Transcripts For SFGTV BOS Budget And Finance Committee 20221115

And provide Remote Access via phone. First comment on each item. In personal be allowed to speak first and then those on the phone line. For those watching channel 26, 28, 78 or 99 on sfgov. Org the public ment call in number is streaming that is 4156550001. Enter access code 2486 967 3951. You will heart discussions but muted and in listening mode only. When your item come up and comment is called. In person lineup to speak on on the phone dial star 3 to be added to the queue. If youor youre phone turn down your tv and upon listening devices and each speaker allowed up to 2 minutes unless stated. You misubmit comment in writing in the following ways e mail them to myself the budget and finance clerk at brent. Jal ip a assfgov. Org. Via e mail tell be forwarded to the supervisors and include part of the file and send the written comments u. S. Mostal service to our office in city hall at 1 dr. Carlton b. Goodlett place. And items acted upon are expected to appear on the board of supervisors agenda of november 15th unless stated. Thank you very much, supervisor man man, did you want to start this off . Really. I should call that item. Mr. Clerk call item one item one an ordinance amending the business and tax regulation code to suspend the imposition of the cannabis tax through december 31 of 25. Members remote and wish to comment call 4156550001 then access code 2486 967 3951. Press star 3 to enter the queue. When the system indicates you have been unmuted you can begin your comments. Thank you. Now supervisor mandelman. Thank you. Thank you chair ronen. And supervisor chan for hear thanksgiving item. Im here to request your support for an ordinance delaying the deaf San Francisco cannabis business tax through december 21 of 25. San francisco often lead the way when it come to cannabis this is a critical moment for the industry. An analysis conducted by the controller shoes over all saerls stagnant Legal Cannabis industry faces challenges cost pressures and market extreme price soltillity and tax burden. We are facing an issue for the legalization project. The Cannabis Market is not where i think any of us would want it to be. A dominant side offering similar products at lower processes and smaller legal market with various local, state and federal tax burden the question is should we allow the unregulated market to tloif as we add new taxless to the legal market or are prioritize helping the legal market compete to end illegal cultivation and sales. Pro5 outlets are stable since 2017 with 70 operators the fact that cannabis is schedule 1 kroeshs means businesses cannot deduct expense. Many of the costs and liables are a rust federal classification. This means cannabis businesses cant access Banking System and imposing security risks and higher operating costs to secure cash and goods. Over production is a problem for cultivators who make update foundation of the industry. Growers expected more customers during covid lead to a flood of products with price dropping to 700 in 2021. This increased retail competition with price cuts forcing accidents to make the same amount problem is the thriving illegal market. Estimated to be up to 2 thirds of the market in San Francisco. These operators pay nothing in tax. No business permits. No Quality Control and this means they sell products cheap are an legal operators. I believe the longterm sales and gross tax revenue will come from ensure all operators are above board will out way short term gains from squeezing the market offer to absorb the costs of operating legally. Legalization may have been pitch said to generate new tax revenue t is t. Is important to point out it was born that the worry on drugs failed. And we needed to stop trying to enforce our way out if we believe that we have to take every opportunity to gift Legal Industry an advantage or mitigate their disadvantage. The controllers report recommended aloning tax policy and future tax actions. This Field Service volving the federal and state level and i hope that the federal tax code will treat cannabis businesses the same as other buildingses. So i think it makes sense with the state plan to review retail tax in 2025 to push off our conversation of an a local tax as well. I want to thank Dan Rosenfield for the work on the analysis and thank the bla for their analysis. And Cannabis Retail are aircraft lines and Jackie Thornhill in my office who worked on this ordinance and i think thats what i got. Thank you. We have a report from the bla . Nick from the project analyst office. Item one an ordinance that would delay cannabis tax to 2025 meaning the first year that revenues recognize side 26 27. Looking at the budget and the 5 year projection of the citys Financial Resources over that time the loss of general funds revenue resulting would be thirst opinion 75 Million Dollars and consider it a policy matter thank you. Supervisor mandelman i dont know if you can answer this question. A few of them. What is the city doing to enforce the law about needing permits, et cetera. I hope we have someone from office cannabis here. Do we. That would be good to have. If we have Public Comment we might see if we can run someone down sounds good. And okay. Lets open Public Comment and i will make comments and ask questions after. Open up for Public Comment. Members who wish to speak and joining in person line up to peek if lining up call 4156550001 then access code 2486 967 3951. Press story 3 to enter the speaker queue. That is your signal to begin your comments. Will hi. Im the advocate of the Cannabis Company will as a Small Business owner and operate nothing San Francisco i ask you delay the San Francisco cannabis tax legislation. Until 2025. Legal cannabis businesses are squeezed by the state through over taxation. Cannabis industry is in a resxegz another tax is lack whatting we need. Thank you. Next speaker please. Greetings, this is johnny calling on behalf of the San Francisco cannabis alliance, a trade organization composed of retailers. Big thank you to supervisor mandelman and jackie for moving this legislation along. Right now the california Cannabis Market is a free ball combine cannabis for 100 dollars unregulated. That puts us retailers that are following the laws at a disadvantage. We need tax relief for businesses to survive. Each dispensary that opens is generating well paying jobs. If we tax this industry before it stabilizes the jobs will disappear as well. We are here again if another year. Asking, please defer this tasks. And thank you to everyone for their attention and for helping our industry make it through the largest california cannabis recession i have seen in my over 20 year in this industry. Thank you. Thank you. That compolice the phone queue. Madam chair. Thank you. Public comment is closed. The vice chair come in distracts me. Anybodying on the line from office of cannabis . I dont think we run someone down. Gi will turn it over to supervisor chan. Thank you, chair ronen. My question is that i have to adnate i p. M. In support like i am supportive of cannabis business and i think there are challenges that they face locally. And i think that is probably a question i do have for the office of cannabis and hope they could answer but i think that in your remarks opening remarks, supervisor mandelman, through the chair, you have mentioned the state tax. I believe the state tax is also part of the [inaudible] they other main burden in terms of taxation. I think that from what i understand from the office of cannabis the governor hen considering how to alleviate the tax pains for the industry because they are tax cultivation tax and also taxed again with sales tax. And so it turns out it is 30 of their total ref new goes to tax and then the local tax. From what i understand is that they have been having this conversation i believe nicole eliot is our state from San Francisco on whiches of cannabis now the state director for the state d. Cannabis and trying to figure out challenges and. Im sympathetic to the industry. And has been painful not just the pandemic but i think the approximate whole industry. How do we balance the black market with those do right by the people who support it and paddle Recreational Cannabis for the state. I do, though, i have to say like i am i have reservationch upon given the fact it is a policy matter that is up to the board. That to have this all the way to 202526, which now is a total revenue lots 30 opinion 75 million t is hard for me to support at this time. I wonder either a consideration and possibility we do it year by year. One, see the progress the state can make. And also with the economy would look like and can there be a year to year projection from the Controllers Office that help us make better decision year to year, fiscal year instead of awful next 3 lump sum together. Those were my questions. Question and thought whether could be a consideration for that and can we justify 30 something million at once for Tax Exemption. But want to respond to that . Gi think this we have been doing this year by year in the rush at the end of the year to extend it out. I think the reason the controller report suggested alining with the state kind of timing of having them they have sort of provided relieve through 2025 and take their next look in 2025. It seemed to me it made sense and rather than having us do it every year and the same conversation we could revisit it early if well is a change and dpenling what budgets look like. I feel like this is not the right place to right now. Not the right place to look near extra money for our budget. And 30 million is not nothing but it is also over a 3 year. It is 10 Million Dollars a year. It is not which we dont have but a new tax we are turning on. So those be my response my thoughts there. Supervisor safai. Thank you. I think one of the things i appreciate this peeves legislation now this is we spend time supervisor ronen, mandelman later came in, so much time on try to get the regulations and permitting and processing correct for this industry this is a very specific industry. Because of the taxation structure and lending structure and ability to operate. You talk to mall business operators and will actual the amount money they have to pay in taxless. That they do and required topate state issast nom cal. It is all in cash. Some banks that work with them it is a new and growing industry. Im really not about foregoing any loflsz revenue but this is in the revenue we are currently collecting and not something that is feeding the city right now. It is something that is projected helpful talking to operators they are in danger of going out of business and surviving because of the comp tiflthz market. We saw it more became mainstream and legalizes that you would have less of e lipsit market. Supervisor mandelman said that the elicit market is significant enough that under mines the industry dramatically. So for all of those reasons im for and we bill this every year. This is a yearly, have this conversation. I hear hayou say, supervisor chan, but for the industry now im final with supporting them to allow thome survive this tough economy they are in now. Thank you. Supervisor chan. Thank you. I think if we are going to vote as is today i will not be in support of it. I have in the last 2 years you know peculiar on the are bierdz everboard supported the exemption yes. Oust 14 billion dollars is not a lot looking at a 10 Million Dollars per year. Of i just think that makes 2 fiscal years will be tough. Not just for the cannabis industry but for everything we have to provide a type of support and possibly reduction. Im not going to be in the space to do a 3 years in a row tax reduction for cannabis industry. I know keep we dont know how much tell generate because of the new tax we never collected. It was supposed to be implement in 2018 and 19 and pandemic is now delayed. We never collected. We have done the same for commercial tax we paused after voter approval to collect. We now resume for commercial vacancy tax. I am not in the space to do a 3 years in a row of Tax Exemption for cannabis industry at the moment. Thank you. I want to announce log in the if you could join us i have a few questions. We apologize for being delayed happy to be here and answer questions. Thank you. Supervisor mandelman was explaining that there are estimates 2 third of the Cannabis Market is under ground and not regulated. How do you get those estimates. Is that correct in your understanding . You raise a good question. You think what you are suggest is capture exactly what the size of the market looks like that is accurate fr. Our initial indications based on complaints we receive the variety of types of e lipsit pragdzs we hear about the that sector of the industry is still sizeable and it does require a lot of our attention and resource. Im joined by ray the Senior Deputy director and theme let him speak about the larger elicit operations we responsibilitied to. I can say when you look at the complaints we received in this past year, it has intenseified. We are more responsive. The complaints we closed increased because of complaints we received increased. It is fair to say that is the size of this industry is large and that it does require our attention and the variety of operations the elicit operations do vary from large scale to illegal ventzing to the on going deliver coming in the city in violation of laws. I will let you spoke to the specifics. Sure. Yes. What the director just mentioned aligned with my understanding of the [inaudible] the industry but also for the elicit market in San Francisco and also in the state of california. I believe [inaudible] is a survey of the state of affairs [inaudible]. The legal operators are impacted by the elicit activities happening in the state of california inform San Francisco to director [inaudible] we have received up tick of the complaints associated with ilLegal Cannabis activities in the city. Part of the reason is now people are more aware of the ilLegal Cannabis operations. They are able to kind of differentiate with the legal and elicit operators. And i say type of activities ranging from the division, manufacturing, distribution and deliver of cannabis products and [inaudible] all of this increased resources to tackle those issues as well. Can you explain what enforce am your office does tos address the elicit market . We conduct driveway by inspection fist we receive complaints and coordinate with City Partners depending on the nature of the complaint. If there is a way out. Well coordinate with the City Attorneys Office and [inaudible] because e lipsit operations for cultivation that involves violation of [inaudible]. Well coordinate with City Partners to address aspects of the violations. Thank you. I struggle with this a bit as well. Because you know i believe in legalization of cannabis. I think that while the elicit market is substantial, there is special products that you know i think are mostly bought through, through the regulated willing stores. And it was an industry that did not suffer the same way others did. Having said that, i think that supervisor mandelman made a good case. The amount of tax will at the state level are substantial and all of the benefits to Small Businesses that exist, normally with you know tax write offs are denied to this industry, which is very nonsensical and hopefully will change. I believe it it. Because this trend of legalizing cannabis is spreading. And even making federal levels. I now understand why you picked the 202526 year with the state that makes sense. I think that you know if it happened sooner we could change the law. Im inclineed support this today. I think you made the case, supervisor mandelman. I do understand supervisor chans you know skepticism and started off with that skepticism as well. This is one i think minds can disagree. With that im theme make the motion to sthendz to the full board with positive recommendation. Can we have a vote on that motion . On that motion to forward to to the full board vice chair safai. Aye. Member chan. No. Chair ronen. Aye. 2 ayes one no with member chan in decent. That motion passes with 2 ayes. Never done had before we are always unanimous. Thank you so much. Read item 2. Item 2 is a resolution approving and authorizing retroproperty executive director of homelessness in supportive house to enters in i lease and Property Management agreement with the time center. Fiscal responsibles for delivering Supportive Housing as tenant to authorize the tenant to lease, operate and maintain the property and improvements at 1321 mission. For 5 year term to commence upon approval. And option to extend 5 years with the base rentave dollar no rent increases and net Property Management and costs to be paid by the 73 by the amount 19. 5 million of determining the below market rent under the agreement will serve a public purpose providing Supportive Housing for low income house hold in need. With the administrative code declirg the property is surplus land underwent the surplus lands act. Finding of consistency with the plan and authorizing the director of property and executive director of homelessness and supportive house to execute the agreement. And take actions and approximate this resolution. Member who is are joining remote and wish to comment call 4156550001 then access code 2486 967 3951. Press star 3 to enter the speaker line. When the system indicates you have been unmuted that is your queue to begin your comments. Thank you and emlow is here from the d. Homesness and Supportive Housing. Jop good afternoon im with the d. Homelessness and Supportive Housing. Here before you today with a resolution to authorize hsh and the director of property to enter in a lease and Property Management agreement with the selected Nonprofit Service provider at the acquired 1321 Mission Street. We will now call the margo. Excited about that. Appreciate supervisor dorse for cosponsorship and support of this legislation. The margo is a newark choired building in the district including 120 studios for a did you tell us leaving homelessness and 40 multibathroom units for faechls leaving homeless knowledge. Each has private bathrooms and kitchens and new construction. Television is a lovely building. The nonprofit providers for this property were selected through a competitive solicitation of interests, 134. 1 and dish delivering Supportive Housing through the fiscal sponsor tides. Awarded the Property Management contract. Ucsf Case Management will provide the on Sight Support Service and Family Service the on Sight Support Service for the families at the property. The board approved the city to acquire this property last fall and applied for and received 54. 8 Million Dollars in home Key Resources to support the acquisition and operations of the property. The resolution buffer today stated authorizes the director of property and hsh to enters in an agreement with tides. Or dish under tides to lease, operate and main taint property. The agreement is for a term of 5 years. With one a 5 year extension. The rent is a dollar per year. And the total not to exceed amount for the services is 19 penalty 5 million. Under this contract dish will provide management, maintenance and operations of the psh at the margo with our Housing First approach. Im joined here by Deputy Director whittly, claudia, dan adam system online and lauren hall is here as well. Everybody to help answer questions you have. Thank you. First well hear from the bla item 2 a resolution that approved the leasing Property Management agreement with the department of homelessness and the tide Center Delivery upon vision in spicht housing for Property Management a city owned property. 160 unit building used as permanent Supportive Housing. The board approved the purchase of the building and acceptance of a state home key grant to off set the cost and subsidize operations for the first 5 years. This agreement would provide Property Management service at the site. There is a 5 year term with option of an exception. Resolution not to exceed amount based on the 5 year term the budget for the 19 and a half Million Dollars not to exceed amount on page 8 of our report. You see the cost is funded by project home key funds. Homeless gross receipt and income and includes 2. 2 Million Dollars project reserve. We note in our report that you know the per unist cost of this agreement is about 6 thousand dollars higher of than was estimated by the department. At the time acquisition. That is largely due to the fact this is a city owned property requires nonpersonnel expense insurance, security, Legal Service and that kind of are connected to the fact the city owns this propertiful weep evaluate the agreement and do recommend approval. Thank you. Supervisor safai. I have one question. I think this is great. I was not aware originally that project home key does operating expense. That is good to know. Is that 6. 9 million in Grant Funding one year . Or sorry that on going funding . And after of that how is that money going to be replaced . And second question is is there is obviously different categories for prop c. Operating expense dollars being accounts you are pulling from . That is an on going source. Which may be diminishing given the current gross receipts and tax. At athlete is somewhat ivenlt can i wanted ask about the home key dollars and is that a year or how much can we anticipate that . Good afternoon the pedestrian homelessness and Supportive Housing. Thank you for the question, through the chair, you will see in the bla report the state home key money is over 6 Million Dollars that is a one Time Allocation that can be spent over time. Part of the home key grant the city has to commitment tom maintain operating for 5 years. You see in the fourth year of the budget the prop c housing money kick inform thats a combination of funding that is allocated to support family units as well as adult units a mixed population building. So you know we are grateful for the state not only we have the resources to help off set cost of the acway sigsz but one time operating subsidies. I see after year 3 it goes away. You pick it back up with prop c. Thank you. I would like to be added as a cosponsor. Thank you. May be this is for emily. Have you ever had a Supportive Housing unit that includes the single adults and families . Thank you for the question. We have one other property thap is combination one other this is veterans and families temperature is not a byed widely used model but we are trying them in building this is have the u neefk make up the margo has. Jury room this is family units have multiple bedrooms. How does it work . How is it going up . I did in the ask lauren perhaps to come up and share her experience on the ground. Having because this is a new model for us. Having 2 separate Service Providers expertise in serving that population is important. But i think there are adjustments. For folks in the building for families. But i will let lauren. Yes. I can say it has been an incredible partnership and compass brings expertise of working with families. We are seeing some kind of not traditional family catharsis able to have multiunit come in as couples and so we can be more flexible then and there we are in single Adult Housing. Some reunify with kids in custody. One thing we are working on is how we do over dose prevention and Harm Reduction work in a family environment. That is where we are excited work with the Harm Reduction coalition and our experience we have can single adults. You cant enter the floor that you only enter the floor you live on with the way the elevator work its modern there are ways to keep the property safer. So im excited see how it is going. We have not filled the units yet. Service team and the dish team are working well together and are like really excited have this a model for how to intgreat communities and have families and single adults and see elders living on their own and have children in the buildings. One of the challenges with the building could be it was not designed for traditional families. It was designed as a young Adult Housing when it was built by the panoramic folks. We created multipurpose room this is focused on providing services for kids. We try to take every advantage to make it work best for families. Im optimistic about it. We will know more as months go. Okay. Sounds good im curious to continue to learn with you on how this works out. Thank you. I would also like to be add as a coexperience and love that it is called the margo. Thank you to the everyone who knead happen open up for Public Comment. Please. Members who wish to speak and join nothing person lineup now. For those remote call 4156550001 then access code 2486 967 3951. Press story 3 to enter the queue. Hello. Lauren hall Supportive Housing. I wanted to offer that this san incredible opportunity, i think for the organization that i run to actually work in an environment were where it is a new building. Beautiful building we can gain experience as master lease hold and use the modern systems and building our capacity to do more and to do more with the city. Ive am excited about the opportunity could not resist sharing that. You dont see those side its is a boom for our organization and maintenance workers gaining skills on how to work with the systems and most buildings over 100 years old. This was built 5 year ago. It is excite to builted our capacity and like we were talking about with make families and single adults zee an opportunity to do Supportive Housing really limp kitchens, bathrooms and service sdpeem we can criminality to our work Going Forward as a city on how to do Supportive Housing right. Thank you. Look forward it your support. Thank you. No further speakers here in the cham befrment weave have no callers in the queue Public Comment is closed. Make a motion to sends this to the board with positive recommendation on that motion to forward this to the full board, vice chair safai. Aye. Member chan. Aye. Chair ronen. Aye. That motion pass unanimously. Thank you. Mr. Clerk read item 3. Item 3 a resolution approving and authorization the general manager the puc and or the director of property on behalf of the city to sell fee and easement interests in Real Property along state road 84 and the city of freemont upon incorporated alameda count tote state of california through the California Department of transportation or cal trans. Approving and authorizing an agreement of safely real estate ease and utility ease am for the assist property to cal trans authorizing the puc manager and director of property to execute the agreement and make modifications or take actions for the resolution and agreement. Adopting findings considering it is surplus land pursuant to the surplus land act. For the conveyance of the property not in Public Interest and with the administrative code adopting findings under ceqa and Planning Department finding the transaction contemplated with the general plan and 8 priority policy of the planning code. Members who wish to comment call 4156550001 then access code 2486 967 3951 then press star 3 to enter the queue. An thony may be on the line to present . Yes. I am. Good afternoon madam chair special supervisors im having difficult sharing i will ask my colleague jeremy do the power point presentation. My own, there we go. Perfect. Thank you. Um this is tony pu c real estate. The city through puc owns Agricultural Land on state road 84 known as [inaudible] the city owns 2 parcels one near free month, parcel 57. The other is parcel 65 it is notoriety town of seeno on the i680 interchange the parcels in green are opened by the city. But the 2 parcels out line in the ma genta are what we will talk about. So. Proposals to construct safety improvements spot locations on the [inaudible] part of the States Program to upgrade the road to expressway standards. Totalling 18,000 square feet and approximately 16 thbld square feet of temporary construction easement area sxvment april 1600 square feet of per mitted easement for an electric utility easement to be conveyed to pg and e in the first draw thanksgiving is in green, one of the feed parcel in 57 near the city of free month. The parcel in green is another fee parcel the small yellow square is the per nanlt utility easement to be conveyed to pg sxeshgs and the long thin line is the temporary obstruction easement area. That is all the way to i680. Next slide. Puc has no utility use for the property and deemed under utilized. Cal trance office of the city report and appraised the value as of april 21 to be 11,000. Upon cal trance the city director of property approved the aappraisal in june of 21. Caltrans updated and concluded there was no change in the original value estimate of 11970. The citys Real Property is exempt surplus it is land that the city is transfer to another local agency that agencys use. Caltrans seeks to purchase the property and exercise the powerful Eminent Domain and a competitive bid process is not of interest. On september 13th of 2022, the San Francisco puc approved this sale. The puc budget and finance committee recommend this resolution to the full board of supervisors. Are there any questions . No , i dont think so. Thank you. Can we open up for Public Comment. Yes, members who wish to speak on the item and are join nothing person line up now. For those remote call 4156550001 then access code 2486 967 3951 and press story 3 to enter the queue. Public ment is closed. I like to motion to sends this to the full board. On that motion. To forward this to the full board with positive recommendation, vice chair safai. Aye. Member chan. Aye. Chair ronen. Aye. We have three as that passes unanimously. Thank you. Thank you. Can you read items 4, 5 and 6 together. Yes, 4, 5 and 6 resolutions thursdaying the office of Contract Administration to execute modifications or amendments to contract with the city in the following. The purchase of supplies for departments. 4, execute modification 7 to a contract with Industrial Supply inc. The purchase of industrial splice increasing the contract amount for a total not to exceed 15 penalty 1 million with no change to the duration of may first of 23. Executes amendment 4 to a contract for the purchase of Industrial Supplies increase the amount by 9 penalty 5 million an amount not to exceed 21 minute 6 million extending a year for duration through december 31 of 23. Item 6 executes modification to contract with buckle electric company. For the purchase of electric supplyos if i can urs increase the amount by 3 million total not to exceed amount of 16 penalty 9 million with no change to the duration. Members who are joining remote and wish to comment call 4156550001, access code 2486 967 3951 then star 3 to enter the queue. Thank you. Good afternoon director. Good afternoon. Again, director of office of Contract Administration. Have a brief presentation. Thank you. Im here today to request your approval of 3 amendments to contracts you will see a summary. The first for Industrial Supplies awarded competitive solicitation in 2017 and not to exceed of 14. 27 million. And the third contract is electric supplies and if i can urs it was awarded competitive solicitation in 2017. And has not to exceed of 13. 9 million. And end date of june 30 of 23. All 3 are catalog the departments mipurchase a range of industrial and electric supplies offered. Based on the manufacture and Product Types in each contract. The pricing of the of city based on percentage discount. All 3 are used by City Departments with an average month leap ranging from 2 huh thousand dollars per month up to 421 thousand dollars per month. My next slides, i want to note there have been increase in expend tours during fiscal 2122. Primarily because of inflation resulting in over all higher pricing. As such the balances are insufficient to meet the business needs. The next 3 slides have you this but the next 3 slides get in detail about expenditures on each contract by department. Without spending too much time i think what you will see is the expend tours increased instead last fiscal year and for these contracts the largest users are the departments and chapter 6 departments including puc, airport, mta and public works. At this time we are requesting your approval for these 3 amendments. Given the increase in contract expend tours. You will see the amendments here. We look forward to the requesting to increase the contract mte to 15 publicity 177 Million Dollars for the grange are contract seeking to increase to 20. 9 million and extend the end date boy a year to december of 23. And the electrical contract with buckle smith seek to increase it by 216. 946 million and change. I want to note the bla recommended to reduce the proposed for granger. We agree with this. Great. Thank you. Next the bla. Primary thank you. Items 4, 5 and 6 are all resolutions to increase not to exceed of existing Term Contracts managed by oca the purchase of industrial splice. I dont have much to add to the presentation dpoept say that you know we evaluated the increases in not to exceed amount bazed on the spending of the last 15 months has been accelerating we agree the amounts are reasonable for the remainder of the term of the contract that are considered here. We v had a recommendation on item 5 to reduce not to succeed by 700 thousand dollars the department does upon agree. We recommend approval. Thank you. Supervisor chan . Thank you. I think my question is just more about the management of supplies and inventory checks. And now that if there is an increase of the purchase the inflation and everything how do we make sure we keep track the supplies and inventory seaccurate. Maintenance of tools are to date. Per audit requirements diameters are required to track anything that is an asset that is equipment over 5 thousand dollars. Of am some use the citys Financial System to track the assets. Some use other systems im not familiar. Diameters are required to track. Oca does enter in maintenance agreements. To ensure that the equipment is operational. When needed. And in terms of materials and supplies that is inventory i think the Controllers Office can being provide more information about the tracking of equipment and assets. They do happen within a system. I think coordination with the Controllers Office and your office to figure out with the Contract Administration to when we tracking supplies and tracking tools that there is hopefully sort of like a consistent system that all departments use this one system so there is master inventory and he maintenance. Information in one, whether you start processing the type of contracts that come to the body for approval you have an idea for tracking butt results of the tracking. Is there loss of inventoryo needing maintenance standard . Before we condition to increase the dollar amount without accountability. Im im in support. Thank you for the report. I dont have questions about aproving the 3 contract im want to make that suggestion and recommendation. That will help the city temperature it is similar to my thought on what we had last time cell phone. Policies and keep track. I fall in this cell phone and supplies. I think if we have a consistent way to electronic we will be half for the longterm. Thank you. Thank you. We can open this up for Public Comment. Members who wish to speak lineup now. Remotely call 4156550001 theny access code 2486 967 3951. Wait until you have been unmuted. No one in the chamber. We have no speakers in the queue. Public ment is closed like to amend item 5 as stated. On that motion to amend item 5. Stated bit bla. Vice chair. Aye. Member chan. Aye chair ronen. Aye. That passes unanimously and like to send items 4 and 6 and 5 as amended to the full board. On that motion to forward to the full board 5 as amend vice chair safai. Aye. Member chan. Aye chair ronen. Aye. Motion passes. Thank you. Mr. Clerk read 7, 8 and 9 together. Item 7, 8 and 9 resolutions authorizing the rec and park to accept and extend the following and authorizing the rec and park general manager to enter in modifications and amendments that dont increase the obligations or liabilities to the city and necessary to the purpose of the project or resolutions. 7, accepts a California Department of parks and recreation Conversation Funds grant 350,000 to support improvements in the twin peek open space july first of it would have through june 30 of 27. Approving the grant main taint trail for the contract performance period july first of 22 through june 30 of 2042. Item 8. Retroactively accepts and expands 211 upon thousand dollars grant from the California State Department of parks and recreation. Division of boating and water for the San Francisco marina turn in program. Approving the terms and conscience for the term of august first of 22 through sept 30 of 23. Y. 9 expands a Community Project Funding Grant in the amount 1 penalty 5 million from the United States d. House and urban development the play upon ground project. Authorizing the sxrek park to enter inspect a Grant Agreement on approval of that resolution. Members who are joining remote and wish to comment call 4156550001 then access code 2486 967 3951 and then star 3 to enter the queue. Tony from rec and p is on the line what you have before you is the requesting the resignation to the board of supervisors to sept 3 grants to enter the grab agreement with the various funding agencies and to authorize the manager to make modifications to the agreements. The board the California State Parks department. This grant will make event to the access trial at twin peeks to twin peeks open space. Second grant the support the marina in removal of jurisdiction. The will support the construction of the new rec center in mc clarin park. The third grant i do need to make amendment to page 2 line 7, the term spriered june of 2030 not in october. Im available for questions. Supervisor chan. Let me ask the bla to present on item 7. 7 is a resolution that would approve and accept and extend for rec and parks for grant the California Department of parks and recreation habitat Conversation Fund thank you very much grant has not been awarded yet our Parks Department believe it may be in the perspective approval. The grant amount is 350 thousand dollars. Should be used to fund a portion of the twin peeks trail Improvement Project this. Grant go towards restoring the trails that is already there conjecturing the noe peek to the residential your that has a bus stop. You see on page 27 of our report the total funding for the twin peeks project included restoration of 2 stale trails and conversion of twin peeks boulevard to a park funded by grants you see on the budget and 750 thousand dollars of bond funding. This fraement 20 years requiring the city to maintain the trail improved for that 20 years. The upon Marks Department estimate the cost of that maintenance will start at 145 thousand dollars a year. We are considering approval to be a policy matter for the board and happy to take questions. That is the question i have for rec and park on were item 7, have you yet to like retroactive. You have not received the grant went grant seems like there is an agreement requiring the departments to provide a 20 year maintenance like to fund 20 years of maintenance for that period. Kwu walk us throughout reasoning why this is coming before you receive the grant . Im confused. The grant performance period started juvenile 22. This is very common for California State Parks department to property start the grants when the funds are appropriated at the state level. Times the upon grants are awarded a year and a half after that date. No funds spent on the project. Using that grant source. Reason rec and parks is to the board of supervisors now is because we are in the process of designing other leaderships. We want to bring this money and sign a contract immediately. We expect top here in support and inform third degree because that fund program was under subscribed we are like low to get this grant. Thank you. Where is your Funding Source because of the accepting of the guarantee contract. Does require the report make the commitment to have ia Maintenance Fund or fund the maintenance for 20 years. Have you identified funding or is it inclusive. The trail we are talking about in this grant has been constructed it is already maintained boy rec and parks. And approved amendments were make it easy to maintain for 10 to 15 years. Thank you very much. Good to see you. Thank you. Open these up for Public Comment. Member who is wish to speak line up to speak. Call 4156550001 then access code 2486 967 3951 and press story 3 to enter the queue. Press star 3 to enter the line for those in the queue wait until the system indicates you have been unmuted. Seeing no speakers in the chamber. We have no callers in the queue. Public comment is closed id like to amend item 9 as stated. On this motion to amend item 9 offered by the rec and Park Department vice chair safai. Aye member chan. Aye. Chair ronen. Aye. That motion pass unanimously. And. Id like to make a motion to send upon 7 and 8 and 9 as amended the full board with positive recommendation. On that motion to forward to the full board with a positive recommendation, safai. Aye member chan aye chair ronen. Aye we have 3 ayes. Thank you. Mr. Clerk read item 10. 10 is a resolution authorizing the department of Public Health to accept and extend a grant of 262,000 from cdc. Through the California Department of public healing for participation in a Program Centers for Disease Control and responseful public workforce san frap the period of july first of 22 through june of 23. Members who are joining remote and wish to comment call 4156550001 then access code 2486 967 3951 and press star 3 to enter the queue. Thank you daved is on the line, i believe. Yes. This is david from department of Public Health. California Public Health experienced this grant to all california counties to address the fact that during the pandemic children in california fell behind on immunizations including for require the to attend school and also because of the state experienced lower than hoped for covid19 vaccination rates among 5 to 11 year ovaled ages. In San Francisco, our population receptive to vaccinations for the prior year 95 entering sxrchl all the required shots. Also this is on our dash board 78 of San Francisco children 5 to 11 have completed their covid19 am primary series. Versus tlaecht state wide. So the percent of children over due for School Vaccines not distributed equal low. Some Charter Schools and those in neighborhoods with higher proportions of of africanamerican children have had moreover due children. Clinics and Health Systems it staffing shortages and San Franciscouneified health staff have occurrence for parents difficult getting access to vaccination catch up appointments. Especially in vulnerable populations. And emergency funsd offers creative upon opportunity for us to reach communities at the highest need. How the funds are used . According to a grant they must be spend on staff supporting transitional k12 schools not childcare populations or surplant other funding. We need to report become to the grant semianual in terms of the number of personnel hired. The stats of the costs. The funds must be spends the evenltdz fiscal year however the state is mulling overnight possibility of no cost extension. Original grant amount of Public Health was 342,000. Upon we release the 80,000 to San Francisco unifyed support them hiring a vender to review immunization records at all grade level in San Francisco. The total grants d. Public health is 242,000. In the time that started since we received the grant. Formed a coalition. Composed of the Healing Department and child and lessent health and Health System in San Francisco and developed an action plan to improve access to catch up appointments. With this Funding Program development the past summer. We are in the rehiring process. That is our summary of the project and im happy to take questions. Any questions seeing none well open this up for Public Comment. Members of the public who wish to speak in person lineup nouchl for those remote call 4156550001 then access code 2486 967 3951 then press star 3 to enter the queue. Public upon comment is closed. A motion sthoepdz to the full board with positive recommendation. On this motion to forward that to the full board with positive recommendation vice chair safai. Aye member chan. Aye yoochl chair ronen. Aye. That motion passes unanimously. Please call item 11. Item number 11. Authorizing the d. Public health to except a grant increase of 500,000 from cdc. For a total of 969 thousand for participation in National Human immunodeficiency virus surveillance for january first of 22 through december 31 of 22. Members who are joining remotely and wish to comment call 4156550001 then access code 2486 967 3951 and press story 3 to enter the queue. I believe aaron is on the line for this itemful im erin wilson and direct of the transresearch for equity chair of the San Francisco of public healing. A quick background on what this is the National System funded by the cdc to provide data on risk and preventative behaviors among people in San Francisco most impacted by hiv focuses can men, transmen and people 2 do drugs we are in the field of collecting data [inaudible]. Doing and accepting from the cdc to the d. Public healing. Thank you. Sthshg. Colleagues any questions . Seeing none well open up for Public Comment. Member of the public who wish to speak and are in person line up now. Those remote call 4156550001, access code 2486 967 3951 press star 3 to enter the queue. Press star 3. Condition to wait until you have been unmuted then begin comments. Nobody in the chamber and we have no speakers in the queue. Public ment is closed. Make a motion to send this to the full board with positive recommendation. On that motion, vice care safai. Aye. Member chan. Aye. Chair ronen. Aye. We have 3 ayes that motion passes unanimously can you read item 12. Item 12 a resolution authorizing the d. Public health to enter in an emergency contract with Health Management associates in compliance with the code requiring approval by the board for emergency contract and access 100,000 for the purpose of prosecute vising Consulting Services not on exceed 3 opinion 7 million for a term of 13 and and a half months. And approving maam one to the agreement for providing Consulting Services increase the agreement by 2 penalty 5 million not to exceed 6. 2 million with no change from may mine through june 30. Enter in modifications and do not nksz the obligations or liabilities to the city and necessary or advisable for the purposes of the contract or this resolution. Member joining remote call 4156550001 then access code 2486 967 3951. We heard this item last week. Mr. [inaudible] do you have additional comments to make. Last week today i want to reoryenlt scope and yield over to greg the chief operating operator of department of Public Health to answer questions. With that we can advance to slide 5. They specialize in Public Health care and Human Services policy, programs and evidence. We build havent base for the current efforts this survey has exerts from physicians, pharmacy, nursing. Fire, life, safety conducted that survey of Skilled Nursing and acute care regulations. Those are what resulted in the need it develop what was referred to task 3 the Education Training curriculum. And this is where hma develop addressing the finding and mock surveyed all staff across 4 weeks and provided to move on and own to utilize. This is what you reviewed last week on training and help launch the [inaudible] change. They work on the top to bottom laguna honda assess am to ensurety longterm success will look beyond at laguna honda this was delayed from 2019. Those areas are leadership. Management, staff and others. They are developing the recertification application itself. One second. Supervisor safai. Du give us this last time. Gi wanted make sure we were reoryenlted would feel have a long meet figure it is okay we can go straight. Absolutely. Point. You did a wonderful job explaining everything last time. Not trying to be rude just keeping on task. Advance to slide 7 and yield the floor to mr. Wagner. Were good even supervisors greg Wagner Department of Public Health. If you can put up the slide 8. So i know there was a discussion at last weeks hearing and want to respond to a couple of the issues that the board had raised. I will start by saying i understand with the emergency contracts that this is a challenge that is for the boards role and the departments role. We are by definition here dealing with something that was not anticipated in the budget process. And were in that uncomfortable territory of managing in the future as we make decisions about today. So, a couple of business items on this, first of all, we would like to propose we the total not to exceed of the contract 377, 667. That is. Coming from just over the past several days as mr. [inaudible] within back, pushed on the travel costs and evaluating the projected spending. We feel comfortable we can to that. Thank you for. Good job did a great job pushing on the value there. Second. Globalally on emergency contracts, we dont now anticipate that we will have any additional emergency contracts coming to the board. I say we dont now because the nature of this is you know i dont want to promise something not knowing what will happen in the future. But now we dont have beyond what is in front of you today and what is associated with the Settlement Agreement the board approved last night we dont anticipate there will be additional contracts coming. In terms how we fund these contracts or anticipating we will fund. That was a topic last week. It is is not a simple answer for exactly i think the reasons you are raising. When we submitted the budget we had a sense of when was going on. But did not know what this contract would electric like or the situation we will be in when we got this place and so we could not foresee temperature when we are doing in the department of Public Health is we have our command systems set up that includes the Financial Management from laguna honda. It is over seen by doctor colfax, myself and others including rolfe an pickens you have spoke web trying to manage the needs and other operational items including the finances and the costs. This is a tricky process. We have among low meetings with the Controllers Office. To review expenses and revenues related to the situation at laguna honda. And that help will help us as we manage through the sick month, 9 month and in between million reports wham we are working on now ask because of nature of this is trying to manage our finances to week and month to month to identify dollars we can reallocate to fund the costs. And so examples of where we do that right now as you be there is a freeze on admissions to laguna honda we have a low are patience everpatient census then and there we would have budgeted that resulted in savings on purchags for routine materials and supplies that forecasting to be several millions of dollars 4 Million Dollars over the course of the fiscal year that is an example of where there is multiple facets of the implications this and we are looking for the costs and savings. We are looking at capitol projects to defer and reallocate funds from because really now with the exception of things necessary for recertification we are not in a position to start new major capitol programs. And we are also working on revenues even since budget was, proved a couple months ago, we had further extensions of the federal medical assistance percentage ens hansment part of the stimulus so there is potential revenue news that will have to be off set everything happening through our sick month planning report. So the point here is not to give you an accounting but to try to give you a sense how we managing this. We are doing our best to which try to manage within budget and these are challenging issues for us as i know they are for the board. We dont like to bring you these but we are dog our best to manage when we bring. And figure out how we can make it financially valuable as we go. I cant believe supplies are that expensive but i can because everything is. Of that is significant that is helpful to know how you got to the numbers rather than 6 million fell from the sky. Thank you. Appreciate that is there or the december the analyst. To present again i know you did not change your report much . We did not change. I would say that the travel labor that was discussed left time that was based on 50 of the billing rate of the staff. And the contract that is not an uncommon practice for them but understand than i found savings because the projections have changed the last thing you said. That we could. I guess im not clear about where the savings is coming from. The travel labor . Or is it because they will spends less. We will find out. Supervisors so of this amount that we proposeed reduce 100 thousand dollars is from the travel budget. And the remainder is from essential low revising our projected hourly usage. Over the remainder. Contract. I want to say, thank you. When we saw the numbers they jumped out and did not make sense. Really appreciate you going back and charm sharpening the pencil. Every dollar counts at this time. I know that raised energies for me and i know the chair also. Expressed her occurrence. Thank you. Yes, thank you. Open up for Public Comment. Member who is wish to speak line up now. Remote, call 4156550001 and access code 2486 967 3951. Wait in the the system indicates you have been unmuted then begin your comments. No in person speakers here. And we have no speakers in the queue. Public ment is closed. A question. I dont have the written amendments but if i make an oral amendment to ruse the amount not to exceed by 3 upon 77, 667 is that sufficient. Ive did the math and think that is 5 million, 863,000 and 302. If d ph agrees we can. Is that the new not to exceed. See if anybody has their calculator out. Upon yes. Great thats sufficient. Make a motion to amend item 12 to reflect the reduction of 377, 667 as stated by mrs. Pierson. On that motion to amend as stated vice chair safai. Aye member chan. Aye. Chair ronen. Aye. We have three ayes. I like to make a motion to sends it to the full board with period recommendation. On that motion vice chair safai. Aye member chan. Aye yoochl chair ronen. Aye that motion passes unanimously. Ment to note we are joined by supervisor steph neechl thanks for joining us and mr. Clerk can you read enemy 13 and 14 together. 13 a les lugz approving an agreement with Public Health and the California Department of Health Care Services. To provide Substance Use services. And Public Health to nernt amendments modifications to the agreement prior to final execution by all parties increase the obligations or liability to the city and are necessary for the purposes of the agreement or that resolution. Item 14 a hearing to consider the d. Public Health Employment policies and the over all condition of baker place inc. And requesting the upon department of Public Health and Human Resources to report. Member joining remote and wish to comment call 4156550001 then access code 2486 967 3951. Supervisor safai you. To introduce these items. So, of there are items things we are talking about today. Want to thank d ph for being here. The purposes of the hear twofold. The first part is to hear from the d. Public health on the fiscal condition of bake are place is. The second is to discuss one item we discovered liking in to bake are Place Finance and that was to do a secondary. Employment. This is focussed on bake are place and secondary employment on that side of the organization. Prc positive Resource Center provides pshgs hiv services and no issues raised with that organization and the services they provide. But bake are place is provides Substance Abuse and Mental Health treatment as we know and issue started merging with prc in 2017 but this process has not gone well. D ph knew of the predicament face thanksgiving organization. After we had finalized a budget we were asked to look at emergency funding. We push back significant cannotly. And while service offered there is a lack of clarity and the electric of clarity about the finances is very troubling with the organization. So i understand the controller is doing a review. And that has started during the supplemental so far, the second army employment topic came up during the period of time financial instability. We discovered that bake are place was paying City Employee high ranking employee in their department over 100 thousand dollars a year. From a city contract. From their city funds contract. And according to d ph own statement this is was approved by d ph and not official low approved by d. Human resource was required by our city law. Now we will hear from d ph at some point after we go throughout bake are place issue. And how the process is supposed to work and how much are employees earning outside income that dhrness b. Those were brought to the attention and, proved. And then hear from d ph how they improve the processes to ensure they are complying with requirementless. Thing that caught meet most was a city fund nonprofit. Using that city funds to pay a City Employee. And that employee as we understand is a 24 hour on call employee. This is not an assault or quest to e eliminate secondary employment. This is something that happens in the city my concern is the conflict of interests of obtaining secondary employment from an organization that is funded by that department of i think this is a conflict of interest. Why dont we start from d ph to talk about bake are places and how their Financial Financial situation is fwif clarity moving on to the secondary employment what will happen with the service. Thank you. Thank you. Greg wagner again d ph chief operating officer. So, i will defer to you all on how you want to handle the 2 items. There is one an agreement with the state between d ph. This is related how medical is paid to the city. Baker is a provider. We also have a presentation summarizing where we are with baker today. If ana you could bring that up. I will go through this quickly i think prebl alots of this is going to be governored by your questions and yours that interest. We will summarize where we are. Next slide. Go through the back grounds and current status and where we are with Service Transfer planning. Next slide. Um so as you said in your introductions baker prc and baker and baker for the topic provides very important service. Including under contract with department of Public Health. They are part of Behavioral Health. And you always mentioned in your initial remarks. There have been official challenges at baker for quite some time and d ph along with the Controllers Office and other City Departments have been pret deeply engages with baker in working on these. Right now the status is baker struggled they have informed the Public Health and City Partners. Number of programs they are under contract to provide. Top prior is to ensure contnewt of care and cloinlt this is use the programs and to maintain our system of care through any transition. Now we are working to remain work with baker and prc on their financial model. Mro vieding support for technically and prescriptionally. As we go through this process and continue to do this over time. This slide you have seen before. But prc affiliated with baker. Supervisor safai. Than i are related through a Management Service agreement and board of sdreshth everdirectors that serves as the board and dual capacity for both organizations. Prc provides Services Financial assistance, benefits and hiv out reach and others. And baker place is one of our major Substance Use and Behavioral Health providers. They have 215 beds contracted as part of our behavioral Health System of care. Going back a bit in terms huwe got to where we are today. We have been working with baker for i time. The discussions go back to fiscal 2021 and some respects before. And fall of 2021, bake are came to Controllers Office and subsequent low d ph and raised concerns about financial status. Including that they believe that they were under compensated in their contracts. The contracts were not sufficient to meet the full cost of the programs they were contracted provide. That began evans over the last year or so. The city hired a supervisor safai mentioned a Financial Consultant review of their budgets and expenditures and contracted revenues. That work importance this work performed and portions are on going. In addition, what will get is we moved the contracts for the organization from i fee for service to cost reimbursement model. That is something we do less but not unique and did this because the organization flagged the issue this they did not believe their contracts were paying full costs. That was happening the winter of 2021, 2022. You know from prior hearings there was a significant change may of 22. I of course the city and bake are felt we were on a better trajectory and an abankrupt notification that bake are believed they were running out of cash and not able to make payroll. That was the first time we had an indication the problem was of a different nature than we anticipated. Where it was not about whether the contract matched the cost of the program. It was the fact that baker bunkham using current revenues. A cash crunch. At that time because of we were so close to the end of the fiscal year. And concerned about stability of the programs you know we brought to the board a request for an emergency grant. Took that action very seriously. We did in the want to do that and understand that the board in a challenging position. When we did do it. The reasoning was simple low that we did in the have a mechanism. We through our contract can pifor service and costs. We cannot give cash to an organization to pay old bills. And bake are is grateful for. Got us through the window the end of the fiscal year and made payroll and to pass july first. When we begone a new year including a new initial payment for bake are, which is where we provide a 3 month payment for the cost their contract. Sometimes an advanced and technical word is initial payment. And that is designed to help improve cash flow and relied upon [inaudible]. During that period of time, we were working with baker on the Financial Sustainability plan the board required that it passed. And made a bit of progress lead to the changes we implement instead financial and contractual relationships with baker. Most recently in september that most recent challenge has been bake were came back and said that they believe third degree they were again out of cash. Did not have sufficient cash available to continue to meet their payroll for the medium termful but in addition, they had reach aid point their administrative capacity including financial staffing and ability to submit invoices to the city had drrted they were unable to do the basic things required draw city reimburse am under their now cost based contracts. Of the that has been cause for alarm for baker and for the city. There has been turn over in bakers financial staffing including their financial leadership. They have been under staffed and irrelevant when we are talking about we got to the point where we said here is i wave of your contract you bill us and draw reimbursement to keep your cash flow moving. They were unable to create the invoices to mitt to the city to draw that cash that was a different type of problem. Which is beyond the level technical assist analysis the city and d ph provide through contract monitor and Technical Assistance programs. Baker in theified the city that they plans to with draw from vo providing 4 programs that they are under contract for. And that was a flag to d ph that we were now in a territory we had to make plans to ensure we had continuity of services for our clients. So we have been doing that. Working through the behavioral Health System of care to identify a potential providers to take on services that are provided by baker. At the same time working with baker to try to keep them going. So im sorry how close are to you finding that potential provider and where are things going. We were asked for moncompetence gave you money fund the services. This has been going to 5 years now. I understand it is in the easy to transition and find a provider. Perfect transification. The next slide. Um so where we are now is we just within a couple weeks reached an agreement with baker we proposed an e terrible low a set of financial agreements with the city and baker. A transition period through june 30 of 2023 this. Is important to us because tell take time to transfer some programs and need the run way to do that that is the focus how do we provide this transition period so we dont have an impact on clients. Baker accept today just left week. This there will be program this is do transfer before june of 23 and we probably have at least 2 programs by january to a new provider. Others will take longer because tell be challenge to find a provider or the lead time to transition clients will be longer. The joe hilly program and acceptance place we have an agreement with health right 360 to take on the service. 2 we have been focused on working on. I will interrupt for a second because item then and 14 were called together. The issue that we saw on colleagues on item 13 thank the department for quickly moving on this. We sent this back to committee to the board identified as potential provider weave have not got that updated information. Now health right 360 it is a Critical Program because it is in the able to run you know it is detox. It is substance. It is extremely critical having i know your team worked identify it. So given that, i no longer have issues with item 13 that clarity is provided today. Mr. Clerk id like to be added as a cosponsor on item 13. I want to innerject that to keep the flow of things moving. I dont know if anyone has specific questions about 13. Since they were called together i thought i would jump inform please, proceed. Thank you. So. Those transitions are under way. We currently throughout Behavioral Health sufficiency care are working on each of the programs identified or that are under contract with baketory identify alternative providers. We will as we get news or get resolution on those we will keep the board informed on our plans for those but we are actively working on that and working on managing between the City Attorney and baker. What that transition period will electric like contractualy. Do we know if baker will cease to exist after the transition is final we dont know. There are things that have to unfold with regard to what the future of baker is. I know there are several conversations we are having on going base i. I dont know. Are number one, than i have assets complicating factors with how they were finance said. They have significant dent a lot of which hen transitioned it loyals with the city. And so one of the things we have been tarrant countying about with baker. Put the 2 together there are financing process that can occur that gets them past the point where theyre now and they feel they are dent is great. Stay with baker or prc or some hybrid form in terms of when the organization and legal relationship looks like i want to jump in this is the things that has of bothered me about the services not unique to d ph but a d ph and hs heart attack issue. When you contract with providers that have asset this is is the longterm lose or own the property. They are insolvent or unable to provide the services further. We are left holding the bag. Because if than i go out of business and evict the patients where will than i go. Or they cease to exist than i have the contracts. I imagine mag the difficult you had the last 5 years of finaling a provider a number of the accomplices are under contract and leased with this entity. I would encourage to you review that practice internally and ensure that like we did on the previous item the city had the own the property was the. We are the ones giving the organizations millions of dollars anyway. O own the property at 10th ownership ninth and mission and to the organization. It runs out and this organization is out we bring in a new provider. This is not a good Service Delivery when things go bad. And so i understand that similar to the travel labor i had never heard of before until we pushod it this saved the city 400 thousand dollars. I would say, please, you know either we do it through an audit or on your own. You have to look at the contract and this model of deliver teis causing problems. You mention today i wanted jump in and say something. Are you almost done. I know supervisor stefani has questions. Did you have something on that point . You mentioned that joe heel competence acceptance place will be relocateed health right 360. Y wonder how that was made an rfp . Given that 360 has its staffing shortages now. How was that determination made and especially with regard it joe heely detox, the medical supervision required for deto being from alcohol is very involved. How that you privateed you they were the best to do this. Thank you. I will ask jeff to responded. Good afternoon im maxwell director of Behavioral Health services. Based on our prior rfp press they were the bidders who award for the service the drug services. Regarding your questions for workforce we are deeply concerned about workforce orchestrating conversations. To extend Employment Opportunity from health right 360 to baker, should staff nursing staff who are interested in transferring or. Am opportunity of 360 they can apply and be on board. We are pending final results from 360 and bake upper which Staff Members are interested in going. You want to finish. Mr. Wagner. Thanks supervisor. We will leave it at that. I will just summary take away points. Are we have a lot of work to do. We are just over the last Company Weeks optimistic we are on a track to get when we have really been hope and purke for this transition period that will give us time to make a transition in an orderly manner. And we will likely be talking to this committee further as we come back i have at budget process but also any contract upon changes that will be required as part of that process. On i think it is important you keep us updated on baker place. Sounds like there are direction this is can go in encouraging thome keep some of their work on a smaller scale or they will transition it to other providers we like ton who they arech i heard you know off the record from one of the staff that there is identified potential. Organizations again it might be in the same situation asked by supervisor stefani might be an organization stretched thin and you being be putting this organization in the same predicament that bake are place is n. Them is extreme low important. For us to keep aware of thank you, supervisor. Okay. Now if we move to the second piece of the hearing which is secondary employment. I think d ph should speak first. Before we get on hr regarding the individual that was working for baker places on a city fund contract. 24 hours a day on sxaul on call for the organization at the same time. To inherit conflicts of interest. It seems as though that you all approved this work at d ph and approved the secondary employment from the information that we have been begin but dhr did not approve that employment. I like to hear what is your policy for secondary employment . What internal control dos you have to ensure there is not conflicts of interest. Like this. And give us a detail on hahas transpired since that time and how this has been resolved and go to dhr they will give you was the information on people they identified that are on the record for doing secondary employment and stated it is not an assault. But looking for conflicts of interest. If supervisor robe sxen i w for a nonprofit in the stele we fundd that came through this Committee People would call for our resignations. Manner not you im kidding. I that is the first thing i thought of i could not imagine we have to put that on form 700. What do you mean you are working for an organization that is city funds. I will turn it over to you. Mr. With in. But bloik to hear when is going on. Sure. Thank you supervisor. Several things i know dhr has slides that include did thea on secondary employment and the process. D ph our secondary employment process is delegated by and coordinated of when you will hear from dhr we administer the rowels in d ph. A couple of upon things to your point that we are working on. I think bake and then just general low in the issues this were raised secondary employment outside of that case we are taking a look at our practices. I think there are problem in terms how things have been administered and opportunity for improvement. Current process is any employee who wishes to take a secondary employment is defined in the Civil Service rowels and dhr guidance required to submit the secondary employment application. Guess through the employees supervisor and d ph, hr. Depending on level of employee approved by Operation Manager or hr director. Once that approval is occurs submitted to the city the d. Human resource for approval. The conflict of interest issue in the secondary employment that is includes a conflict of interest. Is there impact on the employees work city. I. To stop you there im sorry but both of those box would have been checked. Job description is 24 hours on call. The secondary employment was 24 hours on call. The organizations nonprofit funded by the city. How did that guest okay. So how did this get through the process because it was approved by dhr. D ph, hr. Of and supervisor, i will answer that question i want to avoid talking about an individual personnel situation. But i hear your question. There are a few things we are now we have asked and working with dhr on a review of our process. I think. Do you know how many people work secondary jobs at d ph y. There are 120 who are approved for secondary employment. Do you know how many work for city Fund Nonprofits there are 18 who work for an organization that have affiliation with the city. Bulk are ucsf. I think on that point. So that is something worth talking b. There are layers in terms how we think about it. Well is the situation where you have secondary employment your primary employment is outside the lines and a lot of our case of secondary employment what weave have our clinical staff who take shifts or have some form of clinical participation. At another Health Care Service provider. It seems like we put walls around that activity to keep it in the boundary of ethibles and conflicts of interest. This is the majority of the casure. I think we need to and we are going to review our historical practices the situations. Make sure we have the right rule and procedure in place in d ph and another peels of this where i think we have a lot of work to do in terms of how do we close the feedback loop and monitor compliance and the approval and when they expire. So we have a constant process of revisiting and evaluating those relationships over time. Those are areas there have been shortcomings in d phs process. One thooing thing we have been talking about is putting modern iegz the will approval system. One of the things again going become to our budget process when we were reviewing your budget, and we were concerned just energying something in this it i think under scores the problems. It became very clear that your Hr Department is dramatically under staffed. And part of that shows its when we talk about the amount time it takes to hire a nurse and front line star and fit empty positions. Within your department. I was hoping today you would im glad you came woman this is the process we will review we highlighted i got a call from your, your executive like i cant remember the name. Upon doctor colfact i would have liked to see him today what is under score system you dont have enough hr staff. What is your Hr Department the total number of staff. I can get you a number it takes me 20 minutes to get you a number. I think that if you are tuck burglar internal press and reviews and fill pregnant empty positions. And stream line suggest 100 functioning if you dont have the appropriate h r staffing then you will continue to have the problems. The thousands of jobs in the city there was a significant number that were left unfilled they have in the gone through the process and be filled that also feed in Mental Health sf and the Service Delivery. I would like to hear i plan for that i think this will have a big are impact on this conversation. 121 is in the a significant number. Department that has how many employees . 800. Itself a mall number i think it under scores other problems within h r. Within your department. If is of our departmental retires for Department Admission and top for critical cant fail priorities in the strategy planning. You mentioned staffing that has been a chronic issue. Within hr and this translates to a chronic issue in the department. This board we are extremely grateful in the last budget cycle you approved in staffing. Of 21 that is in addition to 16 approved in prior years budget. Catch up with the growth and the initiatives like Mental Health sf. We added within the department a new office the office of employee experience. The role is it electric at process including when we are talking about today. And issues like this. How do we manage and processes are working and employees are not bearing the impact of where we are insufficient and administering prospects. Supervisor stefani du want to say anything on this point. I want to a question. How many of 120dp heart attack employees have secondary employment come from jail house service, do we that. I can get that you. I have it by class not division. That would be great. The fact that the secondary job has been brought to light was 24 hour on call job making impossible to do both at the same time. My concern is the state. Jail House Services and condition and what the inses are doing through i will call a hearing on this state of jail House Services it is my understanding after further investigation that the nurse there are worked to the boneful 12 hour shifts mandated to stay. Staffing shortages and my feeling is that if you are the director of jail House Services that seems to fail so bad low in terms of taking care of workers trying to do a difficult job what are you doing with a secondary employment. And also my understanding is that again, given the state jail house everybodieses and when the nurses are going through, is that there is no contact with the director. No Staff Meetings and it is just state where not performing well for you City Employees no those receiving service. And it is something that was quite shocking that an individual could get approved to have secondary. Am when it is obvious that this of the jail House Services needs to be improved. Thank you. Supervisor stefani. Happy to work with you on that. Of of request. Joymented just to there are 209hr, fte at d ph. And i want to correct something i said earlier i gave you the figure 120 that was a fiscal year number with approvals is 142. Which is the active approvals including ends of 2021 that are still valid. And we had a number that have come in as we put out our reupon mierndz. We call up hr now . Good afternoon chair ronen, members of the finance committee. [inaudible] the d. Human resource. The charter gives Civil Service rule within 18 gives employees the out lines that program terse which employees can take on additional employment. We through this process recognize there are opportunity for improvement in our process but i have sean or assist an director of Employment Services to help explain the process as is today. Good afternoon supervisors. Thank you. The Employment Program i have over seen working with h r teams like dpm over seeing that program for 10 years since i joined the d. Human resource in 2012. I have background i with share and quick over vow that will give us a good grounding this is something in our rules runs through all 4 vol unanimous of the rules including police, fire and mta. And in general it gives employees the ability to have outside employment. Assuming it does not intrefr with their job and that it is renude annually by their d. Officer or does the citys h r director or designee. And so doing we helped employees update being the additional employment request form. And making sure it has specifics about the employment. And that we obtaints signature of the employer outside of the city they than this is a City Employee. As limp and then the approval of the officer in the department and hr director. Sorry. Bunch go to the i want to ask that question. So every year outside employment is reviewed annually. And every year there has to be a signature from the ash pointing officer . Correct. Okay. So this means in the case highlighted for us this is not done once this is something done consistent low since this person has had employment with the city . Every time within your department or the department or is it hr and, first it has to be bruto you. If it stay in hr within the d. Whatever department, department of Public Health in this case it was never bruto go through this protocol . It it is not fully approved until it has the elements concluding what the department of hr review and approval okay. Thank you. Supervisor stefani behalf is the crip terwhere to determine whether or not secondary. Interferes with. Am we are looking when we work with our clothes in h r the officer and employees the things out lined in the form that are also out lined in the Service Rules and number of trainings and resources to departments to provide employees we look at the Effective Date when it is happening not doing things retroactively has to be prospective employment we need a chance to review it. Obviously the Department Needs a chance to review it in advanced. Too. We look at value of compensation. That in and of itself may not have a conflict but manage we want to look into and might be things other than compensation. We consider all forms of compensation. Looking at the schedule of outside employment. No intefrns with the employees work schedule includes not taking time off. No intfrns interference with the job. Part of that we want to know how many hour this is person is working. This gets to thicks my team has seen and worked with diameters over night shift and and you are coming in the next day you may not be able to perform your city job. We tend not to see those extreme examples. We want to make sure that the additional employment is not inconsistent with the employees duties or departments responsibles. And last although it does not come upune, we want to make sure it the not a hazzard ouz occupation to cause injury or risk to the employee or the work they do this is the example i e louded earlier in part if you have a safety sensitive job we will look very closely at outside employment you may be seeking we want to make sure muni operator is in the a nurse is going to be alert and awake and rested do their job. Approximate my question is im not sure who is answer. Supervisor requirement for 700 form for City Employees we have extended the lists. And the ideas of making sure employees the 700 form is a way to figure out conflict of interests or how are people compensated outside of their jobs with the city. Thats another way to catch that we know as a city work upper that i then and there is the second employment is voluntary. The City Department grant approval you are fielding the requests, meaning you are novelty going to have you have 8,000 staff you will not try to figure out if they have a secondary employment. They are responsible for telling you so. Come the 700 form it is i way to figure this out now confirm and not moving federaled we are trying to figure it out. Without trying to 3 down the specific employee in question, i guess for the department of Public Health i look at the list it is brief. For this 700 form requirement. Now that we identified the issue this we need to correct. Has there been a conversation between upon department of Public Health and hr to figure out under the legislation a way we can at in tools with the from 700 reporter s to do a secondary catch or like a safe guard for this . Let me speak general low about that and i can turn it over to my colleagues. Form 700 learningly for managers and supervisors and majority of additional. Employment questions are nonmanagement am staff. They would not be pull in the through this form 700 process. Many departments use that opportunity where they reach out to form 700 to reminds them of obligations and requirements urn the Civil Service rules to report any outsider or additional employment. To get that approval before they engage in that employment. And this is an annual reminder we are seeing. The colleagues at Public Health and lilly discuss that there are systems and tools we get which message out consistent low. We get it at the front end part of employee hand book and the online and in person orientations with each employee that starts with the city we remind them you must receive approval before out employment. There is more work but form 700 is an area where many departments are using is that opportunity. So i think that go ahead if you want to add to comments and sean hit the points. We have been we upon cant speak to matters that are happening with the legislation, of course. We have as mr. Wagner stated in conversations how to improve process limited by technology but like many systems at dhr look to modernize and automate our process and we are exploring now how to make this seamless and dhp is a partner in that. I am curious in this forum and understand the sensitivity of a personal problem but look at the legislation as proposed and that going through meet and conifer process. And throughout hearing that listening to the presentation that learning d ph is trying to work occupant a process or better protocols and internal press to figure out how do we catch issues and safe guard the issues then it it is my way of saying can we since legislation continuous at rules will there be a possibility d ph and hr to really now go back and look at the legislation and figure this and as an additional way to how to help d ph to safe guard. Seeing the list it is limiting in this form 700 requirement. Yes absolutely we and go back and lookament the legislation and concert with our labor partners. I appreciate it. Thank you, vice chair. Thank you. Were you done . I am done it was the last slide you were waiting the accounting of additional employment requests we have to file. Happy to take questions the supervisors may have. The upon one that now that we hear is 142, i think this is very clear what d. Human resources is doing. I think that am from the presentation if that practice had been in accomplice i dont think we would be having as much of a concern. But this is really about understanding what d. Public health is doing to improve their processes ensure they will comply with when you have laid out. You know 142 employees that they know of that have secondary employment should be easy top find out. Very quickly working with your team to very well view the. Want to see if there are conflicts of interest. Thats what i would like to hear from d ph what is it anyone from hr from d ph or just you. Not just, you but you know when i mean mr. Kag wagner. I do supervisor hr. We are willing and starting to reviewing the employment for conflicts. There is lack clarity and work drh and linkage and over lap with form 700. 18 that are work for nonprofits. 18 for an organization that has city rep with the city. How many of those are not ucsf. And another medical institution. That is a little different. They are in the working that is different. How many of those 142 or 18 that have some rep with the city. Are not i can give you the data there are several like kaiser that are doing p103 or nursing assistant work with kaiser. There is special this do shifts at nels a clinic throughout medical agreement. If you are w 2 or 3 days with the city and 2 you are not you are working with kaiser. I dont think that is the have you found conflicts this raise a red flag. Why we have not found that raid a red flag but reviewing and committing to that to go take another look. We are committing to do there is the unknown unknownful a major push to get word out with the staff about the secondary employment requirement. We are going to do twice a week the next month reminders and put a system in place to track expiration and do regular communication and make sure that process is going through the d. Human resource can you give us i list of the 18 outside or relationship affiliated does not have to be the employee but the entities that you are secondary employment staff are working foryou found that have a relationship with the city that would be good to see who the 18 are. Okay. I dont have additional questions. I wanted to say that the reason we call third degree because we are under asked to watch the citys dollar and asked to provide the best services we can deliver on behalf of people with Mental Health in our jail system and our city. And the best delivery system. Will you feel awful us put energy along with you and your staff and i know you care but we this was somewhat shocking to more and understands it was going on for years. Because the employee worked for the organization and came on to work for the city that should have been a quick question. Based on if you continue employment are you working for an Organization Funded by city. Not approved based on there has to be a severing of ties that is why i called itmented hear im happy to hear it is 18 this have a form of out of 8,000 this you know of. I would imagine there is significant aim of under reporting within your organization. I have to believe there is more then and there 142 people out of 8,000 that have secondary. Am. I have no issue with as long as they are going throughout procedures to ensure we are not having further conflicts of interest. So good if you provide us with the 18 and potential leave i think good for this body to be updated may be in the next 3 to 6 months and let us know the review have you per received after the twice a week and highlighting sends us a letter to the committee i think that will be helpful. Spires stefani. I have a point of 120 or 142. We updated it. I miss third degree. The 120 is the number we gatherd and guess after january 12022. If you had been approve in december 2021 it is valid. Thank you and i wanted echo what supervisor stefani has said you know there is obviously a loophole here or a gap because the standard from the hr presenter was we want to understand how much hours that you participate for your secondary employment. But like supervisor stefani mentioned about the example of General Services and this employee is on call 24 7. Something is in the right here. I think that we are novelty targeting the specific employee or incident but it it is even for the 10a program that we passed talk about allowing the Sheriffs Department and deputy sheriffs to pip in a Retail Program we had a discussion making sure theyure not off their shift and meet the man dates. I think that like vice chair safai this body put energy to make sure not just targeting d ph but am approximate secondary employment. Not impacting the city service we are obligated to provide and i think that often time we are being asked to watch the public dollars and delivering the city service. Of the of this is the city dollars but city service. I just want to thank you for coming before us today and to emphasize why it is critical and so i appreciate supervisor stefani for calling the hearing. I agree that the conscience is dire and now it is questionable along with when we have discovered and learned it is disappointing. And look forward to having a time line and commitment perhaps through vice chair ka safai we get a conclusion about time line resolution and progress made. For the protocol and improvement. Thank you. Good to have a letter to the body and giving an update of what progress you made in the next 3 months that would be helpful am okay. Thank you. Thank you all for getting automation so quickly the time line was condensed we are faith holidays meetings truncated or cancelled all together. We appreciate you moving quickly. Given the fact this was a timely issue. Thought it was important and thank you to the chair for scheduling quick low as you could. I am good with that. So i have no further questions do we have open for Public Comment. I think mr. Clerk. Thank you. Member of the public when wish to speak are join nothing person lineup now. For those remote call 4156550001, access code 2486 967 3951 then star 3 to enter the queue. Upon seeing no commenters in the chamber. Mr. Lamb can you unmou the first caller. Please. Hello. Okay. So i have participated in all the meetings both at the board and with the commission. The healing commission. And you also remember there was a time that this 2 bodies did not submit the required information to the budget analyst. Now you leave him out. And some others that is no good. The city is corrupt. And i tell you why it is corrupt. Yall dont think when you out Source Services when it come to the wellness behavior. That00 autolast one of the critical meetings that will tell at the board. And the chair of the budget is love and oh , you know taking it like a joke. Without taxpayers money so all i got to say is you supervisor should be audited. I know if you are supervisors crooks doing things you know illegal. And the city add administrator should let out and i will stop there. This has to be taken for a different Time Investigation that i cant initiate. This is something sure the board of supervisors the budget and finance committee is not capable of dog a needs assess am nowhere understanding the helling department. Time expired. Suburban to cut you you have mr. Decosta we are timing each speaker at 2 minutes. Do we have further speakers . Hello. Upon please begin. Hi. This is brae from district 5. Residents of grove and haight have spent dealing decades relate to baker place. Our complaints were burr ed by management we appreciate the attention you are give to this xoergz we continue is surprise to hear from us we spent i year requesting information and accountability from bake are place and the city agencies. The response from all partiesy export for bake are place attorneys have been silence. Knowledge there has been accysttivity relating to the request for information is sunshine ordinance request. As maces of the bake are place perform bake are place staff and attorneys have made it clear they carry on with business as usual and entitleed do so based on the greet they received from the city. Grove house is a thrive bathroom short term halfway house. Typeset is for 30 days bake are accomplice advertise it as both 60 and 90 days. Of both have been closes for 19 months. Bake are accomplice should not have been awarded 4 Million Dollars to purchase the house. Information provided in the Program Purchase recommendation was inaccurate purchased over 1 Million Dollars. Every step of the purchase had been filled with errors. How an organization can between to praifrt operate for 4 years. Should be sold to recoop. Sorry to cut you off we are timing each speaker to 2 minutes. That comleasts the queue. Public comment is closes. Thank you. I appreciate the 2 departments coming forward with this information if you send i letter with updated information. And if you can quickly get i list of the 18 non city affiliated entities that the staff his that would be interesting. Thank hr for getting information it is straightforward and clear. Seems to be a very easy process to follow. So thank you. And i would again under score for mr. Kag wagner part of this letter if you can get us an early in advance a review of your hr staffing for your department. And let us understand, i understand this we Vice President given you additional staffing the last 2 years. But i think it would be good to have a pretty concrete analysis of what the appropriate level of h r staffing is for your department. Thank you. Thank you madam chair like to make a motion. Make a motion to sends item 13 to the board with positive recommendation. And thank you for making those adjustments upon department of Public Health that was helpful. And then for item 14, we can file that. Thank you. I so send item then to the full board as amended with positive recommendation. Thank you. We amendd that number mr. Clerk. It was read in the record and the math was done boy the City Attorney. Yes and public healing confirm third degree number. On that motion to amend item 13 as read by the City Attorney, vice chair safai. Aye chan, aye ronen aye on the mr. Clerk im sorry, du have something to say im sorry i think item 12 with the amendment. Hma not to exceed. All right. Oh right i apologize. Did we not do 12. We did. Im sorry. Item 13 that was the 1 the information was begin to us that was switched out joe heel wet new provider thou this we have this we dont need make amendments. If we can we can motion to rescind this last vote. We did it. On the motion to rescind safai. Aye member chan. Aye chair ronen. Aye. This motion rescinded. Now send 13 to the full board with period recommendation and file item 14. On that motion to forward the resolution as item 13 to the full board with positive recommendation and to file the hearing as item 14. Safai. Aye. Member chan. Aye. Chair ronen. Aye. We have three ayes they pass unanimously. Are there other itemless. That concludes your business. The meeting is adjourned. Today we are going to talk about fire safety. We are here at the urban center on Mission Street in San Francisco. Its a wonderful display. A little house in the urban Center Exhibition center that shows what its like in a home in San Francisco after an earthquake. One of the major issues that we are going to face after earthquakes are fire hazard. We are happy to have the fire marshall join us today. Thank you. My pleasure. We talk about the San Francisco earthquake that was a fire that mostly devastated the city. How do we avoid that kind of problem. How can we reduce fire hazard . The construction was a lot different. We dont expect what we had then. We want to make sure with the gas heaters that the gas is shut off. If you shut it off you are going to have no hot water or heat. Be careful not to shut it off unless you smell gas. Absolutely because once you do shut it off you should have the Utility Company come in and turn it back on. Here is a mock up of a gas hear the on a house. Where would we find the gas meter . It should be in your garage. Everyone should be familiar with where the gas meter is. One of the tools is a wrench, a crescent wrench. Yes. The crescent wrench is good and this is a perfect example of how to have it so you can loosen it up and use it when you need it. Okay. Lets go inside to talk about fire safety. Many of the issues here relate to fire, for example, we have a little Smoke Detector and i see you brought one here, a Carbon Monoxide Smoke Detector. This is a combination of smoke and Carbon Monoxide detector. They are required in single homes now and in apartment buildings. If Gas Appliance is not burning properly this will alert you before the fumes buildup and will affect you negatively. This is a Battery Powered . This is a Battery Powered and it has a 10 year battery life. A lot of times you may have one or the other. If you put in just a Carbon Monoxide detector, its important to have one of these too. Every house should have a fire extinguisher, yes. One thing people expect to do when the power goes out after an earthquake about using candles. What would you recommend . If you have a battery operated candle would be better to use. This kind of a candle, you wouldnt want it in an area where it can cause a fire or aftershock that it doesnt rollover. You definitely want to have this in a noncombustible surface. Now, here we have our stove. After a significant earthquake we expect that we may have gas disrupted and so without gas in your home, how are you going to cook . Well, i wouldnt recommend cooking inside of the house. You have to go outside and use a portable stove or something else. So it wouldnt be safe to use your fireplace to cook . Not at first. You should check it by a professional first. Outside should be a safe place to cook as long as you stay away from buildings and doors and windows. Yes. That will be fine. Here we have some alternative cooking areas. You can barbecue and if you have a regular propane bark could barbecue. Thank you for joining us. And thanks for this terrific space that you have in this exhibition space and thanks for helping San Francisco stay safe