Transcripts For SFGTV BOS Budget And Finance Committee 20240711

This agenda, and we are streaming the number across the stream. Each speaker will be allowed two minutes to speak. Comments or opportunities to speak during the Public Comments are available by phone. Meeting i. D. 146291707. Then press pound twice. When connected, you will hear the meeting discussions, but you will be muted. When youre item of interest comes up, dial star 3 to be added to the speaker line. Best practices are to call from a quiet location, and turn down your television or radio. Alternatively, you may submit Public Comment in the following way, email to myself or the budget committee. Icommittee. It will be forwarded to the supervisors and will included as part of the official items. Items acted on today are expected to appear on the board of supervisors agenda on november 10th, unless otherwise stated. Chairwoman can you call number one . Authorizin [inaudible] members of the public who wish to provide Public Comment on this item shall call 415455, 0091. And then press pound twice. If you have not already done so, dial star 3. And please wait until the system indicates you have been unmuted and you may begin your comments. Chairwoman today we have karea zee, and also available, rebecca benisini. The floor is yours. Thank you so much, chair fewer. Im elaine forbes, and thank you supervisor mandelman and supervisor walton. I just wanted to share a couple of words in perspective of how important it is for the porto consider our tenants during this period. And our team has done a lot of work with our variety of diverse tenants during this time. We have been in front of our commission four times on the tenant situation, and it started with rent deferral, and now rent forgiveness, which is in front of you today. Our program is really designed to keep a commitment to our tenants, to provide a real maximum opportunity for our tenants to weather the storm. While we were encouraging a safe reopening, but the opportunities for our Retail Stores and restaurants are not there during the pandemic. And well be stronger if we can recover today. The port has also supported rent relief for our maritime tenants and for our Small Business tenants. Several of whom reside in district 10, for policy reasons, to keep us stronger and more resilient and equitable as a Port Organization and for mission purposes. I wanted to thank you again for looking at this ordinance, and understanding some of these old leases, this is the practical solution to provide rent forgiveness. I want to thank you for all of your work. She has been on the ground with all of the details. And rebecca and boris are also here to also answer questions, and they have provided a considerable support on this effort. I wanted to say how important this item is for the port. With that, ill turn it over to kazia. Thank you, director forbes. Good morning chair fewer and supervisors walton and chairwoman cues me onexcuse meone second. It seems as though were having a problem displaying the power point. Madam clerk, would you mind assisting. And supervisor walton is in the cue, and so if you dont mind, i would like to hear from him first. Supervisor . Im actually waiting to speak when they were done with their presentation. I have a question when theyre finished. Chairwoman all right. Are we able to assist with the power point. Point . Yes, good morning, madam chair. I do not have a problem viewing the power points. Chairwoman im sorry. I see on my screen the content there was a problem displaying the content. Am i the only one that cannot access the power point . I can see it. Chairwoman you can . I can. Chairwoman all right. I guess i might be the only one that cant see it, and i dont know why. Is that going to be an issue, or do you think you can just walk me through this . Director forbes, we had previous conversations before about your rent relief, and im familiar a little bit about the program that through your rent release program before. Im okay not seeing the power point if youre okay with me not seeing the power point . Im okay with that. I think well be sure to get it to kelsey and your team, and if kazia can walk through the details for the public and other members, i think that would be very beneficial. Chairwoman kazia, my apologies. I dont know what is wrong with my screen. Were living in a new technical age. We can send a p. D. F. Version of the power point after the presentation, so if you have any followup questions, we can answer that. Okay. I will begin. My name is kazia tonalium, and im the manager of Business Strategy at the port of San Francisco. As director forbes shared, im joined by my colleague rebecca benisini. And weve been working very tirelessly on the proposed ordinance that is in front of you today. And i apologize, i dont know why it says november 11th, but today is obviously not that date. So i will move on with the presentation. The proposed ordinance in front of you today authorizes the Port Division to amend certain leases that are subject to charter section 9118. In addition to that, the ordinance also waives Administration Codes and environmental codes that are typical requirements that have been enacted after most of our most recent modifications of each of the leases. Many of the leases that are subject to this are retail leases that have that are primarily up in our fishmans wharf area. 10 of which date back as far as may 1st, 1970, so you can imagine there have been many code changes since then if we had to in corporate them would pose certain buena burdens on many of the businesses that are severely impacted by the covid19 pandemic. We have been working on the ground with many of our tenants to understand their financial circumstances, and so we believe we are presenting a very thoughtful rent forgiveness package to you all today. So as an overview to our rent Forgiveness Program, we propose a sectorbased approach to rent forgiveness at this time. We are focusing on our percentage rent tenants, those that are retail tenants, most of them restaurants, and other commercial operators throughout our portfolio. The second bucket of our tenants are maritime tenants, that as can imagine are fishers, our crabbers, our fish processors, and our other Maritime Operations along the waterfront. And the third bucket are local Business Enterprise tenants, and we have about 27 of those in our portfolio, which typically are very, very small operators, and need our assistance at this time. As an overview, we propose, for the percentage rent tenants, to forgive all base rents and require the payment of percentage rent as defined in their current lease agreement. The relief area would be from march 1st, 2020, through april 30th of 2021, next year. Our maritime tenants in this particular case we will be forgiving all of their base rents for a period of march 1st to august 13st, and for our l. B. E. Tenants, forgive their rents from march 1st to may 31st. For percentage rent tenants, it would give forgiveness for up to 14 months, and affects approximately 48 tenants, but for this particular ordinance, we are focusing in on about 32 leases. The estimated rent to be forgiven in this bucket is about 11. 8 million, but this will be offset by percentage rents that are collected throughout this period of time. For maritime tenants, the rent Forgiveness Program is going to impact roughly 121 maritime tenants, and provide forgiveness of up to 1. 5 million, and for our l. B. E. Tenants, for the period, it will affect up to 27 tenants, and forgive about 150,000 dollars of rent. In total, this will approximately forgive 13. 5 million and is a pretty significant package in light of all of the economic Recovery Efforts the port is deploying at this time. So for a rent forgiveness, or proposed conditions, generally, all of our tenants will have to supply all of their other responsibilities under the lease. They will have to maintain agreed upon hours of operation during this period of time. They will have to submit an online application with key data points to help us execute their lease amendments. And anyone who has outstanding balances will have to rectify that balance prior to march any balances prior to march 1st will have to be rectified to take advantage of the program. And they will have to pay their percentage rent due according to their lease agreement. For local Business Enterprise tenants, they will have had to maintain l. B. E. Status during the forgiveness period. In addition to rent forgiveness, we are also proposing rent credits to apply. The two rent credits we are proposing are rent credits for anyone who has paid rent during the forgiveness period, and a startup rent credit for tenants who may have made physical investments in order to open up operations. When shelter in place orders have allowed them to reopen. In terms of our Program Administration on the rent paid, any tenant who had paid rent during that period of time shall be able to take a rent credit in fiscal year 2021 through 2022. That rent will be equally divided over that period of the year, and can be taken against their rent, but not against any other fees or charges under their lease. If a tenant has a lease that has expired prior to that, we would allow for a lease extension to occur to cover that period of time. If a tenant were to terminate in advance of that extension, any forgive me rent credits would be extinguished at that time. For the startup rent credit, many of our tenants in this particular sector have had to make investments in signage, other physical structures to separate and safely socially distance. And so our tenants we are requiring that our tenants provide proof of such expenditures. That rent credit can be taken immediately against any balance that they have. They will be required to rectify any outstanding balances that had occurred prior to march 1st. And the rent credit will expire if it is not exhausted prior to june 30th, 2021. Again, any early termination in advance of the lease term, those rent credits would be extinguished. So i know the budget analyst will touch on this a little bit more, but our total base rent that were going to be forgiving is about 13. 5 million. Our percentage rent at this time is very uncertain. We dont know how the market will react as reopening continues to improve, but our projections show either a range of 6. 6 million up to 13 million of percentage rent that could be collected in the coming months. At this time, i just want to reiterate that our rent forgiveness package, and the ordinance in front of you, will really allow for port staff to streamline the rent forgiveness to our tenants. I know many of them are very much hurting in this time, and we want to do our best to get that relief to them as soon as possible. Rebecca and i are here to answer any questions that you may have. Thank you so much. Chairwoman thank you very much. Supervisor walton, i am going on the recommendation of the clerks office, to reboot my laptop because we have another presentation further along in our agenda. Would you mind chairing this meeting while i am doing that . And i see youre in the cue also to speak. Thank you very much. Thank you so much, chair fewer. Thank you so much for the presentation, director forbes. I do have one question, and my question is i know that this is necessary, but as i look at some of our port tenants, i have concern and would like to know will we be forgiving rents for tenants like indescernable . No. A subtenant like jewel will not be forgiven. Many of those Office Tenants are subleases to our master tenants. So our master tenants at this time arent covered by this particular ordinance that is in front of you today. Thank you so much. And supervisor mandelman, i dont see that you have any questions. I think this will be time for us to take Public Comments on item number one. Can you check to see if there are any callers in the cue. Operations, please let us know if there are callers that are ready. If you have not already done so, please press star 3 to be added into the cue. If therare there any callers who wish to comment on item number one . Mr. Chair, there are no callers in the cue. Chairman thank you so much. And i do not see any comments from supervisor mandelman. I am to a point where i do kind of want to at least see what is going on with chair fewer. So im going to ask that we recess for two minutes, just so that we can give chair fewer a chance to get back because i dont know if she has anything she wants to ask. Lets recess for, lets say five minutes, and come back chairwoman thank you, supervisor walton, for assisting me during this technical clich, and my apologies that i wasnt able to access it, but i did receive the emails, and i did see your power point, and thank you very much. I understand that Public Comment has been taken on this item. Is that correct, madam clerk . Thats correct, ma madam chair. Chairwoman so the Public Comment is now closed. This is nick bernard from the budget analyst committee. This would waive the lease modifications related to the ports rent Forgiveness Program, and also raise the administrative code and environmental code requirements enacted after the most recent requirement. This lease approval applies to 38 leases. At shown on page five of the report, the cost of the rent Forgiveness Program is approximately 13. 5 million, which may be processed by ongoing payment for certain tenants. Because this proposed ordinance needs the board of supervisors approval, we consider approval to be a policy matter for the board. Chairwoman thank you very much, mr. Bernard. Colleagues, any comments or questions . Supervisor walton, did you want to comment on this . Thank you so much. [inaudible] chairwoman thank you very much. Actually, i just want to say that i wish that all landlords were as generous and thoughtful as our San Francisco port. Im assuming the San Francisco port is actually in this rent forgiveness this rent Forgiveness Program has enough funds to actually do this. It is pretty costly. I mean, it is 13 million, but you can absorb the cost into the loss in your budget, is that correct, director . Yes, it is. Thank you for that question. We did put it in the budget that we are operating under now assumed reduction, and were balanced and managing, yes. Chairwoman so we hope that well be up and running soon, and that all of our tenants can once again, you know, be profitable. And so i think that this is timely, and i think this is completely generous. And i think it is the right thing to do as a city and county of San Francisco. With that, i would like to make a motion to move this to the board with a positive recommendation. May i have a roll call vote, please. Yes. On the motion, supervisor walton . Yea. Supervisor mandelman . Yea. Chair fewer . Yea. There are three yeas. Chairwoman my apologies for the technical clich. Madam clerk, cu clerk can you pe call item number two. Call to suspend imposition of th the cannabis indescernable to increase the exemption of gross from cannabis activities from the fires 500,000 to the first one million, and beginning january 1st, 2022, to increase the upper range of gross receipts attributable to the cities from cannabis business activities, subject to the 2. 5 tax rates on gross receipts from retail service, and the 1 tax rate on gross receipt from other venues. It goes from 1 million to 1. 5 million. Member of the public who wish to provide Public Comment, call 4156550051. And then press pound twice. If you have not already done so, please dial star 3to speak. A system prompt will indicate you have raised your hand. Please wait until it indicates you have been admitted and you may begin your comments. Chairwoman thank you very much. Supervisor mandelman . Thank you, chair fewer and supervisor walton for considering this ordinance. A little bit of background, on the number 2618, the San Francisco voters approved the cannabis business tax, proposition d, which imposes a tax for cannabis business activities. It is currently to go into effect on january 2021, for the retail sale of cannabis products, 2. 5 including 1 million, and 5 of gross receipts for over a 5 million. 1 up to and including a million, and 1. 5 of gross receipts over a million. The first 500,000 dollars of gross receipts are exempt from the tax under the 2018 ballot measure. Please stay with us. [please stand by] while approvals happening more clear over the last year than previously, many of the businesses have been paying rent under empty locations for years. Proposition 6 2, legalizing cannabis in california, established a 15 excise tax on Retail Cannabis sales at the state level. The California State Legislative Analysts Office completed that reducing the tax rates would expand the legal market and reduce the size of the illicit market. In addition, i. R. S. Code section 280 e disallows the business incomes for cannabis businesses. Businesses cannot write off payroll, marketing rent, utilities, et cetera, which results in a higher federal tax burden than for other industries. Now god willing, over the next year, changes may come at the state and federal level that would reduce the tax burden on cannabis businesses, allowing for a local tax to be less impactful on the businesses. This relief may allow local tax to be assessed without the need to increase retail priceses and continue to drive the illicit market. As i mentioned, in addition to spending the cannabis business tax, through december 31st, 2021, the ordinance helping reliever the ongoing tax burden on smaller cannabis businesses, by increasing the exemptions for gross receipts from the first 500,000 to the first 1 million. And the the upper range of the gross receipts that are subject to the tax of 2. 5 sales for nonretail sales from 1 million to 1. 5 million as i said. The shifting of the tax burden upward is similar to what were doing for all Small Businesses, as part of our larger Business Tax Reform efforts. Over the last month, correctly, San Francisco has deferred a number of taxes and fees for Small Businesses, struggling to stay afloat during the pandemic. And in this climate, i believe it is now an appropriate i believe now is not an appropriate time to impose an entirely new tax on the cannabis industry. Rather than assessing the tax on a newly informed and stilldeveloping industry, we can allow these businesses and particular equity operators to recoup the significant startup costs associated with cannabis businesses and continue to invest in their workforce and create good jobs for San Francisco residents in need of work. I will say that we had put off hearing this item in this committee until after the election. Last night we got the good news, which i think will stick, that propositions f, i and l all look like they have passed. So there is going to be new revenue coming into the city. And i think in light of that, in light of our efforts to support Small Businesses, you know, this is not a time to be imposing, as i said, a new tax on Small Businesses. So i hope this is something that we can were all comfortable moving to the full board today, as the tax is set to occur in just a couple of months. I can endev tore answer any questions. Tom i do want to thank tom, my staff, who has been working on this and can also ask questions and answer questions. And we also have ray law from the office of cannabis as well. Chair fewer okay. Colleagues, any comments or questions . I had a few. Supervisor mandelman, whats the projected revenue loss for this change . Supervisor mandelman so that is in the b. L. A. Report. Chair fewer okay. Lets hear the b. L. A. Report first. Would that be okay, supervisor, thank you . Can we have the b. L. A. Report, please. Yes. Nick menard from the budget legislative office. Supervisor mandelman states this amends the tax recreation codes to dispense the business tax for calendar year 2021 for cannabis. The ordinance would also increase the gross receipts exemption by 500,000 and modify the tax structure. As we show on page 10 of our report, the estimated tax loss over this year and including next fiscal year, we estimate to be 7point 1 million. We do this consider this a policy matter for the board, because of decreased revenues. Chair fewer okay. Thank you very much, mr. Menard. That answers my question. And then, you know, supervisor mandelman, because in 2018 this is a voter mandate, i am wondering so were able to legally do this and not go back to the voters . We are. 2018 measure contemplated allowed the board of supervisors to reduce the rates. Chair fewer thank you very much. And then has this issue been brought before the Cannabis Oversight Committee . Im going to ask my staff to answer that. I do know that it has been before the Small Business commission. And im not sure if tom is on the line . I am. Im here. Is my camera on. Chair fewer hello. Good morning. Thank you, chair fewer for the question. As supervisor mandelman said, its been before the Small Business commission and received recommendation there. But it was not assigned to the cannabis oversight commission. I dont believe it has been heard there yet. Chair fewer okay. So are there plans to bring it to further Oversight Committee . I think wed be happy to. It has not been requested of this legislation yet. Chair fewer okay. So mr. Law is on the line, is that correct . Good morning, chair fewer. Thank you. Chair fewer hi. When is the next Cannabis Oversight Committee meeting . It will be in the next two weeks. Chair fewer okay. Yeah. And on this piece of legislation, theyve been made aware of the committee member. However, it has not been formally discussed during the meeting. During our meeting for the last 12 months, we do plot out time to bring up all pending legislation to the Committee Members. As i mentioned, this item has not been formally discussed and recommendations from the Oversight Committee. Chair fewer okay. And then [indiscernible] on behalf of the office of cannabis, i can imagine that you are in agreement with this proposed ordinance, is that correct . Yes. And this is correct. Were continuing a Racial Equity meeting now. She apologized she cannot make it to this meeting. But she especially wants me to thank chair fewer for your support to the cannabis oversee the committee, Oversight Committee and theyre contributors to this new industry. And to provide a status update on public process, under the leadership of director regans office. Theyre pleased to report that we have the approximately 160 equity applications submitted since may of 2018. That processes our backlog and equity applications are currently being processed, which means all equity applicants actively engaging with the permitting process. As of today, we have permitted 11 businesses, with the 12th coming the end of this week. And a come more next week. We are looking forward to reaching a parity and this has been incredible to see true intention with equity coming to fruition. And we all know that opening any business can be a challenge, especially during a during these challenging times. Therefore, this piece of legislation would greatly be appreciated by these equity operators, as they are navigating uncertainties during the current pandemic situation. Chair fewer thank you very much. Mr. Soprano, im wondering if i can request and, supervisor mandelman, that this item i am happy to pass this on to committee. But then i would really appreciate the that you would bring this before our Cannabis Oversight Committee, just because i also think this is something, not only that we should that they should be made fully aware and have discussion about, but also that the breadth of sort of jurisdiction around cannabis, that i want them to also be aware that they would have a voice in this part, its not just about the everyday logistics, you know, opening up and, blah, blah. Its really about this piece of it also that they can have a voice in. And so if you wouldnt mind, thats the one request that i would have going before this body, just so that they can have discussion. And i cant imagine not approving it. But just to get their approval. That would be great. Supervisor mandelman, yes. Supervisor mandelman we are happy to do that. Because we delayed in bringing this to this committee, because of, you know, trying to figure out wanted to see what happened yesterday. I think we are a little bit under the gun to get it to the full board. Because i think we do need to have two readings of the full board this month, in order for it to take effect before januar. Chair fewer sure. Supervisor mandelman so were happy to go to the commission with it and discussion it with them. And im grateful for your willingness to move this to the full board as well. Chair fewer i think then we would have sort of the answer before the second meeting, second final meeting of the board. I think it would fit in the timeline okay. I dont want to state that we made a discussion without consulting them first. I feel like our final decision also can also include their opinion, too. Supervisor mandelman great. Chair fewer thank you for that. And with that, madam clerk, could you please open this up for Public Comment. Clerk yes, madam chair. Operations, please let us know if callers are ready. For those already on hold, please continue to wait until the system indicates you have been unmuted. Please let us know if callers wish to comment on item number 2. I currently have five callers in the queue. Chair fewer okay. Lets start Public Comment, please. Caller good afternoon, supervisors. Can you hear me . Chair fewer yes, we can. Caller goo good morning, supervisors. Can you hear me . Chair fewer yes. Caller thank you. My name is david goalman. Im also on the board of california normal, statewide medical cannabis advocacy organization. Ims on the board of directors of the green cross, a medical cannabis dispensariary, cannabis dispensary at 4218 mission near silver, in the excelsior district. Im here in support of this legislation. We feel that, according to the accountants of the green cross, there would be a 7 to 11 increase for medical cannabis patients, because prop d not only taxes retail adultuse cannabis sales, but also taxes rental cannabis, cultivation, manufacturing and distribution. Right now medical cannabis patients pay combined taxes of around 59 , including state sales tax, excise tax, cultivation fee of about 10 and about a 25 testing fee. Thats passed down to medical cannabis patients. Delaying the tax increase on medical cannabis, cultivation, manufacturing and distribution, as well as retail sales, many medical cannabis patients never renewed now under the adultuse prop 64. It would help tremendously for them. Im a senior on fixed income. I understand what it means to not have much money for cannabis. And right now the illicit market is thriving. And the way that this legislation the increase will do a great deal to help the further increase in the illicit market. I urge you to support this legislation. Thank you. Clerk thank you for your comments. Next speaker, please. Caller good morning. Caitlin oneill, director of government affairs. Here to support this legislation. We appreciate supervisor mandelman bringing it forward today. Thank you. Clerk thank you for your comments. Next speaker, please. Caller hi. Can you hear me . Chair fewer yes. Caller okay. This is nina park calling and representing the equity trade certification, as well as im the chair of the Oversight Committee. So supervisor fewer, thank you for suggesting that we hear this at the oversight meeting. I know that theres an update about this. It seems like something that was moving along. So we didnt take it on as a conversation, because we had to get the take grants out first. We took that as priority. But we know this is important as equity operators. We definitely would benefit from seeing this tax suspended until 2022. However, there are some things that we would like to discuss further about cannabis tax with our cannabis equity businesses. Moving forward we are in support of pushing it to the full board. And then being able to talk about it at the Cannabis Oversight Committee for further discussion. Thank you guys for taking the time to talk about it. Clerk thank you for your comment. Next speaker, please. Caller hello. Can you hear me . Clerk yes, we can hear you. You can hear me. Yes. Good morning. Good morning, supervisors. My name is michael cohen. And im a 50year resident of San Francisco. Im a senior in my 70s. And i strongly support this legislation, with the high taxes, extremely high taxes on cannabis in San Francisco, and my being on a limited income, it would significantly impact me. So i ask you to please i support this legislation by supervisor mandelman. And i really want to continue to buy and use cannabis legally, with the system that has been set up and not purchase any cannabis on the illicit market. Thank you so much for your support. Byebye. Clerk thank you for your comment. Next speaker, please. Caller good morning, commissioners. Supervisor walton, fewer, mandelman, thank you for this item. Happy wednesday, everybody. My name is rudy corpius. Im a native of San Francisco. Im also the executive director of the united players, an organization thats been pushing to save lives and stop the violence for 26 years. Im an Equity Partner also. Ive been waiting to open my store for over a year now. The cannabis tax will take half of my projected profits before i even open my store. This tax hurts the equity program. And it needs to be delayed. It needs to be put on pause, or even eliminated. Real equity is not possible without the chance to start strong without a head start. And so we need equity benefits to open before we get taxed. So please delay or eliminate, you know, us so we can thrive wet better in the future. I support this legislation that you guys put up. And one more thing. Congratulations to tom soprano. Thanks. Clerk thank you for your comments. Next speaker, please. Superviso madam chair, that s the queue. Chair fewer thank you very much. Public comment is now closed. Yes. So lets take a recommendation, supervisor mandelman, would you like to make a motion. Supervisor mandelman thank you, chair fewer. Id like to move that we move this to the full board with poison recommendation. Chair fewer okay. Roll call vote, please. Clerk on the motion, supervisor walton. Supervisor walton aye. Clerk supervisor mandelman. Supervisor mandelman aye. Clerk chair fewer. Chair fewer aye. Clerk there are three ayes. Chair fewer thank you very much. This is for the Small Business relief legislation, supervisor mandelman. Madam clerk, can you please call item number 3. Clerk yes, item number 3. Ordinance appropriating 126 million of series 2020 D Public Health and safety general obligation. In fiscals 20222019 for facility upgrades in zuckerberg San Francisco general hospital, southeast and other Community Health centers and neighborhoods fire stations. 260 million of series 2020c Affordable Housing general Obligation Bond proceeds to the Mayors Office of housing and Community Development for public, lowincome, preservation and middleincome and Senior Housing projects. 102. 5 million of series 2020f Affordable Housing, preservation and seismic safety, general Obligation Bond to mohcd for preservation and seismic safety projects and making these funds on controllers reserve pending sale of the bonds. Members of the public who wish to provide Public Comment on this item, should call 415 6550001. Meeting i. D. 146 291 7707. Then press pound twice. If you have not already done so, please dial star 3 to indicate you want to speak. Chair fewer thank you very much, madam clerk. I think we continued this item from the last meeting, right . Madam clerk, can you remind me. Did we have a b. L. A. Report already . Did we hear that already . Clerk yes. I believe you did. Chair fewer thank you very much. Today we have lydia eli from mohcd to answer some questions. Also whole slew of people to answer some questions. Ms. Eli, do you have a powerpoint . Yes, there we go. Yes. Very brief today. Since you all have seen this item indepth, at the last meeting, we just wanted to take this opportunity to clarify some questions that came up from the committee around the geographic equity initiative. And the distribution of the project that is proposed for funding, with the bonds across the city. So youll remember that this item is requests appropriation of funds. The first traunch of the 2019g. O. Bonds for Affordable Housing. We wanted to show you a distribution map of the project, just to start. And well give you a little bit more information about the actual list of projects that are proposed to be funded from this first tranche. But did i want to call to your attention the blue circles, which is a project proposed for funding in this bond, compared to the distribution of purple circles, which is our first 2015g. O. Bond. And youll see that there is quite a difference in terms of the concentration of projects in 2015, primarily in the central city, as compared to the 2019 project that youll see distributed across a wider geography of the city, specifically the western neighborhoods. Next slide, please. So the definition of geographical diversity, this is a new concept for the bond, really identifies those neighborhoods that have historically had limited Affordable Housing production or and or those neighborhoods that are facing a loss of affordable units. So thats really the framework that were working in when we talk about geographical diversity. So for this first tranche, for the first batch of projects in the 2019 bond, youll see were proposing to Fund Projects in eight of the 11 districts. This is a much wider distribution of projects than i believe we ever funded before. So youll see we have projects in every district except 2, 3, and 9. We have youll at the bottom. Of the list, a project for which were requesting Million Dollars in funds, we have not yet identified what that project is. Otherwise we have addressed that we have districts for all of the projects that are proposed to come out of this first traunch. Next slide, please, thank you. Its a little early to say what the future traunchs will be asking. This is the list as we know it today. Were adding projects in district 3 and district 9. That leaves only district 2 as the only district that were not going to be putting a project in. Things are changing a lot. If we go to the next slide, i can tell you some strategies that were continually using to pursue greater geographical diversity in our projects, like many city departments, were undertaking a Racial Equity initiative, through which well be looking at how we procure developers, how we identify sites, with the goal of having of targeting underserved communities and also bringing a larger group of developers to the table to participate in this work. And we reckon that doing so will result in greater geographical diversity. And, secondly, as i mentioned with all of the unknowns in the community, additional opportunities may arise that were not aware of now or adapt and reuse of other buildings. Were keeping a close eye out for the opportunities now. That is my presentation on this particular topic. Im happy to take any questions. Chair fewer thank you very much. Supervisor mandelman, i see you in the queue. Supervisor mandelman not so much for a question. Just a quick statement. I mean, i do want to thank the staff of the Mayors Office and the Community Development for their meeting with us over the last week. And frankly over the last couple of years. I know, supervisor. Supervisor fewer , you have engaged in similar conversations with them. You know, im prepared to vote for this item today. And i appreciate that mohcd understands that it is not good for San Francisco to be concentrating all of our Affordable Housing in a few neighborhoods. And, of course, my particular concern is with the district that i represent, which has had among the highest levels of eviction and displacement and yet has not seen, you know, commensurate production of new Affordable Housing. We do have some, you know, former Public Housing and some Affordable Housing from past efforts, but certainly not keeping pace with the evictions that weve seen over the last 20 years. And so i am you know, im willing im comfortable, though, voting for this. I dont know comfortable might be overstating this. I will be voting for this. But i do expect that in the future that we will do better in figuring out ways to create a more affordable Affordable Housing in other districts that have experienced or are experiencing displacement and eviction. And have not historically seen significant preservation or production. Chair fewer yeah. Thank you very much, supervisor. Thank you for your presentation, ms. Eli. What i intended to see in this presentation was not just about the sites, but really about how many units each is going to produce. And what is the allocation of the funds to each of the projects. And i think that also we get that type of information, this is this is drilling down i think also about an equity issue. I also want to say that i dont think that were looking at geography equity. I think what were looking at is geography balance. Because there are neighborhoods that have been harder hit than others. And they were hit actually much earlier than some other districts. And so, of course, i advocate for my own district, which is getting hit now. And were just maybe a little later in the game to experience this exstream gentrification and displacing many of my lowincome tenants. But i will say that unless we have an accounting, and i think this is what would be requested at the last budget meeting, was sites, but also an accounting of the funds. And so how much is being allocated to each of these projects and are we seeing some balance in the allocation of the funds. And so where a project might be giving us 50 units of Affordable Housing and another district could be giving us 250 units of Affordable Housing. That in itself is actually an imbalance. So i think for us to actually see and drill down, is to see really those numbers and quite frankly thats a little bit of what i expected to see today. I see that we have a whole bunch of people that are available for questions. Is there anyone in this lineup, joanne, benjamin, valerie, marissa, or any of these other folks that are able to answer those questions . Well, supervisor, i can i apologize that we didnt prepare that information. We do have it available for each of the units. We do have an estimated number of units that will be yielded by the development. I do want to clarify that for most of these projects, if not all, we are very, very early stage. In fact, were going to be issuing a nineproject r. F. Q. , a request for qualifications, within the next few weeks, to identify developer teams to lead these projects with us. And its only then that we can start the design work and the entitlements and determine exactly how many units will be built at each site. So for the moment, as we develop the allocation plan for the bond, were really assuming a very blanket number of city commitments per unit. And it doesnt vary by neighborhood. It really just assumes the certain number of units and then just plugs in in terms of what our commitment will be. Chair fewer so ms. Eli, let me ask you this then. I think what were looking for is sort of an accounting of it. We are not i think i mean, i think that you know we understand that its by project, many things when you scope out the project, also the site of the project, what will it accommodate. The zoning, all of those kind of things we understand. And what kind of units youll be building also, about that. But i do think that there should be a mechanism or a vehicle in which to actually analyze this information periodically and maybe on sort of a regular basis of reporting. So that not only when these issues come before the budget and finance committee for approval, but that actually supervisors are able to see in a clear, elusive and concise matter of where the funds are actually allocated geographically in the city. And the unit the amount of units would be super helpful too, so we can sort of see where the public dollars are actually going. And if we could if we could see sort of where the allocations are going. I just also want to say that, you know, i am leaving this committee and this board within a couple of weeks. Well, more than a couple of weeks. But i kind of feel like its a couple of weeks. So that is something that i am asking for future Board Members, or Board Members that continue to sit on this committee. Supervisor mandelman, since weve had so many discussions together privately and publicly about this issue, would you mind working with mohcd on a sort of just sort of how we could get a report or be kept abreast of . Because when we see these allocations, they come to this committee piecemeal. Were not able to see collectively. So today we approved this. But two weeks from now, we may be approving another set of funds. So the things that we dont ever see in the big picture, we only see it when it comes to us in a committee very piecemeal. Its hard to see sort of the collective impact quite frankly of the monies and the public monies. More than that its very difficult and impossible for the public to see how these public funds, that they have voted for, actually are being put to use and geographically where. And so in a response to not only a responsibility of the board of supervisors to our public, actually who voted for these funds to be allocated, that i think that its a responsibility of our city and county to actually have this accounting, you know, doesnt have it could be an an annual basis quite frankly. I know those things take some time. But if, supervisor mandelman, can you could work with mohcd on this. Its some information that youre very interested in. But whoever should take my place, would also i think be very interested and also i think many of the supervisors of the board would be interested inle this information, too. Having said that, i am happy to pass this out of committee today. But i just wanted to ensure that there was some sort of mechanism and we could keep track collectively. Having said that, madam clerk, can you please call for Public Comment. Clerk yes, madam chair. Operation is checking to see if theres callers in the queue. If you have not already done so, please press star 3 to be added for the queue. For those on hold, please wait until the system indicates you have been unmuted. Please let us know if callers wish to comment on item number 3. Madam clerk, there are no callers in the. Chair fewer Public Comment for item number 3. Id like to make a motion to move this to the board with a positive recommendation. May have a roll call vote, please. Clerk yes, madam clerk. Also i just wanted to note that i believe i saw mr. Confetti raise his hand. Im not sure if he has any questions or would like to ask him. Chair fewer yes. Is there something youd like to add to this conversation . I wanted to chime in and say i believe the specific unit counts for the project that were intended to be funded, by this particular issuance of the bonds for the 2019 housing bond, the First Issuance and the past bonds, they were listed in the project presentations that were heard on the 6th of october. Originally. With the sale resolution. And so that was broken down by street address, that can be correlated to this. So we can definitely mohcd can follow up with information on this before it goes to the full board, if thats something youd like. And also, of course, the project all g. O. Bond makes quarterly reports to the committee and theyll be able to be present that information to the public in that form as well. Chair fewer okay. Thank you very much. Thank you very much. And miss eli, thank you very much for your presentation. And for joining us again for the passage of this item out of committee. So, madam clerk, roll call vote, please. Clerk yes. On the motion, supervisor walton. Supervisor walton aye. Clerk supervisor mandelman. Supervisor mandelman aye. Clerk chair fewer. Chair fewer aye. Clerk there are three ayes. Chair fewer thank you very much. Can you please call item number 4. Clerk yes. Item number 4, authorizing the department of Public Health to accept and expand the grant in the amount of 6. 5 million from the center for Disease Control and prevention, through the California Department of Public Health for participation in a program entitled coronavirus epidemiology and Laboratory Capacity enhancing the detection funding for the period of may 18th, 2020, through novembe. Members of the public who wish to comment on this, should call 415 6550001. Meeting i. D. 146 291 7707. Then 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. Please wait until the system indicates you been unmuted and you may begin your comment. Chair fewer thank you very much. So we have susan phil ils from the department of Public Health joining us today. Good morning. Thank you, chair fewer and supervisor walton and mandelman. So this is a request the department of Public Health to accept and expends 6,540,000. Im susan phillips. Im one of the Deputy Health officers here to speak about this item. So this is the result of funding from the congress, via the cares act, that went then to c. D. C. And then was distributed via the California Department of Public Health to local Health Jurisdictions in california and San Franciscos share of this funding is shown here. The reason that this is retroactive, even though the project period began may 18th, was because the award came to us from the California Department of Public Health on august 11th. And then we were working with the department to propose what we would spend this funding on. There were six large strategy areas that were determined within the funding, that we had to work within. And then we had flexibility and availability to really tailor the proposals that will we have to match both what is already being propose and done within our Covid Command Center it aligns with our city work to date and aligns with our efforts to address areas of heightened concern for outbreaks or for poor disease outcomes, if people become infected and also to move funding towards communities to enable them to have resources to do the work, as they know best. So just as an example, within this funding, 1. 2 million of this funding is going to a partially fund some of the Community Wellness initiatives and request for applications that will be coming out shortly. Another 275,000 is going to be allocated in partnership with ucsf and the Latino Task Force to try to pilot of mobile testing and tracing, to allow people to actually go workers to go to homes, in order to do some of the followup thats needed for testing contacts. So this is these are some of the ways in which we are trying to use these resources for innovation. Other large areas include improving our ability to do Laboratory Testing and there are multiple routes that we are taking to increase Laboratory Capacity, but also the speed with which people get their results. So within this amount of funding, one of the things thats being done is some remodeling of our laboratory, of our Public Health laboratory at 101 grove to allow the setup of some machines that were given to us by the state at no cost. And allow more rapid handling of specimens. We are also looking to invest in some mobile testing vans, that would carry some Rapid Testing equipment that we could move throughout the city. Then we are also looking to have a few additional Public Health nurses. And two physicians to work specifically with schools, with workplaces and other sites that could use Additional Resources to prevent infections and outbreaks. Thats the general overview that i wanted to provide. Im happy to answer any questions that you may have. Thank you again for curing considering this, the item. Chair fewer thank you very much. Colleagues, any comments or questions for ms. Phillips. I have one. I wanted to know have you decided where you might do some of the mobile testing . Because actually i would love a mobile testing site in my neighborhood. Yes. We have not fully decided. But i think, supervisors, youve been hearing a dedicated group of experts that are devising a neighborhood strategy, in combination with community, looking at both of our data as a city, about where we continue to have disproportionate infections. But theyre also looking at geographical allocation across city broadly. So i think that those conversations are still to come. And i think there is a desire to ensure that every san franciscan has access to testing when they need a test and to follow our recommendations. Chair fewer okay. Yes. I only just mention it because i think that when we look at whether there are outbreaks, we are able to know the outbreaks, because actually people have been tested. So, for example, in my neighborhood i think we have detected a lot of outbreaks. But also we havent had a lot of people tested. So i think so its necessary all throughout San Francisco, and just wanted to put a plug in there. All right. So we understand why it is retroactive. And just to let you know, supervisor peskin may be contacting you about that retroactive aspect of it. Seeing no one in the queue, can we open this up for Public Comment, please. Clerk yes, madam chair, operation is checking to see if any caller are callers are in the queue. If you have not already done, so please press star 3 to be added to the queue. For those on hold, please continue to wait until the system indicates you have been unmuted. Mr. Coup, please let us know if any callers wish to comment on item number 4. Madam chair, there are no callers in the queue. Chair fewer Public Comment for item number 4 is closed. Thank you, ms. Phillips, for joining us. Id like to make a motion to move to the board with a positive recommendation. Could i please have a roll call vote. Clerk supervisor walton. Supervisor walton aye. Clerk supervisor mandelman. Supervisor mandelman aye. Clerk chair fewer. Chair fewer aye. Clerk there are three ayes. Chair fewer thank you very much. Madam clerk, can you please item number 6. Clerk would you like to skip item number 5 . Chair fewer oh, yes. So sorry. Number 5. Clerk yes. Item number 5. Resolution approving amendment number 3 to the agreement between color girardins and the department of the Public Health for covid19 testing services, to increase the agreement by 74. 4 million for a total not to exceed amount of 84. 3 million and to establish a specific term end date of march 31st, 2021, for a total Agreement Term of april 6th, 2020 through marc march 31st, 2021. Chair fewer thank you very much, madam clerk. So today we have with us a doctor for s. F. Department of Public Health, and another member of public gallon, greg wagner from Public Health and carolyn and we also have available for questions, Heather Littleton from the Controllers Office. Sir, we start with the dr. Baba . Good morning, chair fewer. This is drew morale, deputy finance officer. As you say, dr. Baba, Deputy Director and greg wagner, chief operator officer are here today. I want to thank you for hearing this item today. Its retroactive, third amendment to the citys contract with color genomics, providing emergency Covid Testing Services for San Francisco. Contract was entered into in emergency contract procedures on april 6th, 2020. Its subject to a 12month term. Its explicit in this third amendment, which would end apri. However, d. P. H. Intent is to end the contract, being managed by the Controllers Office. In this amendment, it includes a modifying the term to 12 months per mayor declaration number 13. Increase the budget to cover the services that really were provided since, you know, going since august. And as projected through the end of march to april 5th. As well as adding capacity to embarcadero site and increasing employee testing for universal testing at laguna honda and adding two new mobile teams. And finally, it adds language explicitly to the scope of services. And includes language to have color, seek reimbursement from insurers, wherever possible. And happy to take additional questions on the amendment. Chair fewer okay. Any comments or questions from my colleagues at all . I have a few questions. So i wanted to know what is the process on the ongoing r. F. P. And what is the timing on this . And ill defer, chair fewer, if thats okay to the Controllers Office to speak to where we are in the r. F. P. , to the extent possible. Chair fewer absolutely. Good morning. This is Reese Sandler for the Controllers Office. What we can say about the r. F. P. Is that its in process. If you have other questions, were happy to collect those and confer with the City Attorney and then respond to those after the hearing. Chair fewer so youre in the process now, the r. F. P. Is in the process now, is that correct . That is correct. Chair fewer and you cant give us any information about timing at all . I cannot. But im happy to collect your questions. Chair fewer okay. So i guess the question is what is the timing on the r. F. P. . What are we in the process. And and then theres modification number 3, this is about 9 million, is that correct . Well, modification 3 explicitly adds about 75 million to the overall contract. The existing through amendment 2 had about 9. 9 million in the not to exceed a budget. Chair fewer and, you know, before i ask my next question, i just realized that supervisor walton is in the queue. We have not heard from the b. L. A. Would you mind, supervisor walton, if i called on the b. L. A. First and then we can ask questions . Okay. Supervisor walton thank you. Chair fewer b. L. A. Report, please. Sure. This is nick menard from the budget legislative analysts office. So this proposed resolution approves the third amendment to the citys agreement with color genomics for covid testing, which would increase the contract amount by 74. 5 million. This amounts to approximately 22 i 22,700 covid tests per week through april 6th, 2021. As we discussed on page 24 of our report, the amendment would pay for 12. 1 million of testing that has occurred since july 2020. And for testing through april 5th, 2021. The contract, as mr. Mario said, was a solesource contract procured on an emergency basis. There is an r. F. P. Process underway to identify other covid testing. So we do have three recommendations. One is to amend the proposed resolution to correct the end date of the contract. We also recommend that the board of supervisors request an update to the r. F. P. Process, prior to april 2021, when this amendment ends. Finally, we recommend approval of the resolution, as amended. Chair fewer thank you so much, mr. Menard. Supervisor walton. Supervisor walton i did request the question already. [indiscernible] can you hear me . Chair fewer you are kind of breaking up a little bit. Kim what about now . Chair fewer youre kind of going in and out. Maybe turn off your camera. And then just speak . Supervisor walton is this working . Chair fewer thats better. Supervisor walton sorry about that. My apologies. I did ask the question about the potential for the third site. And the response i got was inadequate. It just said its not determined. Whats the timeline . Why would we approve this if not knowing where the third site is going or have no idea of where the third site may go. I dont get how your answer is not determined and that was that. So im happy to take this question. So the third site we are looking at the southeast sector, because it is the most heavily impacted. I think people on the call know were moving the soma site to allegheny. We want to do this in a mindful way. First, and see what kind of uptake we and improving testing rates there. And then determine where disease is still occurring in the southeast sector and where we might need to do coverage. I dont understand why that couldnt have been a response that we received when we asked the question. I apologize, supervisor walton, if it was confusing. If you got a confusing response. The response was very direct. It said that the third site has not been determined and that was that. It wasnt confusing at all. I appreciate you is what im saying. I just wish i wouldnt had to ask you that question right now. That would have been the answer when we inquired on the email. Got it. Supervisor walton thank you. Chair fewer thank you very much. So im wondering i think my question is also so other vendors that can do this work. And i know this was a solesource and we have an r. F. P. Out. Can you give me sort of an idea of the scope of vendors that could accurately do this work . Are there many of them and [indiscernible] generally agree that color has been a good service. Anyone can answer that, that would be great. I can say that there are other vendors and part of the thinking on doing an r. F. P. In the first place is based on the assumption that we will be able to find other vendors. That being said, these services have already started by virtue of medical necessity. So in some sense the services in this amendment, there are no other vendors, because theyve already been provided, to some extent. Chair fewer yes. So we had never had covid contracts that had a term of the duration i mean, did not have a fixed date, is that correct, in we just said during 60 days, right. Why in this case do we have a fixed date . I think the in the budget legislative analyst may speak to this as well. With the mayors declaration in may, that covid plus 60 or the term of the emergency plus 60, changed to be 12 months and not longer than 12 months, if it was entered into pursuant to the emergency clause 2115. Chair fewer okay. And i wanted to know is there a time constraint on this . As far as approving the amendment . Yes. Yes. To our mind, d. P. H. Is actively pursue being deployment and as dr. Baba said trying to find areas of the city most impacted by covid, given what we know currently, which changes daytoday. Passing this amendment will continue to provide testing resources, that really need to be able to change deployment and redeploy on a pretty frequent basis. So we do view it as urgent. Chair fewer so were doing it already, right, retroactivively . We are doing it already. We have been engaged in this since july, right. We can continue what weve been doing for another week or to, if i continue this agreement back to committee with more information from the Controllers Office, is that correct . I can say that we worry about the impact that the further delay would have on our ability to continue making the necessary changes to testing. And that it is absolutely true that this amendment covers services that have been provided since august. Chair fewer sure. Okay. Supervisor walton, did you have another question or comment . Supervisor walton i do real quick. You stated that you this gives you the ability to deploy or redeploy on a pretty frequent basis. Can you define that frequency . I may ask dr. Baba to talk more about the ways that we deploy the mobile teams in particular. Supervisor walton yeah. I would love for our definitions of frequent. And i havent seen the frequency from the department. Its basically a mobile team. Were in conversation on a regular basis with community partners, as well as internally with the c. C. B. To see census tracks and areas that were seeing a lot of disease. And we are constantly updating our Community Testing sites based on that. So, for example, you know, recently in chinatown and in portola, were looking at testing in another place. Thats just the ability to move the tales around, as were seeing disease and as the community is manufacturing us about the informing us about the needs. Supervisor walton dr. Baba, youve been moving the sites, been able to move them weekly, biweekly, monthly . Whats the frequency . The current goal is to at least have a site be in place for a couple of weeks to ensure that weve gotten out adequate outreach and weve made the right, you know, attempts to get people to the testing sites, before moving it. And the testing site actually ends up being a very highfunctioning testing site or i should say a place where a lot of people go, we tend to try to extend that time. But its at least for a couple of weeks. Supervisor walton thank you. Chair fewer so are you saying to me that if this that the nonapproval of this contract now, would prohibit you from continuing the work that youve been doing since august . I dont think we would draw that firm of a line. But it would impair our ability to continue to deploy, as dr. Baba said, the popup resources and then continue to plan for the anticipated november 17th go live on the almaney site. Chair fewer okay. You could continue to plan for this and youve been doing this since august. So if we were do delay this for a week or two, you could still do these functions, is that correct . Are you telling me that if we dont approve this today or take it out of committee today, that you would actually not that you would have to cease the operation or extension . Is that what youre telling me . I think i would clarify in that in just that, chair fewer, its not so much d. P. H. As color has performed these services for three months without being paid. And at some point their ability to continue to engage proactively with the new needs for the city is where were as d. P. H. Are leery of continuing without this amendment. Chair fewer so is carolyn here from color . Yes. Hi, everybody. Thank you for hearing this this morning. Chair fewer yes. Hello. So so what im hearing is that d. P. H. , the concern is that if we dont do this, that there may be a i guess a noncontinuance of a service from color. Is that true . If we were to continue this for a week or two, to have another discuss about the r. F. P. With the controller. Are you telling me today that color would actually not perform for us . I appreciate the question. And just taking a step back, you know, weve been really grateful to have the opportunity to work with the department of Public Health, the Mayors Office and the city over, you know, these many months in april and performing this work and we consider it to be a great privilege to be involved in this. As it relates to currently, we are in a position, as a company, where we have been performing an extensive amount and actually expanded amount of testing on behalf of the city. And really refocusing a lot of those efforts in communities across the city as well since july. And unfortunately because this is out of contract, we have not been paid for those services over that three months. As you can probably appreciate, that presents a number of challenges from a cash flow perspective, et cetera, to our business. And so weve been trying to work pretty diligently withdrew and others in d. P. H. To figure out a path to resolution of that. My concern is just that we have the more that the weeks go on and expanded Services Come into play, and were outside of contract, it does present legal and business challenges for us. But we have continued to perform in good faith throughout, including with the planning of the relocation to almaney, which is currently targeted for the week after next. We continued to do that as we go through the process. Chair fewer sure. So youd continue to work in good faith with the city if we were to delay this decision by a week or two . I think thats my question. Yeah. Id love to discuss that further withdrew as well. And i think one consideration and question is if theres any questions currently, that i could be helpful in answering, that would support not delaying for further discussion, if theres any question that i can help answer now as well. Chair fewer i think that is the only question i have before you today. And apparently youre the only one that can answer that. So i guess my question to you is could you still partner with us in good faith, if we were to delay this decision by a week or two . , considering that weve had a working relationship with the city and county. I think that the city and county has been very pleased with the work. But also i think that the specific time of a pandemic and that actually human lives are at stake here. Of course. Chair fewer and we appreciate that color has been assisting us in such an efficient manner, but i guess my question to you, if we didnt approve this today, is color telling me and this board of supervisors that you will not act in good faith . I dont think i think throughout this program, weve continued to act in good faith throughout. And again continue to expand services. Wed just appreciate the ability to have the dialogue i have giving us the confidence that well be compensated for the three months, plus the work that weve continued to perform, particularly as, you know, weve actually also made enhancements and improvements in our actual operations. Just within the last month alone, weve been returning 98 of all of the test results in under 33 hours from the time of sample collection. We continue to actually expand services, as well as really expand and improve the way that the results are being returned to individuals. So were were we will continue to operate in good faith, but we also appreciate confidence that, you know, that operating outside of contract for this significant period of time, given the nature of it being a public emergency, that that will be appropriately dealt with at some point. Chair fewer sure. Okay. Thats great. Thats great to know. Could we open this up for Public Comment, please. Clerk yes, madam chair. Operation is checking to see if any callers in the queue. Operations, please let us know if any callers are ready. Madam chair, there are no callers in the queue. Chair fewer thank you very much. I think personally yes. Oh, sorry. I wanted, chair fewer, thank you. I wanted to make sure to add explicitly we agree with the budget and legislative analysts report, with the proposed amendment to the resolution. Just to make sure thats on record. Thank you. Chair fewer thank you very much. So, colleagues, i actually this is a very expensive amendment. I think i am personally uncomfortable without having, first, more information from the Controllers Office and what weve heard from the Controllers Office is that they need to confer actually with our City Attorney before theyre able to give me any answers. So, colleagues, i would like to continue this item into the next meeting of the budget and finance committee. I understand there is i think we heard from a representative from color and from d. P. H. This is very this is necessary work that needs to be done in light of our current situation. And i understand the urgency of this. But what i also am hearing is color is willing to actually work continue to work in good faith with us, as they have for a couple of months and that if we were to delay this by two weeks, that actually, because were not meeting next week, that it that they would still work with us in good faith. Although it does delay the payment. So i am i am happy to approve the amendments from the b. L. A. I would like to continue this until the to the next meeting of the budget and finance committee. I would love to get your opinion and have discussion about, because we do have some options. We can pass this out of committee, without recommendation, which means that this committee has not given their approval. Or would someone could also make a motion to move this out of committee. So i think Committee Members at this point, let us approve the amendment first, while you think about this for a minute. And with that, madam clerk, id like to make a motion to approve the proposed amendment from our budget legislative analyst. Clerk yes. On the motion yes. On the motion, supervisor walton. Supervisor walton aye. Clerk supervisor mandelman. Supervisor mandelman aye. Clerk chair fewer. Chair fewer aye. Clerk there are three ayes. Chair fewer colleagues, what say you . Supervisor mandelman. Supervisor mandelman you know, i share chair fewer, i shared some of the concerns i think you have and other concerns about this contract. I also do take the anxiety that the department of Public Health has about continuing to be working with this company that theyre not under contract with. I think that it might, in light of that, makes sense to move without recommendation, so were not slowing it down, but we are indicating that we have concerns that will be need to be addressed, prior to the board vote. Chair fewer okay. So seeing no one else in the queue supervisor walton. Supervisor walton thank you, chair fewer. And i do appreciate supervisor mandelmans statements. But i think from the conversation and from the fact that you asked the question a few times and it looks like that if we did continue this, services would continue. The planning from the department of Public Health would continue. And there are some things that obviously we need to have conversations about. So i think it would be wise to continue this to our next budget meeting. So that we can get some of that ironed out and have the detailed information that we need to move forward. Chair fewer thank you, supervisors. So i see that we have a couple of opinions here. I actually would like to continue this item to the next meeting of the budget and finance committee meeting. I think this is the appropriate place to have the conversation. And also the appropriate place to have Public Comment. And as you know, Public Comment is to be facilitated before it the commitment needs to be fulfilled before it goes to the full board for a vote. And so with that, madam clerk, id like to make a motion to continue this item, as amended, to the next meeting of the budget and finance committee. Clerk yes. On the motion to continue the item to the next budget and finance committee on november 18th, supervisor walton. Supervisor walton . Aye. Clerk as amended. Chair fewer miss savelo, i want to express our appreciation for color being patient in this process. And also indulging us a couple of weeks and to continue to service to the citizens and residents of San Francisco. And i just want to really thank color and, and and i got tested by color. And i thought it was fabulous. I just wanted to extend my appreciation of the board of supervisors to color for their partnership in this and their commitment to serve awe residents in San Francisco to keep them safe and healthy. Thank you very much. I appreciate it. Madam clerk, can you please call item number 6. Clerk yes. Item number 6 resolution authorizing the department of homebridge and support homelessness and Supportive Housing for homekey. 130room hotel at 440 geary street for use as proposed future permanent Supportive Housing, approving and authorizing h. S. H. To commit approximately 27. 4 million in city funds to satisfy local match and operational subsidy requirements for five years, to commence following board approval and upon the final award and affirming the Planning Departments determination under the California Environmental quality act. Members of the public who wish to provide Public Comment on this item should call 415 6550001, meeting i. D. 146 291 7707. Chair fewer thank you very much. We have the department of homelessness and Supportive Housing. Hi. And audrey from planning. The floor is yours. We have a Powerpoint Presentation i see. Goo good morning, chair fewe, supervisors walton and mandelman. Im the Deputy Director of administration and finance for the department of homelessness and Supportive Housing. Im here to provide an authorizing resolution for the citys project homekey award to fund the acquisition of a tourist hotel, located at 440 geary street. If approved, the site would provide 130 units of permanent Supportive Housing for formally homeless individuals. And thank you to the b. L. A. For their expedited review. Chair fewer miss whitley, would you mind sizing up your presentation . Ill ask my colleague dylan to support me on that. Dylan. Chair fewer for those of us over 60. [laughter] oh, sizing up. Chair fewer making it full size. Yes. I think i can. Give me technical difficulties. Lets try this again. Chair fewer yes. Is that better . Chair fewer wonderful. Thank you. Of course. Thank you, chair fewer. So the authorizing resolution before you would authorize h. S. H. To execute a standard agreement with the California Department of housing and Community Development. To release up to 30 million in homekey emergency grant funds to our coapplicant obis co pal communitepiscopal. A matching contribution for both capital costs and a fiveyear commitment for ongoing subsidies to the project. The resolution authorizes h. S. H. To commit 27. 4 million in city funds, as well as commit to that ongoing local ongoing subsidy for at least five years. In addition to these matching funds, as i will discuss later in my presentation, there are some factors that may increase the citys financial obligation to the project. The final city obligation to the project will be scrutinized by staff and come back to the board of supervisors for final approval in 2021. Next slide, please. A little reminder about project homekey. In july, the Governors Office announced the availability of approximately 600 million in federal homekey funds. These are emergency cares act funds, that would be used by communities to permanently house people experiencing homelessness, that are also impacted by covid19. Funds are provided through the federal cares act and required to be spent by december 30th, 2020, or the funds revert to the u. S. Treasury. On october 23rd, h. C. D. Awarded San Francisco and its coapplicant Episcopal Community services a second project, which is historic, to provide 130 units of permanent Supportive Housing. Next slide, please. The site itself is currently home to the hotel diva. Its located at 440 geary between taylor and mason street. Its 130room tourist hotel, and the city will be with e. C. S. Undergoing a change in use with the Planning Department to convert it to permanent Supportive Housing. However, currently the site is being used through a contract with the Human Services agency, as a shelterinplace hotel. So it is currently occupied by covidvulnerable people experiencing homelessness. Next slide. A little reminder about the project homekey timeline. As you heard me present at our last hearing, this is a very Aggressive Program to try to maximize these covid relief funds by december 30th. As you can see, we had to move very quickly to both identify projects, select a site, and we have until december 2nd, 2020, to close on this acquisition. E. C. S. , our coapplicant, then has 90 days from closing to reach a 50 occupancy goal, for the building, under the requirements of this day. H. S. H. Rehabilitation work to begins in december and to be completed in time to reach the 50 occupancy goal. Next slide. So services and referrals. We conducted a process right after the h. S. H. To idaho tells and other sites that were immediately available for sale, especially those being used as shelterinplace hotels. The seller responded to the r. F. I. And additionally e. C. S. Was selected through a separate r. F. Q. For covid19 operators, in anticipation that some of those sites may be converted to permanent Supportive Housing. H. S. H. Plans to execute an agreement later this year with e. C. S. For ongoing operating subsidies and services, in order to meet that 50 occupancy goal i mentioned. Permanently placed at the site through housing it referrals process of the citys coordinated entry system. This system provides equitable access to resources and targets those who most need who are most vulnerable and chronically homeless to the highest and most serviceintensive resolution that we have in the city, permanent Supportive Housing. Coordinated entry assesses people experiencing homelessness for housing faced on their vulnerability, and other barriers to housing, to maximize participation of historically excluded groups. Next slide. So a little bit about the fiscal impact of the project. The table before you reflects the permanent sources of funding for the project. However, no city funds will go into the project until acquisition and rehabilitation are complete. The total acquisition and rehab costs is currently anticipated to be around 53 million. The San Francisco housing accelerator fund, which is partnering with e. C. S. , plans to provide a bridge loan to cover the gap until city funds are added to the project. H. C. D. Fund funds will go in ate close of escrow. H. S. H. Is working with the Community Development and the Mayors Office to finalize the permanent sources and amounts for the permanent loan through the citywide Affordable Housing loan, in order to bring loan commitment before the board of supervisors in 2021. Acquisition of the hotel diva is currently estimated to be about 48 million. Funded by the Homekey Program funds and eventually city funds. The total budget, as i mentioned, is approximately 53. 47 million. However, e. C. S. , our partner, conducting a seismic evaluation of the building, so there may be Additional Capital cost for renovation, related to the structural improvements and other physical needs. These costs would be at the citys expense. I want to give you more information about where we are in negotiating a final Purchase Agreement with the seller. The Purchase Agreement is not yet finaliz finalized. Any further changes will not affect the matching funds to the state, i want to be transparent. The cafe space lease was originally excluded from the Purchase Price by the seller. The 48 million acquisition cost, at this time does not include that portion of the commercial space. However, the city and e. C. S. Are hopeful that this space will be included in the final Purchase Price. That will increase the acquisition cost by about 2 million, or a total Acquisition Price of 50 million. However, that cost will be predominantly offset by projected revenue from that cafe space lease, which will be approximately 1. 6 million to 1. 7 million. Again all of those details will be back to the board for final approval when a final purchase and Sale Agreement is negotiated. And the city completes its Due Diligence in a final loan amount to the project. In addition, the standard agreement requires the city to provide operating subsidies for at least five years. The estimated cost of these subsidies is approximately 13. 3 million. However, the city and its partner were also awarded about 3. 12 million in state funds to cover the first two years of operating costs. Although the homekey grant requires the city to maintain an operating subsidy for five years, as all of you know, the department is committed to Supportive Housing and intends to make a longterm commit to both the project itself permanent Supportive Housing. Id like to introduce an amendment, explain an amendment that were proposing to the resolution and appreciate the partnership of the Planning Department and City Attorney in helping to draft that. This project is not subject to Environmental Review, under the California Environmental quality act, ceqa. Under senate bill 35. S. B. 35 allows a streamlined approval process for certain housing projects, which are, therefore, not subject to Environmental Review under ceqa. Assembly bill 168, effective september 25th, 2020, requires the local government to engage in scoping consultations with california native american tribes, traditionally and culturally affiliated with the geographic proposed development before a project may be submitted for this type of streamlined review and approval by the Planning Department. The required tribal notification is under way and will be completed before the board takes final action on this resolution. The Planning Department issued a formal notification to the affected native american tribes on october 15th, 2020. The Planning Department does not expect to receive a written request to engage in additional scoping consultation within the 30day notice period or by november 16th, 2020. At that point the project is then eligible for ministerial approval, under s. B. 35. Therefore, ceqa determination would not be required. The Planning Department, as i mentions, does not anticipate any inquiries from this notice, as there are no proposed disturbances to the soil, as part of this project. However, while waiting for the notice period to conclude, the Planning Department has additionally executed the categorical exemption, as it is not proposing any major work to the exterior of the building. The exemption not needed on top of the s. B. 35 approval process. However, to ensure the resolution qualified to move through this committee and on to the full board, the Planning Department, in consultation with the citys attorneys office, issued this additional ceqa clearance. We are requesting the committee, amend the resolution today, to reflect the additional ceqa clearance through the categorical exemption. Im joined by our colleague from the Planning Department, our principal environmenter environmental planner is on the line. I thank you for your time. Chair fewer thank you very much. Could we have a b. L. A. Report, please. Yes. It is nick menard from the b. L. A. This proposed resolution would approve the California Department of housing and Community Development for up to 30 million to acquire a hotel at 4440 geary street. And would also authorize the department to commit at least 27 million in matching funds for the grant. As we detail on page 29 of our report, the cost of the acquisition is expected to be 53. 5 million, excluding that commercial space that miss whitley referenced. Of that 26 million funded by the grant. Grant would also provide 3. 12 million to partially cover the required operating subsidy of this project. The remaining cost to the acquisition, and their operating subsidies Going Forward would ultimately have to be paid for by the city. We do recommend approval of this resolution. Chair fewer thank you very much, mr. Menard. Any comments or questions from my colleagues . Madam City Attorney, does this amendment, is it substantive . No, madam chair, its not. Chair fewer thank you very much. Lets open this up for Public Comment, please, madam clerk. Clerk yes, madam chair, operation is checking to see if any callers in the queue. Operations, please let us know if callers are ready. Yes. I have two callers in the queue. Chair fewer okay. Thank you. Caller hi. This Rebecca Foster calling. Im the c. E. O. Of the San Francisco housing accelerator fund. Thank you all to the committee and to mayor breed, h. S. H. , mohcd and Episcopal Community services for your work on this important acquisition. And we are proud to be partnering again with the city and e. C. S. On these second homekey projects. And leveraging private and philanthropic funds to assist the city in reaching its ambitious and incredibly timesensitive goals to provide more permanent Housing Access from the shelterinplace hotels in particular. And were planning to provide approximately 30 million bridge loan to finance the remaining portion as was mentioned of the acquisition and rehab costs, but will not be covered of the state homekey award for 440 geary , the diva. And just couldnt be happier to be part of this important part of this resolution and providing housing for another 130 individuals in record time. And a Quality Hotel that when we need it so much. And moving moving the needle towards the 1500 units as part of the homeless recovery plan. Thank you. Clerk thank you for your comment. Next speaker, please. Caller hi, everyone. My name is rebecca gigi. Im on the Development Team for Episcopal Community services on this project. E. C. S. Is very excited and grateful to be in partnership once again with h. S. H. , mohcd and the San Francisco housing accelerator fund, for what feels like a onceinalifetime opportunity with the state to acquire permanent supportive housinin this way,especially dul pandemic. Ewent end homelessnessin our su. Thank you. Clerk thank you for your comments. Next speaker, please. Madam chair, that completes the queue. Chair fewer thank you very much. Public comment on item number 6 is now closed. So mr. Whitley, would you please read the amendment, the full amendment so our listening public can understand what were adding to this legislation. Of course. Chair fewer, starting on line excuse me, starting on line 16. After the word quality at, after the words quality act ceqa, california government code 65400, 6582. 1 and 69591. New language. And is cat goreically and is otherwise categorically exempt and ceqa guidelines 1530, in a copy of these determinations are on file with the clerk of the board of supervisors in file number blank and are incorporated herein by reference. Now, therefore, be it [audio cutting in and out] chair fewer im sorry to interrupt you. No problem. Resolved this board affirms the Planning Departments determination that actions contemplated by this resolution are not subject to new language or are exempt from Environmental Review from ceqa. That completes the amended language. Chair fewer yeah. Colleagues, are you okay with that . I thought the amendment would actually say that it has been determined by the Planning Department that versus that we dont make that determination, that it is the Planning Department that makes that determination. Is that correct, ms. Whitley . I believe my colleague from city planning is on. And id like to turn it over to her to answer your ceqa questions. Joy. Hi. Chair fewer are you on mute . I think youre muted. Sorry. Joy from planning staff. Yes. It does say that in the whereas the Planning Department has determined that the 440 geary project is not subject to ceqa, under s. B. 35, but weve otherwise categorically exempted from Environmental Review under category 1. Chair fewer okay. Okay. I just want to say, you know, as a city member on the board of supervisors, anything thats appealed, were very cautious about actually saying that we have approved one thing or another around i mean, just being cautious. Just f. Y. I. Having said that, supervisor mandelman, you look a little no. Okay. Good. You look good. Okay. Here we go then. Id like to make a motion to approve the amendment. Roll call vote, please. Clerk on the motion, supervisor walton. Supervisor walton aye. Clerk supervisor mandelman. Supervisor mandelman aye. Clerk chair fewer. Chair fewer aye. Clerk there are three ayes. Chair fewer and then before they take the money away from the homekey grant, lets move this to the board with a positive recommendation, as amended. Clerk yes. On the motion, supervisor walton. Supervisor walton aye. Clerk supervisor mandelman. Supervisor mandelman aye. Clerk chair fewer. Chair fewer aye. Clerk there are three ayes. Chair fewer thank you very much. Madam clerk, can you please call item number 7. A resolution authorizing the office of the District Attorney to accept and expand an inkind gift estimated at 250,000 from the university of San Francisco school of laws Racial Justice clinic, to hire two staff attorneys to support the District Attorneys efforts to evaluate and remedy cases involving a claim or excessive sentence or wrongful conviction. Members of the public who wish to provide Public Comment on this item, should call 415 6550001, meeting i. D. 146 291 7707. Chair fewer thank you very much. We have Tara Anderson from the District Attorneys office. The floor is yours. Thank you so much. Im Tara Anderson, director of policy for the San Francisco District Attorneys office. Thank you, turkish, for your support. Thank you, chair fewer, for your support. As was stated, the resolution is for inkind support from the university of San Franciscos school of law Racial Justice clinic. University of San Francisco law school will hire two staff attorneys to support the District Attorneys efforts to evaluate and remedy cases involving a claim of excessive sentence or wrongful conviction. There are thousands of people in prisons across california, who no longer bear a danger to Public Safety, who continued incarceration provide no Public Safety benefit. To address this reality, the California Legislature passed two laws that allow certain incarcerated persons to have their sentences reviewed and modified, if appropriate. S. B. 1437 amended what is commonly referred to as the flown murder rule. This change allows individuals to petition the District Attorney for sentencing, if they were not a major participant in the underlying felony. The review of these cases requires reopening the entire case file to determine eligibility. Additionally, a. B. 2942 permits the District Attorney to recommend people to receive a reduced sentence, if they have shown adequate efforts that rehabilitation during their incarceration. These reviews require extensive documentation from the California Department of corrections and rehabilitation and many other sources. Well, authority was granted to prosecutors offices to enga imin the review engage in the review, no funds have been provided to do this support. It will enhance the sfdas office the act to conduct the time and laborintensive reviews. Im happy to answer any questions you may have. Chair fewer thank you very much. Seeing no one in the queue, can we open this up for Public Comment, please. Clerk yes, madam chair, operations, please let us know if the callers are ready. If you have not already done so, please press star 3 to be added to the queue. For those on hold, please continue to wait until the system indicates you have been unmuted. Mr. Coup, any callers wishing to comment on item number 7 . Madam chair, there are no callers in the queue. Chair fewer Public Comment for item 7 is now closed. Thank you very much to the university of San Francisco for this inkind gift. Id like to make a motion to move it to the board with a positive recommendation. Could i have a roll call vote, please. Clerk yes. On the motion, supervisor walton. Supervisor walton aye. Clerk supervisor mandelman. Supervisor mandelman aye. Clerk chair fewer. Chair fewer aye. Thank you very much. Madam clerk, can you please call item number 8. Clerk yes. A resolution approving a please between Minute Suites travelers retreat s. F. O. And the city at the terminal one retail concession for a term of 12 years, a minimum annual guarantees of 150,000th if the first year of the lease. To commence upon board approval. Members of the public who wish to provide Public Comment should call 415 6550001, meeting i. D. 146 291 7707. Then press pound twice. A system prompt will indicate you have raised your hand, please wait until the system indicates you have been unmuted and you may begin your comments. Chair fewer thank you very much. We have deannea kizon from the San Francisco international airport. Hi, good to see you. Chair fewer thank you, chair fewer. The approval for a concession lead in harvey milk terminal 1, Minute Suites travelers retreat. A minimum annual guarantee of 150,000. However, the lease contains a provision that suspends if drops below 80 . I want to note its 2019 levels for three consecutive months, it was erroneously reported as 2017 levels. If that occurs, Minute Suites would pay percentage rent, which may be lowerren that the mag. The mag is reinstated if they get back to 80 of the 2019 levels for two consecutive months. The budget analyst reviewed the concession lease and recommends approval. But im happy to answer any questions. Chair fewer thank you very much. Can we hear from the b. L. A. , please. Yes. Im nick menard from the b. L. A. So this proposed resolution would approve a 12year concession lease between the travelers retreat s. F. O. L. L. C. For spa services at harvey milk terminal one, with a minimum annual rent of 150,000. We detailed the provisions and we recommend to the board. Chair fewer thank you very much. Open this up for Public Comment. Clerk yes, madam chair. Operations is checking to see if theres any callers the queue. O. [reading instructions] mr. Consumer, any callers this wish to comment on ite item numr 8. No comments in the queue. Chair fewer id like to make a motion to move this to the board. Could i have a roll caught, vote. Clerk yes. Supervisor walton. Supervisor walton aye. Clerk supervisor mandelman. Supervisor mandelman aye. Clerk chair fewer. Chair fewer aye. Clerk there are three ayes. Chair fewer is there any more business before us today . Clerk theres no further business. Chair fewer we are adjourned. Thank you, everyone. To me. Okay, welcome to the San Francisco Historic Preservation Commission Meeting on november 4, 2020. On may 29, 2020, the Mayors Office authorized all commissions to reconvene remotely. This will be our tenth remote hearing. Remote hearings requires everyones attention and most of all, your patience. If you are not speaking, please mute your microphone and turn off your video camera. To enable public participation, sfgov tv will be broadcasting and is streaming this hearing live and we will receive Public Comment on each item on todays agenda. Opportunities to speak during the Public Comment period is available by calling 4156550001,