Transcripts For SFGTV BOS Budget And Finance Committee 20240712

Aba. President yee to highlight not only those on the frontlines of the Health Crisis serving our community, but also those who have been leading the movement in racial justice. They are people, many argue, for making a difference in organizing and advocating for a brighter, more equitable future. These are [inaudible]. We have so much to celebrate, and it only takes one person to create a Ripple Effect to transform the world. Im calling on the city and all of you, my colleagues, to promote this campaign and to nominate as many as you can. The website is www. Onemillionawards. Com. Can i have a motion and a second . Supervisor fewer so moved. Supervisor stefani thank you. President yee thank you. Madam clerk, would you call the roll, please. Clerk certainly. On the motion [roll call] clerk there are 11 ayes. So the motion to amend passes. I also want to thank the cosponsors, supervisor mandelman and supervisor peskin, and i believe, supervisor peskin, your name was on the roster. Did you want to add Something Else . Supervisor peskin no. It was for item 10, which has come and again, but supervisor stefani said everything that needed to be said. President yee i apologize, supervisor peskin. Im really failing you today. Supervisor peskin mr. President , thats okay. President yee so madam clerk, could we have a roll call on item 11 as amended. Clerk on item 11 as amended [roll call] clerk there are 11 ayes. President yee okay. The resolution is amended as adopted what . The resolution as amended is adopted unanimously. Madam clerk, i believe we are at the end here. Clerk yes. President yee okay. Are there any other can we read the in memoriams . Clerk yes. Todays meeting will be adjourned on behalf of the following individuals on behalf of supervisor walton, on behalf of jace young. On behalf of supervisor fewer and supervisor cawalton, on behalf of ron miguel, and on behalf of the entire board of supervisors, for the late jane morrison. President yee thank you. Are there any other items . Supervisor peskin mr. President , if we could adjourn the board, id like to make a motion to adjourn the Board Meeting unanimously for the young individual, jason, who died untimely. If that could come from the entire board, id appreciate that. President yee so be it i mean, i agree with you. So well close our meeting to jace young, right . Mr. Young . Clerk yes, well make note of that. Thank you. President yee okay. Then no further business . Clerk that concludes our business for today. President yee okay. Then meeting adjourned. Thank you very much, everybody. The meeting will come to the order. This is the july 8, 2020, rescheduled budget and finance meeting. Im sandra lee fewer. Im joined by supervisor walton and mandelman. I would like to thank sfgovtv for broadcasting this meeting. Do we have any announcements . Yes, madame chair. Due to covid19 Health Emergency and to protect board members, City Employees and the public, the board of supervisors legislative chamber and Committee Room are closed, however, members will be participating in the meeting remotely. This is taken pursuant to the state orders and directive. Public comment will be available on each item on this agenda, both channel 26 and our website, streaming the number across the screen. Each speaker will be allowed two minutes to speak. Opportunity to speak during Public Comment period are available by calling 408 4189388. Meeting i. D. , 1461315200. Again, 1461315200, then press pound twice. When connected you will hear the meeting discussion. When your item of interest comes up, dial to be added to the speaker line. Turn down your television or radio. Alternatively, you may submit Public Comment in either of the following ways. Email to myself the clerk at linda. Wong at sf gov. If you subject Public Comment, it will be forwarded to the supervisors. Items acted upon today are expected to appear on the board of supervisor agenda july 14th, unless otherwise stated. Supervisor fewer please call items 1, 2 and 3. Item 1 calling for special election to be held in the city and county of catastrophe on tuesday, november 3, for the purpose of submitting to San Francisco voters a proposition to incur bonded indebtedness not to exceed 487. 5 million to finance the acquisition or improvement of Real Property, authorizing landlords to pass through 50 of the resulting property tax increase to residential tenants providing for the collection of taxes. Item 2, resolution determining and declaring that the Public Interest and necessity demand the acquisition or improvement of Real Property, authorizing landlords to pass 50 of the resulting property tax increase to residential tenants. And item 3, resolution amending the citys tenyear Capital Expenditure plan to amend the proposed government Obligation Bond program. Members of the public who wish to provide Public Comment on these items should call 408 4189388, i. D. , 1461315200. Then press pound twice. Press star 3 to line up to speak. Please wait until the system indicates you have been unmuted and you can begin your comments. Supervisor fewer item number 1, colleagues, you may remember item number 1 and 2 were continued from last week when we had approved the amendment. And now i think heather green from Capital Planning are going to review with us the updated financing numbers. Thank you, supervisors. Nice to be here this morning. This is items 1 and 2, this is the second hearing of the bond legislation. Last time material amendments were introduced to increase the bond overall amount from 438. 5 million to 487. 5 million, the bond report should now be in the file. It wasnt shown on the website, so i have just reset with linda to make sure that it is included, but i will recap the changes made. I apologize if its not in there. We have updated the amounts. 207 million for Mental Health. 239 for parks uses. And 41. 5 million for street and rightofwa rightofways. We changed eligible uses to match the ordinance. So that was added abilities like psychiatric Skilled Nursing facilities, sobering center, all on the Behavioral Health side. Supervisor fewer excuse me. This screen. Do you have a power point to share with us. I will be delivering a power point on the capital plan amendment. I also have some slides ready that show the uses if that would be helpful, i can pull those up. Supervisor fewer its just that youre rambling off numbers, i think, that it would helpful for supervisors to actually see it. The numbers that are you are [inaudible] presentation that can show that . Yes. This is the same as we looked at last time. And i will pull it up right now. Youre able to see supervisor fewer yes, we are. Excuse me as i flip forward quickly and flip back. Supervisor fewer that would be great. These are the numbers that show the overall bond amount. This is the 207 for Mental Health and parks and 41. 5 for streets and rightofway uses. And then we had the uses that were added these are all of the eligible uses in the bond for the health and homelessness side. Notable as additions in the revised bond report are the addition of locked acute facilities, psychiatric nursing facilities and sobering center. Supervisor fewer got it. In the park side, thats what this looks like. Not here indicated on the slide, but i have eligible use we did add urban agriculture sites as one of the eligible sustainability uses. Supervisor fewer got it. Then we also expanded the recovery park section to include also the projects shown here, so that the additional 54 million for portsmouth square, priorities, Jackson Playground for 10 million, south sunset for 3 million and Richmond Senior park for 1 million as those are descriptions for the additional priority parks in the parks program. Supervisor fewer thats great. And then there was no change to the streets and rightofway piece. Supervisor fewer okay. Thats great. Thank you. Supervisor fewer thank you very much, ms. Green. So we heard the daily report last time. So b. L. A. , is there anything new you want to share . Good morning, chair. We did update our report to look at the impact on the larger bond issuance and based on 487 million issuance, average estimate debt service would be 39. 5 million per year. The impact on a property owner, the property tax rate for property assessed at 600,000 would be 83 per year. This still falls within the debt limit and tax rate policy. We consider approval to be a policy matter. Supervisor fewer thank you very much. Colleagues, any comments or questions . Seeing none, lets open item 1 and 2 for Public Comment, please. Well take item 3 separately. Madame clerk, can you call for Public Comment on items 1 and 2. Clerk yes. Operations is checking to see if there are callers in the queue. Operation, please let us know if there are callers ready. If you have not already done so, press star 3 to be added to the queue. For those on hold wait until the system indicates youve been unmuted. Operator, let us know if there are any callers who wish to comment on items 1 and 2. Yes, i do have a few callers. Ill unmute the first caller. Hello, good morning. Can you hear me . Yes, we can hear you. Okay. Great. Thank you. Yes, im speaking about the bond measure, particularly the park and rec. Good morning, my name is jeffrey. Im the president of the japanese American Federation housing incorporated. Communitybased organization comprised of the buddhist christian and independent churches here in japantown. This morning, i would like to speak in favor of full funding for 25 million for the renovation of the peace plaza in japantown. This is a very important space in japantown. Significance to our residents in the greater community. It is a large open space. [inaudible] so it serves as a principle venue for cultural events. Weve held numerous Public Events in the plaza. One that particularly comes to mind to me is 70th anniversary of the dropping of the atomic bomb in. It also features a speech by a survivor of hiroshima bombing. That day in particular the peace plaza was truly the appropriate place for his message and our message for world peace. In summary, along with men organizations many organizations, we urge that the board of supervisors fully fund the 25 million allocated for the renovation and the park and rec bond measure. So [inaudible] long overdue rehabilitation that it deserves. The project has received all approval and stands ready in the november ballot. On behalf of the japanese housing incorporated, we urge you to approve in its full entirety the 25 million appropriation for the renovation of the japantown peace plaza. Thank you. Thank you for your comment. Next speaker. Good morning, can you hear me . Yes, please begin your comments. Good morning, commissioners. My name is glyna. Im a board member of the Japantown Task force and also Advisory Board member of the japanese bilingual Cultural Program over at rosa parks elementary school. Youve heard multiple testimony about the crucial role of the peace plaza and the sustainability of japantown, so i wont be redundant. Instead, given this moment of national reckoning, i would like to ask you to look at the peace plaza through the lens of social justice for a minute. Because this project is also about equity and restorative justice. While the peace plaza is, today, the cultural heart and living room of japantown, to many families in the western edition, it is a painful reminder of urban renewal in the late 60s when hundreds of japanese americans were again forcibly removed and evicted from the neighborhood. This time by the city. It was really the nail in the coffin of the once vibrant commercial and residential fabric of japantown. And the displacement of japaneseamerican families was never really reversed. But the community as it always does made the best of it. Weve waited patiently for the voices of the community to be heard and the deterioration of the plaza, including the botched construction that was never corrected, to be addressed. Of the billions of dollars approved rec money passed since 2000, japantown has never been the recipient of a main bond measure project. I ask you today to advance equity and exercise responsibility in repairing some of the harm of the past by including the peace plaza renovation in its full 25 million allocation in the proposed health and recovery bond measure. Thanks for your time today. Hello. Hello, can you hear me . Yes. Hello . Hello. My name is joe. Hi. May i begin . May i begin . Yes, please do. My name is george. Born in the San Francisco in the outset of the great depression. And trained in arkansas during the war. Im here to urge the 25 million allocation for the peace project. I have a little narrative i want to read to you. Upon returning to the city after the war, i recall how hard we all worked to get our lives back together. You can imagine store owners and what working people face today with the pandemic and what to do when this crisis is over, you can well imagine what we went through, except wed been away for four years. When we thought we had our life back in order, imminent do main took a wrecking ball to our community. The only acting grace was a gift from japan. The plaza with the reflecting pools. Soon after construction [inaudibl [inaudible] the plaza was of anything with water. Community gatherings. Today, japan center with its plaza and iconic are accessible year long, its Cherry Blossom for 200,000 people annually. After 52 years, the plaza still leeches unclean water into the atmosphere. It is high time to correct these deficiencies. Our community your time has expired. Thank you for your comments sir. Next speaker, please. Hello, speaker . Good morning, are you able to hear me . Yes. Okay. Awesome. My name is im calling to urge the support for the japantown. We are a group that is actually pretty unique in that its practiced by women. To us San Franciscos japantown is one of the very few places that has been a public platform at the annual festival to celebrate and demonstrate our arts. This is critical not just for us, but many arts. Japantown isnt just a place to enjoy japanese food and shopping, but its also tied to the survival of many of our arts. You know, also on a more personal note, in the past 12 years of Public School education that i received, nothing could compare to what i learned about the devastation and aftermath of japaneseamerican internment. Every remaining space of japantown is incredibly valuable for the arts, but also as a landmark that serves as a living textbook for the generation. And the resilience of the japanese community. I urge each and every one of you to support the 25 million for the peace plaza. Please help us to make the repairs we desperately need and help us make a greener space that aligns with our vision fort peace plaza. You can make a difference for us. Thank you so much for your time. Thank you for your comment. Next speaker, please. Hello. My name is nick. Im the chair of the park rec open Space Advisory Commission and committee. And we were lucky enough to be able to meet last night and discuss the bond. I say that because weve been wanting to do that since the beginning of the pandemic so that we could stand here and actually support the bond through the commission, through the other meetings that have happened over this. And today i can finally say that the park rec open Space Advisory Committee fully supports the bond to move forward and to get on the ballot. We hope that you approve it and put it on the ballot. And we hope we can help be part of getting it passed to the voters and working with rec park to get these wonderful projects done. As rec park has had 100 Completion Rate for all the other bonds weve worked on together. We hope to continue that. Thank you for that and have a great day. Next speaker, please. Good morning, supervisors. My name is stephen courier. I am a member of the park and rec open Space Advisory Committee. As nick mentioned, we voted last night to support is this bond. And i actually supported on both ends the recovery and the park bond. Im vice chair of the Vehicle Triage Center at the upper parking lot at bart station. So really this serves two areas that i am concerned with. Mental illness, homelessness and parks. I hope that you will vote to put this ballot on the measure in november. We look forward to supporting this. Thank you very much. Clerk thank you for your comments. Next speaker, please. Hi. Good morning. My name is alanna. Im a fourth generation japaneseamerican working in japantown. Last week i called in and i said, you know, were not giving up so i wanted to call again to show my dedication to peace plaza receiving the 25 million for much needed repairs. Last week i called and told you about how the repeated displacement of japaneseamericans from japantown has affected generations like mine and how many of us grow up in communities where there are no other japaneseamericans. That is so important that the city, that we invest in these japantowns because there is only three japantowns left. And these japantowns are really the only place that as japaneseamericans we can be our true cultural authentic selfs. I wanted to note there is a lot of younger voices today on the call and it really speaks to how deeply meaningful your support of our peace plaza is, to all parts of our community. I really look forward to doing everything i can if our peace plaza gets on the bond to advocate for this bond. To show how much it means to us. So thank you so much. Clerk thank you for your comment. Next speaker, please. Supervisor fewer madame clerk, how many people are in the queue . Yes, madame chair, i believe there is one more. Supervisor fewer thank you very much, madame clerk. Hello. Can you hear me . Yes. Hi, im a student yeah. Hello, im a student at San Francisco State University and the founder and president of the student union. I am calling to show my support for japantown receiving 25 million for the peace plaza renovation plan. I would like to urge this board of supervisors to vote in favor of it. When i moved to San Francisco, the first area of the city that i visited was japantown. This is not because i was in the mood for a particular dish or shopping experience, but instead to find comfort in a city that i was about to call a new home. I hope to find comfort in japantown while i did in l. A. When i arrived in japantown, i found it was small and humble, and it was a district that didnt receive the amount that it deserved. This would be a step in the right direction in terms of being treated with respect that japantown deserves with historical significance and value in the community. Japantown still stands today. Needing to give the support that the rest of the city receives without question. That said, shovel ready, it only needs your support to receive the funds it needs to be treated with the respect it deserves. I urge you to approve the 25 million so we as a city can continue to support the preservation of the japaneseamerican community and our history in San Francisco and promote growth within the area through the renovation of peace plaza. Thank you for your time. Clerk thank you for your comments. Are there any other speakers in the queue . Yes, there is one final caller in the queue. I will unmute them now. Thank you. Good morning, caller. Hello . Good morning, thank you for this opportunity to address the committee. Im reverend with the church of San Francisco and member of jar. And i would like to speak in support of the proposal and also point out this is not only significant for japantown, per se, but i think for the city of San Francisco city and county of San Francisco in that its a physical icon. Id like to emphasize that it represents the aspiration for peace upon which the United Nations was established 75 years ago in San Francisco. I think this is in contrast to other physical landmarks that more or less represent the Economic Development of the city. I would like us to continue the peace plaza as a symbol of our dedication to peace as a significant part of San Francisco. So, thank you for this opportunity to express our support for the peace plaza and pagoda symbol for the people of San Francisco. Thank you. Thank you for your comment. Madame chair, i believe we have one more caller in the queue. Hello, caller . Good morning. Im lucy fisher. Im on the board of the Japantown Task force. And a constituent of district 8. Im speaking in favor of the health and recovery bond, specifically for the full funding of the peace plaza project. Two weeks ago you heard staff rec and park talk about priorities for the funding. The peace plaza meets all of them, conditions, assessment. And the fact that the peace plaza is a multiuse community hub. And it provides business, social, cultural and spiritual space for residents and for visitors. So i urge you to support the full 25 million for funding and please know that we will get out and vote for public support for this bond in november. Thank you. Clerk thank you for your comment. Are there any other speakers in the queue . Yes, there is another speaker. I will unmute now. Thank you. Hello, caller . Hi. Good morning. My name is eric. Im organizer with the trust for public land. I just wanted to call and thank all of the supervisors for all their hard work and dedication on the bond and agree wholeheartedly with the intent of the bond and see this as an important investment in park equity in San Francisco. The public land believes in public spaces for all people and we feel this bond would be a strong asset to all communities and really look forward to working with the city to have this pass in november. Thank you for your comment. That completes the queue. Clerk thank you. Supervisor fewer thank you. Public comments on item 1 and 2 are closed. I would like to make a motion to move 1 and 2 to the board with a positive recommendation. Could i have a roll call vote . Yes, on the motion, supervisor walton . Supervisor walton aye. Supervisor mandelman aye. Fewer aye. There are three ayes. Supervisor fewer thank you very much. I believe ms. Green, youre going to have a presentation for us on item number 3, is that correct . Yes, thats right. I have some slides i will share. Also, before you companion piece to the bond you saw with positive recommendations is amending the citys tenyear capital plan. Can you see that okay . Supervisor fewer yes, we can. So this is the update to the capital plan which is updated in full every two years. It was last unanimously approved in full by the board on april 30, 2019. And it will be before you next fall. This is to update you. This year it focuses on the geo bond program. This is the context for the november bond. We heard from Mayors Office, director, city administrator was asked to and more recently the covid19, we wanted to be sure to address the unemployment issue and put dollars toward shovel ready work in addition to the careful planning in the Parks Department that got us all the great programs and projects you just there is piece of the capital plan update as well which is incorporating Affordable Housing in the capital plan. And when the board approved the capital plan resolution last spring, there were two whereas clauses on the front. The first was to add Affordable Housing as part of the process, beginning with the next year obtained and to build reliable Funding Sources for Affordable Housing, including but not limited to another geo bond in addition to the one that passed in 2015 and 2019. First ill talk about the adjustments in the bond program which is the heart of the update. So when Capital Planning committee acted, this was the this is the original capital plan update resolution. These were the changes made. So these are to make tradeoffs between the transportation bond in 2022 and the Public Health bond in 2023 to add funds to health and recovery bond. They also inserted an Affordable Housing bond in november 2024, which funds will be determined within the programs constraint not to raise property tax rates above 2006 levels. Available funds were all dedicated to the health and recovery bond. Since then, and what you just acted an on and is reflected in the capital plan resolution before you now is this further amendment. It is a material amendment to increase the health and recovery bond further by trading off future parks and open space bond in 2028. You can see the Affordable Housing bond still in with a t. B. D. Amount. Were asking committee to that youll continue this item today because it needs to stay with the material changes. This is the first hearing of the resolution at committee, but then the there was clause states that the board reduces the amount of the open [inaudible] to repeat the health and recovery bond by the same amount, to 487. 5 million. I also want to highlight the further language that is Affordable Housing direction from the capital plan last year. Despite the work ahead that is coming, part of the full plan, and thank you to supervisor yee and supervisor haney on this for their close attention to this language and partnership with the Affordable Housing stakeholders and also eric shaw and amy chan. There is language that states that the full plan of will include Affordable Housing narrative, that will include incorporate available information including definitions of key terms. 2019 bond, documentation of funding and principles for the capital investments. The total health and production were low and moderate income home buyers. And the citys commitment to growing and protecting Affordable Housing production and preservation. All that lays ahead and i want to reiterate my thanks to m. O. C. D. And especially the Planning Department who helped kind of build the frame well be able to follow in the fall as we draft a capital plan update. Thank you very much. And just lastly, this shows our geo bond curve with the new bond. Youre still within the constraint of the program and able to deliver on the priorities as expressed by the board. Supervisor fewer thank you very much. Could we have a report from the b. L. A. Now, please . Yes, supervisor fewer, we included our report in the revised report on 487. 5 million in bonds to be submitted in november and if you have any questions we are available to answer. Supervisor fewer thank you very much, ms. Campbell. Any questions, comments, seeing none, can we open this up for Public Comment . Yes, madame chair. Operation is checking to see if there are callers in the queue. Please let us know if there are callers that are ready. If you have not done so, press star 3 to be added to the queue. For those on hold, please wait until youre prompted to begin at the beep. Please let us know if there are callers who wish to comment on item number 3 . I have one caller. I will unmute. Chapman speaking for the knob hill neighbors, and i apologize if this [inaudible] the message before you is. I want to state that it was [inaudible] to have Affordable Housing built on all the useful locations for infill on lower north hill and the neighborhood commercial district that are being filled up by the city instead with expensive condos, promoted by lower polk neighbors among other things. If you want a permit, come and join us and then they took money and so forth, okay . Now i did have the notice of health and i submitted a proposal a few years ago and it said that supervisor preston wanted to [inaudible] part of the and also built the housing. Intended to do it. And force the method is true in seeking Nonprofit Developers to bond any. But it was the project failed because they were listening to a lawyer who was suing and had sued [inaudible] you know. And [inaudible] support the Mayors Office of housing. We would like to have more like that done in our neighborhood. None of the sites, you know [inaudible] another site is 888 hope, the city has the option to buy. Unfortunately, you know, homeless [inaudible] project to build simply has a workout like the to house young people all in one room, together, promoting, you know [inaudible] but promoting, you know, Sexual Assault and all kinds of things. We have all kinds of many could be used for s. R. O. Rooms for a process like that. Buy that site to build on to [inaudible] just as they have said to do, you know, in a group in initial districts. Ive been told that they thank you for your comment. Are there any other speakers in the queue . Good morning. Good morning. Thank you for allowing me to speak in Public Comment regarding this item which is related to the first two items. I am, by identification purposes only, cochair of the vico Triage Center parking lot station. In one of the projects, but goals for the Triage Center is to get these people, our client, into permanent housing and Affordable Housing. I just want to to ask that you to the ballot for november 3rd and i thank you very much. Thank you for your comment. Madame chair, that completes the queue. Supervisor fewer thank you very much. Public comment for item number 3 is closed. Id like to make a motion to move this item continue this item until the next meeting of the budget and finance committee. Could okay. No, first, i would like to make a motion to approve the amendment . Is that correct, madame clerk . Yes. I would like to make a motion to approve the amendment. On the motion walton aye. Mandelman aye. Fewer aye. Your ayes are three ayes. Now i would like to make a motion to continue this item to the next meeting of the budget and finance committee as amended. On the motion, supervisor walton aye. Mandelman aye. Fewer aye. You have three ayes. Supervisor fewer thank you very much. Madame clerk, can you call items 4 and 5 together . 4, ordinance appropriating 140 million of proceeds from general Obligation Bonds transportation and road improvements 2014 series series to the Municipal Transportation Agency for street and transit projects in fiscal year 202021 and placing these funds on the controller reserve pending receipt of proceeds. Item number 5, resolution authorizing text exempt bonds to be designated generally as the city and county of San Francisco general Obligation Bonds. Transportation and road improvement bonds 2014, series 2020b. Members of the public who wish to provide Public Comment on these items should call 408 4189388, meet, i. D. 1461315200. Please wait until the system indicates you have been unmuted. Supervisor fewer today we have jonathan and timothy with us from m. T. A. You have the floor, thank you. Good morning, everybody. My name is timothy. Im the budget manager at sfmta. Im also joined today by leo, c. F. O. At sfmta, jonathan, senior budget manager sfmta and the office of public finance. Can you all see my presentation . Supervisor fewer yes, we can. Great. So im here in front of you guys for two items. One is to appropriate 140 million for bond proceeds, the second is sale of 140 million in bonds. This is sfmtas third issuance of plan 4 issuance of bonds proceeds. This is for 140 million, about 14 million of 134 million of which is for projects. This bond as i mentioned is part of proposition a. Passed by the voters, for 500 million of bonds for transportation. From the 500 million weve had two issuances to date. The first was in june 2015 for 67 million in bond proceeds. The second was in february 2018, that is the second issuance for 177 million. So today we want to do a third issuance on the 500 million of 140 million in bond proceeds with the issuance plan for december 2020 sorry, starting in december 2020 for the remaining projects. So this slide just shows you guys how the bond has been allocated to date. You can see how much has been issued from the different categories that we divide our bond into. And then the third issuance, proposing 130 million mostly there is a category that is called faster more reliable transit. That category is considered to be muni forward. Two other portions in accessibility and pedestrian improvement that take up a large majority of the third issuance of this bond. I mentioned two other issuances that happened already. From the first bond issuance, the latest and greatest information we have shows that about 97 spent for the first, so its nearly done. There are bitter and pieces remaining. And then were at 73 spent of the bond which is on track of what we were expecting when we did the second issuance on presentation with you guys a few years ago. So this is just more detail in terms of the First Issuance of the bond and some of the major categories. Were spending remaining balance remain. As i mentioned, there is only a bit remaining for the First Issuance of the bond. Kind of the spending by quarter for the First Issuance of the bond. Again, we anticipate this First Issuance being done pretty soon given there is such a small amount left. The second issuance of the bond is across various categories. And there is still remaining balances among these categories, but again as i mentioned, its checking about on track with what we expected. Slightly lower than when we first because when we first issued these bonds. Then again, this shows you guys the projection of how we plan on the projection of spending for the second issuance of the bond. This is about where the 70 mark is currently at. We anticipate the second issuance being close to being spent by the calendar year 2021. So getting to the meat with the third issuance for the 140 million. With this issuance, sfmta has learned a lot over the last few years. Taking the advice of the Capital Planning committee, with this issuance we tried to focus on fewer number of projects, larger projects, with large project budgets that also active or nearing construction. With the first two issuances, i mentioned earlier, i think we had over 50 projects that funded those two issuances. And it did admittedly make for a lot of administration and a lot of work. I tried to make sure that those projects were actively spending the bond proceeds. So this time around we tried to limit the number of projects to try to focus on large critical projects that the city needs, that sfmta needs to deliver. And a lot of these are multiagency projects that were coordinating with other agencies. So this slide on the left shows the seven projects that sfmta plans on using the bond proceeds for. There is a variety of projects. Muni, 22 fillmore, 19th avenue. A couple of projects where sfmta is acting as fiscal agent. Where others are delivering the project. There is the canopy projects. Theyre putting up the canopies in downtown San Francisco, which i think a lot of you might have seen. There is a caltrain electrification project in which sfmta is a fiscal sponsor of the project to electrify caltrain. And there are more details on the projects. On the right, youll see the breakdown of the 120 million for the appropriation and sale. I mentioned earlier there is about 134 million of this bond that we plan on using for projects. And then the remaining amounts are mostly for cost of issuance and other fees that you see there. So in terms of the third issuance, based on the projects we have, this is the planned spending for the bond proceeds. Sfmta does have a pretty Large Capital improvement program. The general Obligation Bonds make up a portion of it. And so given that, we do plan on prioritizing the spending of the bond over some of our other Funding Sources, so its possible this curve may move a little faster. But based on the project schedule, this is the current spending that we project for this bond going to do the end of calendar year 2022. So getting to the actual meat of what were getting with the money. I mentioned this funding of the projects, there is 19th avenue project, which is a multiagency project where the 28 line runs through. There is a 22 fillmore on 16th street. Both of those are multiagencies. Puc is coming in first and doing sewer work. Public works doing paving work. And then after that, they get the full treatment in terms of pedestrian and transit. There will be transit stopping location. Signal work and various ada improvements. Similarly, the taraval is a project to do replace the ocs. Some of the charley wires and poles to better improve safety forever the corridor and reliability. Cat narrowy. In the western edition, there is Traffic Signals upgrades that are planned. The 24 locations we plan on doing countdown signals and improving signal visibility as well as flashing beacons in various areas in the western edition. This area is recognized as a high injury corridor where there are a lot of collisions and pedestrian issues in the area, so this is as a result of that. Pedestrian safety improvements. And then there is a safer streets project that is a project in close collaboration with the tenderloin community. Widening the sidewalks, some of the lanes reduced. On taylor street, there will be one lane south of ellis and north it goes up to two lanes. There is going to be other things that are included as part of taylor safer streets. Then i mentioned earlier, there are two other projects for sfmta acting as a fiscal agent. There is a project here at the top. You see here, an actual example of how the canopy covers the escalator and then there is a caltrain electrification project at the bottom. One of the Lessons Learned from prior bond issuances, were trying to focus this more on projects that are in active construction or nearing active construction. Youll see here these bars in red indicate that a project is in construction. If its in orange, its in design going into construction. As i mentioned, were trying to focus on projects that are active construction so we can deliver concrete projects and get the bond spent down. In terms of need, despite the pandemic that is going on, i mentioned these projects are being built. We already put in a significant amount of funding and effort into it. So these funds will ensure that despite the pandemic that we deliver these critical projects so that when the economy bounces back, we can have improved transit. So all this said, i will actually transition it from here to talk about more detail in terms of the uses side of it. Thank you. Good morning, Committee Members. Thank you for hearing this item. Im from the office of public finance. First in context, in november 2014, the city voters approved proposition a, general Obligation Bond. Prop a authorized the city to issue up to 500 million in general Obligation Bonds to implement a wide range of transportation infrastructure repairs and improvements. Earlier in the presentation, you saw the various categories of projects to be funded through the bond program. Also on the earlier slides, youll note that from the total authorization, 241 million has been issued to date, which leaves 258 million unissued from the prop a program. Were proposing to issue up to 140 million of the remaining authorization here for the third issuance in the program to fund an expected 1334 million 134 million in projects, plus issuance costs as shown in the slide. Mta just presented the plan projects. Ill be speaking to the fiscal impacts. Next slide, please. The final numbers will vary somewhat based on conditions at the time of pricing, but based on market Interest Rate of 3. 75 estimated that we would receive in may from the investors, the office of public finance, projects cost of 9,725 million. The debt life is 193 million and of this, of course, 136 million would be the estimated principle amount and the remainder would be the estimated interest costs. The property tax impact of the bonds is approximately 3. 46 for 100,000 of assessed property value. That city charter imposed debt limit is equal to 3 of total assessed value in the city. Currently the citys outstanding Obligation Bonds equal. 85 of the net assessed valuation for the fiscal year 2020. So if the board approves the issuance of the transportation bonds, the debt ratio would increase by. 05 . Which is still well within the 3 limit. Additionally, the board has approved the capital plan and amended it. It would place a policy constraint to ensure that property taxes, funding the program would not increase above the levels of 12. 01 cents. And the proposed sale of the transportation bonds is consistent with the adopted capital plan and would allow us to maintain property tax rates for geo bonds below the fiscal year 2006 tax rate. Currently were expecting to price the bonds later on in the month in july. And close the transaction in august. I can try to speak to any questions you have regarding bond financing and of course, the m. T. A. Team is here to answer questions about the project and expenditure plan. Supervisor fewer thank you very much. Supervisor walton . Supervisor walton thank you so much, chair fewer, and thank you for the presentation. I just have a question. I know that one of the projects are upgrades to caltrain. And just wanted to know the latest conversations that youre having with caltrain as a placentia bmember of the j. P. B. , i know caltrain is going through issues and concerns. Im just wondering the latest conversations youve had with caltrain, how their fiscal yeah, so i mean, this is in regards to the actual project, i dont believe that the project given that the project is getting some federal grant money and other funds, my understanding is that the project is still going to proceed. In terms of other fiscal impacts, supervisor walton, youre right. Sfmta is a member of the joint powers board. We also contribute a portion of our budget to caltrain. So its a conversation that were having with them right now just in terms of making sure that we still continue to contribute to caltrain. They have noted in the region that they have had fiscal issues and with the cares funding that the region has received, has put themselves in a position to ask for a pretty large amount given their fiscal constraints. Were trying to partner with them. But the conversations are ongoing. And then you can add anything you want to add to that . Good afternoon, Committee Members. M. T. A. The only thing i would add, we did recently meet with the caltrain staff. We have an annual meeting with them in advance of their budget on the study and countys city and countys contribution. Specifically with regard to their Capital Improvement program, theyre pretty much going with the status quo focusing on state of good repair and the electrification program. There are f. T. A. Dollars associated with that multibillion Dollar Program and this geo specifically provides match and is part of that full funding plan. Capitalwise they will continue to be sustained by the citys proposition k sales tax. But we do, as tim noted, are continuing to have discussions with them longterm. Supervisor fewer okay . Thank you. Any other comments, questions, from my colleagues. Seeing none, could we have a b. L. A. Report . Yes, chair fewer, members of the committee, 4 and 5 i prove the issuance of 140 million in general Obligation Bonds for transportation improvement projects. We summarized the use of the bond funds on page 10 of our report and sort of the overall bond projects on page 11 of our report. Estimated debt service on the bond would be 9. 7 million per year as discussed. The impact on the property tax rate would be for property assessed at 600,000 would be 20 per year. This does fall within the citys capital debt limit and capital plan tax rate limit. We recommend amending the proposed ordinance to require a report on bond project and expenditures to the board of supervisors prior to december 31, 2020 and for the report to be included in the legislative file. And then we recommend approval of the resolution and the proposed ordinance as amended. Im available if you have questions. Supervisor fewer thank you very much. No comments or questions from my colleagues . And so, lets open this up for Public Comment. Can i madame clerk, can you call for Public Comment on items 4 and 5 . Yes, madame chair. Operation is checking to see if there are callers in the queue. Please let is know if there are callers ready. If you have not already done so, please press star 3 to be added to the queue. For those on hold, continue to wait are there any callers . There are no callers wishing to speak. Supervisor fewer thank you. Public comment is closed on items 4 and 5. Supervisor mandelman . Supervisor mandelman thank you, chair fewer. My mic on off response is very slow. I note the b. L. A. s recommendation that we get a report back at the end of the year about the expenditures. And i im curious, both from the b. L. A. And from the m. T. A. , about how best for this committee and the board to think about kind of time and costs associated with these kind of projects. Like, i think we all have in our minds some very prominent examples of projects that have taken way too long and have cost way too much. And these are much smaller projects and in some cases arent even you know, theyre sort of the mix of kind of bart projects, caltrain. I mean the money is going a lot of different places, but you know, trying to be responsible stewards of public funds, and maybe this is all to the controller. How can this committee, you know, evaluate whether things are taking too long or costing too much . Through the chair, supervisor mandelman, to clarify recommendation, i believe we would like to see a report back funded by all the bonds on prop a, not just this issuance. We received this morning, there are the bond reports to the citizens Oversight Committee, but the board supervisors have an oversight rule also. There isnt an action that would block, its simply a way for the board to stay informed of the process of the projects and to be able to ask questions of the bond program. Supervisor mandelman and normally when that report comes in, it lands in your email, correct . Correct. Supervisor mandelman i dont know. If there is a way for the b. L. A. To remind us . I would love to have this committee do a hearing on that report at the end of the year and kind of better understand have the b. L. A. And the controller take a look and see what seems noteworthy. We could inform the chair of the timing and recommend a hearing. Supervisor mandelman i think that would make sense. Thanks. Supervisors, just to speak on this quick also. As the b. L. A. Mentioned, i mean, we do go to the Oversight Committee every quarter. We do presentations to them as well as report and meet with their Committee Members via liaison meetings. In addition, we also have various controls we have in place fort bonds. That includes internally, we have various committees that look at exactly what youre talking about in terms of project spending versus the original approved budgets for the project, to make sure theyre trending on track in terms of the original cost estimates. So i think through those avenues i mean were happy to provide the reports we funnish in the bond Oversight Committee. And then were happy to do individual briefings with you guys on these to go into more detail about spending and some of the questions that youre talking about. Supervisor fewer okay. Supervisor mandelman . Any other questions . Supervisor mandelman i think it would i recognize that there are these oversight bodies, but i think it would make sense for this board to do some kind of hearing just to serve that to the public. How are we trending . Are we regularly going over . Is there a pattern of being slow . That kind of thing. Supervisor fewer year, i agree. Yeah, i agree. I think that would be helpful actually, that they come back to this board. I dont know if its to this committee or the full board. And the committee caring, but i will leave that to my colleagues too follow up on. I am out of office, so i think that so, my colleagues, im going to put this on you, that you will actually call this back and the b. L. A. Is going to send a gentle reminder to the committee that and to the board that this has been requested at the budget and finance committee. Thats great. So did we call for Public Comment on the items 4 and 5 . I think we did. That is closed. So i believe that we have actually a recommendation for an amendment that has been presented by the b. L. A. . Would we need to memolize the request of this committee to be reminded this is something we would like to come back to in this amendment also . Im going to ask that the advice of the b. L. A. Or do you think this is something that is not necessary, that you have in your own notes and that we can just amend it as you suggested . Well maintain our own records to make sure that we report back on this. Madame chair, i can also include that in our minutes for todays meeting. Supervisor fewer thank you, madame clerk. Then id like to make a motion to approve the amendment that is brought forth by the b. L. A. Could i have a roll call vote. Clerk yes on the motion, supervisor walton aye. Supervisor mandelman aye. Chair fewer aye. You ha supervisor fewer id like to make a motion to move items 4 and 5 with positive recommendations to the full board. Walton aye. Mandelman aye. Fewer aye. Supervisor fewer can you call item number 6. Item 6, resolution approving and authorizing the director of property on behalf of the Citys Department of Public Health to lease Real Property located at 33 valencia street for initial term of 15 years to commence on february 16, 2021, from 33 valencia owner at a base rent of 2. 1 million per year with 3 annual increases. Members of the public who wish to provide Public Comment on this item should call 408 4189388. I. D. Number 1461315200 and press pound twice. Please wait until the system indicates you have been unmuted and you may begin your comments. Supervisor fewer thank you very much. With us today, we have greg wagner and cathy john from the department of Public Health. You have the floor. Thank you, supervisors. Greg wagner, chief financial officer, department of Public Health. Ill describe the project a bit and then turn it over. I think hes got the slide show up if you can see it. But essentially, were requesting your approval to enter into a lease with 333 valencia. This is part of the plan for 30 van ness, which as you know in great detail is being vacated in the transition of city office space and part of it it was also the part of the department of Public Health relocation plan which we have talked in some detail and capital plans and other settings before. But essentially, this would if you could go to the next slide . So we have about 223 staff that are in various programs at d. P. H. Currently at 30 van ness. Those are maternal, child health, primary care, administrative support, public Health Emergency preparedness and Response Team and our ems regulator team. And those will be moving into 333 valencia. That will free up the space at 30 van ness to move forward with the developers plans and finalize the exit of the lease from that program. Maybe a little bit behind on my so weve been working with real estate on this for quite some time. The location is good. It will allow us to still have proximity to the Civic Center Area for these programs. Were anticipating that we will be able to move into a space around february 2021 which is an aggressive, but we think doable, time line. Its an older building, but it will have gone through a complete renovation. It will have upgraded seismic and infrastructure. And we think it will accommodate these programs quite well, so were pleased with this as an alternative space. Then ill let him take over on some of the details of the transaction. Thank you, greg. Hopefully, the screen is coming up. There looks like a bit of a lag. But basically, as greg indicated earlier, this is a transition of d. P. H. Staff from 30 van ness to 333 valencia. The reason for this transition is that 30 van ness was one of three assets that was sold and ordered to help finance the new onestop permit center at 49 south van ness, which im pleased to say move in was started last week. So were starting the process of occupying that building. D. P. H. Was one of three units that were not scheduled to go to the 49 south van ness building because theyre not permit center related. The solution then was to find new homes for those three units and new home for d. P. H. Is 333 valencia. I agree with greg. I think this is a superior solution to their current home and also serves the departments quite well. The slide that you have in front of you is meant to convey two things. One, the deal points for the current deal which you will see on your right. And second, the precovid negotiating position that you will see on your left. Consistent with the direction that we received from the board of supervisors, we have endeavored to negotiate 15 reduction in costs for any leases post covid. And we were successful in doing that in this case. Precovid, you see the term has not changed. Were at initial term of 15 years with a 10year option in both cases. The significant savings came and base rent. Were originally at 55 per square foot. Weve negotiated down to 49. 95 per square foot. Originally, we were at one months free rent and now we have six months of free rent, which basically means there will be no fiscal impact in the upcoming fiscal year. The original proposal was for one elevator for the building. We were able to negotiate two elevators. Paid for by the landlord. The tenant improvement did not change. Neither did the triple net structure of expenses nor did the Purchase Option. With these changes in savings, it represents 21 savings over the first five. That drops to 16 over the first 10. And 14 over the life of the initial term. One thing that i wanted to also add is that after the resolution was introduced, the building was remeasured by the owner and some refinements were made to the tenant improvement. As a result, the annual base rent, landlord contribution, tenants improvement number and the rentable square feet, all made slight adjustments. The b. L. A. Report and recommendation were based upon these adjusted numbers and a red line of the changes has been provided to the clerk of the board. However, with the chairs permission, i would like to read the proposed amendment into the record. Supervisor fewer yes, please. And you should be able to see in front of you a red line of the resolution and so youll be able to follow along visually as i read the proposed amendment. In the title line two of the title, the figure 2,180,116 should read 2,109,239 when referring to the annual base rent. On line 1, page 6, the figure 2,182,116, should read 2,209,239 when referring to the annual base rent. On page 2, line 11, the figure of 483,686 should read 44,229 when referring to the rentable square footage. On page 3, line 3, again, the figure 2,621,160 should read 2,653,240 when referring to tenant improvement. On that same line, it should read 6. 5 million when referring to the improvement. And lastly on page 3, line 4, the figure 2,182,116 should read 2,209,239 when referring to the annual base rent. We ask that you approve the amendment to the resolution and positively recommend the resolution to the board of supervisors as amended. This concludes my presentation. Myself, greg wagner, kathy jung, are available to answer any questions you may have. Supervisor fewer thank you very much. Madame city attorney, are these amendments substantive . Good morning, chair fewer. The amendments that i saw would increase the amount payable by the city and so, yes, they are substantive. Supervisor fewer okay. So this item would have to be continued. Are we on a time line . Yes, but not a critical one. Supervisor fewer okay. So its okay to continue this item if we were to decide to do that to the next meeting of the budget and finance committee . Yes. Supervisor fewer okay, thats great. Could we please hear the b. L. A. Report. Chair fewer, members of the committee, the proposed base approve 15 year lease has been discussed already by the presenters, the lease terms are summarized on page 22 of our report. There was an appraisal that we reviewed. It shows that the initial rent of 49. 5 square foot is at or below fair market value including the cost for tenants improvement and there is a Purchase Option on the building for 56 million that would extend to 2021. We estimate that the cost to the city over the initial 15year term including 6. 5 million in tenant improvement would be 67 million. But based on information provided to us by the real estate, we recommend approval. Supervisor fewer thank you very much. Any comments or questions . Supervisor walton thank you so much, chair fewer. Just a quick question as i listen to the b. L. A. Report and the presentation. Why not just try to purchase the building outright . That is an excellent question, supervisor walton. The citys practice has generally been to acquire sites through the use of debt instrument. There is no debt instrument that is currently available or in the pipeline for this purchase. The city could make a policy change and decide to purchase the property with cash. That would be a somewhat deviation from its Current Practice and in the current fiscal environment that we find ourselves in, that seems unlikely the board would make that change at this time. However, that would be a policy call for the board. The lease as severin indicated does have the Purchase Option and should the board choose to go in that direction, that option is available to it. Supervisor walton thank you. Following up on supervisor waltons question, if we were to decide in the future to purchase the building, if it came with some sort of [inaudible] would we be bound to the Purchase Price . Yes. The Purchase Option binds both sides. So we would be bound to that price as would the seller. Supervisor fewer and if we wanted to, we found that real estate took a huge dip and we wanted to take advantage of that, could we reopen negotiations, if the other side were actually to engage . Well, yes. I mean, obviously, we can achieve anything that both parties are willing to agree to. In the scenario that you indicated, i think what would likely happen is that the city would not exercise the option. The buyer would put it on the market, not be able to get the option price, and then we could negotiate with the seller as any other potential buyer, not bound by the contract. If we found that the market was below the option price, we would simply not exercise the option, but then bid for it on the open market same as any other potential buyer. Supervisor fewer okay. I think we may have an opportunity and wanted to see what our options were. So seeing no other comments or questions from my colleagues, id like to open this up for Public Comment. Madame clerk, can you call Public Comment for item 6. Clerk yes, operation is checking to see if there are callers in the queue. Would you let us know if there are callers that are ready. If you have not already done so, please press star 3 to be added to the queue. For those already on hold continue to wait until youre prompted to begin at the beep. Please let us know if there are callers who wish to comment on item number 6. Madame chair, there are no callers wishing to speak. Supervisor fewer great. I mean, fine. So Public Comment on item number 6 is now closed. I have a question for you. I see that this rent, even though were getting a discount, is expensive. I think that its 5 its more like 5 above the rate, but is it like is it the rent 15 discount . Or is it 15 discount including the tenant improvements . Its a 15 reduction in the overall value of the proposed deal based upon where we first started our negotiations. So and the key differences as i was pointing out in the earlier slide. I can pull that back up if it was helpful. Supervisor fewer is it the 6 million to tenant improvements . Well, the tenant improvements actually, that went from 6. 2 million to 6. 5 million. The tenant improvements are basically the improvement that the Department Needs to make the space its own. So we the landlord is contributing 60 let me get this correct. Supervisor fewer i think what i wanted to know is that the deal that were getting is basically a reduction in the rent . Thats correct. That is the main reduction. Going from the 55 to the 49. 95. Supervisor fewer so, i just want to say, i think what this committee would like. If were going to negotiate any future lease agreements that i think 15 is admirable. I actually think in this market we should be aiming for 20 . This will be our new negotiating level. I think were able to negotiate a 15 discount on a couple of the lease options. Now lets see if we can get upwards of 20, 25 , considering were a very good tenant. These are big contracts. And also were seeing much more vacancies in San Francisco, so this could be an opportunity to lock us in at a lower rate. So anyway, that is some marching orders, i think, for you in future tenant agreements. Thank you very much. So i see that we have some amendments to actually i prove. Id like to approve. Id like to make a motion to approve those amendments. Could i have a roll call vote . On the motion, walton aye. Mandelman aye. Chair fewer aye. Your ayes are three ayes. Supervisor fewer yes. Before i make the last motion, i also have one more question. So i understand that the plans were actually made precovid and to move this back into these facilities. Considering now that we are dealing with covid, and that we will need to physically distance workers from each other, how can i mean, will these buildings be able to accommodate the staff that needs to move there . Maybe thats a question for mr. Wagner. Thank you, chair fewer. Thats a really good question. And as you can probably guess, one that is still in kind of active deliberation. And that is for this property, but also for our other workplaces in terms of what the city policy is for how well set requirements for how we use our space, including distancing, barriers, et cetera. So we definitely have made plans and our continuing to work on plans in these spaces to kind of meet those expected requirements in terms of deliverables. A big question for us departmentwide in addition to this lease is going to be what does the future of our telecommute policy look like . And how does that impact our aggregate need for space across our departmental real estate assets . And thats going to take us some time to figure out. So were anticipating well have room here to accommodate these staff. It may take some kind of rethinking and reconfiguring about what the tenant improvement looks like, so were comfortable that this will be an adequate solution for us. But more to come for us and other departments and weve started those conversations about space post covid. Supervisor fewer thats great. I just wanted to make sure to ensure when youre talking about and designing the tenant improvements, were keeping this in mind. [please stand by] [please stand by]. Members of the public who wish to provide Public Comment should call and press pound twice. If you have not done so, press star 3 to speak. And the assistant will indicate you have raised your hand. And you may begin your comments. Thank you very much. Today we have with us jackie hale from d. P. H. And Judith Martin are also available for questions. Miss hale, the floor is yours. All right. Thank you, supervisor. Just to summarize, the purpose of this item is to extend the Contract Term by one year and to add corresponding funding bringing the total contract amount not to exceed and as reflected in the report, the budget and legislative analyst has reduced the original budget not to exceed by 738,759 and to reduce unused contingency authority allocated to the t. S of prior years. And the department is in agreement. In light of the pending budget deliberations t proposed contract extension is for only one year. We do anticipate returning after october to extend the term further and reflect ongoing funding based on final budget deliberations. These are very Important Services within the Substance Abuse continuum of care and u. C. Has been providing High Quality Services in partnership with d. P. H. For years as you know. As noted in the report, the u. C. Substance abuse scored the most points in the solicitation data to continue the Opioid Addiction Services and as consistently scored well in the annual monitoring. As described in the report, there are several programs to address opioid including the use of methadone and alternatives to methadone which has had successful outcomes. Both in their own clinic sites and within d. P. H. Sights to expand availability. If you have any questions specific to program, as you said, dr. Martin and ms. Sneed are here to answer questions. Superviser fewer supervisor mandelman . Supervisor mandelman i am curious how the provision and demand for the services have changed over the last three months. Dr. Martin . Hi, supervisor. And committee and i am honored to address you virtually this way from home. So descend, which is the department of Substance Abuse and addiction medicine is the agency at u. C. That runs this program and they have ward 93 in particular which is an Opiate Treatment Program with layers and layers of regulation that are that would not be consistent with covid safety, and they have provided a lot of leadership for the six other methadone programs as well in the city in order to prompt the state to release some of the regulations during the emergency. For example, people can take home more medication and so the time and treatment restrictions on how much unsupervised dosing means fewer visits to the clinic which means safer. They were able to delay some of the routine in person exams and lab tests yearly and the other thing they did which was very creative is, by the way, ward 93 has been a leader throughout the country in terms of addressing the preexisting epidemic overdoses and with methadone maintenance and the ban in the bayview. They adapted the use of a van to provide treatment in the parking lot so that a lot of the care can be in the open air which reduces some of the contagion, of course, and to do phone counseling and claim it at the exact same rate as in person. And in addition the people were helpful in developing protocols for delivering medication to the Containment Centers for people who were quarantined and all those things happened for the first few weeks and the shelter in place and were rearranging the waiting room and wiping down the dosing stations. And doing in effect screening at the front door for symptoms of covid and tele counseling by phone and screening people before they came into the clinic. So i was amazed all the things they did. And i have been impressed and able to do intakes. And ward 93 is in use and the rates have dropped a bit because some of the smaller clinics werent able to do a lot and had several weeks where they closed their intakes. Ward 93 did not do thatened a were able toed a just with some of the larger clinics like the bart program is able toed a just more than the smaller programs in terps of admitting people. But ward 93 is doing really well. The commitment of the staff to be sure the person is safe has been also exemplary. And they have continued things that they pay neared such as observed dosing and hepatitis c treatment for people throughout this. Great. All right. Thank you. Superviser fewer thank you very much. Lets see. There is no yes, there is a billing report. Billing report please. Item number 7 that increases the amount by 5. 1 million. We summarized the sources and uses with the agreement and we have noted the reduction to sight slightly less than 14 million and recommend approval as amended. Thank you very much. Madam city attorney, is that substantive . No, chair fewer, it is not. Thank you very much. Seeing no one else in the queue, lets open this up for Public Comment. Madam clerk, Public Comment on item number 7. Yes, madam chair. Operation is checking to see if there are any callers in the queue. Please let us know if there are any callers that are ready. Press star 3 to be added to the queue. For those already on hold, please continue to wait until you were prompted to begin at the peep. Please let us know if there are any callers who wish to comment on item number 7. Madam chair, there are no callers wishing to speak. Public comment is now closed. I would like to make a motion to the amendment and can i have a roll call vote please. [roll call vote] there are three ayes. I submit the smoegs motion to move to the board as amended. Supervisor walton . Aye. Supervisor mandelman . Aye. Chair fewer . Aye. Thank you very much. Please call items 8, 9, 10, and 11 together. Yes, madam chair. Item 8, accept and expend grant from the office of economic and Workforce Development from the California Employment Development department a recipient of the grand awarded from the United States department of labor from april 10, 2020 to march 31, 2022. Item ninety, resolution retroactively authorizing the amount of 75,000 from the California Employment Development department for wioa25 dislocated worker support services during the grant period of march 1, 2020 through september 30, 2020. And item 10, resolution retroactively authorizing the office of economic and Workforce Development to accept and expend a grant in the amount of 452,659 from the California Employment Development department, a recipient of the grant award from the United States department of labor for the Rapid Response program during the grant period of july 1, 2019. And june 30, 2021. And am 11 resolution retroactively authorizing the office of economic and Workforce Development to accept and expent grand of 999,000 from the United States of labor for the worker emergency additional assistance during the grant period of may 1,2020 through march 31, 2022. Members of the public who wish to provide Public Comment on these items should call 4084189388, meeting i. D. , 146 131 520 o and press pound twice. And the assistant prompt will indicate you have begun. Superviser fewer we have a serious of accept and expend grants retroactive from the department of labor. And so today we have us jen hand from oiwd. The floor is yours. Thank you, supervisor fewer, walton, and mandelman for hearing the request to accept and expand. And joined bying threes who have overseen the programs. And for context for federal work force funding and in the area of San Francisco. And all four were dislocated workers displaced by Economic Conditions related to covid19 and with the California Development to them to pass through the United States department of labor for the first grant from employment recovery. This will access reemployment and career services, job placement, training and Supportive Services. These services will include one on one job search, resume review, and resume preparation and job coaching and placement and unemployment and will provide up to 226 per client in support of services for transportation, clothing, child care and other item. Indirect costs were capped at 10 for this grant. This is another competitive grant which provides Supportive Services cash funding up to 800 per person for a minimum of 850 workers in the system who recently lost their jobs and the support services are sachtory and child kair clothing and laptops and providing internet. While the grand may fund workers and they had significant introductions and this prioritized services for english language learners and dislocated workers who are monolingual adults. For the incorrect costs and staffing were not allowed. So we needed to rate them. And with the Rapid Response and the Response Program provides services to employers and employees affected by layoffs and this is designed to provide early intersection with svss due to down sizing to insure this is as seamless as possible. And they typically give local economic boards two years to have the annual and ours was 452,659 so generally we have opportunity to correct budget if we need to pull down more and due to the increase in staff times during the pandemic and we need authorization to stand down the entire allocation. And were have the additional amount for the full grant award for two years. The indirect costs are capped at 10 . For the last grant, the dislocated worker and will provide Reemployment Services for up to 400 recently laid off Union Members specifically in the hospitality industry. And trade industry. And through the covid19 special Training Program and ard skills and job readiness, individual employment plans, with occupational stills training. And my colleagues and i are available for any questions. Superviser fewer thank you very much. There is no billing and you did address the issue of retroactive. What is the reason for that . They requested we get the money out the door as fast as possible. We submitted the accept and expend. Superviser fewer madam clerk, can you call Public Comment for items 811. Clerk operation is checking if there are callers that are in the queue. If you have not done so, press star 3 to be added to the queue. For those on hold, please continue to wait until you are prompted to begin at the beep. Please let us know if there are callers who wish to comment on item 811. I have one caller in the queue. Superviser fewer thank you very much. Caller supervisors, this item should have been advertised in the sense that those leaders, socalled labor leaders should have been listening to this explanation and about the grants. So the way it is presented is in a very convoluted manner. And if you look at how it is presented and however which name they have and with the money so that they can extend the grant to do that services first. Nobody knows about these grants. So the best way for people to know what is happening with the grants is to have a report ar on audit and with the as dit on the backside which you do not have. During this pandemic, the office of Economic Development has done a very poor job. Very poor job. And the suffering of the workers who have worked so hard is not looked at with empathy and compassion. You can see how this is presenting. In a nonchalant manner. No compassion. No empathy. So supervisors, wake up. You can look at it in a nonchalant manner. Superviser fewer thank you for your comment. And also we prefer comments that are not personal attacks on people, quite frankly. Thank you very much. Are there any other speakers in the queue . Seeing none, Public Comment is now closed on items 811. I would like to make a motion there is no billing report on all the items so i would like to make a motion to move items 811 to the board with a positive recommendation. Could we please have a roll call vote . Clerk on the motion, supervisor walton . Aye. Supervisor mandelman . Aye. Chair few sner aye. Clerk there are three yays. Superviser fewer please call sigh tem number 12. Call item number 12. Clerk to accept and expend retroactively from public works for public works annie north plaza project for the period of october 1 , 2019 through december 31, 2019. Members of the public who wish to provide Public Comment should call 40814189388, meeting 1461315200, and press pound twice. If you have not already done so, dial star 3 to line up to speak. And a system prompt will indicate you have raised your hand and wait until the assistant indicates that you have been unmuted and you may begin your comments. Superviser fewer we have Elizabeth Ramos from public works and also jerry spits and john thomas are available. You have the floor, ms. Ramos. Good morning, supervisors. I ap a Capital Finance analyst at public works. The resolution authorizes public works to accept and expend the amount in the amount of 21,993. 56 for costs associated with excavation work at the annie north plaza. Last year in march of 2019 the Yerba Buena Community Benefit District identified hazardous landscape and hazardous soil underneath the brick pavers and offered a cost share with the thorough abatement and disposal services. The abatement work had to be completed before public works could provide the ybcbd with the final costs and the total project cost is 54,983. And on april 30, 2020, they offered the gift of 21,993. 56 and public works portion is funded with the general fund. The item did not require a budget and legislative Analyst Report and john thomas is available to answer any project specific questions. Thank you. Superviser fewer thank you very much. Colleagues, any comments or questions for ms. Ramos . Seeing none, lets open this up for Public Comment. Can we have Public Comment on item number 12. Operation is checking to see if there are any callers in the queue. Please let us know if there are callers that are ready. Press star 3 to be added to the queue. For those on hold continue to wait until you are prompted to begin at the beep. Please let us know if there are any callers who wish to comment on item number 12. Madam chair, there are no callers. Superviser fewer thank you very much. Public comment on item number 12 is now closed. I would like to make a motion to move to the board with the positive recommendation. Can i have a roll call vote please . Yes. On the motion, supervisor walton . Aye. Supervisor mandelman . Aye. Chair fewer . Aye. Clerk there are three yay yays. Superviser fewer thank you very much. Madam clerk, call item 13. Clerk resolution approving modification and general Airport Security services and aviation and security llc to increase the contract amount by 6,285,254 for a new contract amount not to exceed 11,785,254 through june 30, 2022. Meeting i. D. 1461315200 and press pound twice. If you have not already done so, please dial star 3 to line up to speak. A system prompt will indicate you have raised your hand. Wait until the system indicates you have been unmuted and you may begin your comments. Superviser fewer thank you very much. We have kathy from San Francisco international airport. Hi, kathy. Good morning, chair fewer and members of the committee. The item before you seeks approval for the first modification to an existing contract between the airport and covenant Aviation Security for general Airport Security services. To increase but not to exceed about by 6,285,254 and exercise the first of two twoyear options to extend the term through june 30, 2022. This t scope of the contract includes t. S. A. Mandated Security Services for commercial airports that include post security, vendor screening of goods and personnel, the guarding of passenger Security Check points at exit lanes during nontsa operating hours, random inspections at direct terminal access points, and vehicle inspections at air Operations Area access gates. This contract is the result of the 2018 request for proposal with covenant Security Services being awarded the contract as the highest scoring proposer. This is to comply with requirements of the t. S. A. Airport security approved program and t. S. A. Security directive. This contract extension is also subject to the Airport Professional Services contract 5 reduction for fiscal year 2021 as part of the airports covid19 economic recovery plan. The budget analyst has reviewed the contract and modification and has recommended approval, and i would be happy to answer questions that you may have. Superviser fewer thank you very much. Any questions for ms. Widener . Seeing none, the budget report. To approve the modification to the existing contract and Security Services at the airport to extend by two years and increases it to not to exceed amount of 11. 7 million. We show on page 434 of the report that because of increased passengers through the airport, the Actual Expenditures under the contract may be lower and beginning of the next fiscal year. So our table shows expenditures ranging from 11. 2 million to 11. 4 million total. This rebim you aresment basis, excuse me, and we recommend approval. Superviser fewer thank you very much. Lets open this up for Public Comment. Are there any members of the comment who want to comment on item 15 . Clerk operation is checking to see if there are any callers in the queue. Let us know if there are callers that are ready. If you have not done so, press star 3 to be added to the queue. For those already in the queue, wait until you are prompted to begin at the beep. Are there any caller who is wish to comment on item 13 . Madam chair, there are no callers wishing to speak. Superviser fewer . Thank you very much. And Public Comment on item 13 is now closed. And i do have some questions for you about this contract. And i think my questions really concern around the whole staffing level of security and policing and coordination, so i understand that this contract is for t. S. A. When for security when outside of the regular t. S. A. Hours, is that correct . Partially. This contract is a contract that s. F. O. Has with covenant Aviation Security. Coincidentally, the t. S. A. Also has a contract with covenant Aviation Security to staff all of the check points as part of the federal governments role in screening passengers that come through commercial airports. This contract is a much smaller contract. It does pick up some of the requirements that the t. S. A. Has for us to secure exit lanes when check points are closed. They are not responsible for that. That is the airports responsibility. This contract also screens all of the food and beverage and Retail Products that go postsecurity. And the tenant employees that go post security as well as employee verification when we enter secure areas and vehicle access to the airfield. Superviser fewer okay. So considering that we are really looking at a severe reduction of use of our airports or people at the airports and people even working at the airports, so this contract actually gives me a little pause because are rereally looking at the reduction of air traffic and people at airports and services at airports including the concessions . Including people with food and beverage and Everything Else and also products coming in at a much lower level because there is less people there. So isnt this a little bit in excess of what we really need . As the budget Analyst Report points out, it is strictly on a reimbursement basis,sor any reduction that happened would not be would not be passed through to the contractor. That being said, the airport is open. There are quite a few members of staff here. We have a lot of the airline employees. Everything that happens post security, were going to be by the end of the summer back to almost 50 of all the concessions open, so while we have seen quite a reduction in passengers, the airport continues to operate and this contract in particular doesnt necessarily deal with passengers. Its more internal operations and staff verification. So if it were to be reduced because of the lower volume of traffic that were seeing, it just wouldnt be paid. We wouldnt spend as much on the contract as we anticipated. Superviser fewer my concern is that actually we actually dont know the full effect of air traffic and what kind of we are going to a whole another spiking phase of covid19 and not only that, many countries are not allowing us to fly into their countries. And also people who are