Transcripts For SFGTV BOS Budget And Finance Committee 20221024

Comment and Remote Access and Public Comment via phone the board recognizes equal access is essential and will be taking comment as follows. First comment taken on each item on the engaged. Those in person will be alued to speeb first then those on the phone line. Yes, watching channel 26, 78 or 99 and sfgov. Org the call in number is streaming that number is 4156550001. Again 4156550001 enter the meeting id of access code 2485 887 9195. When connected you will hear sdukzs and in listening mode when item come up in Public Comment is called those in person should line up to speak. And those on the phone should dial star 3 to also be added to the line. If you are on your phone remember to turn down your tv and listening devices using each allowed up to 2 minutes to speak. Alternateively submit comment in writing e mail them to the budget and finance clerk at b brent. Jalipa sfgov. Org tell be forwarded at this time supervisors and also included part of the official time. And finally items acted upon will apore on the board of supervisors agenda of october 25th unless otherwise stated. Thank you, can you read item one . Item one is an ordinance manying the program established ordinance number 14321 leaving first year permit license and business fees for businesses retroactive to november first of 21 to extend through the program through john 30 of 23. Thkz the receipts per missable for a business tax and fee waiver from 2 million to 5 million remove the requirement businesses on the ground floor. Extent the full refun together a year from the date of payment or june 20 of 23 for challenging Tax Collector determinations that a business improperly climb aid waiver under this ordinance. Increase the gross ropes the waiver would be revoked from 10 million to 15 million and the year of or any calendar year during the 3 full years following the date of the business commenced. Within San Francisco or open a new location for commercial use and make Administrative Changes as defined. Members joining us wish to comment call 4156550001. Access code 2485 887 9195. Press story 3 to enter the queue. A prompt will indicate you raised your hand. Madam chair thank you very much. Clothes today we consider legislation that will extend and expand the first year ordinance i sponsored at the board unanimously pasted lasz year. Thank you supervisor chan for cosponsorship. A program to support and revise San Francisco Small Businesses the city recovers from the pandemic. The program waves the cost of initial registration fees and other fees for qualifying businesses. To date program enrolled 1700 businesses since last november. All accounts the program has been popular and successful. And i would like to take this opportunity to expand the program so more Small Businesses can qualify. Based on feedback from the Treasurers Office and Tax Collector and the office of Small Business. Our new legislation will dot following. Extend the Enrollment Period june 30 of 23 and expand eligibility for Small Businesses from 2 million to 5 million and max gross receipts and e lim nit the ground floor limitation so businesses can qualify. In addition, i am introducing another amend expand the business types covered by wifr from commercial businesses in certain planning code categories to all commercial businesses. We have seen benefits this bruto our mall businesses and im excited we can at any time progress we made. I want to change the treasure and office of Small Business for work and amanda who is here from the treasurer and Tax Collectors office who has created this legislation with me and formy legislative aid amy during the higher more urgent of the pandemic thank you for stick with it and continuing to refind it to help as many businesses as possible. I will be making one amendment to what i introduced that is would expand the business types covered by the waiver from commercial businesses in planning categories to all commercial businesses. Like i mentioned. And just for everyones information, im trying to find the page numbers. It is on page one, it is number four and the long title and then somewhere, thank you on page five lines 1925. So, with that organism up this item or you want to stay anything . Come on up. Good afternoon chair ronen nice to be here. Fun to talk about first year free. I had a brief presentation to go through the amendments so people are clear on what is proposed here if we can show the screen. As chair ronen discussed the goal is to expand the initial businesses. Who can qualify for first year free. First one is we are proposing to extend to june 30 of 23. Without this legislation, this program ends the end of this month. The in effect major change is increasing the gross receipts threshold for eljiblth from 2 to 5 million. And this change alone will increase the number of businesses who qualify by 36 . Pretty significant. And as chair ronen talked about moving the grounds floor reporter we had a strict definition we were not sure how many businesses may open or qualify. With experience we are recommending to think more broadly about the definition of Small Businesses and get back the businesses that we disqualified previously buzz they were food trucks, in the basement. A Farmers Market stall. We dont have enough information in our current data to tell you how many more businesses this will bring. But we know from the diameters this was a major question and request this came up from Small Businesses. Again, should this legislation pass we are excited get to work again. To make sure the businesses understand they are now eligible. It would go become in time to november first 21. We would retroactive low capture business this is may have paid but now per of the program. And we will again share with the board multilingual out reach tomorrows and do broad marketing to capture as many businesses as possible. I want to say im grateful to you, chair ronen for your leadership and to my part anywheres the office Small Business, team permit center and the staff in the first year free departments who worked to implement and have another do should they pass. Everyone is eatingtory make this program successful. Thank you. Thank you. I and wanted to thank and ana from my office for taking this on after amy retired and for putting effort in the legislation as well. Thank you. Before i turn it over i wanted gift bla opportunity to report. Thank you. Chair ronen nick from budget analyst office. We show on page 4 of our report the total amount of fees waived since the story through august of this year that is 441,000. There are there was for you Million Dollars in the Tax Collector budget the board added to fund this program. Which we believe leaves funding for the changes in the amendment and we recommend approval. Thank you. Supervisor safai. I would like to be added as a coexperience it is a tremendous program and in line with the things we have to consider in the coming year as we are beginning to think about encouraging revitalizing and reimagining our Downtown Core as well. There it is a lot at stake in terms of how we keep businesses going. This is a wonderful program. And the amount of money fees waived is lisz then and there helpful a Million Dollars butt impact to our local economy is dramatic significant. Helping to save jobs and excuse me businesses going. And i think it said almost 1800 businesses enrolfed. Not guilty existing program as of october of this year. So that is a significant impact. And with minimal costs to the staechl Going Forward 3 Million Dollars that they estimate would be waived and that will be realized back to the city. Dramatically. So thank you supervisor ronen for leading this and fighting hard for Small Businesses and im prud to coporns this with you. Open up for Public Comment . Members who wish to speak and are join nothing person lineup now. For those remote call 4156550001 then access code 2485 887 9195 and press story 3 to enter the queue. Continue on wait until you have been unmuted and begin comments. No in person in the chamber. Unmute our first caller, please. Hello this is sharkey laghana im president of the san front Small Business commission calling in personal capacity. I want to really deeply thank chair ronen for her leadership on this legislation and getting the ball rolling. I think it has made a Material Impact on, legality of Small Businesses and decisionmaking. I would also like to thank amanda for her hard work. She spent time with mow on the phone as we strategized and expanded further. And there is constraints but certainly we definitely need to do even more to encourage Small Businesses to open. Id like to echo thanks for ana chair ronen was wonderful to work with and we appreciate her efforts. Thank you as well supervisors for your support and supervisor safai for adding yourself as a cosponsor. I add we still as a city have more Small Businesses closing than opening. And thats a challenge as we try to work toward an economic recovery. Anything we do to expand it is material and final low i add this these fees are pretty mall on a per business bases but leaving them convince people sitting on the fence to get off the fence. There are businesses not captured by this. We like to see them to get capture third degree will help a lot. But i think there are larger fees looked at in the coming time ahead if we want to maximize our recovery. The bottom line is this has been a great legislative effort and really appreciate all that you have done. Thank you for your comments. That finance the queue thank you. With this i will make a motion to amend as i read in the record. And then if we take it in one vote. Sends the amended item to the full board with positive recommendation. Before the vote can we close Public Comment. Joy am closing Public Comment. Thank you. On this motion to amend this ordinance as stated by chair ronen and also to forward this to the board with positive recommendation. Xouz me chair ronen im sorry. Im glad you have you both to keep me in line today. If i could with draw and make the motion to amend and because these are substantive amendments to continue the amended item to the october 26th budget and finance meeting. Thank you. City attorney pierson. Okay. On okay. On this motion to amend the ordinance as stated by the chair and continue this ordinance to the october 26 meeting of the committee as amended. Safai. Aye member chan. Aye. Chair ronen. Aye. We have 3 ayes. That passed unanimously. Mr. Compleshg item 2. Item 2 a resolution authorizing director of property to execute a Second Amendment to a 10 year commercial lease with 25 year extensions with the city as landlord and volunteer in medicine clinic by the bay as tenant for the city owned property at 35 onondaga avenue. Authorizing reimburse am up to approximately tw. 1 million for improvements to commence following approval upon execution of the lose and authorize of the director. Property to enter in amendments or modifications to the second metropolitan that dont material low increase the obligations or liabilities to the city and necessary for the purposes of the les or this resolution. Members joining us and wish to comment call 4156550001, access code 2485 887 9195 then star 3 to enter the queu madam chair. Thank you. Supervisor safai will introduce the enemy background quickly, this item is today is to increase the funding toward attentive improvements. 3545 onondaga. This is a city owned propertiful the old al meny emergency hospital. It is owned by Public Health. This project was put out to bid my first 2 weeks in office. Being elected in 2017. It is absolutely stunning that we are still here. Waiting for this project to begin. And it was awarded to clinic by the bay a fro clinic. Arts ban does spaces for artists in San Francisco. Will take over the space and they have gone out and raised millions to do tenant improvements the city will not pay for. But the city put 400 thousand dollars aside to renovate the space. The cost is well over 2 Million Dollars and we had to come back and ajust the contracts accordingly. There is probably w to be done to so my clothes know we have to adjust these. This is not your traditional dollar a year rent for a nonprofit. This is they are paying rent and so we will have to come become and electric at this because the amount of money they are putting in this the amount of effort and energy they had to of put in this is grossly under estimated. The reason we are coming become today has to do with your favorite thingful transitioning from pg and e to puc we have gone through a dramatic process. It is almost done the transformer will be boekted interest were hundred stipulated spinnings banning the there was an under grounds tunnel. They did not build bridges at that time they would build tunnels. Where they were going to put the trans former this cameum. We had to put money on the city side to fill that area. So there was unexpected things this happened long the way. But for you today, clothes a request to increase additional funds that we worked with d ph on that go toward the cost of improve am that in my. City should have and thought about should have awarded proposal and probably as i said will have to come back and talk. This it is a free clinic they are original the corner. Thank goodness wont found a permanent location. And getting art and programming out in the excelsior and Outer Mission we are excited. They freed to fund the remainder of costs costs escalated. And i think we have jeremy spitz here or he is on line from the puc and claudia here to answer questions you might have. I think there is a bla report. Why dont we do this first. Sur. This item 2 resolution approved an amendment to the restated lose with the city as land lord and volunteer in medicine the only change is increase the steles contribution of tenant imprudent personments to 2. 12 Million Dollars. This is to do under ground work on power infrastructure. To connect the site to the pucs power the tenant improvements the costs exceed the rent on the 10 year term and we consider approval of this to be a policy matter. Supervisor chan. Thank you. I think if i my recollection serves me, i believe you also in the last fiscal year allocated 80 thousand dollars already torinto in. I believe in the mission of this project. I think it is district 11 deserve to have a fro clinic and to serve those cannot get covered for health care. Buoyment to confirm this we it was 85,000 and was to fill the under ground tunnel we did not know this helps with energy portion of pucpg and e the trans former will be located only accomplice its could be in the sidewalk. And i think another part i wanted confirm expected besides the unexpected construction issues like the tunnel and one of the [inaudible] because of pg and e, correct. In this situation, actually we engaged them early we learned from the balboa pool situation. We engaged them early and able to Work Together to ensure it did not bump the requirement to a ridiculous energy amount. The process has been more about there is a lot of different engineers and others to coordinate so we are puc, public works, pg and e. There is a let of different coordination that happened. I would not say this is the case. It is a matter of the take the buildingum grading the service. And it is difficult for a lot of people to understand the end of the day you think, this is know existing building why cant we rehab it and get it going. Part has to do with the level of service is changing. It is free clinic and a denial office. Well will be Free Dental Services there require more power. There is a restoration to a mural that was there to historic mural. That we it everhad to allocate for. Some of the real. I will say this truthfully the real problems stem from a very rushed process put this out to bid khoa without an analysis of what the scope was work was. Thats when my reference was the city said we have 4 huh thousand dollars a strange amount. 4 snaend you think may be that is money they had left over. Im being honest that might be remain happening funds they had. There is in way that the scope of work on this project was a 4 huh thousand dollars and it is the reason yet people chose not to bid on it original low. And so i think if we had a better scoping of the cost of the work, it would have allowed you to get this done sooner with that said, i think my last question is and i think vice chair safai stated in the beginning is that you will come back so i think the 2 part question is one is, i think most personal low. When do we expect a w to complete so that the clinic is open and serves the community. We are literally 2 weeks away from getting the final engineering scope from pg sxeshgs. Puc will then review that. And then the trans former will be installed. Some of the work is it is about a 4 when they told us 45 month scope of work thats it. A very quick scope of work. They put out their bids. Got them become 2 weeks ago. Navy brother construction is dog it they are down the street doing affordable project in my district. I think everything will line up. It has been very frustrating to wait to have to seat project cost escalate and the piecemealing of the scope of work. The coordination between the different agencies and so on. You are expecting to some time in spring. Will in about the next 4 to 5 among in spring. I will be optimistic. And then the expectation. This is what happened when you have a former like with the expectation of completion in spring of 23, of course none of us. You to come back with additional costs but is there expectation though that you could come back there might be. I have to say there could being well timed out as we get the final analysis from pg and e and the team the way we negotiated the contract each the nonprofits required go out and fund raise for some of the costs of capitol costs. On to which of that they have gone out and done a Capitol Campaign for all of the tenant improvements this scope of work is a warm shell the electric, plumbing, walls, you know get the energy and power red to go. So but what i think has there were and we can do a full are analysis and a conversation we have a long agenda today. There will be conversation about the amount of costs that both the nonprofits had to burdened with given the scope of this work and the work this is going to be delivered on behalf of the citizen. Has the city shifted on properties the city owns. That is had i would come become with. I dont think that the initial understanding. We can finalize that at this point 160 thousand dollars. And should get us to close to the finish line with the construction. Du want to add anything . No. Thanks for being here and working with ulc. Do you want to open Public Comment. Gi would be happy to open this up for Public Comment. Why member when is wish to speak and in person line up now. Remote call 4156550001. Access code 2485 887 9195 trent story 3 to enter the queue. No in person speakers here. There are none on the phone. Public comment is closed. Would you like to dot honors. Send this to the full burden with positive recommendation. Roll cull on that. Vice chair safai to forward this resolution with positive recommendation vice chair safai. Aye member chan. Aye chair ronen. Aye. We have 3 aye a that passes umly. Read item 3. Item 3, is a resolution approveings the lease amendment january of 23 to 32 for 69,000 square feet at 1390 market state fs2 Market Street llc as labldz lord for use by the office of the City Attorney an initial rent of 4. 9 million or 4 of [inaudible]. With 3 increases thereafter am approving the uchtz portion of the premesis for Childcare Services and authorize the director of property to enters in amendments to the lease day care license this dont increase the obligations or liability to the city and the purposes of the lease or this resolution. Members remote and wish to comment call 4156550001, access code 2485 887 9195 then star 3 to enter the queue. [speaking very fast]. Thank you i wanted to thank supervisor safai and mrs. Gorman and Charles Sullivan from the City Attorneys office. And so. I can jump in. And he will thank everyone else for really looking at this and negotiating and finding a solution. Supervisor safai . Thank you chair ronen. We worked with the charles sulveteran and his team and pennic. And real estate and their team, the reason we wanted have a further look at this was the idea of not getting locked in to a longer term lease given state Real Estate Market and seeing the office occupancies of fluctuating the price per square foot down further and leaving the city options open for future negotiations and or options to relocate. We have also needed to fulfill the desire of the City Attorneys office to expand their footprint santa fes they need increased. We want to be aware of this but understanding that there would be cost associated with tenability improvement under a shorter scenario. We have come up with a solution i will let mrs. Sullivan talk about that in his team to talk about how some of that cost will be spread out or amorized over time and we have the ability to come become and have a future conversation with the committee because they dont have monies allocated for tenant improvement we keep the process at 66 dollars a square foot when we wanted the City Attorney is able to realize the pace they wanted and may be a bit additional. And allows you to have a 5 year lease, which is what might be evermy mroel goal was work width team. I spoke is with the director on friday and felt comfortable with this deal. Im not putting word in his mouth. Spoke with the City Attorney on sunday and they felt comfortable. Il hundred it over. Lets go to mr. Anyonard with bla and department of real estate and City Attorneys office. Through the chair. We just got the amendment yesterday but i tell thank you you are correct the price is the same. If did you see the amendment . Yes. Im sorry. The but and consideration of the shorter lose the city is now the original lease proposal had the city not piing for improve ams and 4 month rent abatement this new version has a month, baitment and the city paying for improvements a 2. 8 Million Dollars deference over 5 years the lose cost per square foot is the same. Less than looking us in a 10 year you add the entire amount wield pay at a 66 dollar a square foot. We are saving money depening where the market goes . Right. All right. Goreum. Yes. Thank you. Good afternoon claudia department manage director of Real Estate Division we submitted an amended residence loug touches on the main terms this changed. Swon that inside of 10 down to 5 years the 5 years will start upon the if completion of the improvements. So the length of time the space is there will be languager the 5 year term starting with expansion. Am it is correct tht steal be correct 1. 6 Million Dollars toward the cost of improuchlts the land lord the also be contributing 1 penalty 9 million or more. The citys contribution is capped at 1. 6. This can be paid over in a lump sum or over 2. 5 years. On the month low basis. At hopeful low citys choosing. Um we get one month rent abatement in june of 23 for that fiscal year can be not paid or used for change orders. The tenant improvement should commence calendar next year early. Should be completed march or april. So thats coming up. Soon. And again it it is capped it is 66 dollars. At 3 . A lost other terms other same as in the 10 year. And we can get in all the costs in the additional what it was or would have been next time. We would like to have the committee adopt the amended resolution and ask for an extension to next week to come back and discuss it further. Sounds good to me yoochl thank you. Mrs. Sullivan you want to add anything . I think you have done a good job and i wanted thank you for your support because i think we are bring forward a good dheel is we were help with the 10 year deal we understand your desire for 5 year and did a good job in bring you a 5 year deal that works for us. I continuing is worth the landlord is responsible for key turn product no matter the cost. Iel anticipated 3 and a half million. Could be more our contribution is capped. Thank you for under scoring that. Supervisor chan. Thank you. This is more a question for vice chair safai. I think that when i evaluate the original terms was recommended bide bla as it was. And now looking at this, i too think that it is actually a good negotiated terms for the contract the only thing the difference with the 10 and 5 year system when are we going to do with the City Attorneys office. If in the next 5 years time. And how to make sure that they have a home 5 years from now if not the plaza or continuing the lease. I can jump in quick. One thing we tried to do emphasizing. A per minute nan attentive theyll always negotiate from the perspective we dont have other options. We have try in the this committee. Same with hs Insurance Companies a couple years ago they wanted to rent space on Mission Street and shot that down. And toll them they own aid belling on turk in the tenderloin and they needed go put their office in this location. So there are options that the steal have and we want to wait and see had they present the next couple years to pursue those aggressively. We might end up remain nothing fox plaza but might not. I think this is where we are head in the the conversations. And i think that and this is a message for carmen chiou and more than for the City Attorneys office. I think that i would love for us to work with her and her team. To especially given she is the Planning Committee chair. And to really have a more holistic will conversation or planning for the citys public assets and inventory and he make a decision. Or really a master plan for our Public Access to determine how we want to purchase and how we want to lose our properties. Because i would have to say, besides City Attorneys office we also just last fiscal year approved the department of homelessness and Supportive Housing for them leasing right near on vaness and so lets and thats a new lees, have a conversation if that is the case to real what are we going for the city departments located conveniently in this area. Thank you. Thanks. We can open this up to Public Comment. If you wish to peek in person line up for you remote call 4156550001, access code 2485 887 9195 then story 3 to enter the queue. No in person in the chamber approximate we have no speakers on the line. Public comment is now closed. You like to make the motion . Yes. Like to make a motion to sends this accepting the amendments. And continuing. There are substantive. Sorry. A motion to accept amendments proposed by department of rolls royce and City Attorneys office. On that motion by vice chair safai to sept amendments by Real Estate Division vase chair safai. Aye member chan. Why aye chair ronen. Aye 3 ayes. That passes unanimously. Is it are we certain those amendments are substantive not to question madam City Attorney. I was under the impression when things decreased it was deputy City Attorney,ure right typically when an amount decrease its is in the. Here we are paying the same yearly rent. Not the xa 5 and not getting the benefit building for that period and assuming 1 penalty 6 mission for tenant improve ams. Okay reducing. Not the reduction in the rent. Looking us in does not negate. Okay. Sounds good to me. You are the boss. All right. I will make a motion to send the item to the continue the amended item to this committee to the october 26th date of this committee. On that motion to then and there to the 10 26 meeting amended, vase chair safai. Aye member chan y. Aye chair ronen. Aye. That passes unanimously read item 4. Item 4, im sorry. Resolution approving authorizing the execution deliver and performance of purchase and sale by the city acting through the San Francisco Port Commission unimproved property a portion of former custer avenueave public trust exchange and settlesment agreement. Davidson avenue the city acting through the Port Commission the california state lands and the coal trust. Agreements in furtherance of the settlement the port and the coal trust affirming planning determination under the California Environmental equality act adopting findings they are consistent with the general plan and planning code. Adopting findings the Real Property transactions comp ploy with lands act and city surplus lands ordinance. From the state of a new public trust easement ending state enabling legislation and authorizing it is ports executive director and director of property to take actions with the resolution defined. Members who wish to comment call 4156550001, access code 2485 887 9195 , star 3 to enter the queue. Thank you, so much we have josh king from the port here to present. Or describe this item thank you. Chair ronen and supervisor chan and vice chair safai. This is a long title. This will be a presentation. It is quick technical transaction from our side. There was not a bla report there was not a fiscal impact on this. He is available. Could you pull up our presentation . Great. Thank you. Go to the next slide on this one. Very briefly this is a technical real estate transaction a series of actions asking the department of rolls royce to help us out with. And associated with settle a willing dispute with the city on behalf of the port and state of california each presumed jurisdictional rightos property them in other private party is acerting rights to. The Property Owner owns to the north and the south. Surrounds this. This is an important piece of property the port and the state asserted legal rights on this briefly. You see there there is an indication called custer avenue and this subject property we are talking about is 25,000 square feet. And a paper street. Tinldzed be developd and never was that is where the change gets lost here. Acknowledging the dispute and rather than litigate ownership the parties the port and the state on one side and the coal trust on the other enter in the an agreement to try to negotiate the appropriate settle am to avoid litigation. The actions contemplated under an existing settlement agreement. The transactions here this will involve quick claiming or disposing or conveying port property to a coal trust the primary action this is a break down of the custer avenue. The yellow and red custer avenue. And different as far as how they are revving litted boy state lu. What we negotiated is the port portion is the red triangle and that would be a pip to the port of 160 thousand dollars for quick claiming that property. Yellow area the remainder of custer is money pid to the state. 950 thousand dollars disposition. In addition to other considerations i will get to. Next slide. All in exchange the state will receive an ease am you see running long the Northern Edge of the property them does not exist now. This is adjacent to islais creek beneficial to state lands and the port. That would be a concession given in the deal. And beneficial low that easement will come under a separate action to the port in a future outside of the agreement. That is why this is in here now to contemplay that easement could come become to the port. And so am that upon 790 thousand dollars is state this does in the go to the budget to the funds which is used for firing potential properties we are hope to work with them to locate port side or bay side property in San Francisco. And left low the port will get reembersed for legal costs. So here is the next steps if you are in agreement. We seek board approval next tuesday on the 25th. And state Land Commission is seek approval they are per to the transactions. That 790 thousand dollars aspect. Hoping both go through. That would lead us toward a cloeszing of transactions here boy the end of this year. And result of this the claims would be dropped. Official final settle am of the agreement. Which i want it thank the City Attorneys office they did a great job. I missed a point we got an aappraisal review signed off by claudia and her team for fair market value to negotiate the settlement amount. Thats all i got. I want to say i like to thank the port on my team for leading this. Claudia and her team and helping us along the way. Colleagues at state lands. I want to thank verona sandler and just and i know kristin from the City Attorneys office. Supervisor chan what is the existing dues and also are there plans for future use . Existing use is a longterm lees for operation of a bus storage and i believe light repair facility it is on going for a language time the issues that clouds the use because you got a lease of property with the dispute on there. According to the coal trust the currently plan is keep it leased. They are investing them or tenants investing in some energy renewal. They might development property. Open but no plans for this. When you say bus storage. Yes. Of not like municipal pechlt no. Thank you. Sure. Thank you. No more questions open up for Public Comment. Members who wish to speak are joining in person lineup now. Remote call 4156550001, access code 2485 887 9195 , star 3 to enter the queue. No in person in the chamber. And we have none on the line. Public comment is closed. Like to motion to sends this to the full board with positive recommendation. On this motion to forward this to the full board vice chair safai. Aye. Member chan. Aye. Chair ronen. Aye. We have three ayes. Motion passes. Mr. Clerk read item 5. Item 5, a resolution authorizing the department of environment to accept a grant in amount 2. 3 million from the California Energy commission alternative and renewable fuel and Vehicle Technology program to impelement electric vehicle blueprint for local vehicle elect for august first of 22 through march of 24. As a term of the agreement. Google, ev go and others provide in Kind Services and equipment for use by the public pursuant to charter 9. 118a. Member who is michelle to comment call 4156550001, access code 2485 887 9195 , press story 3 to enter the queue. There were not ierments when seeking grants and partners to seek grants hold a competitive press this is something we hope to change in the future. And then when this made it to the full burden it came to life this supervisor walton was not briefed about this item despite the fact hamost of the electric Vehicle Infrastructure would issue accomplice in the his district. My understanding he has now been briefed and is in favor of this item they want to turn it over to director ju to confirm and make comments. Thats correct. Happy to go over what the grant is that will be helpful. Otherwise everything you stated is correct. The same issues that were talked about in the left meeting and mentioned in the bla exist. And are present. We continue to work with the office of contract and the City Attorneys office on chair ronen mentioned a city wide procedure and process for how we select grand evergrant applicants we wait for this press. This said this is a unique and extraordinary opportunity for the city. And that we would be accepting 2. 4 Million Dollars in the California Energy commission to advance our electric vehicle road map in the city and low carbon transportation project within the city. A great opportunity to get machine frethe state and implement in the city. Supervisor chan thank you, i just thank you director ju i have to say that over limited partnering between my predecessor and supervisors on at the chair of last local formation commission. And it was the commission was involved in the d. Virment to apply for this grant. If i remember correct low . Thats correct. The e bike food deliver Pilot Project a compossibly of this was worked with that lafco we have been eager to see this grant but that is why it is a good. News to hear that president walton has been brief exclude in support of this. Thank you. Supervisor safai. Um my biggest problem with was not the idea of expanding opportunity for electric charging. I understand it was a grant, that folks could the department could choose if when hay want. The it is more about the process and the trans picious of it all. We had a lot of issues about how applications are put together. How contracts are awarded. How things are decided as the departmental level without there being full trans paraphernalias. I will ask this question and i know you transificationed in director chiou was this process talked about at your Commission Level . Was it decided this is when we will chos and per in with as the private company to come in and build this prushth within the neighborhood . These other nonprofits we will choose as part of this grant and not choose San Francisco that is the thing that does in the sit well with me. Im glad you have decided to brief the supervisor i think is important. I know you transitioned in your new role a lot of this predated you. I like to hear you talk about that a bit. Thank you for the question. The commissionful not involved in the selection of the grant partner. We are not involved in the production or submission of the guarantee to the state california. The commission was made aware in a Committee Hearing about the grant later when it was awarded. For the information. I hope that answer your question. I say Going Forward if approved it is important that we are thinking about San Francisco based nonprofits that do similar work. We are thinking about the communities impacted. I know there might not be a strict rule how grants are put together in terms who the per ins are chosen. I know this helpsune. One thing we talked about before director ju is this having a list of putting out requests for qualifications in areas would be a very person step. That you take as new director. Because then it allows to you say we put this information up. The partners we asked to come in and qualified them when you go forward you choose a guarantee or work with you gone through that process i know you think about that i want today say that for the referred. I think this would be helpful Going Forward for you and your department to have avoid the issues and delays. Thank you. I agree. So since this meeting you heard me say we would not move forward with another guarantee in a similar physician and have in the since this time. The solicitation part of this grant to Dot Community out reach in the fast charging stazs we want a Community Process working with president waltons office. Public solicitation for that to find an experienced cbo that has experience in the bayview. Thot how we want to move forward. But and i then and there committee understands the xoiting opportunity this provides to the city and to that community. The not gravitate to the urn serve the yours impacted boy air pollution. We need every leverage from the state to put chargers in there. To have the people on grounds to w with the community and educate the community about the benefits of charging. And make that resource available this is why i chair ronen said caught in a ridiculous and hard accomplice i appreciate that. Are you have making sure they maintain the chargers you go and they dont work they have a successful track record of maintaining chargers that would be a condition of moving forward with them. Okay. Do you want to present from the bla anything on this item i know you presented several times before. We dont have updates the grant term in the legislative file now is march of 2. The department will w with the scientist to extend it given the delays. And approval. Open up per Public Comment. Members who wish to speak call 4156550001, access code 2485 887 9195 and story 3 to enter the queue. We have no speakers Public Comment is closed. Gi like to make a motion it sends not full burden with positive recommendation. On had motion to the full board vice chair safai. Aye member chan. Aye. Chair ronen aye. Motion passes unanimously. Thank you. Mr. Clerk read item 6. Item 6 ordinance retroactive low authorizing Public Health to except a grant 1 penalty 5 million from the cdc through the California Department of public helling as a pass through entity forpicion in a virus decease 2019 related program. Covid19 Public Health Crisis Response and the Public Health workforce supplement at for the period of time july of 21 through june of 23 amending ordinance. Class 2593 Health Program coordinator and 2119, health care analyst. Member of the admissible hear joining remote and wish to comment call 4156550001, access code 2485 887 9195 , press story 3 to enter the queue. We have andrea tener from Public Health to presents on this item. I of course you might be on line thank you. Chair ronen and the prierzs. So as you heard awarded boy the cdc the goal was to establish stain and sustain public helling w force to support the covid19 prevention response and recovery initiative. As i know we all as a city have learned a bit from covid and certainly Public Health Emergency Preparedness and response activities within public healing emergency appropriatedness identified staffing gaps this grant will support. Approximate suspicions approved in 23 24 budget. Will provide the initial funding for the positions. They are designed help support agency prepared knows. Plans for [inaudible] covid and support floud coordination of response efforts to a future Public Health 38s and Community Resilience and engagement with volunteers [echo] covid activities to improve community preparedness. And better partners with the community. Also d ph helps strengthen resill yens and partner to manage threats including the variants. The last grants analyst to help applications for other grant funding. This is visible to support w as well as covid needs. This work is vital to ensurety success in San Francisco Covid Response including new variants. And red knows for future threats. This events is unpress dented witness in a lifetime but am we want to make sure we are ewe likewising Lessons Learned and we are better appropriated and red for whatever come in the future. Thank you for your consideration and happy to answer questions. Thank you. Is this guarantee to cover or are the um positions in that related the guarantee are they workers already hired . Not yet. The roles are covered now by some people working out of class and doing over time i would note that continuing frustration for me is there is an recall about this in the chronicle is this it takes on average i think, a ridiculous amount of time to hire workers. I wanted if everto ask given the vacancies in the d. Public healing. That i hope we can hire the workers in time to relief the people out of class or through over time. And you know i then and there the direct of the d. Human resource working on will reforms to hiring process Civil Service commission those reforms could not come soon enough. And wanted to make that point for the record. Looks like there are no questions mr. Clerk open this for Public Comment. Members who wish to speak in person line up. Remote low call 4156550001, access code 2485 887 9195 press story 3 to enter the queue. You will need to press story 3 torrence the line. For those in the queue continue it wait until the system indicates you have been unmuted. No in person speakers. Unmute the caller. Francisco decosta here. The left time we in San Francisco put in dire straits early on there were no vaccinations. Prior to that, it but defective. So we need to do a needs assess am on those issues. And focus on an person issue link sent that could not be activated. And what we need to learn is that you condition be doing business Old Fashioned way. Need a digital format. So that this platform can help us. The presenter, i think i have a vague recollection of may be seeing her at 1800 oakdale. I was called to put thing in order. And what i noticed was there were a lot of messes and travel notices. Did a wonderful job. But coming to positionlet Health Department has not done a needs assessment. Many of the volunteer i knowledge many who stepped up. None of them have been recognized. And one of the of city hall events, [inaudible] and people of those caliber were recognized [inaudible] never saw them in the trenches. I apologize. Weure timing each at 2 minutes thank you for your comments Public Comment is closed. Like to make a motion to send this with positive recommendation. On that motion to forward to this to the full board vice chair safai aye member chan aye chair ronen. Aye motion passes unanimously. Read item 7. A resolution approving purposes of Internal Revenue code of 1986 as amended issuance of sale revenue by the California Development authority. Aggregate amount not to exceed 3 million to finance or reemburts cost of construction and installation and rehab and furnishing facilities ownd and operated by Presidio Knolls School. Member who is michelle to comment call 4156550001, access code 2485 887 9195 press star 3 to enter the queue. Thank you for consider this item today. Bond council samba lipsy from 2 tax rock and john wish from western solutions inc. For the committee and the opinion the tax equity and fiscal responsibility act allows it it it exemption of interest on types of debt issuedllow joint Power Authority n. This case the financing is to be issued through california Enterprise Development authority. A joint fours the city of San Francisco is a participating member. This is before you today because federal tax lurequires the governing body the project is locateed approve the financing and the project after providing the opportunity for a public hearing the jurisdiction in this case the city of San Francisco is in the ob~igator~ed for pip on the bonsd. The pavement principle interest the responsibility of the borrowoar. Hearing notice on the citys notice website on september 12. The public hearing held boy office of public finance. Teleconchs on september 21 and nope comments from members were heard or received through the public hearing process. The amount of the bond will not exceed 33 million the purpose prosecute seeds from the sale of bonds loaned to the Presidio Knolls School to refinance outstanding debt incurred. 2, to finance improve ams to the auditorium and gym and additional class rooms and other improve ams to the property and 3 to pay costs of issuance of obligations. A bit of become ground on the school. They are a nonprofit Public Benefit corporation. They open in the 2008. And relocateed soma in 2011. And received accreditation the California Association of enemied schools and western association of schools in colleges in 2019. As of the 2122 school year they as well enrollment of 395 stounts from preschool to middle school and the project is located in district 6 in the legislation is sponsored by supervisor dorsey. Approval will have no fiscal impact to the city of San Francisco. That concludes my comments and there are represents on the call from the school and finance tome if there are questions. Thank you. Why thank you. It does not appear there are questions we can open up for Public Comment. Thank you. Members when wish to speak call 4156550001 and access code 2485 887 9195 press story star 3 top enter the queue. We are excited close this financing to lower our Interest Rate costs. Which monies we can invest more money in in the only Financial Aid and also in to more training for teachers we can offer better education to stounts. We appreciate if we you can help us move this quick low we have an enter rate lock for 1520 days. Any help is appreciated. Thank you very much. Thank you. Seeing speakers we have no speakers. Sends with positive recommendation. On that motion to forward with positive recommendation vase chair safai. Aye yooch member chan. Aye chair ronen. Aye. That motion passes unanimous low. Noted mr. Vice chair. Thank you. Mr. Clerk read item 8. Item 8. A resolution approving the sixth metropolitan with the California Department of p and recreation. Of boating and waterways that requires the rescue rigz and Park Department to operate and maintain improve am it is to the lake merced boat dock and xentdz term from february of 22 for a term of march of 20 felony through september front. Authorize the sudden front rec and park general manager to center in modifications and amendments to the grand contract that dont increase the obligations or liabilities to the city and necessary for the purposes of the project or resolution. Member when is remote and wish to comment call 4156550001, access code 2485 887 9195 and star 3 to enter the queue. Thank you can you read item 9. Yes. Item 9. A resolution authorizing the rec and p to accept and expand grants in the amount of within penalty 5 million from the California Department department of park and rec for twin pokes prom in the and trail improvement july of 20june of 25. Approving requiring the department to maintain the project for the duration of the condition tract performance period. The amendments to the contract that did in the material low increase the obligations or liabilities to the city and necessary for the purposes of project or the resolution. Thank you. And we have tony here to speak on both items. Good afternoon. The first item that we are discussing is the d. Boating water ways amendment. In 2015 the department received a guarantee to replace the boat dock at like merced north lake. It is heavy low used and in place for about 15 years after replace am. Received a grant to replace that dock in kinds. But there were requirements to the land side it provide Public Access. Complete in the september of 21. And closed out in december 2020. The california state d. Boating and water ways provide us a final grand amendment that would change the granted if he weres to spes fight terms that department operate and maintain. The grant terms stated this we would min tain and operate for 20iers from the day that the project accepted by state. Now the terms specify that we would maintain from march first 20 felony to september 4 of 2041. The term all of the grants we apply for are heard by rescue and p commission and passed resolutions agreeings to the terms of the grants so the department is committed to update and min tain for that period of time. Why thank you. Can you present on number 9 as well and we will take questions on both. Last april, the d. [inaudible] [echo [. Awarded 1. 9 Million Dollars for the project includes [inaudible] existing triand making improve ams to the vacated portion of twin peeks boulevard. This grant awarded did not have a contract but [inaudible] dated july first of 2020. [inaudible] the standards to back date the guarantees to the date that the funding appropriated at the state level. We do im sorry. We do also. I have a phone okay. Mroon recovering from the planning for project. Thats why it is retroactive. Thank you. Supervisor chan. Thank you, chair. A quick clirification i want to understands the amended term is for mince through the departments to be responsible of i think you said from september upon 2015 through september 2041. Is this correct. 241. Is this correct yes. The day that we were awarded the grant and included the construction variance and 20 years after the state accepted the completed project. That would be september of 21 through assessment 2041. Understood. Thank you. Open the items for public xhnlts. Yes. Members who wish to speak are joining in person lineup now. For those remote call 4156550001, access code 2485 887 9195 , press story 3 to enter the queue. None in the chamber. We have no speakers on the phone line. Public comment is closed. Like to make a motion to send 8 and 9 to the full board with positive recommendation. On that motion to forward both 8 and 9 to the full board with positive recommendation, vice chair safai. Aye member chan. Aye chair ronen. Aye. That passed unanimous low. Thank you. Thank you. Can you read item 10. Item 10, ordinance authorizing the Municipal Transportation Agency to issue a request for proposal for a communication based train control system awarded boy a contract exceeding 10 years the administrative code against issuing solicitations for a contract and General Services for a term long are than 10 years authorizing i dont recollect evernegotiated procedures. Stating the, ward of the contract subject to the board pursuant to the chart and findings under the environmental equal act. Members when are joining remote and wish to comment call 4156550001, access code 2485 887 9195 , star 3 to enter the queue. Madam chair thank you we have remmose from mta to present. Good afternoon madam chair and members. From the local gentleman, fairs. Im here to apologize o behalf of director of transit julie who wants to be here but fell under the weather. Show cant present today but we have our clothes and really so much the brains of the work project manager dan howard is here. He will present this item on our behalf and have our clothe janice the principle manager for Transit Program deliver. I hope i got this right. She is one of our friends she is virtual. She might chime in. Thank you so much. We wish speedy recovery. Thank you, chair ronen. Im dan howard the project manager for the train control update project. We violate slides on board . We are before you today to request for an item authorizing us to negotiate a contract over 10 years. And procurement procedure for this contract. Before we get to that here is an over view what train control is. It is a computer system. They tuck it each other on the vehicles and in our offices and they communicate have a network. That train control system tracks the location of the trines that is the first thing is does and prevennes the collision from cocolloiding. It controls the trins braking and in the tunnel it controls acceleration that is automatic. And the left thing it does is it sets the routing of the trains through the the system and a lus to make changes. Those are basic functions and the box at the bottom describes why they are important as a transit service. Enables us to set the frequency in the subway. How many trines we run per hour and people we move per hour. It allows you to affect our train reliability. So it if there are delays that perpetuates around the network and provides the ability flexible with Service Plans can limit options if not proper low set up. Sometimes we want to make sure the train control system accommodates all possible services from when a train might be blocked hill way and carl to disabled train on the subway and be prepared. We have the ats in service for 25 years and 30 years before we replace at this time photos there that is the system as it was first designed the Old Computers and those mr. Foremany disks when we use to lone the train coal system and start our subway every morning. We are due for an update. Those 2 images its the top from new york city mta they are in the process of train control system. They got camera and censor based technologies allow the trines to see in front and ultrawide band Communication System allows them to communicate without wires supporting theaxics points. The short comings everybody is stuck witting to enter the subwyatt the portals debose or at feref portal waiting for the performancen row checks that is manage we alleviate with the system. Rider benefits after this is implemented. Rous the ways people are stuck prior to the pandemic people were stuck between stations. In the tunnel and not knowing when than i would get out. People waiting to get in the subway they will be e eliminated. Weed have rused travel times on the t line the train communicate with traffic significant untils and improved reliability based on train control system failures now would no longer exist. And have Better Service being able to manage the flexibility of the service by having the train controllers seat entire system from a birds eye level vow and control [inaudible]. This is the project i mentioned it covers the muni net w we plan to start on the surfist on the embark dareo to muni metro to provide an accomplice to prove the computers talk and work without going in the. Subway the replacement is the most complex part of project we have sno replace an existing trin krell with the new one while operating muni service and limit the disruption we ride are experience while doing the upgrade and lastly extend to each the lines throughout ends of the listen it make we have coverage. Those other quick primary of what the project is. Now the contracting strategy and when brings us here. First the project has upon better thanked, lot of lessons from internal projects pedestrian projects as well as International Best practice. Learn friday central subway and gone through north emamerican transit agencies, there are an if you in the evidence. North america and better is going through a train control upgrade they are head. We are in close xhoungz with the bart project management team. And we are have a lot of canadian agencies that are doing train control upgrades we communicate with and europe an examples as well. Weave some of the lessons we brought to this project in addition to technological are related to contracting. Of so. One of the upon contracts one of the lives has been this we are up in to instealation scope and a supply procurement scope. Supply allows you to select the best supplier offering the best system and terms. And without letting the details of instealation get in this decision. Because the system itself is something we are buying the installation is something that numerous Small Business enterprises or local contractors can perform. Once we purthas chas the system and design we install it separately. And long those lines we plan to will take the opportunity begin we have not upgrade in the years to negotiate the support terms up front this is a significant condition departure from the past am typically we contract with the supply issue for the system and would leave the support to [inaudible] and then when the come least today we go back and go for a support contract there would be only one bidder because one can provide support for equipment it designs and supports. Who i in competition with pores we want to negotiate the support terms up front to get the best terms for the city that is part of reason we ask for the 10 year extension. The other piece we wanted to create what are we asking for and this is contractual to aline the interests of the supply are with the interests of riders and the mta. When we are delayed then we want the supplier to we want to pay less. We are in the getting a good service from them. When we are successful wement to upon pay them the full price due. The different mechanisms through the negotiations procure am we like to try, and one of those is treating them as a technology product. One more. There we go. The the tech nomg product the Software Provider will supply updates where you get regular updates giving you new feature, addressing bugs. This is something not standard in the industry temperature is something we think we will have to push for in condition tract negotiations. It seems standard in the modern world of 22. That is something we are looking to push and get the strep to perform. The other pos this performance support fee where if we succeed they scold if than i fill they are paid less and the left is the supply are part. Vender agreement the same thing where like with the car you know we dont want them making money off of sellingut parts. You know we want them to make monwhen he we use few are parts what we designed is a system where the fee would be the same if we used 200 pers or used 5 parts. They are coming from the supplier and so their costs increase if than i design a system this consumes part and require maintenance. Another item the do well for the city. We are here to request we are able to advertise a support contract and procure am contract long are than 10 yearment terms of the individual portions of agreement on the slide. And also to get the negotiated procure am provisions we used in the past. This is where we are in the time line the board this will not be the last chance for you to speak to me today. We will be up here a few times the course of the project. The next time being when we seek authorization for the contract after we negotiated it and completed our selection process. We will be back to you in your authority as the t acommission for various funding pieces as well. Tht first of the journey that we expect to have overnight course of 810 years to launch this project. And lastly over view of the project schedule so that the blue bar would start mct they show where we expect to see the First Benefits of the first on the pilot in 2027 and subway replacement in 2028. Doing the phases out in the branches we try try to get them rolled out and the project budget and support costs as well. Of thank you for your time and happy to answer questions. Thank you so much. I have to say i cant believe that you i have not seen a floppy disk since high school cant believe you load the system every morning with the disks. That is scary. Upon supervisor chan. Thank you, chair ronen. It is a 2 part question one is i know you shared a summary of Lessons Learned it is impressive. I appreciate how thought out it is the prosecute cure am process. And it is well explained and wheny woor trying to do in order with this exemption we can leverage. But Lessons Learned. You mentioned 4 sources and one of them is existing capitol projects like central subway. Could you give us a bit example like what are the lesons learned from the source . Thank you. One of the bandwidth lessons i have 10 to the importance to include the inif you of prescription and maintenance staff early on. And conversations with them. We have involved them in the stake holder requirements. Process where we worked with them to develop the requirements for this project and fold those in the contract specifications. That will the beginning of the involve am we expect to have with Operation Staff and maintenance staff. We built in the other things we have not done built in our opportunity for them but during the pilot to comment and approximate terrible low affect the design that is not something that happens. We are build nothing in the schedule and the contransact so there is the opportunity for that feedback to happen and us to do something with the feedback rather than say thank you for your time. Those things we are building in demonstrations of the software and simulator prop when vehicles will be to allow the operators to get familiar with the system before they are required use it. That was a lesson learned. We are getting ahead of the questions we know we have trenching to do. When we launch fiber opt toik connect the cites that is manage we want to start with now. We are working on environment now we dont want that to delay the project dig does in the city this. It is something we are taking on anymored as lessons from past projects with the new contract and just for the and my assumption is entire train control system that is inclusive of the 2 the [inaudible] and central subway. Train control covered rail. Include 7 roll subway not vaness brt does not cover got it, thank you. Supervisor safai. I have a few questions. One of the questions is contract duration and say design 8 years. Support 10 years. Additional support terms 2, five year options. Are you contemplating this would be sent out to multiple rf ps for each phase . No, we put out the single rfp now the 8 year procurement. 10 year and two, 5 year option this is is part of this. Im sorry could you use terms that make sense to you they are not clear to everyone what does this mean initial support term . Once so we are clear design and implementation you are in designing the control system and actually build it . Is this what you mean . Am yes. The reason why we did not used construct or install because the construction intalitiation scope is outside the scope of this contract it is contracted out boy mta. Installation of the system would not be under the scope of this contract it would be separate with a local business or the physical work it ask done in phases. The initial pilot phase it is about 18 months there is approving there. The subway will take the longest that is, that green bar does not include construction. Is there is design. Know 21 2 years of work in the subway. That is stretched out in nonrevenue periods we dont impact service. This schedule and budget for the physical work. The priority equipment for other its instul and this project budget includes the installation contracted out spritly. What is taking 8 years . 8 years the time line on the screen so starts with 18 month system wide design and retrofit the 219lrvs. With the new train control system and the central equipment. I heard something i did in the like. All the new trains you bought you have to retrofit them. Yes the new trains are fitted with the current automatic train control system we dont have the new one yet. We would have to retrofit with new equip whatever that might be when you buy the lrv you think about new technology so they are refed to go . Yes. However the way with the venders a different vender sprois the trin control than the vehicle. They north inner prit annual. Apple computer stuff does in the w with motorcycle row soft f. We have a system talityis is the bidders for the project. If we went with them we be able to reuse their equip if we go with the other suppliers their equip would not be compresident able and remove and replace. Where in this project schedule you put it become up where you purchase equipment . Where is the majority that happening. Jot purchase is inside the pilot phase. Pilot okay. The darker blue. The pilot fizz is a small your area. We have to furnish the equipment and equipment for the vehicles so all of that gets folded in. It is happening there. The reason im asking because you know we are going through significant cost increaseless now. Have you built this in the estimates. Yes. And the did industry out reach canvassing supply and concerns and reactions to concepts we proposed. There chief current rising costs. So we have a provision in the condition transact it is capped so we set a Contract Value for you to approve. And there are provisions in there based on the progression for labor and materials irrelevant voluntary to this sector. That we would escalate the costs as they increase. That is we made an assumption of sick escalation. This will be built in that cap. And if it it is les we have a bit of savings. Are these different years 8, 10, fiechlt over lapping . And ouier confident of the dissent we start the subway design before the pilot is finished this alus to accelerate and the same happening with this pink bar, that is all of the expansions on the well line the k line. The j. And, they happen to the subway when we cut over switch from the current to the new. Should have lines red to go. A big change at 2028 when we have the subway caught over to save time. Can you identify yourself we dont see out screen we dont know who is talking now for the record. Januariet [inaudible] Transit Program delivery. I wanted to clarify your question around the 8 years. That goes from the blue in 24 to therein the pink bar. [inaudible] full lines of prosecute cure am. The this was when i asked. Thank you. Try to the know the way you present today. What is the term of this contract if than i are over lapping the final term . St finaling term is 30 years 30 Year Contract. Yea whoa. Have we ever approved a 30 Year Contract in this body . I dont think so. Not they recall. But it is possible. We can electric and see if we figure out the longest is. The board, has approved lose of decades for property. Property. But a construction contract 30 years. Typically a lim for those to be 10 years. Thats why than i need. Why rit what is the reason you are asking for 30 year. Im sorry i want to say this for the record. Sometimes when we are dealing with the mta i understand you learned lessons on third and vaness brt i dont know if this is the first i hear this. This might require further conversation. But a 30 Year Contract request is significant can. When there it is no precedent for it. Yes. Thank you. To clarify the construction portion of this of is only 8 years. The remaining there is a 10 year period we are getting support from the vendor. It is like all the installation is done that pieces is taken away. Now support. Soft weir updates. Providing pers and technical supportful only the train control system supply are can provide. And when we have done in the past. Contracted for construction and the procure am this gets closed and over and 58 Year Contract and we go become and do a separate condition transact for passport this support is always sole sourzs. The lesorn we are trying to learn. Or heed is that when we come become to the supply are for the negotiations on support terms they know they got us. We are trying to have them negotiate with them up front in competition with pores so they have a motivation. There are terms that we wanted get that we gone to the current train control supply and they said, no. Why . I actually have exact request, too. Have an i agree. The way i i agree the skepticism. The way i see it is we have been purchasing product. In in case train control system without around. Bought them, say we are good and realize when we need repair or upgrade we have to go out but in this case we are still wuk nothing with the same venders and so in this case we say providing you the exemption of upon 9 publicity 118, luto go out beyond the terms of a purchase of the system. It aluyou to negotiate terms and condition for warranty, lus you to compete for a better warranty condition. Because in the existing situation we then the venders knows the more parts they have to sell the more profits than i are making and saying whether in this prosecute cure. Process whether 5 or 20 parts we piyou the same rate in the period. I agree with supervisor safai skepticism. I think i have express third degree in the briefing too is that. Make sure who we are choosing and picking that is going to be a winner for the longterm and the company or vender does not fall behind with their technology and than i stay competitor of the field. Who do you work with when you put your contracts together . Do you work with contracting support the internal contracting division. When are you working with you had Lessons Learned and ticking them im trying to get an idea of it. Why we work with a lot of different parts of the city. We also have a few consult ans providing us with advice on what other agencies have done. We have close low followed when bart has done. We have been following their process and have also consulted with a number of international and u. S. Agencies. Thank you for that. I this tha is a solid argument knowing you this h to go become to negotiate. Since than i are giving you software and equip. I hope you built in the contract a level of referenced replace am that would be subject to them terms and a length of time that their equipment ken fail without it their responsibility and in the our responsibility. And i dont know since are asking us for i blank check for authority of that you goes understood everbeyond a 10 year period i have more questions but dont want to hold update conversations we have a few more things. I think this might require further conversation and bring the people in from your team to present. So we get in mormore the details since you ask us to do something we have never done before am thats my opinion. On the item i wanted clarify. The item of holding the supply are acounterable that is a chief motivation we have for this process and one we think the 10 youre exemption will enable. Rein reason currently we tone have a performance based specification. Nope. So this is something we hope to achieve through negotiation this is is the support term this applies to after the system hen constructed after the 8 years and in this 10 year agreement. To north america this we have to talk about what happens in the 10 years after the system is delivered now. So we can negotiate that. That is why we are asking for the 10 years is not necessary low to circumvent a press but allow us to north america with the supplier about what is after they deliver it. Now without the 10 year exemption weer not able to talk about that. It is outside of their scope. They will say thats for another day we will talk about that in 10 year. Boy that time we are locked. At their mercy is when we are trying to get away from. Supervisor safai i wonder what Additional Information you are looking for. Some of this i like to know know the process which they not went through constructing this. I like ton the other municipals around the country do. We talked about inflation costs and a lot of cost escalation that is helping. I understand packaging it together to look them in has this been done . And has it been effective. What are the pitfalls that go with that. May be advantages and disadvantages there are more questions and i know this we have other items today. I know this director tried reach out to me on monday to have a conversation. But monday and tuesdays are busy for us prior to this hearing. And i know the you all tried put together a detail there is a lot of information here and questions and im not prepared give that authority away without a more detailed response personally. That sounds reasonable and given you have before you im sure a week or to will not make a major difference here. So if you wanted make that motion after Public Comment. Im happy to support you and supervisor. We would be help to accommodate an extension to properly brief supervisor safai. You said it is a long contract and Huge Investment you should have absolutely the best information possible before making that decision. Wonderful thank you. Thank you. Now open this item up per Public Comment y. Member when is wish to speak in person lineup now. Remet low call 4156550001, access code 2485 887 9195 press story 3 to enter the queue. There are 99 in the chamber. Unmute our first caller. Francisco decosto i want to see is reached a time where we dont have a person like [inaudible] [inaudible]. So with the new mta, tumlin you will see such things coming before you dubious in nature. And i agree. We dont have to deal with contracts when we have so much going on all overnight world. In the past gone toit low and canada, this is for the board of supervisors to do a needs assess. Nais like some question in generalities. This is a problem. Make sure we have a recession for sure if you are following what ask happen nothing our world. Thank you very much. Thank you for your comments next speaker, please. Can you hear me now. Great. Daved pillpel. On this item there may be benefits from the trin control upgrade project but it does in the replace transit planning or the riservice plan that mta has been promising i wonder if there an rfi or q, i hope thereupon is a level of interest for more then and there one potential supplier or vender so far this does in the ends up as a sole source arrange am. This project should not facilitate forced passenger transfers west perral nor allow 3 car trains to jouda or street. I have no specific concerns on the contracting approach but staff has proposed the westerlied is more intgritted now. If sillities, vehicle and Technology Projects used to be in separate worlds are not as separate as they have been in the pedestrian they all rely on etch another when you upgrade one you have to upgrade the others. Thats why the cars have to be retrofit with the new [inaudible] i can follow up with appropriate mta staff on others. I appreciate the questions and concerns. I think the slide 9mta presented starts to explain their condition transact and strategy with the supplier and the condition sulant and i think they could better explain the various components of that and their intended approach. This will is extremely complicated project with lots of living parts. Xourts, technology. In controls and vehicle monitoring. Do we have more speakers. Im sorry. Public comment is closed. Supervisor safai. Thank you i appreciate the presentation today it started a good conversation. Since we are contemplaying a 3 decade long contract i think we should give this more time. Might be a benefit to bring the additional people that you w with some of the consultants and the commissioners that weigh in the on this. I know director is in the feeling well. Others from your team. I think this requires a full fledged presentation. I like to know what other systems in the world are using this time technology. What their electronic records been approximate replace am costs have been. This is a thing where you are installing and doing and tech nong is changing is there a subsection of your contract that says as Technology Advances approximate they will upgrade. There is so many questions. We heard at the end of the day we are having an efficient well operating system. That does in the malfunction or brick down i was on your light rail with my daughter last week. Everything went great. You know she is ride nothing on her own multiple times a week. System is grit. I think but we dont want you know we are spending a lot of money on this system. And some things i heard i heard for the first time i make a motion to continue had next month november the 16th. Give you time to come in and talk with our other committee members. You can brief us. We may have follow up questions. Is there a time line you are on before you go out. Looks like it is not beginning until 2024 anyway . Already to mote that time line we need to issue the rfp in january of next year. We have a bit of time. We will have all our questions resolved. Good. I would also just forward that we would be appropriateed brief you earlier then and there that. Thats the time you can brief us before we come back to vote. We are givingut time to get on our schedules and put teams together. In the midst of everything happening. Thank you. Thank you. I make a motion to continue to november 16th hearing. On that motion by safai this be continued to november 16th meeting vice chair safai aye. Member chan. Aye. Chair ronen aye. We have 3 ayes that motion passes. Thank you for the presentations we look forward to learning more short low. Mr. Clerk call item 11. A resolution approving the 7th amendment to the contract with the million Transportation Agency and tegsco the towing storage of boonldzed illegal ped vehicles increase the contract by 49 million for amount not to exceed 137. Tw million. For the billions of the secondier and the left 3 of the 5 year extension. Effective upon approval of this resolution. Members joining remote and wish it comment call 4156550001, access code 2485 887 9195 , star 3 to enter the queue. Thank you. And both supervisor chan and i have amendments we would like to present. First help to hear from loraine the project manager. Where good afternoon. Good upon afternoon chair ronen special supervisor chan and supervisor safai and thank you in advance for your sponsorship of what can be an interesting item. Im loraine, im acting parking contracts and other service manager. Streetings division under ted graph. A quick over view where we are with the contract n. February 2021, we brought the third amendments extended the agreement for additional five years beyond the base term of 5 years. We requested funding for 2 of the 5 year. In the heart of the pandemic and you know we were not sure what would happen in terms of tow volume and needs. We asked for a total of 22. 8 million which was approved by both boards. So it is 2 years later. Coming to you with the 7th amendment. And we are help to receive funding for the remaining 3 months of the current wherever we are in now. When we project when we would tow we fell short we recovered 80 the funding would be 3 months plus 3 years remaining on the agreement. Plans to issue a request for proposals and in fall of 23, to get a contract award prior to the march 26 expiration of the agreement employmented give you more information about how rfp process works. They are forming stages. We have development and the reles of the rfp we are projecting take an among to a year. The times dependant on pending litigation we have going on. And so thats our best estimate. That period ends with the board authorizing the relocals of the rfp. Phase 2, where the venders develop the proposals. Than i mitt them. We confirm all principles mitted. And put together an Evidence Panel that reviews the proposals employs them and does the scoring. And then at this pinlt we notify the pro poser the highest clear clear responses and responsible at this point there may be protests which can delay things. From about 4 to 6 months depending. For force terror then we do negotiations and this can also take are up to 6 months and we have i contract which we can bring back to poth the mta board and yourself and irish low takes 23 months and if there is a change in the contractor we usual low like to have about 3sick machining its do a transition. Best case takes 22 months. Longer would be up to 3 months. Trying to stick at this time 3 minutes this is chair ronen requests i will winds it up with reasons to fund. Number one there was a five year extension that was approved which bring the contract to merchandise of 26 we need to pay for it. The current agreement limits to cost increases. Index increases max of 3 if we go to bid now it is doubtful we would get that good of process. Number 2, the condition transactor is a really good contractor. Always on time within 24 hours. Than i have a 93 on time aratify for pso and stay with the vehicle until is towed away. The requirement is 90 arrival time and 35 minutes during commute times and 25 minutes noncommunity. 20 subcontract requirement they are closer to 40 . We have locally based tow truck firms which enable them to really do slam dunk on this. And than i had 3 overnight years of the contract successful organizations and local 665 for collective bargaining agreements. The towing program is necessary. Voilths to min tain transit reliable and traffic safety. Especially during commute times. Removed vehicles from blocked driveways happens a lot in the city. We are very population denials. And it awfuls removes the vehicles involved in crimes, accident and wills boonldzed vehicles on behalf sfpd thats my 3 minutes and my clothes are open for questions and thank you for listening. Next the budget and legislative analyst. Item 11 is resolution approving the 7th amendment to mta agreement with tegsco autoreturn. The amendment increases the not to exceed amount fromerate 8. 2 to 137. 2 Million Dollars which noted by department now is to fund the remaining term approved by board of supervisors through march of 26. The bases for the increase and not to exceed amount on page 25 and net this when this was left at the board, there was a lot of sdpugz about the towing program examine for this reason we had recommended that the department do an analysis of the cost approximate report become at this time board of supervisors. You can see on page 26 of the report this the different costs of the tow program include the contract the subject of the resolution the mta pays on 2 lots where the vehicles go after towed and the mtas cost for ping enforce am and condition transact administration. The mta came back with a cost ajs distributed to the board this sum and rehave you in the our report. The analysis focussed on the contract and did not find opportunities for cost savings. I think that there is opportunity to do more analysis on cost related the tow program. Whether it makes sense to purchase land torous the rents in the table. And evaluate the own internal costs the staffing for enforcement is promote. The over head breaks the agency are appropriate. And that irrelevant matters because this program is fee recovery. The fees board asked for waivers over the years they were applied for people low income or victims of vehicle theft or unhoused that e rhodeses the receive revenues collected there is a net cost to the mta for the program. You have had see in the tain 6 Million Dollars a year. That is money that can be used for other transportation uses transit. Straight safety. Bike lanes. Those funldzed waivers sf unexamplined costs matter. We think it makes senz to approve and fund the remainder of the term and the board could ask further analysis on the mt accosts of the program for the reasons i discussed. Thank you. Supervisor chan. With look at the recommendations and we had this towing policy conversation last year. Id think we have questions know necessary seeing how sfmta themselves have to subsidize the aspects that is the fee waiver program. For the towing program. Should be a conversation whether they makes sense and something by tweak the policy. I dont know and what i really urge is for sfmta and we have done this the in past while we agree and approved remaining of the 5 year term of the contract we agree to reles 2 years and a funding so we continue this conversation about towing policy. I understand this there are the challenges this you know brought upon the sfmta buftz pandemic and the let yous. This is pending. We may have limation about how we can establish and reevaluate a policy. I will love for sfmta to continue after effort perhaps finding a way to create a working group including workers that are on the front line to help us identify and figure out shape the policy better. We may be reconsider the way we approach the policy. And with this. Thank you for helping us understands where you are because we do see you have to go for an rfp rather quickly. And have to go out best for an rfp to base on policy. It is in the an rfp the bla mepgz third degree a lot of the cost that goes with this could be associated or based on policy. You will find cost saving the most important low i think in the minds set how the board pushes for fee waiver we ask to consider both cost saving more than really the equity issue around towing policy. Im proposing an amendment to this which i really appreciate sfmta team have this discussion. I thank you i can say they reluckant low agree it but appreciate there was a respectful confirmation. Idea is to increase the contract only for the next 3 years through and a half 2533. 2 Million Dollars. Will be to increase the upon contract amount by 33. 2 Million Dollars instead of 49 million. A total amount not to exceed 121 Million Dollars. For the bvenlts second year and through march 2025. Effective approval of this resolution. And this will be my amendment proposed. With the mcgonigle this will give us time as the governor mentioned he is lifting the Public Health emergency for the state in february of 23. Promise aluus to process the working group in earnest to figure out a towings policy this is equal and just for San Francisco and i think that there it is a balanced approach i agree prosecute hazzard for people who blocking driveway and bike lanes and bus stops those are a problem for the city. If thank you and i to your knowledge have your support. Supervisor safai i understand the spirit when you are asking for supervisor chan the mta, rusing the the where question is00 is there a cost savings built in now. I think i heard the presenter say this is a cost that we would not be able to get today given ~esque ligz and price adjustments and inflation. If we reduce the size are we losing out on an opportunity to cost savings for the entire term of the contract. Yes, no , i understands the amendment would be to funds the next 2 yers and 3 minutes we have the contract locked the term is locked but. Keep the option. Correct. The second thing is and i appreciate the bla highlighting for us the question this is were left unanswered. I would like ton you reference sick Million Dollars i see 3. 6 for those involved in crimes and storage from Police Department and 4 penalty 8 for first time, those 2 together . Supervisor, the numbers you are referencing other estimated annual costs of 2 waivers. Of for low income. And 6 million operate in deficit. Look on page 26 you seat compossiblies of the program costs. And then the tow revenues the fees collected from people who are towed and cars stored in lets. This 6 million is this net number. And net. Cost program. Got at this time cost of the program. If you put this against the waivers you would be prit congress in the be in a deficit. Correct. One thing i would like to know is we are paying rent. This is a cost for the facility. 3 Million Dollars a year over or stories out the actual cost 2 and escalated to 3 opinion 7. Is there a facility you would in the pirent itrous the can have the y. Yes, we will kickoff a process this week to review our options. Real estate is expensive purchasing rolls royce in the city we have to take a look at that. That is an opportunity. Repurposing space. Correct. And other space you reduce the cost rent. Balance is if we look outside. Rather than in the stele we have a good rental rate. We may be forced electric fourth from the city core could reduce customer service. Now the towd and the state go to the tow yard quickly. Weighing the prosecutes and cons of this. Am the other thing is, what percentage i dont get not clear in this report. 4 Million Dollars people towed for the first time. How do you verify this. You have the registration. The car in the system than i show up can it be the same vehicle and different driver or the vehicle. I believe it is the person in the the vehicle. Correct. I will addon this how do you verify if the person is low enincome. First time toast is waived . How is this verified . I believe this is verified through the register owner. And you know comprehendination of registered owner and license. The second question, verifying low income. Why when a person miss in there is documentation you can show them you know this i apologize the specifics like ebt occurred or Medicare Card or 2 of them. They have that information there, this can go toward showing they are per of a program fall under low income if than i dont have that information the vehicle stays until than i obtained this information. Like if they were to say, hey. You know i got my vehicle out but im low income if we have a record towed for crime they are told, that i they are not eligible. Hold on. Let me ask the commissioner im looking at your footnote we talked about this on monday can you explain, it says cordings to the mta memo police 20 of the toes beings, xriered registration. Stolen vehicles and other crimes. Yes. That was based on the Police Departments presentation to the mt aboard describing they dont pay for vehicle storage had they need vehicle to be stored as evidence and takes months for a criminal investigation and the entire Justice System we in. They dont pay for those the storage fee and that case. I dont know. I think the department can best spoke to when a Vehicle Owner pays verse you was the police dont pay and mta picks it up im going based on information you provideod page 27. According to mta memo the board of supervisors and talks about request and talks about that huadd the different requests up that the police had in the Police Department and over 4. 8 million. 3. 6 million. That will might include the crimes we have already talked about. There is another category a vehicle is towed because it payment in the the crime. So promise the car was had the up or somebody was killed in the car. I understand what you are saying. When im trying to get at. This program is pritting at a cost to the citizen 6 milling a year. It it is a valuable service. When i read here this 800 vehicles are in mta impunned at the qualify Police Department, thats a significant condition cost the mta piing for im not sure if the Vehicle Owners having this waived or not recover friday or the Police Department is in the participating. Seems like a cost is hoisted on to the mta. Trying to get to the bottom of this we may not have this today but need to. The reason i cut you off about side shoes in the beginning, we found out the people would showum and say i kennel pifor this im low income. And getting occurs back immediately. In the a deterrent in any way to involved in the side show and having your car taken and impounded for 15 days. We have rectify third degree with the stele attorney and Police Department work width mta and director of the liveable streets. We worked on that. But im concerned this there is a lot of costs put on the mta and that does in the seem to be a clear answer. Memo says another thing. Police department is in the here and all i see is the 3 opinion sick Million Dollars in cost that is handed owner over to the Transportation Authority and operating a cost of 6 Million Dollars to the blas point taking away monfreother transportation related services. Im in spchlt contract and support of dog this work there are good thing in this contract and this is a good Union Contractor and someone responsive to the city and costs this are being negotiated today this are cost effective. But this seems to be a source of confusion still and id like to have this clarified. We would definitely do more research forow this and get back on when we are discussing the policy. There is one thing i would like to pointow which is this although sfpd does a significant can portion of the tows than i dont all the admin fees come to the agency whether the vehicle is towed boy sfmta and police. So again. Part of the puzzle but worthy noting. Thank you. Obviously this topic every time it come to the board of proirzs provokes conversation. It is not easy for a number of reasons. The fact we know this many Homeless Individuals live in their cars and so, our much more subject then and there thez when have a home to you know all kindses of vehicle i have lithes including towing. You know the saying it is expensive to be poor. You know people dont have access it grand jury and safe accomplice its store their vehicle. Subject to tows. The high costs the fact this it kills all of us when we think this mta is subsidizing towing. You know the violation of lus by others. And subsidizing that is ticking machine frepublic transportation. You know the issue of not own the land and piing rent. All of the issues. So in addition. Im in favor of supervisor chans amendment because i just think we need more public dialogue of and involvement of the board every step. The titail figuring out the issues and struggled glad we have the waiver programs we have. You know i had my car towed in the past and it it is the stick are shock is unbelievable. It it is so expensive. And so you know always thought with the points and de feos they should be Income Department period and how would you prescriptionalize that. You know it is very there is so many questions. And so in addition to supervisor chans amendment if the mta during the creation of the rfp and the policy this the guide the rfp if you could gift board quartered low written reports. Met low buzz we had the conversations over and over and dont seem to get anywhere and move forward. The next time it come we have the same conversations with no resolution. And so grit to be more involved in the process as it goes forward. So, im going to introduce an amendment i passed out. This would page 3 lines 4 and 5. You know the mta is committed to reexaminination of the towing policy. And um and that policy will inform the creation of any new rfps and page 4 lines 13 the mta report quarter leave and the board of finance on staff progress on the towing policy. I just when you come for this money for the fifth year the contract or when the new rfp guess out i want us to have done work in between. So this we final low get resolution on the topics. With this lets open up for Public Comment and we will take a vote on the item. Thank you, members who wish it speak are join nothing person line up now to speak. Remote low call 4156550001, access code 2485 887 9195 , star 3 to enter the queue. Im edwardo, the director of operations at outer return and here with cj the controller for the finance department in i want to say that you are very happy to work with this mta. And thanks for am you know upon the time and we hope we can continue to giving good service to you. Thank you. Thank you for your service, which you know as reported is exemplater. Im speaking on behalf of teamster 665 we organized this group 20 years ago. I was involved in this. And we have appreciated i remember the then nair mayor helping if sill tit that negotiations we have are difficult back there. Over the last 2 decades we created a stable workforce there. Which is when we are looking for the turn over was low as far as i know. And thats when we are always looking for as these cycles come up. And we are supportive of the approval and supportive. Amendments they are presented today. When we are looking for stability of the work foremans. I would add one thing that it is unique in San Francisco patriot sector tow prirt. In other met reareas in the united states. If the workers this are dog the work here in the other cities are not city employees. Ure not municipal employees they work for private sector venders. Some dip admitically would you can very ditch to work with. And again i would reminds that we have stability with this workforce for 20 year and looking forward to continuing that. Thank you. Thank you. Mark. No further speakers here. Upon unmute our caller. Can you hear me. I will start your time. If i can get a 30 second warning. David, on this item i agree with the staff to funds the next portion of the existing towing services vital to the city to the program i think there may be some staffing elementing in house. And men, may be not. Should bean likewised this continuing function should have permanent owned property rather than leased. Sloulth. I hear the on going concerns from residence denials about the tow Program Policy and practices. Including the homeless and the vehicle lawyer home housed. I would approve the contract amendment with the shorter term as proposed by supervisor chan and hold a separate hearing in the get quarter low report and a hearing this committee gao or elsewhere, know the tow program and the various issues policy issues. Related it. I do support the contract amendment as amended. Thank you. That completes our queue. Public comment is closed. Supervisor chan. Shall we move both. Motion to move both propose the mems to sets of mems proposed by myself and chair ronen. On this motion by member chan to incorporate both amendments offered by yourself and chair ronen. Vice chair safai. Aye. Member chan. Aye. Chair ronen. Aye my assumption we dont need to continue i will make the motion to move this contract to the full board with recommendation. On this motion member chan this this be forwarded with positive recommendation as amended vice chair safai. Aye. Member chan. Aye member ronen. Aye. Thank you. Item 12 thursdaying the mir Avenue Office of housing on behalf of the stele to piment in the fourth round notice of funding visibility to accept the county competitive allocation amount up to 26 opinion 7 million. Under the California Department of housing and Community Development no accomplice like home Program Provides funding for counties to develop multifamily housing for persons who have serious mental ill knows or homeless or at risk of chronic homeless knows. A term effective upon approval of this resolution. Member when is are joining us and wish it comment call 4156550001, access code 2485 887 9195 , story 3 to enter the queue. [speaking very fast]. Thank you. Chair from the majors office of housing and Community Development. Thank you, chirp ronen and safai and member chan. Happy to be before actual prosecute pose accept and extend. This 26 billion going toward permanent Supportive Housing projects in our pipeline. In active predevelopment in open did thea sets and on line. As i know everyone is familiar with reiterate all of our housing projects require complex patchwork of Funding Resources and sources, et cetera. You know this is actually the last rounds of funding from this program for the approximate state. Exhausted by bond authority. And the Program Guidelines here present subsidies with other state programs. Cant use these on other multifamily Housing Program funds. So, we are really excited bring this to you and to reiterate the need we want to stretch the dollars as much as possible to get as many permanent housing in the city. And with this im available for requests you may have. Thank you. I do have cites identified . Yes. The cites that are listed in predevelopment work with homelessness and Supportive Housing and the department of Public Health. They are soits that have enter in the predevelopment phase. I believe it is currently out of about 15 in the pipeline but there are Program Guide lines stip litted by states housing and Community Development department that judge oust upon line red for construction or where they are in the process. That will guide which of the predevelopment projects our prioritized for funding. That decision has in the been made no. We are excited this will once in gets throughout process buzz the way it is is San Francisco jurisdiction represents with 5 of the Homeless Population we are able to apply for the funged s as a county. This is helpful for us we will have this available for multiple projects rather submit one off to the state. I would like to be added as a coexperience and open that up for public mentes that will be great for remote callers dial 4156550001, access code 2485 887 9195 , press story 3 to enter the queue. We are in speakers in the queue Public Comment is closed. Like to sends this to the full board with positive recommendation. On the motion to forward this to the full board vase chair safai add me as well. Noted. Member chan. Aye. Chair ronen. Aye. Where we have 3. Dom we have other items today. This concludes your business. Meeting is adjourned