Transcripts For SFGTV BOS Budget And Finance SubCommittee Committee Fed Select Committee 20170407

Wait around. I want to thank linda wong who is the clerk of todays clerk. And also sfgov tv, who tapes every meeting and is available to the public after that. And i want to thank the staff there. Madam clerk, there are any other nounsments . Yes, silence all cell phones and Electronic Device and completed speaker cards to be part of the file should be submitted to the clerk items it acted upon today should be on the april, 8th board agenda unless otherwise stated. Thank you, why dont you go ahead and call item one. Resolution, retroacting the public of health. To accept and expend a grant in the amount of 1,336,000 from the California Department of Public Health to participate in a program entitled hiv care Program Supplemental for the period of november 30, 2016, through september 29, 2017; and waiving indirect costs. Okay. So with this presentation. Good morning, supervisors my name is dean and i am the administrator of the hiv sections and i i am here to request the retroactive approval of the grand in the amount of 1336 million, in the one time funds, this came from the state office of aid as a new opportunity for the local Health Jurisdictions to request part of an appropriation provided to them from the federal department hers and the real location of the unattended part b from the jurisdictions in the state. In late august, we were able to request the funding to enhance the existing service and support the concepts and Service Category and identify and prioritized by the state office of aids, this will allow the hiv Health Services to pass on all of this 1. 336, million to our hiv Health Service providers to expand and amend the services for clients and nine separate programs. And based on the priorities of the funding announcement and the services are provided from november, 30th, 2016 to september, 29, 2017 in the following Service Categories oral, health, Supportive Housing, and one time increase to existing housing subsidies funded with the local fund dollars and the Hospice Services and Outpatient Services and the food and meals and client insensitive vouchers and reasonable doubt pa of the hiv and aging, and the regional study and i am happy to answer any of the questions that you may have and to explain this further if you would like. It is just a quick question. Yeah. How much is the housing piece of it. There are two housing pieces of Supportive Housing is 60,000 and that was provided to one of our transitional housing programs. To provide them a one time increase for their operating expense line items. And then the other is for the increase in the housing subdy of 350,000. About a quarter of a grant. Okay. So if you have no other questions, there are any Public Comments on this item . Seeing none, is Public Comment is now closed is there a motion. All right, i see there is no matching funds and i will make a motion to send it forthwith a positive recommendation. Thank you. Passes. Item two . Hearing to consider the release of reserved funds to the Arts Commission, placed on budget and finance committee reserve by the fy20162017 annual appropriation ordinance file no. 160628 , in the amount of 62,000 to fund acoustic mitigation improvements good morning, Deputy Director from the San Francisco Arts Commission here to request release of the 62,000 put on reserve for the last budget season and this is for mid gages work for the spaces and the Veterans War Memorial building where we moved in october of 2015. I am happy to answer any questions that you have. Thank you. I did read the information in the packet and maybe just on the record, the rationale behind it. Absolutely, so the budget analyst has a great and that during the project some of the work that we are hoping to have done to mitigate the issue was not included in the work scope because of the budget issues. And so as a result, the main office areas and the private office areas, have the issues and it is difficult to have one on the cell phone or a Conference Call and it is a challenge for the meetings which are required to be audio recorded and so the sound quality of the audio is difficult to hear and so as a result, we are implementing three Different Solutions in different areas. And one is a different type of glass, which will be installed in an office, the other is a sound masking device for the main suite and finally there will be a fabric wrapped panels installed in the meeting rooms in order to help to absorb the sound. Thank you. Okay. Seeing no other questions, are there oh, yeah, the budget analyst and report. Yes, mr. Chairman, supervisor tang on page 3 of our report, we note that the table on that page shows the projected total cost of 64,000, to address the Art Commissions noise mitt indication issues and however, only, 62,000 is currently on the budget and finance committee reserve and the Art Commission advises that they will fund that additional 2469 with the existing available funds in their budget. We recommend that you approve the budget and the release of the 62,000 on reserve. Okay. Thank you very much for your report. And any Public Comments on this item . Seeing none, Public Comment is closed. And supervisor tang. So i will take a motion to release the 62,000 from reserve. Would you like to amend the amendment . There is no amendment, right . Correct. Yeah. There is no amendment, supervisor tang, could you also please file the hearing . Yeah, so i will make a motion to release the reserves and file the hearing. Okay, with no objection, the motion passes. Madam clerk, could you call item three . Resolution approving in accordance with Internal Revenue code, section 147 f , the issuance of Revenue Bonds by the California Municipal Finance Authority in an aggregate Principal Amount not to exceed 45,000,000 to refinance all or a portion of certain outstanding debt obligations that originally financed and refinanced the acquisition, construction, equipping, and furnishing of facilities owned and managed by institute on aging, a california nonprofit Public Benefit corporation, in connection with the provision of health care and other support services for lowincome, frail older adults. Welcome back supervisor to this meeting. What is your item . My item. Okay. Before we get started with the reports then, supervisor fewer is here to speak on our item. Yes, thank you supervisor yee. Colleagues i just wanted to say that the institute on aging is in my neighborhood, and actually serves a broader senior population than just in the richmond, and it has been the life line for many seniors, city wide. And with their friendship line, 24 hour, suicide prevention, and the friendship line for seniors as well as ul of the services that they offer on a daily basis. I am proud, actually and honored to sponsor this legislation, and it is such a Wonderful Community in my neighborhood. And so i just want to give a brief introduction, and i think that today, we have michelle traveti with us. Roxanna blaze. Thank you very much. Thank you, colleagues. The institute on aging the refinancing will allow the institute to actually capture the lower interest on the bond that we have for the building. As well as net some additional cash savings which will help with the programs that we offer in the city and in the community as supervisor fewer has said. Any questions . Seeing none, item and Public Comments on this item . Seeing none, Public Comment is now closed. Supervisor tang. I will make a motion to send forth this resolution, with the positive recommendation to the full board. With no objection, then the motion passes. Thank you very much, the next item actually is number four, but we are going to skip over that and wait for the chair. She will come before us and address item four, i know that this is important issue for her. So we will wait. Lets go over to item 5. Resolution approving the recreation and Park Department general managers declaration of an emergency based on catastrophic failure of the boiler system at kezar pavilion, estimated cost more than 250,000 to repair, pursuant to administrative code, section 6. 60 b . Okay. Good morning, supervisors gary, with the recreation and parts department. I just want to give some brief background and information on the Emergency Declaration. And as you may or may not know, the pavilion is heavily used by a lot of our local high schools and middle schools. And the emergency was declared in december and it was critical that we made the repairs before the playoffs, and we walenburger, sorry. The gym is the home gym for the high school. And it is also used for all of the sfplayoff games as well as the state championship games, Mission High School played their games at the pa vif an and they were able to get the repairs done before the games took place and so that was, you know, definitely a positive impact on the community as you know. And so, and i, i am here to answer any other questions if you have any. Okay, i am glad that you got the boiler six, before played, and otherwise, it might have unfrozen there and that wind in the championship. Absolutely. Very important. So i saw that it is a full source contract going to the city mechanical. And of course, the explanation was getting the quotes for the bids would have delayed the work by two months, and i am just wondering how the rec park selected city mechanical. I do not have that information. But would you mind following up with me afterwards or unless there rose has that information that would be great. Madam chair, mr. Chairman, supervisor tang, that contractor was on site and i believe so that they just continued with this contractor. It was that simple. And as you know under the administrative code, in the case of a true emergency, the board permits the award of emergency contracts on a full source basis. Okay. So through the chair too, mr. Rose just to clarify, city mechanical has already under contract with the rec park in general to maintain the pavillion . Yes, okay, that is fine. So was that your report from the budget analyst mr. Rose . Yes, i would just add mr. Chairman, supervisor tang, on page 6, the budget for replacement of the pavilion, is 468,650 that is on table one on page six, and so we recommend that you amend to state that the removal of the boiler system would cost 468,650, rather than the incorrect, 455,000 and we recommend that you approve the proposed resolution as amended. Okay, can you in regards to this is april. And today is april. And the board happened in december, does it take that long to get in information to us . From rec and park . The board has a law supervisors, if you recall, that they have to submit it within 60 days and they did comply with that 60 daytime frame. Stage five we state that the Recreation Park Department declares a state of emergency to the board of supervisors on december the 20th. Of 2016. And rec and park apartment submitted the solution, declaring a state of emergency to the board on february the 14th, 2017 and so that will be within the 60 days. Okay. I am sorry, i was distracted. That is all right. On page 5 of our report we note that the recreation and Parks Department, general manager declares a state of emergency in a letter to the board of supervisors on december, 20th of 2016, and the recreation and Park Department submitted the resolution, Public Comment in seeing none, is there a motion . A motion to amend per the budget analyst recommendations. So that it would be cost of 468,650, and send forth as amended to the full board with a positive recommendation as amended. Okay. With no objection, the motion passes. We just finished item five and we would like to go back to item four, chair cohen is back. Could we call item four . Resolution designating the construction administrator, financial officer, and project Contact Person for a proposed project to renovate county jail no. 2; confirming the fair market land value of 6,000,000 for county jail no. 2; and conditionally assuring the staffing, operation and continued ownership of county jail no. 2. We have the chief matthew free man here to present to us. Good morning, good morning, supervisors it is a pleasure to be here with you today and it is good to see you as always. The Sheriffs Department submitted a request for proposal pursuant to sb 44, the board and the state of corrections in february of this year. And as is the case, with all of the proposals submitted to the board of state and Community Directions there is a technical review of your submission that is conducted. The technical review, completed by the board of state and community corrections, did reveal some items that needed to be contained in the board of supervisor resolution, that are requirements of the proposal. It is important to point out that in seeking this supply mental resolution, nothing whatsoever in the project has changed. The project as we briefed you prior, for the targeted renovations to the county jail number two are exactly the same as before, and this is simply approximately for technical issues that are a requirement of the proposal and there is appoints that are tied to these requirements so that it is a critical that we do get the supply mental included with our submission. And just to give you an idea, of some of the technical issues that were omitted. The names, titles, and positions of county, construction administrator project, financial officer. And project Contact Person, that needed to be contained in the resolution and it is in the supply mental resolution, and page 2, lines four through 12 on your supply mental, assurance that the county willfully staff the building that is being renovated and we have a current staffing plan that will transfer over. And the project shall provide the following site assurance for the county facility at the time of the proposal that that is contained in the supply mental page 3, lines 18 to 25. And the attestation of the current land and market value of the property where county jail number two currently resides at 425, seven street and that is what we are here for today is to seek the committee and the boards approval for the supply mental resolution to go forward as a part of our larger rfp submission. Okay. Thank you, and i would be happy to answer any questions. I am glad that you are here and i am glad that you are highlighted just the purchasely up mri mental and nothing has changed on the item that we voted for two times ago. Correct. Supervisor yee, does have a few questions, thank you. So, for your presentation and this is probably not about your presentation and probably should have been a question that i should have asked in the prior hearing. In regards to the 480, upgrade it selfare you familiar with the atms . Say it again . The upgraded for the ada. Correct. And so that is going to be and i understand that those four cells are in the maximum security confine . There are two podz that we have identified. This is adam and david pod both of these podz are exact same configuration. And they are mezzanine level podz with the beds and all of the beds on the lower level are open bay, and all of the beds on the upper level are open bay. And with the project seeks to do is to convert the upper level in each of those podz from open bay beds to the double occupancy rooms. When you installed double occupancy rooms. That does trigger a code requirement that at least one of those rooms be what they called ada compliant. And so as we move, if we are fortunate to receive an award from the state, when the architect and contractors actually go into the space, they will identify where that ada room will fit in the upper level. So then the question becomes for me then, for those that are or have to, and they are disabled . But that they would need the high security. Where will you put those individuals . If you had an individual who had needed an ada accommodation, that ada room is where that person would be housed. And the benefit of that is, is that in the two podz that we are talking about, these podz are slated to be what we called program pods. So we will be offering educational vocational and life skills and wrap around services in the pods and the benefit of having the ada room is that we dont preinclude anyone that needs the ada accommodation in the services that we offer. Okay, thank you. Thank you. Great, thank you. We will go to the Public Comment at this time. Thank you for your presentation. Thank you. Ladies and gentlemen, is there anyone that would like to speak on this item . All right, seeing none, Public Comment is closed. Matter is in our hands, what would you like to do supervisor tang . Thank you. I dont want to and i know that all of us probely received a lot of emails about not supporting this item and i think that we had a very thorough discussion several times around and i am not going to go into that and given that we are just providing information to the state i am going to make a motion to sent forth this resolution with a positive recommendation to the full board. We can take that motion without objection. Thank you. Madam clerk, could you call item 6 . Resolution establishing the appropriations limit of 3,185,468,215 for fy20162017, pursuant to california constitution, article xiii b. We have got the Controllers Office to make a presentation this morning. Good morning, supervisors. Teresa from the controls office, and the Budget Analyst Division and today before you is a resolution to establish the citys appropriations for 2016, 17, pursuant to the california constitution and i have the electronic version of the presentation, on the screen. Thank you. That was introduced in 1979 and to impose the spending limit and the state and most of the california and most of the local government, and this measures the office, and of this is to keep the inflation and population, adjusted and the appropriation on the 17, and the 19, and to requires any of the exact of the limit to return to the tax payers. They found that the article 13 b, confirmation and forming our guidelines, and last year, the limit was close to 3 billion dollars, and after reflecting the San Francisco population increase and also, the adjustments, and those numbers provided by the department of finance, we have calculated this years appropriation limit close to 3. 19 billion dollars. And this appropriation limit has reflected the result of the prop k, which is the sales tax ballot measure that did not get passed in november election. And we also calculate the appropriation cities and the appropriation subject to the limit. And the total tax proceeds estimated is at a 3. 7 billion dollars, and the, after it is excluded the allow of the exemptions that the services and the federal mandated services and the qualify always at a 676 million dollars, and our net proceeds for appropriation then is to or at a 3 billion dollars. And my previous slide showing that the limit is at 3. 19 billion that means that the cities actually are under the limit by 187 million dollars. And that is last slide here is to show you the historical value of the amount that the cities appropriation under the limit. And you can see that we are actually much better than last year. And we see the slide as conclude inned my presentation, and happy to answer any questions that you may have. Thank you. Supervisor yee has a few. On the slide that indicates the net proceeds, the bottom of that slide, the approximate limits is 2. 998. Yes. Around, 3 billion. And does that number include the projection if the sales tax is to pass. No it is excluded. All of the appropriation limit here is excluding the sales tax that did not get passed. Because we cannot include it. So curiosity if the sales tax had passed, what would it have been the appropriation . So, we estimated the sales tax passed if the sales tax measure passed the revenue will be at a 35 million. So that means that our appropriation will increase by 35 million dollars. And then we will be under the limit by the five million dollars. Got it thank you. No questions . Great. In elets go to the budget legislative analyst. Madam chair, i have nothing else to add other than we do recommend approval of this legislation and it is accordance with the state law. I appreciate that we will go to Public Comment. Is there any member of the public that would like to come and speak, do so. Seeing none, Public Comment is closed. Supervisor yee . I will go ahead and make a motion to pass this with a positive recommendation to the full board. All right. We will take that without objection, and it passes. And the next item threes . Item seven,resolution retroactively approving a Grant Agreement between the city and county of San Francisco and homebridge for the provision of contract mode Inhome Supportive Services and provider Skill Development training and supports, for the period of july 1, 2016, through june 30, 2019, in the amount of 131,486,797. All right, thank you, we have got a speaker today, and miss Megan Elliott from the Human Services agency and she will be presenting on the resolution and how it will retroactively resolution that will approve a new three Year Contract between the city and home bridge for their inhome support services. Yes, good morning, supervisors my name is megan and i am the Inhome Supportive Services Program Director with the Human Services agency and with me today is john, the Human Services Agency Director of contracts. We are here to present for your consideration, the file, 170231, that seeks approval of the contract between the city and the county. For the provision of contract mode Inhome Supportive Services. July, firls, 2013, to 17, in the amount of 131,487,797 however pursuant to a recommendation from the budget analyst, we ask you to approve the contract for the period of april, first, 2017 to june, 30, 2019, in the amount of 66 million, 972,9030. And i will give you some background about the ihhs program. And california welfare and institutions code, mandates that all counties at minister the ihhs program. And which provides consumer directed, Home Care Services to eligible seniors and the people with disabilities. And in order for them to remain safely in their own homes and to prevent premature institutionalization, in San Francisco, ihhs currently serves over 22,000 seniors and people with disabilities. Each eligible ihhs consumer is authorized monthly hours based on annual Needs Assessment conducted by the Human Services agency staff. And in San Francisco ihhs, Service Hours are provided to clients via the two mode and the service delivery, and that the independent provider mode and the contract mode. Over 95 percent of ihhs consu consumers in San Francisco, receive ihhs through the independent provider mode and in that mode of service, the consumer is considered to be the employer of their care provider. And as such they are responsible for the hiring, training, and scheduling, and supervising of their home care provider. However, a significant portion of ihhs consumers have difficulties managing this role of the employer to an innocent provider. These folks have dementia or mental illness, and they may be vulnerable to abuse or any neglect or suffer from the hording and cluttering disorder. Suffer from what . Hording. I thought that you said fluttering. Hording and cluttering. These consumers who are served through the ihhs contract mode of service. And in contract mode the grantee is the employer of the moment care worker, and takes on the role of hiring scheduling and over all management of the Home Care Services. And this allows for the grant of the ihhs population or around 1250 consumers to benefit from the contract mode. And so hsa had an existing three Year Agreement for the contract Provider Services that expires on june, 30th, 2017, and in this contract, home bridge provided two services for ihhs. And first the contract mode of services and also provider skilled Development Training and support. Under provider Skills Development and training and support, they provide the basic and advanced training to both ihhs independent providers as well as its own home care staff. And the grant allows for over 3,000 hours of basic and advanced training for ihhs providers annually. Along with the post training and mentoring and support. And in march of 2016, hsa, issued a request for proposal to provide Contract Service and provider Skill Development training for the three year period of july, 1, 2016, through june, 30, 201 , we received only one proposal which was from the home bridge and home bridge exceeded the ifp requirements for the Program Approach organization and staffing and fiscal capacity. And we awarded home bridge the contract in may of 2016. And so we are now available to answer any of your swez that you may have. Thank you. Let me see if there are noo he colleagues in any questions . Supervisor yee . Okay. I have a question. Maybe you can help me just understand better how this proposed change will impact the contract . The old contract and the new contract overlap. For some overlap there. And the resolution before us should be amended to reflect that particular gap; is that correct . . Yes, and we agree with the budget analyst recommendation. Okay. All right. And but could you still talk about the changes, i mean it is more than just a date, or is it just Service Change as well . So i am john, with the office of contracts with the Human Services agency, so the services will continue as they do, the reason for the sort of the complication on this was with the increasing cost within the contract, the funds within the existing contract, the three Year Contract were going to lapse before several months before june 30, to 2017. And so we started a procurement early to have the contract and that will take and that we do put in place as a funding in of that one and then we will have a new contract in place. And so, there are a couple of areas that we made on that, one is when we wrote this resolution, we looked at it kind of as a whole year, when the budget analyst pointed out correctly, we should put in the three months. And then, to do it for two years and then we also put when we did the rfp they did it for the four years and the contract was for three years and a one year extension and we included the whole four years within this core of resolution and it was pointed out to us correctly that we should put what was actually contracted in there. Let me clarify, that the question that i am trying to drill down is more about the governors proproesal and the cuts and how that will have an impact on the contract. I believe that you are referring to the dismantling of the Care Initiative and the mant nens of the effort for ihhs. And in terms of this proposal, and the budget and legislative analyst, amendments, this will have no impact on our services. And in terms of the maintenance of effort, i understand that that negotiations between you know, it is state association of counties and the department of finance and the state level are ongoing now. And i understand supervisors that you cosponsored a resolution supporting those negotiations. I think that it was introduced just yesterday, right . Tuesday. And we. Yeah. And so we thank you for that. We remain hopeful that these negotiations will result in a solution that does not impact counties. We appreciate that, but the worst Case Scenario, what are we looking at . Go ahead. Noechlt i am the senior budget analyst at the Human Services agency. The impact to San Francisco that we are estimating is 43. 4 million in terms of the our countys cost that we would potentially incur if the governors budget were to be enacted. And state wide, the impact of 623 million dollars. And the important thing to keep in mind is that the Inhome Supportive Services program, is an entitlement and so at the local level we would not be able to change elbility criteria, or reduce the level of service that clients currently receive. The county, in the worst Case Scenario in which it would have to absorb 43. 4 million in new costs and 1718, and the county would have to look at balancing its budget in order to absorb those costs. Okay. The county would have to look and so that is us. That is krek. Yeah. So, to be continued. When do you expect more confirmation from the governor . When is his full budget expected to be rolled out or presented. V . Sure, so our understanding is that the governors may revise to be released in mid may. Okay. May include some additional detail in ermz it of a negotiation and sort of a new estimate of the cost that the counties would need to incur, and however, that is incertain at this time and we will know more once that may revision is released. Okay, thank you very much. Thank you, ladies and gentlemen, and do you have a question . Might as well follow up. Okay. In regards to modifying the timing of the new contract, do we have to modify the old contract . It seems like. We will terminate the old contract, effective march 31st, and the new contract will be put in place as of april first. Otherwise it will be terminated and in july, i think. Yes, i am sorry. Otherwise it is nothing had changed in the month, and okay, i got it. I was confused on that. The other question is we are probably or, actually who is it the city or the contractor who negotiates to for the rates . Originally the contractor and the independent providers have the same wage level and so those, those wages are negotiated through the ihhs Public Authority with the city. Okay, i got it. And is it home bridge . Yes. When there are organizations like on lock or others organizations that works with their clients, to provide inhome service, does it also come from the home bridge . I am a little confused with that. Sure. Both inhome Supportive Service and on lock are medicaid funded programs. And on lock like ihhs provides home care in addition to other medical services wrap around medical services. And so, if a consumer is enrolled with on lock, they are not eligible for ihhs and do not receive their services through home bridge. So, again, i, this is beyond the scope of budget. But sure. This is for clarification. If somebody somebody and having to have the in only care, but it is recommended by, i believe, at the time. And it was not really part of on lock. And so, i was wondering, what, and who pays for that . I mean, how does it, where is the system for this . Yeah, so, in San Francisco, there are multiple providers of Home Care Services, and there is private pay agencies where the people pay out of pocket. The people that are eligible for medical can receive Inhome Supportive Services. Does it go through home bridge . Only if they meet the criteria for home bridge. And that is determined by Human Services agencies social workers. We go and we do the home visits and we determine what the home situation is and if there is an individual that is there, and available to be there independent provider. That is always the first route we take. And unless somebody is going to be challenged with being the employer of their provider. And then, we would employ home bridge to provide the services. Okay. I dont want to, belabor this too much, but i would love to have somebody from your office come in and talk to me. Absolutely. This is confusing to me. We can speak to your aids. Thank you. Thank you ladies and gentlemen, i have a question for you miss white house, you heard a little bit of the you guys can sit down. You heard the presentation the impact of the proposals impact from the governor on on the population, could you explain how the mayors budget also factors in and will take into account these proposed changes . Or cut back . Yeah yes. Thank you. Claire cohen and the white house the mayors budget director, so we are concerned about this potential ihhs loss and i know that the department mentioned the impact and you are the budget of 43 million and year two of the budget it is higher, and it is closer to 58 million and if you take the two together, it is almost, 100 million, and so it is very significant and we are really concerned about it and i want to thank supervisors yee, and cohen for working with us on advocacy on around the state level and i believe that passing in the legislation and letters and all that have and it is helpful. And you know, i think that the timing is also, very challenging and so we will hear about the sb one and the transportation package this week. Which is potentially good news for us on the road repaving program and then we will not hear until mid may, more information, on the ihhs and it would be very bad news, and so it is definitely, a little bit of a challenge for us, as we go and come towards releasing the mayors budget on june first. And so i think that we are very mindful of that, and one of the things that we are looking at that we have done in the past is that we actually have budgeted a state and federal impact reserve many years ago when we were having a lot of cuts from the state and federal government and so that is something that we are considering for the up coming budget, but generally, you know, we are just working hard on advocacy right now on this issue and we are look forward to working with the board once we do submit the budget. It is good to hear that you guys are taking these cuts, seriously and planning for it. I appreciate that. And lets go to the budget legislative Analyst Office. To hear their thoughts on the matter. Yes, madam chair and members of the committee, on page 13 of our report, with he state that it is shown in table two on page 14 of our report, the new contract amount and including a ten percent totals 88 million, 221603 and that is over a three year term of july first, 2016 torques june, 30, 2019. And then we state on page 15 of on you are report, that the proposed resolution states that the contractor for the period from july, first, 2016 to june, 2019 in the amount not the 88 million that i just mngsed but the amount of 131 million, 486,797. Which is more than the amount of the contract of 88 million. And according to hsa, staff and the surplus amount and it is to provide the Spending Authority if hsa, decides to extend the contract by one year of june, 30, 2020, the budget and analyst recommends adjusting from 131, to the amount in the contract of 88 million. And then in addition the budget and legislative analyst recommends the proposed resolution to reduce by 21 million. And from 88 million. To 66 million, and that is the correspond with the proposed contracts start date of april first, 2017 and so in total, we recommend that amending the proposed resolution to reduce the amount by 64 million. And tla is shown in the table on page 15 of our report. So our recommendations are on page 16. And first one is we recommend that you amend the proposed resolution to state that the existing consider between hsa and home bridge terminates as of march 31, 2017, rather than june 30, and the proposed new contract between hsa and home bridge is effective as of april first, 2017, rather than july, first, 2016. And we recommend that you amend the proposed resolution to reduce the contract amount by the total that i just mentioned to 64 million. From 131 million. And to 66 million. And we recommend that you approve the proposed resolution as amended and we will be happy to respond to any questions. Thank you very much, mr. Rose. I appreciate that thorough report. Back. Colleagues, if you have any questions, seeing none, we will go to Public Comment. Are there any members of the public that would like to speak on item seven come on up. Seeing none, Public Comment is closed. All right, do you want to make a motion . Sure. Go ahead and to approve this with the amendments and pass it out with a positive recommendation to the full board. Thank you very much and we can take that without objection. Thank you. All right, madam clerk, could you call item 8 . The next item . Yes. Resolution authorizing the Sheriffs Department to enter into a First Amendment to the existing agreement with leaders in Community Alternatives lca , to extend the term by one year for a total term of may 1, 2014, through april 30, 2018, with no change in the agreement amount not to exceed 2,000,000; approving the sheriff departments home detention and Electronic Monitoring Program rules and regulations; and approving evidence of financial responsibility demonstrated by Program Administrator lca for the 2017 calendar year. Nechltd good morning, cfo of the Sheriffs Department and i am here to request approval of the resolution, authorizing the Sheriffs Department to enter into a First Amendment for our existing agreement, with leaders in the Community Alternatives for electronic monitoring services. And it extends the term of the current contract by 1 year, and with no change in the agreement amount, and it also, it resolution also approves the Sheriffs Departments Electronic Monitoring Program rules and regulations which are unchanged since board approval three years ago. And i am happy to answer any questions that you may have. That was easy. Thank you very much. Lets see if we have some questions. Thank you. Chair. How do you calculate, is it each individual, and a certain amount times a number of days . So it is the contractor is nottoexceed the two million. But, where is the fluctuation in that . Is there. Most of the fluctuation actually the reason that there is that we are confident that there is no change in the contract amount is that people who cant afford this service, participants who cant afford this will pay for this, and this mitigates the citys cost to this program. However the people that cannot afford this, they are not turned away for the lack of funds, and the cost. There is an enrollment fee of 125 and depending on what type of equipment, whether it is a gps monitor and whether it is an alcohol monitoring device and could push it up to 35 dollars. What was the amount that was spent last year . Roughly, quarter of a million dollars. And i believe that in the three years, that the contract approximately a half a million dollars. So why are we aalthough lowing for 2 million, well we are asking for an approval of an amendment which just extends the term of the contract and we are not changing anything else. Extension for one year . For one year, yes. Oh, i see. I got it. It is not asking for two million for one year. No, sir. Then it is okay. Yeah, thank you. Okay. Thank you. That is why we have the question and answer session. Thank you. Supervisor tang, and seeing no questions from supervisor tang, lets and we do not have a budget legislative Analyst Report and thank you very much, why dont we go to Public Comment, ladies and gentlemen of the public if you like to speak on this item please do so. Seeing none, Public Comment is closed. Is there a motion. I will make a motion to send this forth to the positive recommendation to the full board. We can take that motion without objection. Thank you. Madam clerk, could you call item 9 and ten together. Yes. Resolution authorizing and approving the lease of a portion of the equipment room at zuckerberg San Francisco General Hospital and Trauma Center, building 25, at 1001 potrero avenue with spok, inc. , a delaware corporation, at the Monthly Base Rent of 5,000 which shall be waived while providing Paging Services and equipment to the city, for the fiveyear term to commence upon approval by the board of supervisors and mayor, with two fiveyear options to extend. 1and item ten,resolution authorizing and approving the lease of a portion of the roof and equipment room at zuckerberg San Francisco General Hospital and Trauma Center, building 25, at 1001 potrero avenue with american messaging services, llc, a Delaware Limited Liability company, at the Monthly Base Rent of 5,000 which shall be waived while providing Paging Services and equipment to the city, for a fiveyear term to commence upon approval by the board of supervisors and mayor, with two fiveyear options to extend. 1 thank you, we have got the talented gorum with us today to make a presentation on behalf of the department of real estate. Good morning. Supervisor yee and supervisor tang. Before you is a photo of the zucerberg General Hospital and way on top of if you can see it is the antenna that goes with the system. And the proposed leases before you are unique arise from a unique situation, the General Hospital distributed Antenna System, supports multiple page and Wireless Services by basically enhancing coverage within the new hospital building. And maybe a little leakage out into the campus. And it does so through a series of inbuilding repeaters. Which driblts radio and wireless frequencies throughout the spaces in the building giving better coverages in the areas that cannot receive them. This connect the service providers, to the two actual tenants involved in these leases and the american messaging system and spoke to the clin nigss and both dph and the staff and the patients and the visitors to the hospital. The ten anlts and the american messages system and spoke and will provide and install their own equipment to connect to the citys system, so that those persons within the building using their pagers and cell phones have better reception within the building. Basically i have tried to get the photos that show the antennas you cant see them because this is how far away you have to get to see them. They are not huge and they do not pose an ugly aesthetic. And the paging and the areas that will be covered include numerous areas within the building but mainly for not only dph, and ucsf clinicians but also for the first responders. And so that means that they go within the chair wells and they go in the elevators and the basement areas and the crawl spaces. And the city currently has a master agreement with tenant and american messaging systems. And ucsf has a Master Service agreement with spoke. And the citys uses its Paging Services through american messaging systems and ucsf which is as you know, the General Hospitals and the citys partner at the hospital and the campus. Uses spoke for the Paging Services. The master agreement with the city with american messaging system being renegotiated as we speak, and the master agreement with spoke, currently is a month to month ucsf spoke since 2004 and, renegotiating the master agreements. Okay . Thank you. Real quick, supervisor tang has a question. I just wanted to understand, and i know that we are two different agencies but partnering. And of course, you know, ucsf, also has different locations, and so im just trying to understand the different messages systems and if it is the equipment and basically, or the structure supports all of those in the efficient way or is one better than the other . The spoke system is used by the others in the campuses and the american messages that dph uses is also located on the other hospitals. Many of the dpok tors move and so uc has preferred to use that, the department of Public Health has the good service with the american message and customized the system to meet the work flow requirements of the clinical staff. And the Paging Services are good. And in terms of the infrastructure or the aten that system that we are installing they support and it does not matter which system right . It is all the same thing. And the Antenna System is the neutral and it is designed to attach to any provider equipment cell phones as well as paging systems. Great, thank you. That brings a gootd point that these are the first two of what we hope will be several other leases to other service providers. And each will have been connect to the system to provide their own clients. And their own paying customer and the Better Service within the building. And so the leased terms are basically the same for both paging companies. And in and it is a general base rent of 5,000. And annual adjustments of 3 percent and the utilities will be provided by the city. Both the utilities and the rent are waived at this point in light of the Master Service agreements. However, should one you in the hospital not be used as a hospital any more, the city discontinue its daf or three, the Service Agreements are terminated for any reason. Both of the tenants have to start paying the base rent of whatever it would be at that time. And their utilities. And there is not a lot of incentive for either tenant to have their equipment stay on the building. Because the base rent and the utilities that they would have to be paying at any time is if the Master Service agreements terminate would be above the market rate for the small amount of equipment that they are installing on the building the budget and legislative Analyst Report actually highlighted an issue which that it recommended that the proposed resolution be amended to state that ucsf would provide the city advanced notification if the master agreement was spoke ended in the term of the proposed Lease Agreement and that is not something that i or the other side have actually thought about, and affleck after reading that i went to spoke and said that there is an issue that we forgot to add, and so i received the spokes agreement to add a section to 5. 1 of the lease and basically requires them to give the written notice of the city in 15 working days of the expiration or the cancellation of the master agreement with ucsf. And again, if you have further questions regarding the programming, and i have for you, three very good representatives here to discuss that. And otherwise, if you have any questions about the lease terms i can answer. Thank you. Supervisor yee . It is interesting that you received written i guess, okay. From okay. Yeah, yesterday, i have a written email and we have exchanged the actual written language in the Lease Agreement page. All right. Thank you for your presentation. We appreciate it. We will hear from the budget legislative analyst. Yes, maed am chair and members of the committee on page 20 of our report, the base rent amounts are based on the citys minimum charge of 5,000 per month. And other locations for an antenna on the city properties. And however, rent is waived, as long as either tenant is providing Paging Services for the hospital users under the representative agreements with the department of technology and ucsf, the city will also pay for the you tills estimated to be approximately, 3708 per year and for each of the tenants we will have a master agreement for the Paging Services that are in effect, and so given the fact that the departments that represented to you that our recommendation one on the bottom of page, 20 has been implemented or taken care of, i withdraw that recommendation and recommend you approve the proposed resolution. Thank you, we appreciate that. And we will take that under advisement and first we will go to Public Comment. Seeing none, no public here, Public Comment is closed. Colleagues any discussion or if not, a motion for these two items . I will go ahead with a motion to pass these out of committee and with the positive recommendation to the full board. All right. For both items 9 and 10. And with without objection we will take those motions unanimously. Thank you. Item eleven,resolution approving a lease between c e Haas Development company, llc, as landlord, and the city and county of San Francisco, as tenant, for certain equipment at 1 bayview park road assessors parcel block no. 4991, lot no. 1c , for an approximate tenyear term to commence upon lease execution expected to be about april 1, 2017 through march 31, 2027, with three fiveyear options at an initial annual lease rate of 91,800 with a onetime fee of 25,000 with annual three percent increases, for use as a radio Transmission Site for the citys first responders; and adopting environmental findings. Good morning, the director of real estate again, this lease and the next item concern the 800 mega, mistake on that, Public Safety replacement project. They operate, 200 mega hertz that are operated by the department and the outside agencies, which cover the city, so that they can receive paging and wireless and emergency, communications during the emergency and at all of the times. And the city is over all project is combining these into one network, which will be used by all of these different departments and the first responders. And this particular lease at the bay view park. And there we go, it is, and there is already a telecommunications at the site. And this will install the four racks and the batteries in the secure room, inside of the building and two microwave dishes and two antennas and two on the roof. And four antennas on the existing 390 foot tower, and the installation is schedule for october of 2013, and it will be completed in 2018. And the terms that were negotiated are a ten year lease term. And with 3, five year options. And it, it is to commence, on april first. The rent was based upon the appraisal that was conducted of the fair market value of 8,000 a month and negotiated down to 95 percent. And there will be three percent annual adjustment, and this will be paying the utility and there is a one time administrative fee and a one time kind of we wont do business with you, without paying it fee. And and the over all is are 1. 3 million which include the construction and the installation at this site. If you have any program questions, i do have chris here to answer those. And if you have any lease questions, i can answer them. Thank you, i appreciate that. We will go to the budget legislative analyst. We note that over the initial ten year term of the lease, the department of Emergency Management and the department of technology will pay an estimated 2 million, 592, and that is for site improvements and the equipment, and that is shown on page six, and we do recommend that you approve this resolution. Public comment . Seeing none, Public Comment is closed. Colleagues, should we take these recommendations. I will make a motion and i dont think that there was a recommendation and i take this with the positive recommendation to the full board. We can take that without objection. And madam clerk . I believe that the item is item 12 . Yes. Resolution authorizing and approving a 25year telecommunication ground lease of 859 square feet existing emergency Radio Telecommunications tower and associated equipment with the state of california, department of General Services, and department of parks and recreation, as landlord, for the department of Emergency Management and the department of technology at San Bruno Mountain state park, south hill site, san mateo county, at a yearly initial base rent of 43,844 to commence upon approval by the board of supervisors and mayor; and approving payment of 175,000 to the state park benefit fund. And this is as a similar lease for the same project. And this is an existing tower, that the city had put on property that had believed to have been owned by the city of daily city. And it is a lease for 25 years. And the terms or the rent is based on this states mandatory guidelines so there was not a lot of negotiation, and however, we did negotiate a small reduction, because we are a Public Agency and they gave us that, and so it is basically what we believe is below market rate at this point. They did increase the annual adjustment to 3. 75 this year and we estimate that the utilities are 2700. The state required that we pay a payment to the state park benefits fund, which actually will go to san bruno state park to go into the various projects there and that is in lui, and in light of them waving their legal right to go for the back rent because we have been on the property until now without paying rent. And the state may place one antenna on the tower in the future, if you have any programming questions again, i have a representative here or if you have any lease term questions, i can answer them. I dont think that we have any questions. Supervisor yee. Do you, was there any analysis done to look at whether or not the daily city would have maybe a comparable area to put to the tower, and with it, and have been a cheaper, and to suggest just to move to the tower and rebuild the tower. And still have no rent . Or the 25 years . Yes, i believe that when the project and when this, and the larger project started and they looked at moving the various towers and this was one of the original six towers from the original project back in the 90s. And that is why the tower is where it is, and they looked at moving the tower, however, based on the calculations and the studies that are done with the 6 original, to move this tower and to change its height or the location would have required all of the other initial towers to either move or change height, and therefore, the cost was too high to actually do that. In addition, we did look at, or we didnt, but the dt, and the dem looked at moving the tower to i think, that it is called tower hill or whatever it is, over there. And in san bruno and they would not provide the security that we need, and we would have had to connect the power and our own power up the mountain, which also was absorb and they could not afford that and so it needed to stay where it is. And at least, thinking about those things. Thank you. And all right, lets take the Public Comment, seeing none, Public Comment is closed. Item 12, colleagues, excuse me. Lets hear from the budget legislative analyst. Madam chair and the members of the committee on page, 32, the proposed ground lease provides for the an uppal, and that is to the state increasing by 3. 5, percent each year and over to the 25 lease term, and the dt will pay the state the total rent of 1 million, and 7 on 9 and in addition they will pay for it across the approximately, 7200 a year, and it has been stated in addition to the city will make and will contribute a one time payment of 175,000 to the state park benefit fund and we do recommend that you approve this resolution. Thank you we will take that under advisement. Colleagues, what would you like to do with that recommendation. Lets go ahead and make a motion. All right. And pass it out of the committee, with the po sive recommendation. We will take that without objection. Is there any other business before this body. No further business. We are adjourned see you at one. Neighborhoods in San Francisco are as diverse and fascinating as the people who inhabit them. Today were in the sunset, where well join supervisor tang for the inspiration of this show, where we explore San Francisco, one neighborhood at a time. Hi im katy tang the district 4 supervisor in San Francisco, which is comprise of sunset and parkside neighborhoods. I think what makes district 4 unique is that we have so many different cultures here. We have so many different generations of people. Different experiences and that makes it a vibrant neighborhood. For example, which you go down urban street you can do to a japanese restaurant, chinese restaurant, american restaurant, and the Cultural Diversity is just what makes it so amazing my name is ching le, and im the owner of the kingdom of bounty. 17th San Francisco, 94116. We make the most authentic and different kinds of dumplings and dim sum. Recently more and more popular because they are vegetables and meats that we use fresh vegetables and meats in the business. Its really inspired to start discover your district series, because i wanted to find a way for neighbors to come and get to know our Small Businesses and our neighborhoods. Get to know each other, get know our office, and do so in a setting that was unintimidating and fun. So i launched this idea call the discover your district, where we go every month to one or two small businesss in district 4 and we have done things such as learning how to make dumplings that were learning today and there are so many different activities that we have exposed our residents to. Today is the very special day, because the city of San Francisco hosting this for San Francisco city. Learning how to make dumplings and knowledge of dumplings. They love to do it and all enjoy it. This is definitely not my first time making it, so i have definitely improved a lot. The first couple of time s i tried to make dumplelings they looks inedible. They have definitely improved. There is a special dumpling eating contest, which is amazing. Everyone those eat the dumplings that they made and see how many they can do. Im curious as to how many they going to be able to down today . Dont forget to write down what you are eating today. We make all different kinds of dumplings and enjoy what they made. So after that, well have contact how many pieces of dumplings they can eat and announce the winner today. This lodge is home to some of the best fly casting pools in the world. These shallow concrete pools dont have fish. This is just a place where people come to practice their fly casting technique. Ith was built in the 1930s and ever since, people have been coming here to get back to nature. Every year, the World Championship of fly casting is held in San Francisco and visitors from all over the globe travel to be here. We are here with phil, general manage of San Francisco rec and Parks Department at the anglers lodge. What do you think about this . It is spectacular, travis from oregon, taught me a snake roll and a space cast. There are people from all over the world come to San Francisco and say this is the place to be. Yeah. Its amazing, we have teams from all over the world here today and they are thrilled. I flew from ireland to be here. And been practicing since for the competition. All the best casters in the world come here. My fellow countryman came in first place and james is on the current team and he is the head man. Its unique. Will not see anything like it where you go to compete in the world. Competitions in ireland, scotland, norway, japan, russia each year, the facilities here in the park are second to none. There is no complex in the world that can touch it. Im here with bob, and he has kindly agreed to tell me everything i need to know about casting. Im going to suit up and next, were in the water. What any gentleman should do. Golden gate angling has free lessons the second saturday of every month. We have equipment show up on the 9 30 on the second saturday of every month and well teach them to fly cast. Ok. We are in the water. Let me acquaint you with the fly rod. Nice to meet you. This is the lower grip and the upper grip. This is a reel and a fly line. We are going to use the flex of this rod to fling away. Exactly as you moved your hands. Thats it . Thats it. Im a natural. Push both arms forward and snap the lower hand into your tummy. Push forward. I did gave it a try and had great time but i might need some more practice. I met someone else with real fly casting skills. Her name is donna and she is an International Fly casting champion. I have competed in the casting ponds in Golden Gate Park in San Francisco. I have been to japan and norway for fly casting competition. I spend my weekends here at the club and at the casting pond. Its a great place to learn and have fun. On a season day like this, it was the perfect spot to be. I find fly casting very relaxing and also at the same time very challenging sport. Takes me out into the nature. Almost like drawing art in the air. And then i can make these beautiful loops out there. Even though people from across the globe come here to compete, its still a place where locals in the know relax and enjoy some rely unique scenery. Until next time, get out and play city of San Francisco good afternoon, everyone, thank you for joining us today. This is the regular meeting for the budget and finance committee. My name is Supervisor Malia Cohen . To my left is supervisor katy tang and supervisor jane kim and well be joined by supervisor yee. Ms. Wong, any comments . Yes, please silence all of your Electronic Devices. Item no. 1. Hearing on the proposed 5year Financial Plan and the Mayors Office to report. Supervisor malia cohen well be hearing from the Mayors Office and the legislative Analyst Report. With that, i would like to turn to the mayors Budget Office to kickoff the hearing. Thank you. Sf govtv please turn the mic on. Thank you members of the budget and finance committee. Im the budget director and we have the Controllers Office. And dan from the budget and legislative Analyst Office and all three of us are available to take any questions that you may have on this presentation. As you all know, we put out the 5year Financial Plan in december, the draft and now we are writing an update to that report. And, we actually just presented a few weeks ago the report from this december. We have a little update for you today. This presentation will cover the march report update, specifically the deficit projection, the drivers. Risks, recession scenario and federal and state funding and end our presentation with a note about our upcoming budget and the Budget Office. This is an update from the fall report. All three financial offices, the Mayors Office, board of supervisors and controller get together and put together these numbers and they stand for projections. If we make no policies changes and we project them forward with reasonable financial sound for inflation, what would our revenue and expenditures be and our deficits and surpluses. Our report is projecting deficits. Well explain why. The budget that we will be balancing and submitting to you all on june 1st, the deficits have gone down and in the 3 years they have gone up slightly and well go into why that is because that is something we are paying close attention to. The cumulative define assist is not 288. This deficit assumes the midyear rebalancing plan as well as changes to the Free City College program and the Public Defenders Office that we have discussed with the board of supervisors. There are no loses from the state or federal government assumed here. And as a reminder from the federal select committee, 20 of the citys revenues are from state and federal sources. We think there is too much uncertainty at this time to make any clear conclusions on what type of funding might be lost and we will continue to work with the federal committee on that. Here is a table showing the very high level numbers which im going to spend a couple minutes on. The first line shows you revenue projected from the current year 1617 budget through fiscal year 2122. We are showing projecting growth 541 million from where our budget is today and this is all general fund revenues. On the expenditure side, expenditures will go up by 1. 4 billion. Im sorry, one more time and a little bit slower. Going back, baseline reserve is that fiscal year is 54. 1. Yes, let me go through each. The high level is the sources and the uses line. The sources line is showing you a positive number is good, a positive number of growing revenue, a negative number is parenthesis is bad. If you take all the uses together that would get you to 144. 847. If you add that 1. 4 billion in expenditure growth to the positive 100 million Revenue Growth that would give you the projective growth. These are cumulative numbers. This is assuming that all cost grow in cumulative way so, for example in salaries and benefits that City Employees have a cost increase or wage increase every year at the cost of either a negotiated contractor inflation. That negotiate contract is 2 years with the extension that you heard about which is about 3 in each year and out years we assume inflation. One of the years is inflation is projected to increase. Thats one change. And then for your question on baseline and reserves, this is for 1516 to 100 million today about 15 of expenditure growth of projected 1. 4 billion. Salary is expected to grow 1. 2 million. Citywide cost is projected to grow by 450 million. And departmental cost about 52 million. Any questions on any of that . No. Thank you. Just a note now on what are the big highlights are this compared to december. The most important thing is we started with a projected deficit for the upcoming 2 years about 402 million. Then the 6month report came out one time savings in departmental and revenues about 54 million. That brought up our updated projected shortfall to 48. This brings it down by 60 million. The biggest things are one time revenue on the fund balance and the capital draft when we put out this report and we didnt know what the debt schedule would be and the new debt schedule on the capital plan put back specifically the jail replacement project. Instead of hitting the next 2 years for that project, its now been pushed out and put on hold as the city figures out what are the next steps on that project. That means basically the next 2 years there is less cost depending on whether or not the city moves forward would be out on the out years. That is one big change on the first 2 years. We also thought it was important to call out your five because your financial offices are very concerned about the longterm structural picture. It went down in the fifth year and the same amount in the first two. A large part because of some Debt Service Cost are pushed out and a lot are one time thing. One time fund balance, one time savings and things that help us right now but are not on going. Thats part of whats going on here and in the out years, some of our cost went up with inflation projected to be about 3 in the out years and now projected to be close to 3. 5 in the out years. Also because of the uncertainty in the Affordable Care act, the house is telling us because of the percent in growth for 7 for retirees, we should project 8 for active and 9 for retirees. We are projecting a significant increase around employees for their healthcare benefits. Those are the things that push the out years number up even though the next two budget years went down. Any questions on any of that . No. Im going to hand it over to michelle. Good afternoon, michelle, Controllers Office. So this is a 5year Financial Plan that we have produced. And this table is just showing you that in the year that that plan was produced, that the tale year of the projection, the deficits have been coming down and in our most recent report which is the darker green bar our deficit projection has increased for a number of reasons. The first is where we are in the economic cycle. We kind of reached a period of slow growth of plateauing slow growth and we are seeing decline in some of our revenues such as parking tax, sales tax is quite flat, etc. So thats the thing on the revenue side. At the same time, health and pension cost are growing much more than rapid inflation. Instead of increasing interest rates, a lot of Macro Economic reasons for that. Another reason that i will get to in a second as well is the growth in spending a voter mandated through baseline and set aside through ballot and approved by voters that constrain future choices and increase our cost. As mentioned a use of one time fund balance not available in subsequent years. So, i think this chart is worth spending a little bit of time on. What we are trying to show here is the thin black line at the top of the chart at the nominal value of projected Revenue Growth. An we are saying, lets look at the things that are soaking up that Revenue Growth because we are not projecting a recession because we dont do that and we wouldnt do that. But we do project modest Revenue Growth and there is a couple of large cost types that are absorbing most of that growth in revenue. The dark shaded area at the bottom, those are Cost Increases that are the result of voter approved measures. The value of those, by the fifth year of the projection taking up about 45 of the Revenue Growth. The next sort of the middle blue section is growth in Employee Benefit cost. So pension and health especially health increasing several times at the rate of inflation, not only for current employees but retirees as well. The portion of that left over for any other type of expense includes employees or cbo colas or investments in technology or other things the board might choose, new programs or expanded services. The amount of Revenue Growth available beyond that is that very light blue section. Its very limited, about 9 of the growth, but that fifth year is available for all other uses aside from these two kind. And i did mention that our report, we dont predict a recession because nobody can. Its not something any economist would do even. I think weve shown this chart before. What it says if we look at whenever where we are in the economic cycle, are we going to get out of the 5year period without a recession. We dont think thats really likely if we look at the past 100 years of history. Each one these blue bars is the economic recovery. We started in june 2009. Its actually a little bit longer because this chart is maybe about 5 months old. What its showing is we have already passed the average. If we dont have a recession in this time period, it would be the longest recovery that weve measured and the question is whether you think its likely or not. But nobody can time it, but our experience says we should be cautious but nobody can predict it with certainty. So, to give a framework for what that could mean, we looked at, we did a recession scenario where if we did have a recession to begin at the end of the fiscal year and the loses in revenue were similar to the loses in the last two recessions if the rates have declined like the last two just for economic, that we would estimate a revenue shortfall about 960 million. The city has taken steps is to build the Economic Stabilization to help cushion this. As there is a lot of uncertainty at this time especially with the federal proposals and we discussed last week at the committee of how little detail there is available. Really in the president s skinny budget is what we can attach a number to is the limitation of cdbg home grants which is about 21 million to the city if they come true. And well have more information in may when his updated budget is proposed and of course that will go through congress and be approved back to refer possibly although they dont have a very timely process often. We do know a little bit more about state proposals and we talked about this at our morning hearing this morning. The governor proposed in this january budget the elimination of issf maintenance effort which next year will be worth about 40 million and probably 60 in this period. County is in negotiations with the governor about this and well have more information about what agreement can be reached around may 10 when the may revise comes out and its something that county has been working on very diligently with the Governors Office and a voting on ab 1, a proposal increase for taxes to pay for resurfacing and for transit projects. Right now the city pays for a lot of its road resurfacing and San Francisco is subsidized by the general fund and will be by 21 million and 2030 for transit projects as well. That will be a great resource for the city if it were to pass. Our next update will be probably around may 9 or 10. Well be looking at the current year revenues and expenditures and updating those for you. After that well be doing budget balancing with the Mayors Office. Thanks michelle. Just to end the presentation with this last slide for contact with the upcoming budget. We are waiting for the controllers report because that is the last big piece for us around balance to tell us if there is any Additional Savings from current revenue or departmental savings that will augment our balance further. That will be in early may. We are waiting for that and i want you to know some of the Bigger Picture things we are talking about. Several weeks with the mayor we are having meetings around the budget and we are reviewing and many of the departments did meet our target reduction of 3 . We are reviewing all of those. We are definitely preferring or giving preference to things that are relevant solutions, efficient proposals, we dont want this to be a reduction year and working hard with the departments. Some departments also submitted lots of request for new things and we are working on those. The big thing we need to focus on this year is this larger uncertainty in mind is we are in a very weird point right now. We dont want people to be unnecessarily worried or panic but there is so much uncertainty with state and federal and particularly in our own economy. We are starting to see signs of slowing, not a recession, not seeing anything terrible on the horizon but a very odd point in time. What we are thinking at this point in budget are several things because the situation is uncertain with the federal government and whether we need more reserves as a result of that. When chair cohen asked about the ihhs and the city had a reserve years ago. We need to talk about meeting a lot of our Fund Investments with capital and technology. This is a very different fiscal picture. We can lower that without reduction. And also all of those things when you spend the money, they save in the longterm. Trying to prioritize those. As i said to you all before, weve grown a lot in the last 5 years in the f tes and to the budget, but we are really mindful of where we might be for now. And any new investments that we are going to be seeing in this budget is very small and not huge because we want to be careful of starting anything new this year and also ask departments not to submit any fte requests to us. Right now the mayor is concerned about Affordable Housing and homeless. And thats kind of the preview for june 1st. Of i will come back to you once the budget has been submitted with all the details included in the budget. If you have any questions, please let me know. Thank you very much for the sobering reality. Let me check with my colleagues to see if there is any questions. Supervisor tang . Supervisor katy tang thank you, going back to slide four, the summary of the increase over 5 years with salary and benefits and the the cola adjustments for the next 4 years. Does this assume there is no fte growth over this period . It does. Okay, i have spent a lot of time thinking about base lines and reserves and how that has pretty much tied our hands this terms of future budgets and salary and benefits and its percentage of growth. Its just so much more, 51 growth over the 5year period. So, i know its always hard to talk about cutting staff or not growing staff as well, not increasing ftes, and we dont have to get into a full conversation here but at the next hearing, its important for us to have a deeper discussion around what we might want to see around fte reform and so forth. Its a good plan. The ftes are whats driving up this cost of inflation. Thats a good report. Thank you, supervisor yee . Supervisor norman yee thank you for the presentation. When you talk about not increasing the fte, one Program Comes in mind where its the maintenance of the trees. So, i mean, what we want to do, we need to increase the ftes, this seems to be a contradiction. Great question. When we say no new s tes, no new to the plan. You will see growth in the public works and Homeless Department to near the bound. Yes, there definitely is going to be large e growth. Thank you for the clarification. Thank you. Anyone else, colleagues . All right, thank you very much for your presentation. Well see you soon. Any members of the public that would like to come up and speak on this item, please come on. Welcome. Public speaker this process, good evening, supervisors, and a couple of you i havent met before. Let me cutoff my stuff here. Im sorry. Its quite a pleasure to be here in the beginning of a process that im going to be here until my voice is heard. As you see im ace on the case, but im here as the czar about migration. But im also here to check on ed lee and the controllers and this budget. I hear you talking about this and what about the black folks, i hear about cuts here and all that, what about the black folks . Im here to find out about ed lee and the controllers and where on the budget line does it mention anything about black, African American or negros . Where in the budget does it say there is going to be money set aside for the migration. That hasnt happened for 5 years. Unless somebody do something this year, im going to protest against this budget to say neglect of African Americans purposely. Ch now, if ed lee doesnt want to do that, im traveling you can to sacramento first. And actually gave in, you know the institution that you put on migration . Not a dime. We were in the 500 million deficit. We are in a big budget now. There is no money to spend on African American blacks. Its been hidden on under privileged people. But its said on asians, mexicans and migration. You spent millions of dollars protecting these people. Im tired. Whoever is watching and the mayor is watching. All right. Thank you. Okay. Thank you. For the folks that are listening at home, todays purpose is a 5year Financial Plan update. Any other member of the public that would like to speak. Seeing none, thank you. All right. May i have a motion, please . I will make a motion to continue this hearing to the call of the chair. Second by supervisor kim. Without objection it passes unanimously. All right, is there any other business before this body . There is no other business. Thank you, this meeting is adjourned. [ meeting is adjourned ] much. clapping. well good morning and thank you all for being here im ed reiskin the director of transportation and cant tell you how existed and speak on behalf of everybody here to be at this milestone after many years somewhat our decades ever planning to break ground on a transformative project for one of the citys anyhow unique and special streets i there is a way this works folks without whom we wouldnt be here ill give an opportunity to speak and afterwards go out and literally 0 break ground i want to acknowledge folks not speaking im not sure theyre here by representatives from Nancy Pelosis office and senator harris and there was a lot of work to be done at the freshen over the years and leader pelosi in particular was a huge comment thank her and stare half and at the state level hearing from the state a strong will be afforded when the item is reached in the meeting with the transportation and our legislatures want to acknowledge supervisor chiu and Supervisor Scott Wiener and a lot of folks made that happen but really the lead for this project has came into from right here in San Francisco and one of the hallmarks of our mayor has been to forge collaboration amongst city agencies within the government and with the community and because of complexity of that project there were probably a dozen city agencies and newcomers state agency and the federal government as well as important stakeholders including some of the ones that occupy the building around where were standing it took that kind of collaboration in other words, to get to this point i want to start off by introducing the mayor of San Francisco mayor ed lee. clapping. thank you ed reiskin good morning, everybody. Welcome to the groundbreaking of our van ness corridor bus Rapid Transit i want to say thank you to everyone on stage and offstage since 2003 with the prop k been working hard to get this project done well and right a lot of Community Groups thank you, again to the mta to the commissioners, staff, who working hard to get a lot of views settled but our county transportation agencies and state and federal partners that are part of funding and vision zero of of this our regional mta as well because the state road were still on a lot of people here talking today and ive been told in no Uncertain Terms to keep my remarks under two minutes ill let them talk about all the benefits of bus Rapid Transit and all the advantages as a city what im also exciting to talk about is that were going to have better lighting along this wonderful avenue closing in the very lengthy distance for people to cross better lighting, better walk abilities more bounce on the street will be improvements i think that People Living and walker users this corridor will have a great benefit but also existed to say as your formerly c p w infrastructure person in the city excited to see four more miles of water sewer piping underneath more miles of sewer and stormwater pipelines underneath they wont leak nor break theyll be new 2000 new feet of our auxiliary water system been also underneath this is try infrastructure and i think im making a point that is when we tear up the roads and side medium and do all the traffic relayed improvements were now improving as a city while were there lets take care of what is underneath we never do the that in the past ive not seen an vastly improved and safer avenue an avenue that serves thousands of People Better because of bus Rapid Transit but all the other smart things were doing to include and work underneath while we have at the medium and sidewalks opened up thats Real Progress for a city like San Francisco and, yes well take that as a thank you with that my two minutes are are up lets get the dirt digging and the project done thank you. clapping. thank you, mr. Mayor that is from to have a mayor who was a public works go director not on exciting stop i like hearing the mayor get exist bye about the sewers and other things and the benefits the lighting benefits and go, of course, the traffic and transit benefits a project of this scale was dont happen without the locate leadership were pleased to be joined spy the president of the board of supervisors would grew up not far from the street a great leader and supporter of transit in district 5 and across the city please join me in welcoming president of the board of supervisors london breed. clapping. good morning, everybody. Well, ive had the prestige of riding the 47 and 49 along the van ness beyond a reasonable doubt or corridors when i went to Galileo High School although the next generation of young people wouldnt use the excuse that muni was late when i did back then we are doing what we can to make sure their arriving on time 16 thousand people that use this line gets to work on time and school and get to their designations and thats what this project is about yes, we made mistakes long ago before any any of us were born when we didnt underground the Traffic Systems that is expensive along the central subway and the bus Rapid Transit is reliable it is not underground but a way to speed up up the line and based on the initiatives preliminary numbers that will change the travel time by over 32 percent thats big that is big when you rely on muni to get you back and forth every single day to our example work and designation one of the most important projects in the city and i cant wait until that happens because it is going to make a huge difference address isly with improvements comes sacrifice so for the next 3 years well have sacrifice do send me emails complaining when it is done youll thank us to create something great for the future thank you all so much. Thank you supervisor president london breed. One of our Main Partners is the community of Transportation Authority they lead the first phase the planning and get United States to e got us to a point theyre a Strong Partner and were pleased to be joined by now the chair of the Transportation Authority who during his first couple of terms in office sat at the Transportation Authority when the project was coming to light please help me welcome chair the ta Commission Supervisor peskin. clapping. thank you, ed and by way of the history didnt start during my first term in 2000 behind us this was the firebreak from the 1906 San Francisco earthquake o were on time and on budget so with little disruption there will be disruption weve been doing a lot of outreach with the community to best manage and might mitigate one of the unique aspects of this project as you heard most of us feel like van ness is a San Francisco city street that is our street and while that themselves that way technically this is the state highway so the street didnt belong to us this street belongs to the state of california so were very grateful to have as we do with the federal government a great partner in the State Government maneuvered in the leadership of the district 4 director of caltrans who with his staff we work closely at the levels of detail to make sure that design will work for the state highway so i want to thank him and his staff for the great work and please join me in welcoming for caltra caltrans. Thank you, ed good morning mayor and supervisors and distinguished guests and agencies and staff and members of the public it is a pleasure to be here today to join all of you as we break ground for the first brt project in San Francisco weve been wanting to reach this milling and reaching this point in the project is reflective of the tireless work for the federal and state and redeeming level those who had the vision for the project those who helped fund it can and the great staff of all agencies that naektd in through the maze of approval necessary for us to reach this point as was stated earlier van ness project brt utilities the dedicated places separated from the paragraph on the u. S. 101 will be used by muni and golden gate Transit Route 101 and then van ness is a regional important route serving 45 thousand people driving on this road everyday and helps navigate those people from the peninsula to the south side and to the north and also obviously the main street in the city of San Francisco lined with mixed use and other mixed use spaces that will enhance the traffic separation within the two mile corridor that will separate transit from auto and stations between traffic times reduces the delays and increase the ridership and improve the safety and increase the transit reliability on behalf of caltrans we thank you for inviting us to be here to celebrate 24 event this project when completed will make van ness more important to these who will use it more efficient and sustainable Transit System moving more people and helping to improve the quality of life of the residents for this great city id like to recognize and thank all the agencies staff that working hard on this project to deliver this and especially id like to thank my staff another caltrans can i see all caltrans people stand up please and be recognized. clapping. as ed said youll all the agencies working hard to solve the problems and the issues that were raised to us and the development of the project congratulations to the city and let this project get started thank you thank you so from federal so state to local that the partnership is expensive one throughout the many Government Agencies as mentioned but again really the led agency that gave birth to the project really got the process going back in the 2000 was the Community Transport authority they lead the initial planning and our as the chair said a funder of the this project were pleased to be joined by the executive director of Transportation Authority tilly chang. clapping. good morning, everyone sew so much and ed and for all of you for being here on this happy day mayor ed lee, supervisors and director brinkman and excuseme. Supervisor peskin thank you for mentioning the state and local partnership the whole vision weve had to transform this street that deserves a great transportation design here we are can you believe that congratulations to you this is a team in the region and the state and the federal government that will build the first full featured brt line in San Francisco the van ness corridors Improvement Project is going to do nothing less than transform this corridor into a worldclass complete street and a model nation wide and in the world and sets standards of fast reliable trait for muni our vision was codified by voters in 2003 when they approved the citywide Rapid Transit buses that turned into this as long as and muni forward approved by 75 percent of voters thank you to the transportation bond and prop a and prop b and thank you for your support for great transit and transportation in the city local funds in fact, comprise a walk e whooping 52 percent 52 percent are were so grateful for the federal Transit Administration for the 75 million for the caltrans providing active transportation and Highway Maintenance and Operation Fund but 52 percent local providers through the transportation measures as well as the puc are really the anchor the anchor for the project and the support and the trust theyve pla theyve placed i want to recognize the team the cac the Advisory Committee that convenes 27 times to offer 6 years thank you so much ill not name you but cross 4 district thank you. Please give them a hand that work is led with the Advisory Committee and any group providing that important outreach and input into the project a including the business Advisory Committee all over the place thank you candice and your Communication Team for leading that vertebrae robust outreach we want to thank, of course, the Board Members of the agencies past generations to the point they guide the work as well our staff director reiskin thank you for your partnership and the puc and Mohammed Nuru and director kelly and john haley the city traffic engineer and others working with teams with the staff on district 4 we had endless discussions many debates buses also including the collaboration go compromise in some cases it came down to interest is that; right . And speaking of the p. M. The project managers peter where are you. clapping. youre our hero. Thank you for your leadership and phase and the prior phase working with bob and sherry and others michael and rachel you lead the project design and development for the past 10 years and the team that peter and others assembled youll take us into the future thank you for your consideration and in and the robust design for the construction effort Going Forward for future generations to come thank you, tilly if we tried to acknowledge all the folks that put their blood, sweat, and tears we could be here all day truly so many people from the agencies that have worked hard to get us to where we are one that is worthy mentioning jose was someone i remember mohammed and i went up to sacramento he did a lot of work in his tenure and acknowledge him as well and lots of folks go no longer with the city or state of federal government had a hand in that within our agency not a part of the organization that was not part of this from the traffic engineers to the finance folks communications assessable services, safety, of course, traffic folks an incredibly strong team effort working across the agencies water and sewer and puc the great planning and financial folks at the Transportation Authority, the Arts Commission not too many city agencies have not touched this project and ultimately with all that good work it came down to the sfmta Disorderly Conduct to put together this funding and approve the project after that the environmental document was finalized wouldnt have been possible without the without sfmta and i see a couple members of the board calling names and currently now under the great leadership of the chair of the board of sfmta please join me in welcoming Cheryl Brinkman thank you, thank you im excited this project includes the benefits for all road users and practice the goals of sfmta transit were helping not only muni but go not only golden gate riders as well as this project will improve both frequency and reliability for all the transit users for people walking well have safer and friendly streets to achieve a citywide vision zero goal at circulations improvements and smoother pavement there is a high need for this project not only the 16 thousand muni riders that supervisor president london breed references but 8 house golden gate riders use that with 24 development coming online those riders will be joined with people on foot and on buses thank you all very much. clapping. thank you Cheryl Brinkman the shoves shovels are being sharpened but thank you to my partner in the streets of San Francisco our public works director to say a few words theyre the partner in delivering projects there are unique aspects of working with the public works support were using a unique mechanism it is called the contract approach different than your typical lump sum low cost build public works has had a lot of experience with this bringing to our support that experience for this long horizontal project as well as great design support and support in many ways please help me welcome the director of the Department Public works Mohammed Nuru. Thank you. clapping. ed and thank you for your speakers as you can see are true testimony on everybody working together to make a project come through and in public works how rare do we get an opportunity to do a lot of things it in one project new sewer lines and water and bus platforms but also the beauty of project its the landscaping the sidewalks and the adu the connections from the ramps all making one cool project so many people with the design especially i want to thank caltrans it is their highway and all the agreements and new york city and the possible words we had to do yes louis was instrumental i remember one day at 4 oclock in the morning we went to sacramento and fighting over just to make that project come through today is a reality were already started the work im excited and happy that the project is moving forward it is going to make a huge difference and commissioner london breed made that clear it is a different time our city is growing we need accommodate the growth from public works i want to thank our engineering staff calling names theyve been on the project making sure that everything is happening because some of the work and from the Landscape Team calling names they have been part of landscape will be new trees and new plants night connection itself when you walk or ride youre bicycle so we appreciate all that and for the Environmental Compliance and everyone that worked hard to make that project it is a great example of Rapid Transit and it is first here in the bay area im excited about it, too so thank you very much and thank you, everyone. clapping. thanks mohammed when he was talking about agreements what comes with agreements lawyers a lot of legal work with the Funding Agreement and the permitting i want to announce the City Attorneys Office a number of firms with the h ac b and others and, of course, our construction general contractor will be a publicprivate effort but kind of last but more for the voice for the community for all this great work and all the great work for all the levels of government this project is not for us but for the people we all serve the people that live and work on the corridor and travel two or more and the corridor those are the beneficiaries of this i mentioned because alcohol, tobacco firearms scale and complexity we have two Advisory Committees and a Business Committee their guidance is important so ultimately it is they are serving were pleased to have the chair of the citizens Advisory Committee here to join us please join me in welcoming alex wilson km. Thank you for the construction workers wouldnt have been possible without the group thank you for making this happen im a little bit surprised was under the impression 3 van ness was my road in any neighborhood and the voters have you approved this i see that as definitely all our roads when i moved to San Francisco in 2009 traveling van ness was a part of route i radioed it and craved critical upgrades to van ness for the major corridors and because it is a part of my neighborhood i wanted more efficient buses and safer sidewalks augusts a clear crosswalks and better traffic lanes so the traffic can move for efficiently were all here today throwing paper because we love and care about our city a city of doers we index what is broken and strive for improvements from tech and corporate to the nonprofit were the epic center of solutions the van ness project is a small example what it means to be a san franciscan to fix and improve by a what is not working our neighborhood will serve as an example to other neighborhood and drivers and pedestrians and businesses and residents me all of us, will benefit from the van ness Improvement Project our road will be savor your buses will run more efficiently and our pedestrians will have beautiful sidewalks to stroll down as a neighbor i look forward to more trans investigating van ness i look forward to the journey thank you very much. clapping. thank you alexs and thank you for the correction the state owns the street but the streets belong to the people of San Francisco and the people of california thats a good reminder were ready now if you didnt get a goody bag grab one ask the folks the leaders to dawn their helmets well move and break ground ready set go. Okay. Ready get set, lets get to work. Yeah. clapping. let the work begin thank you, we think over 50 thousand permanent residents in San Francisco eligible for citizenship by lack information and resources so really the project is not about citizenship but really academy our immigrant community. Making sure theyre a part of what we do in San Francisco the San Francisco pathway to Citizenship Initiative a unique part of just between the city and then our 5 local foundations and Community Safe organizations and it really is an effort to get as many of the legal permanent residents in the San Francisco since 2013 we started reaching the San Francisco bay area residents and 10 thousand people into through 22 working groups and actually completed 5 thousand applications for citizenship our cause the real low income to moderate income resident in San Francisco and the bayview sometimes the workshops are said attend by poem if san mateo and from sacking. We think over restraining order thousand legal permanent residents in San Francisco that are eligible for citizenship but totally lack information and they dont have trained professionals culturally appropriate with an audience youre working with one time of providing services with pro bono lawyers and trained professionals to find out whether your eligible the first station and go through a purview list of questions to see if they have met the 56 year residents arrangement or theyre a u. S. Citizenship they once they get through the screening they go to legal communication to see lawyers to check am i eligible to be a citizen we send them to station 3 thats when they sit down with experienced advertising to fill out the 4 hundred naturalization form and then to final review and at the end he helps them with the check out station and send them a packet to fill and wait a month to 6 weeks to be invited in for an oral examine and if they pass two or three a months maximum get sworn in and become a citizen every single working groups we have a learning how to vote i mean there are tons of Community Resources we go for citizenship prep classes and have agencies it stays on site and this is filing out forms for people that are eligible so not just about your 22 page form but other Community Services and benefits theres an economic and safety Public Benefit if we nationalize all people to be a citizen with the network no objection over 3 million in income for those but more importantly the city saves money 86 million by reducing the benefit costs. Thank you. Ive been here a loventh i already feel like an american citizen not felt it motorbike that needs to happen for good. One day i pledge allegiance to the flag of the United States of america and to the republic for which it stands, for liberty and justice for all. Youre welcome. singing . clapping. introduce the San Francisco field officer director ribbon that will mirror the oath raise your hand and repeat the oath i hereby declare on oath repeating. Citizens cry when they become citizenship to study this difficult examine and after two trials they come back im an american now were proud of that purpose of evasion so help me god please help me welcome seven hundred and 50 americans. speaking foreign language. she wants to be part of the country and vote so much puppy. You know excited and as i said it is a long process i think that needs to be finally recognized to be integrated that is basically, the type of that i see myself being part of. Out of everybody on tv and the news he felt that is necessary to be part of community in that way i can do so many things but my voice wouldnt count as it counts now. Its everybody i hoped for a bunch of opportunities demographics and as you can see yourself theres a good life for everyone. Thats why. You have people from all the walks that life and theyre standing in water 8 hours to be an american citizen and contribute to the city and thats really what makes this worthwhile. Good afternoon and quell welcome to San Francisco board of supervisors meeting foritudes day april 4, 2017. Madam clerk pluz call the roll. Thank you. Breed rkts here. Cohen, present. Farrell, present. Fewer, yes. Kim, here. Peskin, present. Ronen, present. Safai, present. Sheehy, present. Tang, aye. Present. Yee, present. All members are present cht thank you. Ladies and gentlemen, please join for the pledge of allegiance. I pledge allegiance to the flag of the United States of america and to the republic, for which it stands, one nation, under god, indivisible, with liberty and justice for all. Thank you. Madam clerk any communication snz i have none to report. Colleagues any changes to the february 14, 2017 Board Meeting minutes . Seeing none, is there a motion tew prove those minutes . Moved by peskin and second by farrell. Take without objection. Without objection the minutes will be passed after Public Comment. Lets go tothe next item item 1 is anend admip strative code to revise the residential yurnts unionversion ord nons to exercise reasonable care verifying a resident unit is on the city rej streprioring to accepting a booking fee for short termerantm transaction. Motion to excuse supervisor farrell . Moved by spl visor peskin seconded by supervisor sheehy. Without objection supervisor farrell is excused. On the item call the roll. Tang, aye. Yee, aye. Breed, aye. Cohen, aye. Fewer, aye. Kim, aye. Peskin, aye. Ronen, aye. Safai, aye. Sheehy, aye. There are 10 ayes the ordinance passed unanimously. Item 2 is ord nchbs to authorize settlement of Eminent Domain against blue line rental llc for 1 1. 65 million filed in San Francisco spear yor court involving payment of justification for lease hold interest at the property known as 1975 galvez. Tang, aye. Yee, aye. Breed, aye. Cohen, aye. Farrell, aye. Fewer, aye. Kim, aye. Peskin, aye. Ronen, aye. Safai, aye. Sheehy, aye. The ordinance passed unanimously. Appropriate 12. 8 million of general Obligation Bond interest earnings for San Francisco General Hospital Trauma Center and placing 392 thousand on controllers reserve pending interest accrual and arbitrage cost. Take the item same house same call. Without objection the ordinance is passed on the First Reading unanimously. Next item. Item 4 is resolution to approve a lease between the port and sp plus hyde parking for lease of surface parking lot in port jurisdition in northern waterfront with approximately 3 million totalerant in first year of operations. Same house same call. Without objection the resolution is adopted. Item 5 is resolution to approve a 2 year Term Extension to the luggage cart lease operating agreement for june 30, 2019 not to exceed 4. 3 million and payment total contract amount of 12. 9 12. 9 million without objection the resolution is adopted. Item 68. 3 resolutions that approve 2011 lease and use agreement between the city and various air lines to conduct Flight Operations at the San Francisco International Airport through june 30, 2021. Item 6 is lease with air lings and 6 [inaudible] item aithd is resolution to approve a lease between the city and redding e rks r rks. Same house same call . Without objection the resolutions are adopted unanimously. Item 9 is resolution to approve supplemental authorization for the jurisdictional transfer of 1800 gerold avenue from General Service Agency Office of contract admipstration to San Francisco Public Utilities commission waste water enterprise and transfer of 555 selby street and 1957 galvez and lease of tol end street subject to amendment one in the memorandum of understanding entered into between the Real Estate Division oca and pu c to create the functional equivalent of city central Fleet Maintenance shop. Supervisor peskin. Jrsh like a roll call on this. Supervisor kim. I just want to address my concerns of the item coming before us today. A little over a year ago i very reluctantly voted to approve a Single Source bid for the mou coming before us today. One concerns expressed when we approve a Single Source is insuring we get the best price and deal for the city possible. But given the emergency nature of the construction project and also it is important for the bayview neighborhood and making sure that we expedite the project i did very refluctantly support the Single Source bid coming before us today. Im disappointed we looking at increase in project price and just cant fiend it within myself to support this increase. Some comments i would make as i made to Public Utilities commission is we worked to scope the project and see if every single aspect of what the Public Works Department is asking for is necessary in the construction project. When there are costs overruns we have to live within our means. I do know that the general manager harlen kelly committed to reexamine the project and make sure necessary costerize moving forward. I understand the respond sg coming from enterprise and not the general fund but dont feel comfort supporting the increase and think moreu work can be done. Not to take away from the incredible work the city an ad mip strairts office and pu c is doing to keep cost down as much as possible but think we can put a little more effort to keep this within budget. I also just want to finally note disappointment in particular with department of real estate the board was not notified there was a tenon on the site when we purchased the building at 1950 galvez. If we had known that i think the board would have had a very different conversation about the cost. Now, there is a cost in terms of relocation och a 10 tenant. These are things that could have been brought at the front end of the process not as the costs are coming into place. Want to expless why i will not support item 9 but do want to appreciate and understand the complexity of the work and multiple agencies trying to make this move forward. Thank you supervisor kim and just for clarity, i was of the understanding there was a conversation we had about the tenant and the property about a year ago when we discussed the item and i just wanted to get clarity from the department if they are here. The department of real estate we had a lengthy discussion about that particular issue. Mr. Kelly, are they here . Do you knowi vaguely remember discussion around appraisal and other issueess related to that so if you can talk about that convrsation because i know there has recently been frustration i expressed with the way things were done with that tenant but it was brought to our attention early on from my understanding. Thank you, madam president. John updike director of real estate. You are correct in that there are two tenants on the property. The fact there were two tenants on the property was noted. We do take to heart the concerns that i heard from the elected officials about the level of risk associated with removing both of those tenant. That was not clearly articulated to the board, no question about that. We have mended our Due Diligence process and transparency in items that come before the board since then and Going Forward. We do acknowledge there should have been more information relative to risk kwr and perhaps you would have had a broader set of data to make a more informed decision then, but we are where we are now and pleased to report we have solutions for both of these rolocations that fit within the timeline expressed and the budget expressed before you today for both tenancies. Thank you. Supervisor kim did you have further comments . No. It was just what i had said it would have been great to been explicitly brought up during the board processes. It was buried within the documents, but i think many had missed it and so it want really a part of the conver sation and something we could have apted anticipated. I wanted to spress the concerns. Thank you. Supervisor yee. Thank you. I just want to ditto basically what supervisor kim expressed. I think it was during the Budget Committee meeting we pretty much members at least myself expressed concerns about the estimates and when we voted for it the first time to sole source this out and think some of the estimates were accurate but there were things that bothered me a lot that if knrou had looked at it more carefully maybe the budget knhity Committee Looked at it more care fully at the time we could have questioned it more. The moving cost was a big difference between what was estimated first time versus what is estimated now. Thats really disturbing that those thingerize not that difficult to get in front of in regards to predictions. So, i think the department has expressed they are going to do better in the future. I hope that will be true when the time comes because this is getter very difficult for myself to continue to support arguments about sole sourceing these contracts out. Given our concerns and given the fact we expressed our concerns and the answers we got back from the department and i think what tipped the balance for me supporting this revision is the fact that this particular project is so important for the bayview community, so because of that and i know that for supervisor cohen it was very important for her to get this going that i supported it and will continue to support it, but think it iswe should note that in the fooucher the process should be done a little better. Thank you, supervisor yee. Supervisor cohen. Thank you fl discussion and supervisor kim i remember it was a difficult vote at it time so appreciate your honesty and know you did careful Due Diligence evaluating this. Im chair the Budget Committee and heard the item again and asked the tough question to gain a better understanding why we are here and again express my frustrations and the importance of moving and having a fair contracting process but i want to highlight that i will support this measure. It is incredible important to it bayview and entire city. Also want to remember that the findings fl this transition will also make it consist wnt the general plan and the planning code. I dont want to leave that understated. Yes, i understand we are authorizing increase of the project development cost. This is through public works from 55 million to 60. 2 million which is approximately 10 percent. As you heard from updike explaining why the additional costs, unforeseen site conditions which are difficult to predict. Increasing the cost in electrical scope and Industrial Equipment and increasing difficulty in having Competitive Bidding market place. But if weif this project does not pass, the impact will be irreversible to the community and set back this timeline. Central shops is important not only to the community that the central shop is located in but the entire city so hope we can move beyond this 10 percent price differential to adopt the project and move forward. Thank you. Seeing no other names on the item madam clerk call the roll. Tang, aye. Yee, aye. Breed, aye. Cohen, aye. Farrell, aye. Fewer, aye. Kim, no. Peskin, no. Ronen, aye. Safai, aye. Sheehy, aye. 9 aye and 2 no with supervisors kim and peskin in the descent. The resolution is adopted. Next item; resolution to authorize the San Francisco Public Utilities commission to execute service grument with black and Beach Corporation for Specialized Design Services to mitigate groundwater and hetch hetchy power lines in accord wns the mitt igation program not to exceed 12 million ov10 year term. Roll call vote. Tang, aye. Yee, aye. Breed,i aye. Cohen, aye. Farrell, aye. Fewer, aye. Kim, aye. Peskin, aye. Ronen, aye. Safai, aye. Sheehy, aye. 11 ayes. The resolution is dopted unanimously. Item 11 is resolution to aproouv Emergency Declaration by the San Francisco Public Utilities commission to construct temporary road around land slide area not to exceed wut 1. 5 million. Same house same call . Without objection the resolution is adopted. Item 12, resolution to authorize the director of property to exercise a lease extension for the Real Property at 1701 ocean avenue with hu ey lan trust for 5 year extension for annual base rent of approximately 215 thousand. Supervisor yee. Just curious, does anybodythis property that we will lease, is to support what program . Does anybody know . Is mr. Updike here . I try today go in there to ask about it seems who ever is running the program dozen respond to about anything we ask for, so curious, is this city run program . Supervisor yee mr. Updike just lefted and can move to later in the agenda to answer your question. Itemthry is ordinance to amends the down tone special use district to authorize a contribution for on site open space rirems to make certain exclusions to dedicate the monetary contribution for lightening and safety improvements and accepting as a gift a monetary contribution to future improvements and maintenance of victoria mu nolo drive and under utilized parks. Take this same house same com . Without objection the ordinance passes on the First Reading. Mr. Updake is back. Can you please come forward, supervisor yee has a question on iletm 12. Thank you for coming back. Just curious and this particular property is in my district and i know this is a omi Family Center or Something Like that and i thought it was