Transcripts For SFGTV BOS Budget And Finance Committee 20240713

Chair fewer good morning, ur everyone. The meeting will come to order. This is the february 26 meeting of the budget and finance committee. I would like to thank corwin and colina. Madam clerk, do we have any announcements . Clerk yes. [agenda item read]. Chair fewer thank you very much. Madam clerk, can you please call item 5. Clerk yes. Item 5 is a resolution authorizing the Mayors Office of housing and Community Development to accept and expend a gift of 100,000 from San Francisco 722 montgomery. Chair fewer supervisor peskin, do you have anything you would like to add . Supervisor peskin i would like to thank steven sang for accommodating my request for this additional 100,000 on top of the inclusionary fees and interest and the Mayors Office of housing for preparing for the accept and expend and recommend it to you for full recommendation to the board of supervisors. Chair fewer thank you. Is amy chan here from mohcd . Okay. Supervisor peskin, is this something that you want to present on since emmy chan is not in the audience today . Supervisor peskin so yeah, sure, im happy to present. This is a gift to the Affordable Housing fund of the city and county of San Francisco in the amount of 100,000 from the developer of 722 montgomery street. Chair fewer okay. No b. L. A. Report on this. Any questions or comments from my colleagues . Seeing none, lets make a motion to move this to the full board with a positive recommendation. [gave [gavel]. Chair fewer madam clerk, please call item 1. [agenda item read] [agenda item read] [agenda item read]. Chair fewer thank you very much. We have michelle and luke from the Controllers Office presenting today. Yes. Good morning, members of the committee. Thank you for hearing this item. Just to introduce it briefly, this is a resolution authorizing issuance of general obligation refunding bonds. It was to be heard at the february 12 meeting of this committee, and we asked for it to be continued until today because we had some technical amendments that needed to be made upon the advice of our bond counsel and the City Attorneys Office which weve distributed to you in a red line for your review. Upon review by the City Attorneys Office, theyve deemed them nonsubstantive technical amendments, so were hoping, supervisor, that you off one of your colleagues could approve the resolution that weve given to you and recommended the amended version out of committee today. Chair fewer excuse me. Are these amendments substantive . The City Attorney has determined theyre not. Chair fewer thank you very much. Additionally, upon coordination with the budget and legislative analysts office, we understand that theyre going to be recommending some additional minor technical changes to the language in this resolution. Theyre not incorporated in the red line that we gave to you, but we when they make the recommendation, we are aware of what the recommendations will be, and we have no concerns, so theyre acceptable to us, as well. Chair fewer thank you. So if there are any questions specifically about the amendments that were proposing, i or mark lake, the City Attorney on the transaction, is here to speak to those. If there are not, my colleague, luke, is going to present the proposal that were submitting today. Good morning. Im going to be presenting on items number 1 and 3, which is the funding resolution, and my colleague will be presenting on item 2. This presentation has both of them, so so the item before you is authorizing the refunding bonds from time to time. General Obligation Bonds, the city has numerous bonds outstanding, and they have provisions in them that allow us to refinance them. General them every eight to ten years that theyre outstanding. So currently in the next five years, there are the opportunity to refund 1 appointnottoexceed resolutio. Theres also of the 1. 48 billion which can be refunded, were also looking to approve the first sale with a nottoexceed amount of 255 million. The resolution authorizes and directs o. P. F. To determine which bonds should be determined to be refunded bonds. The refunding bonds must not have a final Maturity Date later than the Maturity Date of the bonds to be refunded, and the cost must not exceed 2 , and underage cost must not exceed 3 . The office of Public Finance must return to the board with each supplemental appropriation with the request to issue funding bonds. This authority to issue refunding bonds under the refundi refunding resolution expires june 30, 2025. So heres a summary of the bonds that we are proposing to refund this coming spring. Theres two series of eser, two from parks 2008, and safety from 2011. Were currently estimating based on markets back in late january that the gross savings to taxpayers would be approximately 31. 64 million based on an estimated Interest Rate of 2. 19 on a net present value based of the case flow save cash flow savings, were looking at about 11 of the funded bonds, which is well above the 3 threshold that this funding resolution requires. We are seeking the approval of the sale of the initial series in addition to the full authorization over the five years not to exceed 255 million. Final maturity is the final maturity of the bonds, which is june 30, 2025. The source and uses here are estimated sources and uses provided to us by our municipal advisor and do not associate directly with the appropriation ordinance which was prepared earlier in january in order to get everything on the same timeline, that is a nottoexceed amount, which we do not anticipate issuing all of. So as far as timeline, weve introduced, back in january, our were expecting the board to hear the approval for the resolution next week and the First Reading of the ordinance next week followed by the final appropriation the next the follow along with the final closing of the refunding bonds in march and april, which allows us to refund the bonds on their very first call date of june 15, 2020. Any questions . Chair fewer any questions or comments from my colleagues . Seeing none, could we have the b. L. A. Report, please. Good morning, chair fewer and members of the committee. Severin campbell from the budget and legislative analysts office. These changes are largely due to changes in securities and Exchange Commissions requirements, so the language in the debt policy conforms with those requirements. But i do we do actually recommend a change to the resolution itself. This resolution as written would allow changes to the debt policy, not only for minor changes, but for more resolution changes without coming back to the board of supervisors. That would continue to allow the department to make amendments or changes to the debt policy if they are specific to regulatory changes or legal changes, but more discretionary changes just as best practices would need to come back to the board for approval. And then, on the other two items, item 1 and 3, item 1 is a resolution authorizing funding bonds through 2025, and issuing 255 million through those bonding funds. The total amount to be refunded are shown on page 8 of our report. The actual bonds that would be refunded or proposed to be refunded by the 255 million to be sold this spring are shown in exhibit 1 on page 5 of our report. And then, the appropriation of those bonds is shown on page 6, and we can answer any questions you have about that. Again, we do have a couple of recommendations to the resolution approving the issuance of 1. 5 billion in funding bonds. Both of these are more for clarification, and we recommend approval as amended. Chair fewer so the amendment that you are proposing is for item number 1, that is correct, miss severin . We have a proposal for item number 1, the refunding bonds, and for item number 2, the debt policy. Chair fewer so madam clerk, we didnt call item number 2, would you please call item number 2 right now. Clerk yes. [agenda item read]. Chair fewer so colleagues, we are now listening we are now hearing items 1, 2, and 3 together, and is there a separate presentation for item number 2 . There is. There is. Chair fewer okay. So lets hear that all together since we have recommendations from the b. L. A. For items 1 and 2. Okay. Just in brief, this is also continued from item number 2 is continued from the february 12 budget and finance hearing. From time to time, the office of Public Finance needs to update its the citys debt policy due to changes in regulatory or industry policies. So when they update that policy, we bring it back to the board for approval. That was what we were intending to do. We brought this back on january 28, and just before the last hearing, the s. E. C. Issued a new legal guidance which required us to review what we had submitted for introduction, and working with our City Attorneys Office, the changes to the guidance recommended a change to index i which concerns municipal finance disclosure policies and practices, and so ive submitted a copy of the changes as introduction to appendix i. You can see the red line of the changes that were submitting since introduction. The amendment is only to this appendix i, theres no requested change to the legislation itself. However, as ms. Campbell noted, the b. L. A. Has recommendations to the resolution, and we find those recommendations acceptable. More specifically, to speak to the updates since the last board approved version of the board policy, my colleague, ana, is here to speak to what has changed since the last time the board approved the debt. Chair fewer thank you. Thank you. Im director of the Controllers Office of Public Finance. Weve long maintained a formal written debt policy. It establishes our formal objectives such as maintaining moderate debt Service Levels while maintaining our highest practical credit rating. It further requires us to establish internal controls and procedures and demonstrate a commitment to best practices in municipal debt planning issuance and management. So got a few a couple powerpoint slides. As a reminder, we were also here last january for updates to the use of proceeds designation as well as extending the term for general Obligation Bonds for Affordable Housing loans. And the next slide, we go through the updates some of the key updates that were presenting here today that were asking for your approval. Specifically, those are as noted. Were finding the citys disclosure practices, which are detailed in appendix i. Additionally, wanted to note that a board of supervisors disclosure training has been scheduled for april 7, and during that, the City Attorneys Office will review our practices. Another change in the policy would allow for the use of negotiated sales for complex refinancings. Just terminations to sale bonds requires consultation with the controller and the citys municipal advisor or advisors as well as a competitive process for underwriter selection. And with that, i am happy to answer any questions on the citys debt policy. Chair fewer okay. So colleagues, any comments or questions . Seeing none, lets open this up for Public Comment. Are there any members of the public that would like to comment on items 1, 2, or 3 . Seeing none, Public Comment is now closed. [gavel]. Chair fewer i first would like to make a motion to approve the amendments to items number 1 and 2, is that correct . Yes, and we can take that without objection. Thank you very much. [gavel]. Chair fewer and then id like to approve the amendments presented by the b. L. A. And items 1 and 2, if we can take that without objection . Thank you very much. [gavel]. Chair fewer and no comments on this complex item . Yes, sir. Were also asking for approval of item number 3. Chair fewer yes, but item number 3 has no amendments, correct . We just approved the amendments. Id like to make a motion to approval items 1, 2, and 3 to the full board with a positive recommendation. If we can do that without objection, colleagues. [gavel]. Chair fewer madam clerk, if you can call item 4. Item 4, resolution approving San Francisco municipal transportation agent contract for armed and unarmed Security Guard services with universal Protection Service l. P. , in an amount not to exceed 59,028,401 for a threeyear term to commence on the Effective Date following board are professional with three oneyear options to extend at the discretion of the director of transportation. Chair fewer and i believe we have glen mar for a presentation. Thank you, mr. Mar. I believe your request for armed and unArmed Services are for your locations only, is that correct . Yes. Chair fewer okay. Go ahead with your intention. Good morning, supervisors. I am glen mar, chief security officer. So im here to talk about the carr. Our agency approaches security for our employees and for our customers in a multitiered fashion. Ultimately, the Contract Security is the main one were talking about today, but we also approach it through capital improvements, muni transits. We also address it through p. O. P. , training for staff members, and also a partnership with sfpd. So today, were going to talk just about the security contract which deals primarily with the safety and security of our members. I conducted an assessment of 12 facilities, and out of them, nine of those were severely lacking in security. What i mean by severely lacking, there were Security Guards, but only for certain hours of the day. So during the times that Security Guard Security Guards werent there, employees had to deal with other issues, homeless getting into the facility, using rest rooms, stealing items from the lockers, feces and urine issues they had to deal with. Some of our facilities had no Security Officers, so thats why we wanted to up the manpower and hours for most of these facilities. So the next page is a contractual review of what this contract will be. The vendor is allied universal Security Services. It was formerly cypress, but it was taken over in june 2018 by allied. Chair fewer excuse me, mr. Mar. Would you like to put this up on sfgovtv . Im sorry. Chair fewer thank you. So heres the overview of the contract that were proposing to you today. Its not to exceed 28 milli million 59 million for a three year contract. Here, we have the overview i think theres a lot of numbers up there, but i think the one we should concentrate on is the service hours. Based on my assessment and what we talked about earlier about the need for all of these facilities, the nine facilities we did the assessment on, we want to increase it to approximately 233,000 per year, which is roughly a 25 increase. Here we have another chart, and theres a lot of numbers, but please concentrate on the number in the lower right hand corner. Our current cost is 6. 7 million for Security Services from allied. And because of our security concerns, and the employees that we want to increase that, 233,000 would increase it to 8. 5 million, up to 10. 2 million due to the increase in wages and also the increase in manpower. So why do we want this contract approved . As ive talked about earlier, its so, so important that we show to our employees that we actually care about their safety first. So for the last eight to nine months that i was with the agency, i received numerous phone calls and numerous emails where they were concerned about their employees safety. I think with this contract, it would be a big step forwardtor tforwardtor forward for the city and for the agency that we show our employees that we care about them, so i ask that you approve this contract. That concludes my presentation, and im happy to answer any questions that you may have. Chair fewer thank you very much. So lets hear from the b. L. A. , please. Yes. The board of supervisors is being asked to approve the resolution to approve this new contract for Security Services at m. T. A. As mr. Mar pointed out, the provider would be allied universal, but if you see on table one, page ten of our report, the existing provider, cypress provide security had the highest private security had the highest score, but offer the conclusion before but after the conclusion before you, they were purchased by allied universal. Mr. Mar reported on the increase in hours in this contract compared to the existing contract. We show the total number of hours on page 11 of our report. But also in our footnote, we note where there would be an increase in hours at existing m. T. A. Facilities. What they needed was a decide for increased hours. The total spending is summarized on page 12, table three in our report. We do request that the total amount of 28 million is for one year, and the 59 million is over six years, and we recommend approval. Chair fewer thank you very much. Can we oh, supervisor walton. Supervisor walton thank you very much. One question. On slide three, when it talks about security, making sure to address homeless encampments, and also address confrontations with individuals with Mental Health needs, how does that work . How do they engage . So how does it work with security . Supervisor walton yeah. When they see an encampment, when they see someone with Mental Health needs, how do they engage . So thats a very good question. Right now, when security sees these individuals starting to set up camp, if theyre around, they would confront the individuals and tell them that theyre not allowed to set up camp here, and they would talk to them and coerce them not to set up camp. The problem is when theres no security there, that they do set up camp, and then, by the time the employees get to work, the employees run in to them, and they have to confront them themselves. The Security Guards are trained in deeffect training prior to going to the sfmta, so theyre very well trained in getting them to not set up on the property. Supervisor walton and if that doesnt work . If they feel their safety is in jeopardy, they immediately call sfpd and have them intervene. Supervisor walton would they also act with hsoc and other agencies . Yes. Hsoc has been helping out at our facilities with very largen campments but security is also large encampments, by security is also there. We stop it from the very beginning with the new Security Services, and i think that takes care of a lot of the problems for the employees. Chair fewer so i have a few questions. One is that so this is security for 12 facilities, is that correct . Its security for all our facilities, but the increase is for nine of our facilities that i made the assessments that needed it the most. Chair fewer okay. So how many facilities, then, would this contract cover . This isnt just for the nine facilities . Correct. This is for everything, including the subway. So the subway i forgot to mention the subway is one of the places thats extremely lacking. One officer currently covers nine platform, which is very inadequate. It covers a subway, and it covers a multitude of facilities throughout the agency. Im not sure of the total number, but i think its at least 22. 22 total facilities . Correct. And this is a 59 Million Contract if extended. No. Its 28 million for three years, and we have three oneyear options to extend it. If we extend it for all of it, its 59 million. Chair fewer do you have other security measures such as cameras . No, i dont. Chair fewer because i think it would help us to see just how big is this issue . I see its for unarmed, the most. The majority of the budget is for unarmed, but you do have a budget for armed. Now who are those people that carrie firearms or allowed to use those firearms . Is it sfpd . Who are these folks that are armed actually . So for the contract for security contract, the only Armed Services that we use is strictly for employees that deal with cash. So revenue collection is all that the armed guards are accompanying employees with. So when they go out and collection, the armed guards that are with them are armed. This was made clear to us in the last contract. It has nothing to do with the public, it has to do with the employees dealing with cash. Chair fewer escort. Thats correct. Chair fewer so this Company Actually supplies the armed guards. Correct. Chair fewer because they have the liability. Correct. Chair fewer all right. Lets open this up for Public Comment. Are there any members of the public that wish to comment on item 4 . Yes. Come up to the podium. Anyone whos like to speak whod like to speak to Public Comment. Everybody has two minutes. Thank you very much. Good morning, board of supervisors. My name is hajik rice, and i have been working as an armed officer since 2018. My Current Employer is a. U. S. , and they are a signatory to my union contract. We protect life and revenue daily. My coworkers and i face the challenges of deterring suspicious people. Even though we experience this, i take pride in being able to protect and escort cash and revenue agents because my job is critical to ensure the safety of the general public and daily operations of sfmta. I argue to commit to keeping a responsible contractor like a. U. S. So that my coworkers and i can continue to address work related issues and continue to bargain for stronger contracts that ensure good benefits. Thank you. Chair fewer thank you, sir. Good morning, board of supervisors. My names brendall guin, and i represent the Security Officers, armed and unarmed in San Francisco. Ive been working this past year with the subcontracted officers working with a. U. S. Sfmta. Daily they protect the city while working with long hours. Some of these officers, they struggle with housing and health care. Despite this, the officers present today show passion and dedication to protecting the public. I urge you to approve a Union Company like a. U. S. So our members continue to have a voice at work and job protections with paid sick days, holidays, and a grievance procedure. Can we count on your support to keep our responsible contractor like a. U. S. For our Security Officers . Thank you. Chair fewer thank you very much. Next speaker, please. Good morning. Roger marenko. We are in support of more security, especially because these are all union jobs. However, in terms of what mr. Mar stated, people coming into the facilities, urinating, defecating, etc. , id like everyone to know that the most prominent property of the sfmta where this occurs at is the buses. So id like the members to think about not only extending this to the actual buildings but to the actual buses, to the trains, whether its, you know, Security Guards at strategic locations on market street, in the tenderloin, on market on mission street, right, at certain terminals, but where this is actually occurring on a daily basis, with are wihere w challenges with mentally disabled people because this is where this occurs at the most on a daily basis. I would just like everybody to think about where this occurs on a grand scale of everything. Does it occur at the facilities . Yes, but it occurs more often on the buses themselves. Thank you. Chair fewer thank you very much. Any other Public Comment . Seeing none, Public Comment is now closed. [gavel]. Chair fewer okay. So id like to make a motion to approve the amendments that have been brought forth to b. L. A. And can we do that without objection . [gavel]. Chair fewer oh, and id like to welcome supervisor matt haney. Madam clerk, do i need to excuse supervisor walton . Clerk yes, please. Chair fewer okay. Before we take this vote, id like to make a motion to excuse supervisor walton. If i can take that without objection, thank you very much. [gavel]. Chair fewer welcome, supervisor matt haney. So weve had a motion to approve the amendments brought forth by the b. L. A. We can take that without objection, thank you very much. [gavel]. Chair fewer and make a motion to bring this to the full board with a positive recommendation. Thank you very much. [gavel]. Chair fewer weve already heard item 5, so madam clerk, can you please call item 6. Clerk item 6, resolution authorizing Tax Collector to sell at public auction certain parcels of tax defaulted real property. Chair fewer thank you very much. And i believe we have molly cohen here. Good morning, supervisors. Molly cohen from the office of treasurer and Tax Collector. I am here to present for your approval 165 parcels we are seeking to offer for auction in may. Youve all been provided copies of an updated parcel list. If i can request that the new parcel list thats been provided please replace the list provided with the resolution. It replaces 429 parcels of all times with 165 timeshare parcels. Property becomes eligible for auction when an owner fails to play taxes for five years. The parcels i bring before you are a tiny percentage of the 290,000 total parcels. We collect over 3. 3 billion in property tax payments annually, and over 99 of owners pay their property tax bills on time and in full. So before you for consideration today are 165 parcels that are five years or more delinquent on taxes. We are doing a timeshare only auction because timeshares are a unique property. There is no risk of displacement. Commercial operators and homeowners associations are the main buyers. The resolution allows for a reoffering at a lower price if there are no successful bidders during the first round. In 2019, we offered 213 time shares during a reoffer auction, and sold 187, removing them from our defaulted tax roll and returning them to paying status. This auction will likely result in the removal of a significant number of parcels from delinquency. Removes these timeshares from our roll will allow us to dedicate our time to other properties. Once approved, this list will be published in a newspaper and on our website. Thank you for your time, and im here to answer any questions. Chair fewer theres no b. L. A. Report, and no questions from my colleagues. Lets open this up for Public Comment. Are there any members of the public that would like to comment on this . Seeing none, Public Comment is closed. I just have one question. This just seems incredible that they would be delinquent on their taxes for five years, this volume of people or purchasers of these time shares. For five years, it just seems somewhat incredible. Whats going on with 1000 pine . So theres 5,000 timeshares total in the city. What ends up happening is a lot of these timeshares come with very expensive maintenance and ownership fees. People will pay their 1,000 timeshare fees, theyll skip a year, and once they stop paying their ownership fees, they lose access to the property, and they stop paying their property taxes. Many people on these lists are retirees. It turns out that many of them have passed away, and their children are uninterested in paying for the property. So despite our best efforts and all of our notices, it comes to this actually. Chair fewer so is there any way we can curtail this . Five years is a long time to be on any list . Im wondering if theres no liability for the Timeshare Company at all . Thats a really interesting question. Much of our process is guided by state law, but im happy to do some thinking about City Attorney and get back to you on that. Chair fewer okay. Thank you. Weve already had Public Comment, so id like to make a motion to move this to the full board with a positive recommendation. [gavel]. Chair fewer okay. Id like to make a motion to rescind to item 5. We failed to ask for Public Comment, so may i have im making a motion to rescind item number 5. Thank you, colleagues. Madam clerk, can you please item 5. Clerk yes. Item 5 is a resolution authorizing the Mayors Office of housing and Community Development to accept and expend a gift of 100,000 from San Francisco 722 month famili montgomery funds. Chair fewer thank you. Do we have any Public Comment on this . Seeing none, Public Comment is closed. [gavel]. Chair fewer madam clerk, can we call item 7 first. Clerk item 7 is resolution approving modification number one to airport contract 50085 curb Side Management services with fspppm management, llc, to increase the contract amount by 10 million for a new not to exceed amount of 19 million and to exercise the one oneyear option to extend the term from july 1, 2020 through june 20, 2021. Modification number one would exercise the first oneyear option through june 2021 and increase the contract amount by 10. 4 million. This is the result of a 2016 competitive request for proposals process and was approved by the board of supervisors with an initial term of four years with one fouryear option to extend. The increase in the nottoexceed amount includes staffing expansions that were use to approve the airports move of all Transportation Network companies to the fifth floor of our domestic terminal garage. This was done to help us relieve some of the congestion that we were experiencing at the terminal curbs. In addition, there was a new staging lot that was created as t. M. C. S in the waiting lot was backing up into millbrae avenue as well as extensions into our new t. M. C. Lots and the taxi staging area and the airports new hotel. The trip fees that are collected from our Ground Transportation operators are used to fund this contract. The Budget Analysts Office has reviewed the contract and the proposed modification and recommends approval, but if requested, i would be happy to answer any questions if you have them. Chair fewer thank you. Can we hear from the b. L. A. Office, please. Yes, the current contract extends it one year, to 2021, and increases the amount from 19. 5 million to 29. 5 million. The increase of 10 million is to account for increased spending over the remaining two years. The increase goes up from 5. 5 million in 1819 to a projected 6 million in 1920. The reason is for an increase in positions from 74 positions to 96 positions under the contract. We did talk to the airport about it. Did does have to do with the increase in garages and curb Side Management of the t. N. C. And increased t. N. C. Activity at the airport, uber, lyft, and other transport Network Company providers. So the increase in the budget is shown on page 17, and we recommend approval. Chair fewer thank you very much. Any comments or questions from my colleagues . Lets open this up for Public Comment. Any members of the public like to comment on item number 7 . Seeing none, Public Comment is now closed. Miss widener, i actually have some questions about this contract. It is almost a 30 Million Contract, and i think i need more clarification or a deeper understanding of what these people what theyre performing, what their jobs are. It seems like its more than curb side. You mentioned a motel, you mentioned a parking lot, and some of the positions, also. So id like to continue this item until the next meeting of the budget and finance committee. We can take that id like a motion to continue that item. I can take that without objection. Thank you very much, miss widener. We should have a conversation. Thank you very much. Absolutely. Chair fewer i appreciate that. [gavel]. Chair fewer madam clerk, can you please call item 8 . Clerk yes. Item 8, resolution amoving modification 2 to license and Services Agreement 50037 between the city and county to extend the Services Term of the agreement for use of application based for three years through march 20, 2023, reduce the cap of the Administrative Services fee from 250,000 to an amount not to compete 144,000 annually for the period of march 13, 2020 through march 12, 2023 for an aggregate amount not to exceed 1,682,000 for the total term of march 12, 205 through march 12, 2023. Chair fewer thank you. And we have Kathy Widener from the airport. This system was invented by s. F. O. Staff, and the airport recently received a u. S. Patent, so were pretty proud of that. The Licensing Agreement was originally approved by the board of supervisors in 2015 for an initial twoyear term with three oneyear options to extend through march 12 of this year. The system defines a perimeter around the airport using geographic coordinates and collects t. N. C. Data that helps us in our auditing process to make sure that the right amount of trip fees are collected from various companies. Modification would extend the contract for another three years through march 12, 2023. It caps the amount that s. F. O. Would pay, from 150,000 to 144,000. We collect 55 million in t. N. C. Trip fees we collected 55 million last year based on this system. The system has been very successful in maintaining a geofence and providing airports with audited information to validate our t. N. C. Trip information. The proposed modification does reduce the administrative fees and also allows s. F. O. To continue to collect Service Development fees through ards when they license the technology to other airports. The Budget Analysts Office has reviewed the agreement and the proposed modification and recommends approval, and id be happy to answer questions. Chair fewer thank you, miss widener. Can we hear from the b. L. A. , please. Yes. This approves the second existing agreement between the airport and the nonprofit Airport Research and development foundation. So this action and service and license agreement does three things. It uses the application or Technology Developed by the airport to actually record trip fees by t. N. C. S as they enter the airport. Currently, i think its about 4. 5 per trip, and then, the airport would pay a fee to the foundation under the agreement. So the original agreement was approve ind approved in 2015, and then, the option was approved in 2017, extending it through march of this year, march 2020. So the proposed resolution would extend it for an additional three years actually extend it through 2025 2023, with an additional twoyear extension to 2025. It increases the total amount to be paid by the airport in foundations in fees, the actually annual fee reduces from 150,000 per year to 144,000 per year. The summary of the current terms of the agreement over the next three years are shown on page 20, table one of our report, and we recommend approval. Chair fewer thank you very much. Lets open this up for Public Comment. Any members of the public like to comment on item 8 . Seeing none, Public Comment is closed. [gavel]. Chair fewer colleagues, any comments or questions . Congratulations to s. F. O. On their patent. Id like to make a motion to move this to the full board with a positive recommendation, if we can take that without objection. Thank you very much, colleagues. [gavel]. Chair fewer madam clerk, can you please call item 9. Clerk item 9 is a resolution retroactively authorizing the Police Department to accept and expend a grant in the amount of 29 the 8,414 from the department of Homeland Security federal Emergency Management agency to purchase an underwater remote operates vehicle for the period of sept 1, 2019 through august 31, 2022. Im from supervisor stefanis office. Shes homesick today. This is a grant for an underwater vehicle to replace the existing remote operated vehicle. This allows us to exist and mitigation underwater threats, create sweeps for the pier system without having to deploy human divers, and provide post incident underwater surveillance of infrastructure. As i said, the one that they would be purchasing to replace is an improvement over the old one, and it would be the only one in the region with the inability to ability to navigate the swift forces in the San Francisco bay. Im joined by Patrick Leong of the San Francisco Police Department and several members from the marine unit to answer any questions you may have. Chair fewer thank you very much. Mr. Leong, do you have anything to add to what was presented . Yes. Within the budget for this grant, the award is for 298,000. There is a 25 match. As far as the budget is concerned, this project included or the grant project includes an optional support grant for 25,000. For future years, that would be at the departments discretion if we choose to continue the support plan, and it is optional. It would be at our discretion. However, the it is not a requirement. Chair fewer okay. So mr. Leong, are you saying this 25,000 support plan is included in 298 or that is an additional . It the total budget for this project is 39 approximately 398,000. Chair fewer so only 400,000 for the total project . Correct. And it includes it includes a oneyear support plan. Chair fewer this includes the 25,000 oneyear support plan. Correct. Chair fewer and it requires a renewal of the oneyear support plan, and the Police Department would absorb those costs . Yes. Chair fewer and why is this retroactive . Its only retroactive because of the grant start date, so it was 9 91 is the state date. 9 start date, 912019, not because weve started any activities. Chair fewer okay. Mr. Leong, that doesnt tell me why its retroactive. We havent gone through the grant start process. The grant start date is 912019. Chair fewer so why didnt you present this before 91 we didnt receive the award until after 91. Chair fewer you didnt receive it until after 91 . I dont recall when we received it, but it was after 912019. For the grant do you mind if i jump in . Sure. Its a grant approved by the department of Homeland Security. I dont know the date that we received an approval, but they gave us an approval period that started 912019. We received approval after that fact, and the expend period ends in 2022. So they have not done any activity on the grant. Its just that the department of Homeland Security gave us an approval beginning on a date before we received the approval. Chair fewer okay. So i guess my question, as you know, when this comes to the full board, any time theres something retroactive as happened yesterday. Chair fewer as happened yes, there is always one board member that will question this. Yes. Chair fewer so my question is, if this was actually accepted in september, why are we hearing about it in 2020 . Mr. Patrick, this is a question that you will need to be prepared to answer and not put off. Sure. It has to do with the length of time it takes to present and expend a grant resolution, to get to our police commission, to calendar it, to the budget and finance committee, and then before it goes to the board of supervisors, that process, for us, it takes a minimum of three months. And so by virtue of that time schedule, it makes this a retroactive approval. It doesnt mean normally, retroactive is it has it refers to the timing difference between when the accept and expend is approved versus when is the grant award start date. And so because we cant chair fewer when is the grant award start date . 912019. Chair fewer so mr. Leong, i just want to be perfectly transparent with you to say that if it was a start date, that you tell me it takes you three months for your department to go through an accept and expend is somewhat unacceptable, and the fact that now its five months since that, i think to bring that to us retroactively, i just want to say i think its a little i dont think your reasoning actually is somewhat valid. I actually do think the departments approve the accept and expend grants all the time. Its because theyre notified later and this is because its retroactive. Okay. So i just want to caution you that before you go before the full board that you may want to have a conversation perhaps with the sponsor and figure that out. I am just telling you for this hearing today, i think this should have been brought before the budget and finance committee before, but im just going to caution you that if this goes before the full board, they will question you. We did intend to try to speed up that process, but some of what delayed the resolution was when we calendared it for our police commission, it was around the same time that we had we were preparing our budget, but also, at the same time, it was during the holidays, and so some of that has to do with the Holiday Schedule and getting the necessary approvals before we reached that step. Chair fewer thank you, mr. Leong. And so the total request for this is almost 400,000, and the grant request is 298. And i am hearing from officers that actually, this is a piece of equipment that is being that is used on a somewhat regular basis and that actually it complements the services of our existing coast guard and other jurisdictions that might have similar equipment, is that correct, mr. Leong . That would be correct. Chair fewer and then im hearing that the equipment that weve had before is aging, and although this takes minimal from the officers from what im heard, it takes minimal maintenance, that the Police Department will absorb the future cost of the maintenance, is that correct . Thats correct. Chair fewer okay. Lets open this up for Public Comment. Is there any member of the public that would like to comment on item 9 . Seeing none, Public Comment is closed. Are there any comments or questions from my colleagues . Seeing no comments or questions from my colleagues, id like to make a motion to seforward thi to the full board with a positive recommendation, and we can do that without objection. [gavel]. Chair fewer madam clerk, would you call the next item. Supervisor haney chair fewer, if its possible, can i make a few comments before they present because i have to run. I want to thank in advance everyone whos here and who brought this proposal forward. Ive been in meetings with representatives from the department and am happy to see the support from the neighborhood for this proposed center and also the work that the department has done to take some of the feedback and integrate that into whats before us today. I as you as ive made very clear and very supportive of Navigation Centers in general, and i know that this particular area around 33 gough is an area that has a significant amount of neighborhood homelessness and is in need of additional services. This Old City College building has long been a concern for neighborhood residents and businesses, and it is a very positive thing to see it transformed and used to serve so many people in need. I have a fee amendments that were going to be putting forward that i think are in front of everybody. Theres a couple things that i do want to flag that relate to the amendments and also to some other issues that i want to make sure to put on the record. One of the i do think that we are learning in terms of the importance of doing extensive Neighborhood Outreach and community meetings. I do want to say that if we can do more of that with the neighborhood before its announced, it is always a positive thing. I personally found out about this Navigation Center proposal i think the day before it was announced, and i also just want to say that for the engage the with the Supervisors Office and the surrounding constituents that having more opportunity for a collaborative effort and input and engagement on the front end is a positive thing. I also and i brought this up with the department really do think its important to have a significant commitment to have a zone around the Navigation Center, and i know that there is a commitment to that and were working on that together. I also believe its important that we consider the opportunity to provide a more diverse set of referrals to the Navigation Center. I think when we only have referrals that come from hsoc or Law Enforcement or even hot teams, we may be missing an opportunity to collaborate with neighborhood and Community Organizations who can provide access and who know individuals and work directly with individuals already who can benefit from the services and transitional housing that a Navigation Center can provide. So the proposed set of amendments are on page 3 of the resolution that have been made. One that the departments and district supervisors have agreed to convene regular meetings with the surrounding vicinity including but not limited to the number of people served and outcomes. The Service Provider has agreed to establish a Good Neighbor policy for the Navigation Center, and the neighborhood has created an outreach zone and will offer an outreach and initial priority to the unhoused neighbors in the vicinity. I think there are a number of Navigation Centers in this surrounding area, and im hopeful that we will continue to build these throughout the city, but this is a neighborhood that will benefit from these services and opportunities, and there are a number of people who are unhoused in this area who will be able to access services, shelter, and a transition to housing as a result of us activating a piece of property that has remained vacant for some amount of time, so thank you for your hard work and everything that went into this. I apologize that i have to leave early before this, but id like to be added as a cosponsor. Chair fewer thank you. And so we have gigi whitley. Good morning. Gigi whitley, director of the office of finance and supportive housing. Thank you to the committee for your hearing us through this proposed resolution that would propose that would approve a lease between the city and the property operated at 33 gough street for the proposed upper market safe Navigation Center at an annual lease cost of 1. 259 million. I will give a brief presentation. I also have with me the director of the department of real estate, and we can answer any questions you may have. Youre well aware, from my last presentation, about a week ago or two weeks ago the crisis on our streets. I wont revisit those comments, but i do want to thank the committee for your unanimous support and approval of the t. A. Y. Navigation center that passed the board yesterday. That project and this project at 33 gough will allow us to meet the citys goals and the Mayors Initiative of 1,000 new beds opening by 2020, which will allow us to increase capacity [inaudible] as all of our programs are predominantly run by our nonprofit providers. This will really operate as an outreach Triage Center a little bit differently than our other Navigation Centers. Like all our Navigation Centers, it would offer 247 access to clients, but no referrals, only by referral, no walkins. We always have a Good Neighbor policy, but we are learning through the Navigation Centers weve done recently, the t. A. N. Navigation center and this new site how to really refine our Good Neighbor policy and some of our outreach protocols so that theres a lot of Community Support for this new project. Chair fewer miss whitley, so supervisor mandelman and myself, my office, have been briefed on this item, too. Okay. Chair fewer so i think what we would like to hear also, just briefly, do you have anything that you wanted to add . Nothing at all . Okay. The time schedule for this. The schedule of when this is actually going to come on board. Okay. So just jumping on that, the idea is that once this gets approved by the full board, we could immediately proceed into construction timeline. We our partners at the department of health say we could be completed by fall 2020 and be able to operate for two full years before redevelopment to permanent housing. Chair fewer okay. Thats what we wanted to hear. Can we hear from the b. L. A. , please. Yes. The leasing costs are estimated about 4. 3 million over the threeyear term. We show annual operating costs are about 7. 5 million for actually operating the Navigation Center. There are some tenant improvement costs, and we actually do not know what those will be. Our information is that the plans for developing this site is still in the conceptual phase. But funding for the site and planning costs have been identified in the eraf costs. We recommend approval. Chair fewer thank you very much. Lets open this up for Public Comment oh, supervisor mandelman . Supervisor mandelman you may not have the answer to this question, because ive not provided it in advance. Im increasingly horrified by the cost that it costs the city to build bathrooms. Im just curious how much its going to cost to build these moti modular bathroom facilities. Ill have to get back to you on this. This was actually intended to be more cost efficient. Supervisor mandelman i sensed that. Im just curious even with the more efficient option costs. Maybe you can provide that to me offline. Yeah. As the budget analyst said, we dont have final cost numbers. We think its going to be less than the similar sized Navigation Center at embarcadero because it is an existing structure, but happy to follow up with public works and get that information to you as soon as possible. Supervisor mandelman thank you. Chair fewer thank you. Lets open this up for Public Comment. Any members of the public wish to speak on item 10 . Supervisor peskin, mandelman, and preston, theyre speaking out about this in their districts, as well. Why this one is not certainly not more important, but we had our spidey senses go up on, its less than 500 feet from our offices. The key is focusing the Outreach Center near the Navigation Center itself, because that will help build relationsh relationships on the street. We absolutely agree and urge this to move forward. Chair fewer next speaker, please. Good morning, supervisors. Moises garcia from the s. F. Gay mens chorus. Were about 100 meters from the proposed site and are in support of this and others. I am bolstered by the amendments proposed by supervisor haney. Just like the other speaker just said, were really interesting in knowing what that zone is of outreach. And were looking forward to those individuals getting housed, both for their quality of life and our quality of life. Chair fewer any other memo Public Comment . Seeing none, Public Comment is closed. Supervisor mandelman . Supervisor mandelman i have a question. To what extent do we think that people may start camping in the vicinity of nav centers in the hopes that they get sort of priority to be placed in nav . Is that an issue . Do we think its going to happen . Has it happened . Through the chair, supervisor, let me get back to you on that. Im not the programmatic expert, so let me get that for you. Chair fewer id like to make a motion to approve the amendments. If we can take that without objection. Thank you very much. [gavel]. Chair fewer and then id like to make a motion to move this to the full board with a positive recommendation, and we can do that without objection. [gavel]. Chair fewer madam clerk, is there any other business before us today . Clerk there is no further business before us today. Chair fewer and we are adjourned. [gavel] sustainability mission, even though the bikes are very Minimal Energy use. It Still Matters where the energy comes from and also part of the mission in sustainability is how we run everything, run our business. So having the lights come on with clean energy is important to us as well. We heard about cleanpowersf and learned they had commercial rates and signed up for that. It was super easy to sign up. Our bookkeeper signed up online, it was like 15 minutes. Nothing has changed, except now we have cleaner energy. Its an easy way to align your environmental proclivities and goals around Climate Change and its so easy that its hard to not want to do it, and it doesnt really add anything to the bill