closed. Colleagues, any comments or questions considering one of our colleagues on the board here who is actually the sponsor of many of these things. I would say i would like to move this to the full board with a positive recommendation on items 10 through 19. We can take that without objection. Thank you very much. Please call item number 20. Twenty is a hearing to consider the review and approval of the budget guidelines for the board of supervisors annual budget for fiscal year 2020 and 2021 and 2022. Thank you very much. Today we have angela, the clerk of the board and joan. Before we start, i would like to give, on this presentation as you know i am the chair of the committee and left is actually under the budget of the board of supervisors. So with that, i would do you think would you like to first present the budget and have me then talk a little bit about laugh co. . Members of the committee, clerk of the board, angela. You indicated im here. We always appreciate you managing this information for us annually. We also appreciate the opportunity to report to the department. The current progress of projects , just a few, and pursuant to the rules of order to request your guidance as we are preparing the budget for the next two years. Once we receive your guidance we will return in february with a draft budget based upon your direction today for your approval before we submit the budget to the mayor and the controller. And now to the highlevel overview, with you, i would recommend the overview of the projects and then i will recommend a couple of adjustments for the budget, for the baseline. Sly two shows the departments current year budget by division and category. Under category, the largest cost share is salary and benefits at 75 of the total budget. The gross in this category is attributed to the m. O. U. Negotiated wage increases and the addition of the administrative aids. The next largest category is the nonpersonnel services at 22 or 4 million. The budget and legislative Analyst Services contract is the largest cost in this category. A slight slide three, the current project, as you know, we hosted the conference in San Francisco. We appreciate the committee and the board allowing us 50,000 in general fund dollars in the current year. We only used about 7,000 and we will be returning the remainder to the general fund. Regarding the Office Renovation project in partnership with the department of public works and the Real Estate Division of the city administrators office, our renovation project will be presented to the City Hall Preservation Advisory Commission for their review. This renovation, as you know, will allow us to create a private space both for the operation deputy and the payroll personnel in our department. I have a larger responsibility to the department as a whole to make sure that our payroll Personnel Officer can have confidential conversations in an office with staff. I am having a bit of a we organization in the area of space. Regarding the salesforce constituent Management System, we ruled this project out to all 11 offices. The initial feedback was positive and we understand that there are, as with every other project, there are bugs to work through. We are committed to doing so would legislative staff and the administrative staff. We will continue to work with your office is to find out what within next steps look like if we were to continue to utilize this project. Slide four lists the small adjustments that i am recommending to be included in the 2021 proposed budget. The newly created Administrative Assistant position in the member offices are eligible to receive overtime pay. However, this cost was not included in the current budget and so we will need funding in the new budget. We have begun tracking the overtime pay for this particular class and we will have an estimate for you in february when we return. The Operations Division in the clerks office, which provides operational and Logistical Support to the department as a whole are proposing a job change in one particular position. The current job is a 1426 senior clerk typist. It is not accurately reflect the work that this particular position conducts on a daytoday with assistance to the department and to the public and to Language Access and inventory. We would like the new class to be an 1840 junior management assistant. It would result in a small increase in 15,000 in salary and benefits. As i mentioned in the previous slide, the salesforce constituent Management System is ongoing. The licenses have been purchased and we would need to add that cost. It is about 17,000 to purchase additional licenses to meet the demand of the new staff. And now for the couple of items. The budget and legislative analyst, every year, the budget and legislative analyst submits their request for an increase, which is stipulated in the contract. They have done so again for the budget year. That would amount to a total of 2. 44 million in contract, essentially the increase would be about 76 thousand dollars. The Youth Commission, there are three staff positions in the Youth Commission. It is time to modernize the positions and salary to be commensurate with the duties and responsibilities of the job description. Frankly, retention continues to be an ongoing issue and to address these issues we have worked very closely with the department of to Human Resources so they can review the duties and recommend an updated job class. If the Committee Approves this is a general concept, we will come back to you in february with the job class that we are recommending and the costs that are associated with that. And then two last points, the department is hiring a recruiting and chief information officer. We currently have a position in the department. As our recruitment is yielding, we are not getting the type of individual with the minimum requirements that we need so we are asking just to bump up that position, which is what generally is the position in this city that the department of telecommunications is utilizing for this role specifically. It would be i would also be a sevenpoint 5 increase in salary. Again, we already have the base salary position and Funds Associated with that. Both salary and benefits in the budget currently. And lastly you might recall that they received a general Fund Appropriation of 297 in the current year. That is the same amount that we have reserved over the last 12 years. As a placeholder, we have that in the proposed budget with your permission. I know that you would like to discuss that. We would be happy to. We would love your permission to provide all of those to you in february and a base budget for your consideration. We will bring it back to in february. We will be back here with questions. Any questions . I will proceed with the increase in the budget. Colleagues, as chair of the local Agency Formation commission, im working with my colleagues on that body, as well as our executive officer who is here in the audience today to develop a new budget and to rapidly expand the body of work being held by this commission. While our commissions approval of a budget is still pending, we would discuss a proposed budget at our meeting next week. I do want to propose an increase to the budget and im asking for the support of my colleagues to have that reflected in the board s budget submission to the mayor. We have received the same same general fund or support support from the city and county of San Francisco for over 10 years without a single increase. I was appointed to the commission and elected as the chair in 2017 and in the last three years, we have done an incredible amount of work to revise this body, higher a phenomenal executive director and take on critical areas of work regarding Municipal Services and issues. We continue to provide oversight for . And power s. F. And year we did indepth and copper hints of analysis of equity issues within the program, along with recommendations of how for how to address such concerns. The body his continued is continue to explore, along with equity access to clean power s. F. , what real expansion of clean power would look like in San Francisco. It is a if the city and county developed his own facilities on public land. In the last year, its in his last year in the last year, it is producing groundbreaking work in the study of gig economy workers partnering with a National Organization of jobs with justice to conduct a comprehensive analysis of the conditions facing gig workers in the emerging mobility sector. The study is now in progress and in the first phase of being completed this year. Its the largest study of its kind and the executive director has secured over 300,000 in private funds for this study. And now i have introduced legislation currently pending at the board to ensure that San Francisco takes the next step in developing a Business Plan for the first ever public bank in the state of california. I am proposing that this work live as an independent body that can skilfully engage public and private partners and utilize its Legal Council who have expertise in municipal finance. If that legislation is to pass, our one staff person could not hold that work alone and we need staffing dedicated to the project. What im asking for today is an amendment to the budget and the boards budget to increase the general fund support for this award by 486,000. This would ensure we can bring back the f. T. E. Position for executive director officer role. That position was eliminated in 2017. And fortin f. T. E. For a policy analyst role and ensure funding to bring on a consultant for the public bank. I have passed out to you a document and all about the proposed budget. Im open to answer any questions as i said before, the executive director is here also to answer any questions. No questions. That is very positive. Pressing the button, i see supervisor mandelman. Yes . Yes, so i confess i am pretty unfamiliar with this. I am it has existed in every county in california. There is usually it was usually used, to my understanding, it is usually dealing with Governmental Organization boundaries and things like that. I know San Francisco has used it significantly differently and particularly the board of supervisors used it at a point when maybe the Mayors Office was not as excited about public power to advance a Clean Energy Agenda from a little bit of a workaround coming from this side of the building. I guess i dont actually know or understand i dont have a sense of whether its the best place for additional policy. Actually, mr. Goebel can explain why it is the appropriate place to mean a surprise a lot of these issues like the public bank. And also why clean power is part of the purview. Thank you. Good afternoon, supervisors. We were assigned Oversight Authority of clean power s. F. In 20 2007 by the board of supervisors. We have an ongoing m. O. U. With the Public Utilities commission to do that work. As chair fewer stated, we had a very important report released recently with regard to clean power s. F. And the number of power disconnections that are happening in San Francisco due to customers inability to pay. We plan on carrying that work forward. They all have special studies authority. I was hired as executive officer almost two years ago and i was asked by the chair to look into some issues. One of those was the gig economy issue. The city has been trying to obtain data from the companies to do an assessment of the externality that is being created on our streets in terms of congestion and trying to determine whether the company are so are following the labor laws. We are now undertaking what would be the largest and most representative survey of gig workers in the country. I have gone out and raised an additional 300,000 to support that work. In addition, you know, as the local Agency Formation commission, there was a lot of discussion about forming a new Municipal Bank and how that is ideal for local Agency Formation commissions to do since that is a moral role. These are the three big issues that we are handling at the moment i would like to add to that that the scope of work has germs expanded dramatically through the commission, as it would meet these issues, and actually california came down and gave us a whole training on what it can do. It opened up a whole variety of issues that we could actually undertake and i think that the enthusiasm of the supervisors and the members really, what we are looking at with these studies and what we are looking at is a reflection of how excited the commissioner is after they realized what their purview could be. I am as brian mentioned, we know we have had more the same budget for the last 10 years and our work has more than tripled in what we are doing, and also that mr. Goebel is a consultant and we feel as though it is the only right thing to do to make this a regular position and bring it back as a position and give him the benefit that should be afforded to any employee that works with the city and county of San Francisco go ahead, supervisor mandelman. That all makes sense. Over the next month, i can hear a little bit more about some of the thinking behind it. This is adding additional staff positions and building it out and why it makes sense to do that through that Company Rather than controller studies or b. L. A. Studies or task forces and things like that. Those would be the questions i have over the next few months. I would like to emphasize that it is an independent body. Independent from the city and county of San Francisco. I think that is, quite frankly, probably why it was formed. It is designed to be an independent body. We are commissioners, we dont sit there as representatives of the board of supervisors. I have reached out to you on your staff to offer a briefing and id be happy to sit down and discuss this with you. If anyone would like to serve on that commission, we would love to have you. I would like then to have this Committee Approved and all the other items you have brought forward. Are there any questions, supervisors, on the other items that the clerk has brought forth , meaning an increase of the positions for the Youth Commission also essentially in concept you would be authorizing providing the guidelines to move forward with providing you advice on what an appropriate class could be for both the Youth Commission staff, in addition to the c. I. O. In the department, in addition to the cola increase for the budget legislative Analyst Services and any additional work you would like us to perform on the group, which i heard outlined in your presentation. The overtime for the ad been stuffed. Yes. Thank you. Just a quick question because i want to make sure i know how hard the office works and all the components necessary to do a great job. Everything you put in the presentation, that covers everything you thank you need moving forward next year. Thank you. Supervisor walton, the baseline that we would be bringing to you in february would have all of our needs in addition to the little bit of detail that we spoke about today and in february it would give you the opportunity to review that and that is what i would submit to the mayor and the controller for one we have our longer conversations in june for a Second Opportunity for you to cut and paste. Thank you. I think today, what i would like to do is to approve to amend the budget guidelines to include the additional funding and to file the hearing. Could we please have Public Comment . Are there any members of the public would like to comment on this item . Public comment is now closed. Shall i then make a motion to amend the guidelines for the board of supervisors budget . I make a motion. Do we vote on that . Do we take it without objection . I would like to file it with as amended. Do we have any other business before us today . There is no further business. Okay. We are adjourned. Thank you very much. Shop dine in the 49 promotes local businesses and challenges resident to do their showing up and dining within the 49 square miles of San Francisco by supporting local Services Within the neighborhood we help San Francisco remain unique successful and vibrant so where will you shop dine in the 49 San Francisco owes must of the charm to the unique characterization of each corridor has a distinction permanent our neighbors are the economic engine of the city. If we could a afford the lot by these well not to have the kind of store in the future the kids will eat from some restaurants chinatown has phobia one of the best the most unique neighborhood shopping areas of San Francisco. Chinatown is one of the oldest chinatown in the state we need to be able allergies the people and thats the reason chinatown is showing more of the people will the traditional thepg. North beach is i know one of the last little italian community. One of the last neighborhood that hadnt changed a whole lot and San Francisco community so strong and the sense of partnership with businesses as well and i just love north Beach Community Old School Italian comfort and love that is what italians are all about we need people to come here and shop here so we can keep this going not only us but, of course, Everything Else in the community i think local businesses the small ones and coffee shops are unique in their own way that is the characteristic of the neighborhood i peace officer prefer it is local character you have to support them. Really notice the port this community we really need to kind of really shop locally and support the communityly live in it is more economic for people to survive here. I came down to Treasure Island to look for a weve got a long ways to go. Ring i just got married and didnt want something on line ive met artists and local Business Owners they need money to go out and shop this is important to short them i think you get better things. Definitely supporting the local community always good is it interesting to find things i never knew existed or see that that way. I think that is really great that San Francisco seize the vails of Small Business and creates the shop dine in the 49 to support businesses make people all the residents and visitors realize had cool things are made and produced in san this is one place you can always count on to give you what you had before and remind you of what your San Francisco history used to be. We hear that all the time, people bring their kids here and their grandparents brought them here and down the line. Even though people move away, whenever they come back to the city, they make it here. And they tell us that. Youre going to get something made fresh, made by hand and made with quality products and something thats very, very good. The legacy bars and restaurants was something that was begun by San Francisco simply to recognize and draw attention to the establishments. It really provides for San Franciscos unique character. And that morphed into a request that we work with the city to develop a legacy business registration. Im Michael Cirocco and the owner of an area bakery. The bakery started in 191. My grandfather came over from italy and opened it up then. It is a small operation. Its not big. So everything is kind of quality that way. So i see every piece and cut every piece that comes in and out of that oven. Im leslie ciroccomitchell, a fourth generation baker here with my family. So we get up pretty early in the morning. I usually start baking around 5 00. And then you just start doing rounds of dough. Loaves. My mom and sister basically handle the front and then i have my nephew james helps and then my two daughters and my wife come in and we actually do the baking. After that, my mom and my sister stay and sell the product, retail it. You know, i dont really think about it. But then when i sometimes when i go places and i look and see places put up, oh this is our 50th anniversary and everything and weve been over 100 and that is when it kind of hits me. You know, that geez, weve been here a long time. [applause] a lot of people might ask why our legacy business is important. We all have our own stories to tell about our ancestry. Our lineage and ill use one example of tommys joint. Tommys joint is a place that my husband went to as a child and hes a fourth generation san franciscan. Its a place we can still go to today with our children or grandchildren and share the stories of what was San Francisco like back in the 1950s. Im the general manager at tommys joint. People mostly recognize tommys joint for its murals on the outside of the building. Very bright blue. You drive down and see what it is. They know the building. Tommys is a San Francisco hoffa, which is a germanstyle presenting food. We have five different carved meats and we carve it by hand at the station. You prefer it to be carved whether you like your brisket fatty or want it lean. You want your pastrami to be very lean. You can say i want that piece of corn beef and want it cut, you know, very thick and i want it with some sauerkraut. Tell the guys how you want to prepare it and they will do it right in front of you. San franciscos a place thats changing restaurants, except for tommys joint. Tommys joint has been the same since it opened and that is important. San francisco in general that we dont lose a grip of what San Franciscos came from. Tommys is a place that youll always recognize whenever you lock in the door. Youll see the same staff, the same bartender and have the same meal and that is great. Thats important. The service that San Francisco heritage offers to the legacy businesses is to help them with that application process, to make sure that they really recognize about them what it is that makes them so special here in San Francisco. So well help them with that application process if, in fact, the board of supervisors does recognize them as a legacy business, then that does entitle them to certain financial benefits from the city of San Francisco. But i say really, more importantly, it really brings them public recognition that this is a business in San Francisco that has history and that is unique to San Francisco. It started in june of 1953. And we make everything from scratch. Everything. We started a you we started a off with 12 flavors and mango fruits from the philippines and then started trying them one by one and the family had a whole new clientele. The business really boomed after that. I think that the flavors we make reflect the diversity of San Francisco. We were really surprised about the legacy project but we were thrilled to be a part of it. Businesses come and go in the city. Pretty tough for businesss to stay here because it is so expensive and theres so much competition. So for us who have been here all these years and still be popular and to be recognized by the city has been really a huge honor. We got a phone call from a woman who was 91 and she wanted to know if the mitchells still owned it and she was so happy that we were still involved, still the owners. She was our customer in 1953. And she still comes in. But she was just making sure that we were still around and it just makes us feel, you know, very proud that were carrying on our fathers legacy. And that we mean so much to so many people. It provides a perspective. And i think if you only looked at it in the here and now, youre missing the context. For me, legacy businesses, legacy bars and restaurants are really about setting the context for how we come to be where we are today. I just think its part of San Francisco. People like to see familiar stuff. At least i know i do. In the 1950s, you could see a picture of tommys joint and looks exactly the same. We havent change add thing. I remember one lady saying, you know, ive been eating this ice cream since before i was born. And i thought, wow we have, too. He is a real leader that listens and knows how to bring people together. Brought this department together like never before. I am so excited to be swearing in the next chief of the San Francisco Fire Department, ladies and gentlemen, lets welcome, Jeanine Nicholson. applause . I grew up total tomboy, athlete. I loved a good crisis, a good challenge. I grew up across the street from the fire station. My dad used to take me there to vote. I never saw any female firefighters because there werent any in the 1970s. I didnt know i could be a fire fighter. When i moved to San Francisco in 1990, some things opened up. I saw women doing things they hadnt been doing when i was growing up. One thing was firefighting. A woman recruited me at the gaypride parade in 1991. It was a perfect fit. I liked using my brain, body, working as a team, figuring things out, troubleshooting and coming up with different ways to solve a problem. In terms of coming in after another female chief, i dont think anybody says that about men. You are coming in after another man, chief, what is that like. I understand why it is asked. It is unusual to have a woman in this position. I think San Francisco is a trailblazer in that way in terms of showing the world what can happen and what other people who may not look like what you think the fire chief should look like how they can be successful. Be asked me about being the first lbgq i have an understands because there are little queer kids that see me. I worked my way up. I came in january of 1994. I built relationships over the years, and i spent 24 years in the field, as we call it. Working out of firehouses. The Fire Department is a family. We live together, eat together, sleep in the same dorm together, go to crazy calls together, dangerous calls and we have to look out for one another. When i was burned in a fire years ago and i felt responsible, i felt awful. I didnt want to talk to any of my civilian friends. They couldnt understand what i was going through. The firefighters knew, they understood. They had been there. It is a different relationship. We have to rely on one another. In terms of me being the chief of the department, i am really trying to maintain an open relationship with all of our members in the field so myself and my deputy chiefs, one of the priorities i had was for each of us to go around to different fire stations to make sure we hit all within the first three or four months to start a conversation. That hasnt been there for a while. Part of the reason that i am getting along well with the field now is because i was there. I worked there. People know me and because i know what we need. I know what they need to be successful. I have known Jeanine Nicholson since we worked together at station 15. I have always held her in the highest regard. Since she is the chief she has infused the department with optimism. She is easy to approach and is concerned with the firefighters and paramedics. I appreciate that she is concerned with the issues relevant to the Fire Department today. There is a retired captain who started the Cancer Prevention foundation 10 years ago because he had cancer and he noticed fellow firefighters were getting cancer. He started looking into it. In 2012 i was diagnosed with breast canner, and some of my fellow firefighters noticed there are a lot of women in the San Francisco Fire Department, premenopausal in their 40s getting breast cancer. It was a higher rate than the general population. We were working with workers comp to make it flow more easily for our members so they didnt have to worry about the paper work when they go through chemo. The turnout gear was covered with suit. It was a badge to have that all over your coat and face and helmet. The dirtier you were the harder you worked. That is a cancer causeser. It casser. It is not cancer causer. There islassic everywhere. We had to reduce our exposure. We washed our gear more often, we didnt take gear where we were eating or sleeping. We started decontaminating ourselves at the fire scene after the fire was out. Going back to the fire station and then taking a shower. I have taught, worked on the decontamination policy to be sure that gets through. It is not if or when. It is who is the next person. It is like a cancer sniper out there. Who is going to get it next. One of the things i love about the Fire Department. It is always a team effort. You are my family. I love the city and department and i love being of service. I vow to work hard to work hard to carry out the vision of the San Francisco Fire Department and to move us forward in a positive way. If i were to give a little advice to women and queer kids, find people to support you. Keep putting one foot in front of the other and keep trying. You never know what door is going to open next. You really dont. You really dont. [cheers and welcome home, man. George Washington High School marching band. [applause] please welcome kayla smith. [applause] good morning, everyone. Hows everybody doing today . Thank you. Thank you for joining us today for this historical occasion. My name is kayla smith, and i will be your mistress of ceremonies for the evening. Growing up in San Francisco d5, hayes valley, t e