ahsha safai and supervisor matt haney. mr. clerk, do you have any announcements? >> clerk: the board of supervisors and its committees are now holding meetings in person, but realizes that public participation is an essential pa of city government. we will take public comment on each item on the agenda. if you are listening remotely and you wish to make public comment, dial 415-655-0001, meeting i.d. 2487-879-8094, then press pound and pound again. if you are attending in please, you should lineup behind the podium to speak. we will take public comment in person first and then for those listening remotely. alternatively, you may submit your public comments in writing to me, b-r-e-n-t j-a-l-i-p-a@sf.gov. you may also mail them to city hall, room 204, room 1, dr. carlton goodlett place, san francisco, california, 94102. written public comment will be included as part of the official file. we have also received a request for interpretation services. would our interpreter please repeat the instructions in spanish. thank you. [speaking spanish language] >> interpreter: thank you, mr. clerk. >> clerk: thank you. finally, items acted on today are expected to appear on the board of supervisors agenda of april 26 unless otherwise stated. madam chair. >> chair ronen: thank you. can you please call items 1 and 2 together. >> clerk: residence. items 1 and 2 are resolutions authorizing the city administrator, through the director of the risk management division, to enter into a contract for assurance broke services. item 1 is a contract with alliant insurance services for an amount not to exceed $75 million, and item 2 is a contract with arthur j. gallagher and company insurance brokers of california,, inc. , for an amount not to exceed $30 million. madam chair? >> chair ronen: hi. and i understand we have matt hanson and [indiscernible] to speak on this item. >> yes. good morning, supervisors. matt hanson mostly to answer questions. this is for property insurance premiums that we procure on behalf of city departments, the vast majority which are city funded departments, and i'll be happy to answer any questions. >> chair ronen: before we go to questions, can we get a report from the b.l.a.? >> this would approve a contract with alliant insurance services and arthur j. gallagher, both to approve reviewugenerated assets. we show on page three of our report the combined total expected cost of both contracts is $105 million, which shows a 20% increase in the first two years of the contracts and a 15% increase in the third year. i just want to point out the reason there are two brokerage contracts is the port suffered a major property loss because of a fire 18 months ago which required specialty insurance to be purchased for those properties. we do recommend approval of both contracts. >> chair ronen: thank you so much. colleagues, any questions? thank you so much. no questions. mr. clerk, can we please open this up for public comment. >> clerk: thank you, madam chair. members of the public who wish to speak on this item and are joining us in person should lineup to speak right along the curtains. for those listening remotely, please call 415-655-0001. the meeting i.d. is 2487-879-8094. once connected, you'll need to press star, three to enter the speaker line. for those already in the queue, please indicate until the system indicates you have been unmuted, and that'll be your cue to begin your comments. we have no in-person speakers. operations, do we have any callers in the queue? >> operator: mr. clerk, there are no callers in the queue. >> clerk: thank you, mr. atkins. >> chair ronen: thank you. public comment is closed. mr. clerk, i'd like to make a motion to send items 1 and 2 to full board with a positive recommendation. can we please have a roll call vote. >> clerk: yes. on the motion to send the items to the full board with a positive recommendation -- [roll call] >> clerk: we have three ayes. >> chair ronen: thank you so much. mr. clerk, please read item 3. >> clerk: yes, madam chair. item 3 is a resolution establishing the appropriations limit for fiscal year 2021-2022 pursuant to california constitution article xiii-b. members of the public joining us remotely and wish to make public comment, dial 415-655-0001, meeting i.d. 2487-879-8094, then press pound and pound again. press star, three to enter the queue, and when you hear your line has been unmuted, that is your cue to begin your comments. >> chair ronen: yes, and i believe we have mr. mitten here to review. >> good morning, supervisors. i am michael mitten. in 1978, california passed prop 13, and in 1979, they passed a constitutional article called the gann limit. if we exceed that limit over a two-year period, then we have to return the excess revenue to taxpayers. this is pursuant to the state right now, because it's expected they ran over the gann limit and will have to pay it back. we established the gann limit in 86-87. in 2020, the city's population fell by 1.7%. the bay area's population fell by 0.6%. we can choose the greater, so that will decrease our gann limit by 0.6% after justing for these two factors, or base gann limit is increased by 17.8%. the gann limit is also be increased for up to four years with voter approval. currently, there are eight tax increases that raise our gann limit by $1.7 billion. as the four-year range for these measures pass, we will lose our funding, and the gann limit will come back down. we are going from a 7.1 to 10.9 billion gann limit in 2022. the gann limit legislation allows us to reduce our tax proceeds for certain spending categories: voter incurred debt, certain laws, and federal mandates. this leaves our appropriates 5.1 billion -- our appropriations 5.1 billion below our gann limit. that concludes my presentation. >> chair ronen: thank you. can we have a b.l.a. report. >> thank you. we do recommend approval. >> chair ronen: thank you so much. any questions, colleagues? no? thank you for the clear presentation. can we please open this item up for public comment. >> clerk: yes, madam chair. members of the public who wish to speak on this item and are joining us in person, should lineup to speak along the curtains. for those listening remotely, please call 415-655-0001, for the meeting i.d. 2487-879-8094. press pound twice and then press star, three to enter the queue. please wait until the system indicates your line has been unmuted before you begin your comments. we have no public speakers in the chambers. mr. atkins, are there any callers on the line? >> operator: mr. clerk, there are no callers on the line. >> clerk: thank you. >> chair ronen: thank you. i have a question. has the proceeds ever exceeded the gann limit in san francisco history? just out of curiosity. >> no. >> chair ronen: okay. great. just curious. i would like to make a motion to send this to the full board with a positive recommendation. can we have a roll call vote. >> clerk: thank you. on the motion to send this to the full board with a positive recommendation -- [roll call] >> clerk: we have two ayes with vice chair safai absent. >> chair ronen: thank you. the item is approved. mr. clerk, can you please read item number 4. >> clerk: yes, madam chair. item number 4 is a resolution approvaling the updated emergency declaration of the san francisco public utilities commission pursuant to administrative code section 6.60 to contract resources for tree removal, slope repair, and debris removal in stern grove, which was damaged by flooding caused by a failed air valve on a water transmission pipeline, increasing the cost by 16 million for a total not to exceed amount of 20 million. members of the public who wish to comment remotely, call 415-655-0001, meeting i.d. 2487-879-8094. press pound and pound again, and then press star, three to enter the queue and wait for the system to indicate your line has been unmuted before you begin your comments. >> chair ronen: good morning. >> good morning. pleasure to see you, members of the board and chair ronen. this is actually my first time back in city hall, so i'm proud to be here. actually, i'm supported by jeremy spitz. jeremy, if you can bring up the slides, that would be great. okay. good. thank you. i've got several slides here that we can move through fairly quickly because it's a pretty straightforward unfortunate event. august 23, 2021, we had a major break on an appurtenance on a major line in san francisco, and that failure caused significant damage down to stern grove. next slide, please. you can see here say picture of it. basically, it's a very steep slope that occurred in stern grove. it damaged several trees, and the tennis courts were damaged, as well, so it was a significant event at the time. next slide. you can see here in particular the mud that was deposited down slope and the trees that were actually damaged in the event. ultimately, we had to remove a few, but we had to do much more mitigation to trees than we anticipated, which is why we're here. our inspection pointed to an immediate need to stabilize the hillside, and we had to move the debris out of the park. it seemed like a straightforward job, but the other state of affairs were not included in our initial assessment. one of the things that we had to do was remove 63 mature eucalyptus trees, which was a large number there. we had to engage a geotechnical firm to do an investigation and redo the slope. we had to restore and salvage several historic block walls, and we had to remove debris and do power washes in some of the ancillary buildings associated with the stern grove festival. this slide gives a look at the amount of work necessary. based on our engineer's assessment of it, to make sure that slope stays stable, that we would actually have to have, excuse me, a significant base retaining ball at the bottom. we also had to repair an existing sewer line which we weren't aware of at the top, and then, the retention of concert and west meadow turf grass. we'll have to replant the eucalyptus trees in the affected slope, and ultimately repair the tennis courts down the road. we've worked very closely with the stern grove festival association to make sure that the stern grove festival can take place this year. as you recall, the event just occurred just before the last and first real concert of the season, so we've been working closely with the stern grove association to make sure that the festival can take place. this map lays out the area that we've been working with with stern grove and recreation and park to make sure that everything is repaired. the initial estimation was made within 48 hours before we really new everything. i have to admit i and other folks were walking the site at the time and basically came up with the initial estimate of $4 million and was definitely low ball as we uncover the facts that are really there, so that's the real cost, is approximately $20 million. the next slide shows the detail of the funds. they're also in the budget analyst's report, as well, but the majority of the cost go into the repair of the slope more than anything else. our work timeline, the initial restoration work began immediately and continued through the winter. we sequenced the remaining restoration work to make sure that the concert season can occur, but there will still be some work after, such as final restoration of the tennis courts and restoration of the hillside, and all work should be completed by january 2023. i'm happy to answer questions. running a water system, it's when things go wrong that you have to answer questions and when things go wrong, you have to make them right. >> chair ronen: thank you. can we have the report from the budget and legislative analyst? >> this increases the amount of emergency work from $4 million to $20 million, and we show the change in the budget on page 13 of our report. the funding from this work will come from the p.u.c.s capital plan, in particular, their local water conveyance and distribution project. it was a project originally intended to maintain the water system within san francisco and do preventative maintenance on up to 15 miles of pipe each year that will have to be deferred to undertake this emergency work. one other thing i want to note, the emergency declaration allows the department -- in order to meet the emergency immediately, to not abide by chapter 6 and 12 and 21 and 14 of the administrative code, which pertain to, among other things, contracting for public works contract and service contracts and local business enterprise requirements. now, the department has committed to, nevertheless, using an l.b.e. subcontractor as part of this work, and so what i would recommend, since they're already reporting back to this body about the final work that they're doing at stern grove, to include in that report documentation of the l.b.e. commitment that they've made already. we do recommend approval of this resolution. >> chair ronen: thank you. supervisor mar? >> supervisor mar: thank you, chair ronen, and thank you, supervisor ritchie, for the p.u.c.s supervising of this work. i just want to say thank you for the work to restore one of the most treasured green spaces in our city. stern grove is an historic and ecologically diverse region, not just for my neighborhood but for the entire hillside. it's home of the iconic stern grove music festival, and it's been providing music to san francisco for the past 84 years. stern grove is one of too few places available for free for public enjoyment, and i think that's worth investing in. the flooding damage last fall was heartbreaking. i visited the site the day after and was shocked by the devastation to the concert meadow and the stern grove environment. i'm committed to making sure this environment is restored quickly, completely, and the p.u.c. is taking responsibility to fully restore stern grove, so i thank you again, assistant general manager ritchie, and p.u.c. for this project. >> thank you. >> chair ronen: yeah, i agree that this is absolutely unfortunate but agree that it's necessary. i'm just curious whether the cost will increase rates for customers? >> i don't anticipate an actual cost increase. this is in the realm of our budget. this is a fairly small amount. we are working through our budget process to retain the current fund so that services will be available to all customers. >> chair ronen: thank you. and it's just that the pressure of the water was so much greater? >> yeah. this was a 64-foot geyser that ran for four or five hours. >> chair ronen: and in terms of the additional -- mr. menard, are you suggesting that we should add additional language to the item or -- or seem documentation -- >> you know, the original emergency declaration did add language to request the p.u.c. to report back with photos and kind of a memo documenting the work. i think you could just ask in this case without an amendment, but an amendment would obviously memorialize is for everyone's future reference. >> chair ronen: okay. colleagues, are you comfortable just asking the p.u.c. to come back and submit a report -- >> as part of that final report, we're already obligated, we will definitely make that report, and we will include this work, as well. >> chair ronen: okay. great. good enough for me. can we please open this item up for public comment. >> clerk: yes, madam chair. members of the public who are attending in person, please lineup along the curtains. for those listening remotely, dial 415-655-0001, meeting i.d. 2487-879-8094, then press pound and pound again. press star, three to end the queue. it does not look like we have any speakers in the chamber. mr. atkins, it looks like we have one caller in the queue. hello, caller. >> hello. can you hear me now? >> clerk: please go ahead. >> i did read the materials, 598 pages, and i really wonder if revenue bonds are the correct revenue source. i don't believe this was [indiscernible] this would mean less water main replacement in the near term, so i wonder if that's actually a consist use of the revenue bonds for this purpose. the p.u.c. revenue bond oversight committee can review that at some point. i note that the initial cost estimate reviews were low, and i urge the city to develop better cost estimates procedures under measure 6.60. i understand that this continues to make the trocadero clubhouse available because a recommendation -- [roll call] >> clerk: we have three ayes. >> chair ronen: thank you. the motion is approved. good to see you all. mr. clerk, can you please read item 5. >> clerk: yes. item 5 is a resolution approving modification number 4 to a contract between hallmark aviation services, l.p., and the city and county of san francisco, acting by and through its airport commission, for airport information and guest assistance services, extend being the term for two years, to commence on july 1, 2022 through june 30, 2024, to increase the labor rate for the new quality standards program rate, and to increase the contract amount by 11.9 million, for a new total contract not to exceed an approximate amount of $53 million. members of the public listening on-line who wish to make public comment, dial 415-655-0001, meeting i.d. 2487-879-8094, then press pound and pound again, and press star, three to enter the queue. madam chair? >> chair ronen: thank you. i believe we have diana here to make a presentation. >> thank you. this contract is for airport information and guest assistances. this will allow hallmark and its l.b.e. polaris to provide information in the line management arrivals area. in 2021, staff assisted 1.1 million guests at 13 information desks. their services to the traveling public have become more important in this new travel environment, and services have been expanded to include assistance with screening and testing, distribution of facial coverings and masks, and ensuring physical distancing. the contract employs individuals with diverse backgrounds, language capablities, and a background of san francisco spirit. the board approved a subsequent two options to extend in 2018 and 2020. the b.l.a. has recommended approval, and i'm here with my colleagues to answer any questions you may have. thank you. >> chair ronen: thank you so much. can we hear from the budget and legislative analyst? >> thank you. this resolution would approve the fourth modification and hallmark. it extends the contract from the end of this year through june 2024. we show that this extension is budgeted $11.4 million. it includes $6 million per year, which consists of salaries and benefits of $4.4 million, and then, a fixed management fee of $1.4 million, which is consistent with the existing contract. the budgeted staffing is decreasing from 91.7 f.t.e. to 61.3 f.t.e. really based on low airport activity. the contract does include a contingency to allow for an increase in staffing as well as an increase in compensation over the two-year period if flights return to normal. we recommend approval. >> chair ronen: thank you. any questions, colleagues? no? mr. clerk, can we please open this item up for public comment? >> clerk: thank you, madam chair. members of the public who wish to speak and are joining us in person should lineup to speak. for those listening remotely, call 415-655-0001, meeting i.d. 2487-879-8094, then press pound twice. press star, three to enter the speaker line and wait until the system indicates you have been unmuted before you begin your comments. there are no commenters in chambers. mr. atkins, do we have any callers on the line? >> operator: mr. clerk, there are no callers on the line. >> chair ronen: thank you. public comment is closed. i'd like to make a motion to send this to the full board with a positive recommendation. >> clerk: on that motion to send this to the full board with a positive recommendation. [roll call] >> clerk: you have three ayes. >> chair ronen: thank you. can you please call item 6. >> clerk: yes. item 6 is a resolution authorizing the department of homelessness and supportive housing to execute a standard agreement with the california department of housing and community development far 5.6 million of 2021-22 california budget act funds, to retroactively accept and expend those funds for capital expenses related to the bayview vehicle triage center for costs incurred july 1, 2021 through june 30, 2021, and affirming the appropriate findings. members of the public attending remotely who wish to comment, dial 415-655-0001, meeting i.d. 2487-879-8094, then press pound and pound again. press star, three to enter the queue, and wait until the system indicates your line has been unmuted before you begin your comments. >> chair ronen: thank you. and i believe we have emily cohen here today. >> i'm here to seek your approval of acceptance of $5.6 million for capital expenses for the bayview vehicle triage center and to affirm the planning department's ceqa and g.p.r. determinations. as you can see from the grant budget overview, approximately $4.2 million will be expended for capital construction costs for the project, and 1.4 will be for professional services related to that capital construction design, engineering, and project management, and all of these services have been provided by the department of public works. the vehicle triage center opened earlier this year, in january, and has an initial cast of 49 vehicles. it is currently at capacity. there are currently 62 adults staying in 49 vehicles at the property. all of the clients who are being served there were encamped in vehicle encampments in the bayview prior to the opening of the site, and since opening, the program has served a total of 68 households, so it's already having a tremendous impact and will continue to have an impact. happy to answer any questions. >> chair ronen: thank you. before questions, b.l.a., would you like to present? >> chair ronen, we did not prepare a report as there are no matching funds. >> chair ronen: oh, thank you. supervisor safai? >> supervisor safai: thank you, director cohen and h.s.h. this is an example of the wonderful work that we've been doing over the past months to expand these. just to remind listeners and those following long, [indiscernible] so this is a significant step in the right direction, so i'm very happy and proud to have been an early supporter of this work. i have a couple of questions for you, director cohen. are there any plans to expand the number right now or it looks like it's at capacity at 49 vehicles, but is there a plan to expand that? >> we're only in phase one of operation, so we opened phase one with a capacity of 49, and throughout -- until the end of the year or by the end of the year, we will expand to about 130 vehicles. that's the maximum capacity of the site. >> supervisor safai: got it. okay. so this grant helps us achieve that, is that correct? are you there? director cohen? maybe we lost her. >> chair ronen: there you go. >> supervisor safai: are you there? >> i'm here. >> supervisor safai: so this goal helps us achieve up to phase two, which will get us up to 139 spots? >> yes, that will help us get there. >> supervisor safai: is this a permanent site? >> no, this project is intended to be -- to operate for two years. we have a two-year lease with the state for this parcel. >> supervisor safai: is there any permanent site identified in the area? >> not yet. we are interested in doing something on the west side and working with supervisors from the west side to identify a parcel and would be interested in finding a next phase for this project after our two-year lease expires. >> supervisor safai: and is there a reason why there's a two-year limit by the state? is there something that's going to be happening there? >> i think this is really the state lands commission's first time partnering with the city to do a vehicle triage center or homeless service, and i think they wanted to be cautious in how long to see the impact of the site on the neighborhood. this is a little out of their scope, so i think this is the maximum that the state was comfortable using parkland for this purpose. >> supervisor safai: and are they open to potentially extending it beyond two years? >> they have been quite clear that two years is their plan. >> supervisor safai: i guess we can approach that. i guess it's good that we're getting funds from the state to do this work. we've been talking to other supervisors and their offices about the groundwork and what needs to be in place and what was a successful upper will balboa site and what needs to be replicated. is there anything that would be done different at this site that you've learned in the process that we can be supportive of? >> we learned that -- and thank you for your support on that project -- was about the need for [indiscernible] management services. in this contract, we actually have them services. in balboa, they were provided by the homeless outreach team, but in this, it's separate, which i think will provide more robust services. given the fact that this project is much larger than the initial site, that's why we're gradually ramping up here. >> supervisor safai: great. well, we look forward to working with you on this. it's such an important model that needs to be replicated 100%. mr. clerk, can you please add me as a cosponsor on this? thank you. >> clerk: certainly. >> chair ronen: supervisor mar? >> supervisor mar: thank you, chair cohen, and thank you for your presentation on this extremely important step in addressing our unhoused population in vehicles, and thanks also for working closely with me and supervisor melgar to identify a site on the west side. i just have a question about the budget. so this $5.6 million that you received from the state -- so this is covering cost that's have already -- costs that have already been incurred for the set up and maintenance of the bayview? >> i'm sorry? >> supervisor mar: what was the total cost for the actual construction and set up of the bayview v.t.c., and how long is the total budget? >> so the 5.6 million for the v.t.c. will cover costs for the set up as well as the remaining capital to help us achieve the full expansion, up to the 130 spots, and this covers just about all of the capital expenses. this doesn't cover the separating costs -- operating costs, so the operating costs are being paid for by the city, and the set up costs are being paid for by the state grant. >> supervisor mar: yeah, that's helpful. do you expect an arrangement where we can access state funds for the set up expenses and city funds for the operating expenses? >> so this was a one-time grant to the community from our assembly member, and lots of thanks to assembly member chiu for his work on this. we do not have a specific funding force but there are some flexible resources, so we would need to look at what can be braided together from city and state resources, but there is not a vehicle triage dedicated funding at the state right now. this would be a great thing for the state budget to include going forward. >> supervisor mar: yeah, we can certainly follow up with assembly member ting about that. and just one final question. what is the total budget for vehicle triage centers currently? >> so i can pull up the operating costs for this one, but they vary pretty significantly depending on the size. >> supervisor mar: i'm sorry. what is the cost on this one and the west side coming soon? >> you know, i don't have that, but let me pull it up, and i can e-mail it to you momentarily. i just don't have it at my fingertips. >> supervisor mar: okay. thank you. >> chair ronen: thank you so much, and just a couple of questions. what is going to happen to the site after the two-year lease, and how much time is remaining on the lease? >> thank you, chair ronen. the lease started in late december 2021, so we have until late december 2023 on the lease, and the capital expenditures are covering the engineering design of the project, but it's mostly around utilities and equipment. that is the -- that is the largest expense within that capital budget. bringing in the utilities is significant. >> chair ronen: is that something that we'll be able to move when we change sites? >> some of it will be site specific, but we are not looking at leaving a lot of the equipment there. >> chair ronen: and then, did you -- did -- i'm not sure if you answered this question already, so i apologize if i'm asking it again, but do you know what the timeline is for increasing to is 30 vehicles from -- to 130 vehicles from the current number? >> by the end of the year. >> chair ronen: okay. and is there plans to allow vehicles from other neighborhoods or is this site limited to just vehicles parked in the bayview? >> this area has the largest concentration of inhabited vehicles in the city, and this project was very much designed to alleviate the homeless encampment crisis in the bayview, so we've made a pledge that this will serve the surrounding area of candlestick view state park and go out from there. i don't see a point where we have resolved vehicle encampments to the point where we can expand outside the district. >> chair ronen: i know you have plans to open a new vehicle triage site on the west side, but is there any plans to create a vehicle triage site for other east side neighborhoods that deal with this issue that are never going to be able to either get into the bayview or the west side site? >> we are absolutely open to that, but we do not have funding identified for more than two sites, but it's something we very, very open to doing should we identify the funds. >> chair ronen: and in your proposed budget to the mayor for the next fiscal year, did you include a request for any additional sites beyond the two? >> just the two. >> chair ronen: okay. that's worrisome because there are more than two sites, and you're basically telling every other neighborhood in the city if there are large encampments of people living in their vehicles that they're stuck there. maybe we can speak further about -- what were you going to say, miss cohen? >> if i may, vehicle triage centers are one tool in the tool box. we can work with them to get into permanent shelter. it is something desired by the community for people living in their vehicles, and we are interested in expanding it. we still continue to outreach to people living in their vehicles in other neighborhoods and offering them services as we have available. as you know, across our entire system -- we struggle with scarcity across our entire system. >> chair ronen: well, thank you so much, and this is certainly exciting, and i agree with supervisor safai, after this item, we're going to have to do some advocacy with the state that we can extend this site. i'm certainly supportive and would like to be added as a cosponsor. supervisor safai? >> supervisor safai: yeah, thank you, chair, and i'd like to add a few things. director cohen knows this. i am not in support of adding additional funds for safe sleeping. i think that is not a good investment, and i think this is a much higher return. i think there's only a number of actual parking lots that we can actually allocate resources for. the tent encampment safe sleeping site that was between the chinese community center and library, we've got to turn lots into tiny homes or something other than safe sleeping. i would urge the city to look at safe parking. as you can say, we do have other resource people living in vehicles, but as you and i know, this is very difficult to get people living in vehicles to give up their only transit. if you don't have a space to get them in to work with them along with the services -- that's why i said, one of the most important lessons learned, i think one of the most important lessons learned was having on side services to help -- on-site services to help them transition to a more permanent space. making that a priority, working with the prop c committee, i think is an important aspect of what we're doing, and i would just encourage you all to really try to focus in on allocating resources in that manner. thank you. >> chair ronen: can we open this up for public comment. >> clerk: yes. members joining us in person, lineup by the curtain. member listening remotely, dial 415-655-0001, meeting i.d. 2487-879-8094, then press pound and pound again. press star, three to enter the queue and wait until the system indicates you have been unmuted before you begin your comments. we have no speakers in the chamber. mr. atkins, do we have any callers in the queue? >> i've been a long time advocate of these vehicle encampments with support services, and i want to encourage their continuation. i have a concern about the safe sleeping sites. when you look at the cost per tent per year, you could actually rent two high enter market rate apartments for the cost of one, so there's something about the services for each site that makes them more expensive. renting one market rate apartment would be cheaper. for the vehicle encampments, if you look at the actual cost, it might be cheaper. if it's cheaper, it should be in the budget and it should be supported because it's a vulnerable community, and if they're car based, and we can provide them with a place to park, with hygiene services, with showers and laundry, support services, this really helps people in their time of need, so thank you so much for supporting this, and if anything, we probably could use more than just one in the bayview. how about one in the northern part of the city if you can afford it. david elliott lewis. thank you so much. >> clerk: thank you, david elliott lewis. mr. atkins, do we have any further callers? >> operator: mr. clerk, we have no further callers in the queue. >> chair ronen: would you like to do the honors? >> supervisor safai: send this item to the full board with a positive recommendation. >> chair ronen: roll call vote. >> clerk: yes. on supervisor safai's motion to send this to the full board with a positive recommendation -- [roll call] >> clerk: we have three ayes. >> chair ronen: item passes unanimously. mr. clerk, can you please read items 7 and 8 together. >> clerk: yes. item 7 is a resolution authorizing the treasure island development authority to execute a standard agreement and other related documents with the state of california department of housing and community development under the california housing accelerator program which the standard agreement includes an award not to exceed 60 million as a loan to mercy housing california 82, l.p., as sole borrower, for construction of a development affordable to low and moderate income families at treasure island parcel c-3.1, located at avenue knew c, old address, 78 johnson, for a term of five years to commence upon execute of the standard agreement. item 8 is a resolution proofing and rorzing the execution of a loan agreement with mercy housing california 82, l.p., a california limited partnership, in an amount not to exceed $33.4 million for a minimum of 57 years to finance the construction of a 138-unit multifamily rental housing development plus one staff unit for low and moderate income families located at 6th street at avenue c, 78 johnson street, and adopting findings that the loan agreement is consistent with the general plan and the priority policies of planning code section 101.1. members of the public attending in person who wish to speak lineup by the curtain to speak. members of the public listening remotely, dial 415-655-0001, meeting i.d. 2487-879-8094, then press pound and pound again. >> supervisor safai: thank you. i believe director bob beck with tida will be here to present. >> yes. bob beck, director of the treasure island development authority, joined by cindy heavens, to present on the loan request and the execution of the accelerator standard loan agreement for the development of this project with mercy housing and catholic charities. before we get to this request, i'll provide a brief overview of the development and where we are. overall, the program is primarily a residential program calling for the development of 8,000 new homes on treasure island and yerba buena, of which 25% will be affordable. 2500 hotel rooms, more than 250,000 square feet of commercial and retail, as well as new utility infrastructure throughout both islands, geotechnical improvement of the man made treasure island and sea level rise adaptations. next slide. today, there's been substantial progress made on the infrastructure backbone for the island. one new ramps project connecting the bay bridge to the island has been completed, and a second will be completed this summer, with a third expected to break ground before the end of the year. new water storage reservoirs have been completed on yerba buena island, and a new primary electrical switch yard completed on treasure island. the san francisco public utilities commission also has issued contracts -- contracts to construction new waste wear treatment plant on treasure island and is expecting to receive bids on that project next month. the new ferry terminal on the island has been completed, and in march, ferry service from the terminal on the island to the embarcadero began. the construction of new roadways and new underlying utility infrastructure, sewer, stormwater, electrical joint trench and telecom facilities in the first two subphase areas on yerba buena island and treasure island have been substantially completed, and the geotechnical improvement of the third subphase area is underway. next slide. the first new residential building on yerba buena island is scheduled to receive its temporary certificate of occupancy this month, with residents beginning to move into that building in may and june. this is a 124-unit condominium building with 14 inclusionary units, and i'm happy to report that current residents of treasure island are in the process of purchasing six of those inclusionary residential units. also on treasure island, our first development is underway, which is 100% affordable building being constructed with chinatown community development and swords to plow shares. this project began in april 2020 and is expected to be ready for occupancy in march 2023. next slide. we're also on the cusp of a major expansion. i mentioned earlier the new roadways and utility infrastructure on -- in the first two subphase areas are substantially complete, and with that, there are a number of new residential projects that are in the permit process and expected to break ground this year. in addition to the project that we're bringing you today with mercy and catholic charities, there are seven other buildings on treasure island and yerba buena island that are to break ground this year and expected to be completed by 2024, so within three years, we should have 1200 residential units on the island. next slide. this rendering shows the facades of the buildings that are under permit review and are expected to be completed in the next three years, and the arrow there shows parcel c-3.1, and i'll turn it over to cindy to tell you more about the tractions that we have for you today. >> -- transactions that we have for you today. >> good afternoon, chair ronen, supervisor safai, and supervisor mar. cindy hahn, mohcd senior department manager. thank you for that presentation, bob, about treasure island. mohcd on behalf of tida and the resolution before you today is a request of approximately 33.5 to fund the project before you, treasure island parcel c-3.1, and to sign the state of california housing accelerator standard agreement. the c-3.1 is the second affordable housing project to start on the island, and it's right next to the current one that's under construction. when the building's complete -- go back to the last slide. when the building's complete, there will be 138 units and a seven-story building. the building is targeted to families and will have a mix of one, two, and three bedrooms. 71% are a replacement of households, and they're operated by a continuum of care by catholic charities. 23 units are for treasure island legacy households, and 43 are new affordable units, and there's one manager unit. the amenities in the unit are teen room, residences, offices, and a community room. and i also want to say that tide -- tida, mohcd, and the developer have worked overtime to get this project developed when housing and projects funding was not available in san francisco. so this includes the city loan of 33.452 million, the h.c.d. accelerator line, the [indiscernible] loan, and the city bid permanent loan. what's important here is the h.c.d. accelerator loan is a new project source. this project is the first before this committee is the first of four projects that the city has been awarded the housing accelerator funds from h.c.d. this accelerator housing money replaces tax exempt bonds that we weren't able to acquire last month to help leverage this -- or not last month, last year, to help leverage the city's financing and loan in this project. treasure island c-3.1 was designated as a top tier priority development under the accelerator program because it had received a previous loan, the ahsc loan from a.c.d. the previous h.c.d. financing received is the previous affordable housing money received that basic loan includes but it's not shown, a $10 million grant to tida to provide transit -- sustainable transit infrastructure and transportation related amenities to the island that would reduce greenhouse gases. and because h.c.d. wants to tie the accelerator to the existing h.c.d. program, tida, under the accelerator program, and related to ahsc, is required to sign the accelerator standard agreement, and that's the reason the execution of the accelerator resolution is before you. next slide. so it's been a long process, but we are really excited. the plan is for this project to close on its construction financing in -- actually, not in, on may 13, and we have to do that because the general contractor bid the project in december and has been saying, due to the construction market, that if we don't close by -- excuse me, by may 13, not december. -- by may 13, they would not be able to hold the bids, and we would need to come back before you with a new loan request, so we really hope to get going next month. if everything starts, the move-in will occur in 2024. so that ends our presentation, and myself, tida, a few -- the developer are here to answer any questions you would have, and thank you very much. >> chair ronen: thank you. and we do have a budget and legislative analyst's report on these items. >> thank you, chair ronen. so before you are two resolutions. 225437 would approve a loan between mohcd and mercy housing for $33.5 million, primarily funded by general obligation bonds, and final 223046 is a resolution that would authorize tida to execute a $60 million standard agreement with the state housing and community development department. we show the development costs for this project on page 26 of our report, which shows 138 units at a cost of $117.3 million. the city funding comes out to about $242,000 per unit. we do have a recommendation to amend final 220436 to correctly state the award amount, which is $55.6 million, rather than the $60 million stated in that resolution before you, and then approve both files as amended. happy to answer any questions. >> chair ronen: thank you. just one question to miss heavens. -- or to bob beck. sorry. i'm just getting used to, as this is the first time that we're getting financing through h.c.d. so this is a forgivable loan, i'm assuming, is that correct? >> yes. >> chair ronen: and how does that work? >> so basically, when they complete the project and maintain the obligations of the affordable housing, they don't have to repay the loan, and i think it's a 20-year loan right now. >> chair ronen: okay. and so it functions essentially the same as the funds for financing -- >> yes. >> chair ronen: okay. great. supervisor mar? >> supervisor mar: thank you. actually, thank you for the really helpful update on the development, the infrastructure and housing development at treasure island, it's really good to see that moving forward so actively. i just have a couple of questions about this project, yeah, and, like, very much needed. my first question is more around the number of units and the size of the project. i was just -- looks like it's -- yeah, wondering whether that's the maximum number of units that's allowable for this particular site and what -- if not, sort of what the thinking was in terms of the number of units and the scale of the project? >> thanks. thank you, supervisor. yes. in the entitlements that were adopted in 2011, and the e.i.r. that was certified in 2011, 8,000 was the maximum buildout that was entitled at that time and evaluated under the e.i.r. >> supervisor mar: yeah, great, and so 138 units sounds like a seven-story project. was that the maximum that could have been done on that site? >> yes, it's the maximum that could have been done on that site, also taking into account the height limits. they did also get the affordable housing bonus -- i forget the name of it right now. >> supervisor mar: the density housing bonus? >> yes, the density bonus. >> supervisor mar: i appreciate all the work figuring out how to put the financing together under challenging conditions, for the state housing accelerator fund portion of it, can you talk a little bit more about that? is that a new funding source from the state for a project like this? and i understand the one in my district, 2550 irving, the affordable family housing, was also looking at that. i think you also mentioned there were three other projects. can you mention the whole four? >> sure. i'm not sure if my college can jump on. kristina, [indiscernible], and jones are all determined as tier one development under the state's accelerator program, and the state accelerator program is new financing, and it was created to help with the projects that were not able to access the bond financing. the r.f.p. came out in october. they first announced in september, and not the r.f.p., the nofa came out in october 2021. this is a second round that is -- also came out, and that came out -- so the first round was under october 2021. a new round came out for tier two project, and i think it was just, like, released in february, and the application was due in, like, march or april. >> supervisor mar: great. thank you for that. no other questions, chair ronen. >> chair ronen: thank you. can we please open this item up for public comment? >> clerk: thank you, chair ronen. members of the public who wish to speak on this item and are joining us in person should lineup to speak now. for those listening remotely, call 415-655-0001, meeting i.d. 2487-879-8094, then press pound and pound again, then press star, three and wait until the system indicates your line has been unmuted before you begin your comments. we have no speakers in the chamber. mr. atkins, are there any callers on the speaker line? >> operator: mr. clerk, there are no callers in the queue. >> chair ronen: public comment is closed. i want to make sure that the funding did not exceed 33,452,317? >> yes. >> chair ronen: so mr. clerk, i would like to make a motion to amend, i believe, it's item 7 to correctly state that the standard award will not exceed 55.3 million. >> clerk: on that motion to amend -- [roll call] >> clerk: we have three ayes. >> chair ronen: and then i'd like to make a motion to send item 7 to the full board with a positive recommendation. >> clerk: would you like to include item 8? >> chair ronen: yes. >> clerk: on the motion to include both items to forward both items to the full board with a positive recommendation -- [roll call] >> clerk: you have three ayes. >> chair ronen: mr. clerk, would you please call item 9. >> clerk: yes. item 9 is a resolution approving and authorizing the director of property on behalf of the department of homelessness and supportive housing to acquire certain property, approving and authorizing h.s.h. on behalf of the city to apply to the california department of housing and community development for a home key grant, approving and authorizing an agreement of purchase and sale for real estate for the acquisition of the property from city gardens bridge, l.l.c., which includes a liquidated damages clause held up to $5 million as well as other remedies in case of default by the city, authorizing the director of property to execute the purchase agreement, make certain modifications, and take certain actions in furtherance of this resolution and the purchase agreement, as defined here in, affirming the planning department's determination under ceqa and adopting the planning department's findings and the transaction contemplated there in, is consistent with the general plan. members of the public who are listening remotely, dial 415-655-0001, meeting i.d. 2487-879-8094, then press pound and pound again. press star, three to enter the queue, and please wait until the system indicates your line has been unmuted before you begin your comments. as stated earlier, we received a request for interpretation services for this item. marty, could you please repeat the instructions in spanish. [speaking spanish language] >> interpreter: thank you, mr. clerk. >> clerk: thank you. madam chair? >> chair ronen: and i believe we have emily cohen back with us to present. >> thank you, chair ronen and supervisors. emily cohen again with the department of homelessness and supportive housing. i'm here today to seek your approval of the acquisition of 333 12 street. as you know, the city has had a role of obtaining property to develop affordable housing for people experiencing homelessness. [please stand by] . >> yes. yes, there are. they're eligible to come through, receive an assessment, and they worked on -- we attend to prioritize -- or we definitely prioritize families that are unsheltered or in emergency shelters. >> chair ronen: so even if the level of vulnerability acuity, etc., of a family living in a hotel room is high, they would still be prioritized over a family sheltering on the street? >> you know, i couldn't say without knowing the answer to each question in the assessment. it's not super clear, like, you're in an s.r.o., so you're a lower priority. it's an accumulation of all of the community factors that we would take into account. >> chair ronen: okay. that's not something that i'm going to take more time on, but it's something that i'd like to talk about more deeply. i do believe that families who live in s.r.o.s, it's the -- that the development of the kids is virtually the same as the child growing up homeless, and it's unacceptable for families to be living in s.r.o.s so they have a chance to exit that unacceptable living situation, as well. so that's something that i will be following up with, but in the meantime, i do not want to hold this item up for a second. it's so exciting, it's such an amazing opportunity, and i would love to be added as a cosponsor. this is just fabulous. supervisor safai? >> supervisor safai: thank you. just some technical questions, but first, before i get into the technical nature, i, do, am very excited. we have been moving aggressively and asked to move aggressively on this. it is the quickest, more affordable, and most aggressive way that we can increase our housing stock, so i'm in full support of that, and really appreciate the hard work that ben adams and the so-called strike team has done to find these deals. i wanted to get into a conversation of the price per bed. mr. adams, i wonder if you could come up and answer these questions. >> thank you. good morning -- or good afternoon, supervisors. dan adams here. >> supervisor safai: so can you talk about the per-bed cost? >> perhaps to start, i would like to frame this is we couldn't build this unit for this per-unit cost. it would cost us more to do that. now in a typical tax credit structure, there's more federal and state leveraging available than we have in san francisco. this compares very favorably with our recent acquisitions as well as if we look at per-bedroom costs in mohcds pipeline. we do have an appraisal that affirms this as a market price. we negotiated as a market actor for this. we have an action and an appraisal review that affirms the work of the appraiser. we feel that this is a good deal for the city and affirms a solid negotiation point on our part. >> supervisor safai: where do you see or foresee the market going on these opportunities? are there more on the horizon? are they drying up? do you predict more opportunity. >> that's a great question. i think our window's closing. the sellers have received other offers higher than what we offered for the property. the student population there, nearly 50% is students, so this typology is going to be more popular. i've been really surprised at this is not a hotel, this is a residential building, but a lot of hotels have traded recently at really elevated pricing, so there's a speculated momentum in the city where future investors predict profits and have money to spend. part of the urgency of this test today is to take advantage of this particular moment in time. leases, i think this is a great opportunity, and we're just getting in under the wire on this one. >> supervisor safai: right. so it was around this time last year that we were meeting and trying to move together on hotel purchases. we had -- in this two-year budget cycle allocated prop c in that budget term, and with this property and the property that you will be before you next week, which is 685 ellis street, we will have acquired or under contract, approved for acquisition, 625 units toward that. >> supervisor safai: yeah. what i'm more interested in -- and i respect the long-term leases. i think it's important, but under the strategic purchases, how many do we have to date? if you don't have that, maybe you can get back to us. director cohen, do you have how many purchases we've done to date? >> this purchase before you today, and another before you next week, there will be a total of eight. >> from this time -- >> supervisor safai: so eight properties with a total unit count of how many? do you know? >> i'll have to pull that for you. it's about 800. >> supervisor safai: director cohen or director adams, how many properties do you have dedicated to family supportive housing, transitional housing for unhoused families. >> the first property that we are acquiring for this round that is completely for families. the property at the panoramic that we recently acquired does have family rooms available, and i will pull up the total family units available, but it's about 200 units. >> supervisor safai: this is significant because this is the first one we're owning and it will have over 200 units. >> not to say this will solve our homeless problem, but before this, we had about 800 homeless families in our community. >> supervisor safai: how many people were waiting to be housed that were unhoused families, so that's even another reason why to be super excited. okay. so i just wanted to reiterate, mr. adams. you had an appraisal, peer review came in and affirmed the amount. director cohen, in terms of purchase or money set aside for purchases, i understand we're utilizing the remaining balance other than about 58 million that could be dedicated to transitional age youth housing. what is the plan -- are there additional plans going forward for more purchases if they're available? >> as you noted, supervisor, we are sort of coming to the end of our flexible one-time acquisitions through prop c. now, the amount we can recoup through the state will hopefully free up some additional money to purchase more properties. but as of right now, we will essentially have maxed out our family and adult funding for this purpose. i do think we are winding down this aggressive acquisition strategy. there are the on going operating costs of these buildings are within the on going c budgets, so we're using a lot of the one-time dollars when c was unlocked to do the purchases and then the on going c dollars to do the operations and subsidy. >> supervisor safai: thank you for your hard work. thank you, mr. adams and director cohen for your hard work. >> supervisor. >> supervisor safai: yes. >> may i answer your question that i needed to come back to around how many supportive units of housing we have? >> supervisor safai: yes. >> we have about 600 units and 1500 supportive housing units for families, so this 200 will really make a significant impact. >> supervisor safai: thank you. please add me as a cosponsor. >> chair ronen: thank you. supervisor mar? >> supervisor mar: thank you. i want to express my strong support for this acquisition, and thank you to h.s.h. and h.s.r. for your work over the past year or two. i think it's been extremely exciting to see this work move forward. i did have a question -- a few additional questions around this current effort to really ramp up our permanent supportive housing in the city, kind of following the homeless recovery plan. i could see in the b.l.a. that we could set a goal just in the homeless recovery plan that we could set a goal of leasing 700 new units by june, and we're far exceeding this. it looks like we leased or purchased 2700 units of housing, and i don't know if it includes this acquisition or the one that's coming before us next week, but i guess i had a question about the 700 units of supportive housing that we've leased or purchased, which is really an incredible accomplishment, was purchased or leased, and what sort of the relative cost for leasing versus purchasing, the comparative cost, i guess, is for that? maybe that's more of a -- yeah, director cohen? >> yeah, the -- so for the homeless recovery plan, we are on track to exceed this goal by 70%. essentially, three effective types of supportive housing, and i can follow up with you with a cost breakdown for each. the lease costs vary tremendously, from -- but i will provide you with some figures on the per-unit cost at well. let me just follow up with you on that. >> supervisor mar: thank you, and i hope we can maintain those in the long-term compared to leases or rental subsidies, but i think it would be good to understand the different comparative strategies to support our current housing deficit and needs. so thank you. >> absolutely. >> this akri significance is more -- acquisition is more significant, but we'll have to get to you on the lease costs. >> supervisor mar: okay. >> chair ronen: can we please open this up for public comment? >> clerk: thank you, madam chair. members of the public who wish to speak on this item and are joining us in person should lineup now. for those listening remotely, please call 415-655-0001, meeting i.d. 2487-879-8094, then press pound twice. press star, three to enter the speaker queue, and wait until the system indicates your line has been unmuted before you begin your comments. we have no in-person speakers. okay. i am seeing we have 26 callers with 18 in the queue. we did acquire the services of marty dickinson to provide interpretive services for this item. miss dickinson, one more time with the interpreted services, please. >> interpreter: certainly. [speaking spanish language] >> interpreter: thank you, mr. clerk. >> clerk: thank you, miss dixon. mr. atkins, can you unmute the first caller, please? i think that's an unattended line. perhaps we can come back to that one. >> hi. i'm jennifer friedenbach, calling from the coalition on homelessness, and i'm absolutely thrilled to be supporting the acquisition of 333 12 street. our families are desperate to get some stability. it's a beautiful dignified building, close to public areas, shopping, and groceries, and san francisco unified has tracked over 2,000 children that are homeless today. for the past few years, we have little to no permanent supportive housing available to families, and no new housing available for years and years. for the families to have the simple joy of a door to lock, a private bathroom to use, a table to serve dinner, it is time for us to realize the promise of prop c to go upstream and stabilize homeless children of today to prevent homelessness tomorrow. this, this lovely building kpemp -- exemplifies the promise. thank you. >> clerk: thank you, miss jennifer friedenbach. next speaker, please. >> [indiscernible] thank you, members of the board, for the efforts that you're taking. we really support you and are thrilled that there is movement around the homeless effort in san francisco. it took about five years to get the permits for the eagle plaza, and the eagle plaza runs from harrison plaza to bernice street, where 333 starts. it was selected during five years of permits that we went through because this was a low traffic area, and it had the ability to have outdoor parties or events. our concern is this, and our request is simple. we'd like to have eight weeks of time to be participating with you in the parameters of the sale and the decisions that happen and the things that we think are important, too. there are a few factors that we're concerned about. one is the city has never brought in 200 families together in one building. the largest they've done is about 50 families. this is the first project of its size. there hasn't seemed to be any studies around what the kbhakts are to children if there are some issues with the large exploit -- impacts are to children if there are some issues with the large exploitation of families in the area. if we could have some time to discuss this with you, we'd greatly appreciate it. >> clerk: thank you so much for your comments. mr. atkins, next speaker, please. >> good day. my name is [indiscernible] and i'm a member of the filipino neighborhood. i work with the most vulnerable families and individuals in soma every day. those families that are experiencing homelessness, unhoused families, low-income, immigrant, bipoc, seniors, and people with disabilities, and i witness their struggle every day to find housing. there are families of four that live in s.r.o.s, there are families with newborn babies that are in the streets. there are families of five that live in a garage. this is just not enough housing in the city. that is why this building for families is so needed. families deserve to have access to permanent housing and have the opportunity to live and grow in a safe environment. that is why i am calling to support the acquisition of 333 12 street and convert it into housing for homeless families. families in the community really need this. thank you. >> clerk: thank you so much for your comments. mr. atkins, next speaker, please. >> hello. good morning. good afternoon everybody here on the board [indiscernible] i also want to say [indiscernible]. >> clerk: sorry to cut you off, but we are timing each speaker, two minutes. mr. atkins, next speaker, please. >> good afternoon, supervisors. my name is dale seymour. i am really busy. i was not going to call, because there's so much happiness and celebration, but i just want to talk about the process. you know, department of real estate, department of h.s.h., this is like a vehicle. we are the engine. we're allowing you to be the transmission. we got the engine started, but we need you to put it in gear. [indiscernible] i'm so glad to see this moving along. h.s.h. has done a phenomenal job of acquiring real estate lately, something that none of the other administrations have ever done. i heard the day wf you voted to give $20 million to -- the day where you voted to give $20 million to cut down these trees with no units of housing. [indiscernible] i see it in the tenderloin all day long. it's not time for us to talk about land values and housing and the markets next year. thank you for this thing. >> clerk: thank you. next speaker, please. >> children and their parents cannot be left in shelter or tents or living in cars. san francisco can do better than that for our families and children. we look forward to seeing families move in and thrive. thank you, h.s.h., for securing this site and providing homes for our families. >> clerk: thank you for your comments. mr. atkins, next speaker, please. >> hello. i'm archbishop king with [indiscernible] and the coalition on homeless. i'm calling in to stay that i'm thrilled with the acquisition of housing. i'm concerned with the population decrease, particularly people of color [indiscernible] let their paychecks come back to go into the coffers of this city. thank you very much. >> clerk: thank you for your comments. mr. atkins, next speaker, please. >> hello? >> clerk: we can hear you. please begin. >> hello? hello? >> clerk: hello. we can hear you. please begin. perhaps we lost that caller, mr. atkins. >> hello? >> clerk: yes. >> can you hear me? >> clerk: please begin. >> okay. so my name is miguel cabrera, and i work in the department of childrens [indiscernible] so i really want to push you to purchase this building 333 because it's really helping our families to move into [indiscernible] because we have so many people outside, and they need to move into housing [indiscernible] and see how we can ending the homelessness. so thank you so much, and thank you, the supervisors, for being and working in this process, and i really want to support this acquisition moving into housing. thank you. >> clerk: thank you for your comments. mr. atkins, next speaker, please. >> hello. can you hear me? >> clerk: yes, we can. >> hi. my name is sun bear jackson, and i am in favor of this because i'm just going to tell you a quick story about when you lived in the knox -- when i lived in the knox hotel with my son. when he came school, he said, daddy, my friends don't have homes that have roaches. it just really hit me. i can't stress you how much having a place to live has done for my family and my son's confidence, and i fully support this. thank you very much. >> clerk: thank you fore your comments, sun bear jackson. mr. atkins, next speaker, please. >> hi. my name is ian james. i work at the coalition on homelessness, and i worked with a lot of families who live in s.r.o.s and on the streets. i am calling on the committee to work on housing that is available now? we know that children who experience homeless have increased risk of health problems, more likely to experience separations and have lower academic performances in school, and this can be alleviated with the purchase of this property. >> clerk: thank you for your comments. mr. atkins, next speaker, please. >> hello. my name is bob goldfarb, and i'm president of the friends of eagle plaza, and we're very pleased with this project and helping the needs of the homeless families in the city. the friends of eagle plaza would like to make sure this integrates successfully with the neighborhood and is positively involved. many events that we host are lgbtq and adult themed, and we would like to avoid conflict with this incoming family centric project. we feel that a building contact should be made available to neighbors and that an appropriate level of services and serving be provided. were you to amend the legislation to work with nearby neighbors, users and residents of eagle plaza to ensure success for the long-term. we are looking forward to this project and looking forward to its long-term success. thank you. >> clerk: thank you, bob goldfarb, for your comments. mr. at minutes, next speaker, please. >> good afternoon. my name is adam, and i'm calling in support. i'd ask the committee to consider the needs of the people who will live in the building first and please do not delay. >> clerk: thank you so much for your comments. mr. atkins, next speaker, please. >> hello. my name is clarisse. i'm a long-term resident of san francisco, and i know how difficult it is to find housing and so i really support the acquisition of 333 12 street. thank you. >> clerk: as of now, we have 16 people listening and four people in the queue. mr. atkins, next speaker, please. >> good afternoon, chair ronen and supervisors. this is [indiscernible] compass served over 5800 people and nearly 2800 homeless families last year. i'm so excited to hear the public's support of the purchase. this could house over 200 families in our system. [indiscernible] thank you very much for your support, and i urge you to approve the project as soon as possible. >> clerk: thank you very much for your comments. mr. atkins, next speaker, please. >> thank you, chair and committee members, and thank you to everyone from h.s.h. who has worked on this proposal. my name is eliana binder, and i'm the project manager for glide. glide is one of the original sponsors of prop c. the our city, our home recommended we take these prop c funds to acquire and develop permanent supportive housing, and this was the sentiment expressed at community housing outreach last year. [indiscernible] of which mayor breed is a steering committee member. permanent supportive housing allows members of the community to access services, and further, the city pays less to house somebody than it is to care for somebody in the system or pay for a bed. as others have mentioned, it's especially exciting that 333 12 street will have families, a population desperately in need of more permanent supportive housing. this ak -- acquisition is achievable, and we thank you for your time. >> clerk: mr. atkins, do we have any further callers in the queue? >> good afternoon, supervisors. my name is greg, and i live and work one block away from the city gardens property, and i strongly oppose this acquisition. the full impact of this change to our community is not known, but i've heard from small business owners in the area that they're experiencing the negative effects already. how much of the city must be relegated to the same fate? the city operates thousands of affordable housing units at what success? there is none. though we may wish otherwise, the reality is this facility is not suitable for families with children. it's sandwiched between an entertainment district and a bar and a club on the other. with we have multiple events that would expose children to nudity just by looking out their windows. we need new ideas, new policies, and new approaches to get families and individuals out of homelessness and positive. what we have creates instead is an endless cycle of subsidies that keep people homeless and addicted. we do not need more of the same, and i strongly oppose this measure. >> clerk: thank you for your comments. mr. atkins, are there anymore callers? >> hi. my name is david hyman, and i'm on the board of the leather and lgbt cultural district, and i welcome the families to the neighborhood. i do not feel there's been adequate planning for this major project. is there a new budget allocation for the vast amount of needed supportive services? has there been planning to mitigate traffic and other issues and supportive measures? what about the members of the lgbtq community who call eagle plaza home. i ask to defer this project for approximately eight weeks to allow for more public outreach and response. for now, the need for family housing is real and important, and i rejoice in the city's commitment to addressing it. thank you. >> clerk: thank you for your comments. mr. atkins, do we have any more callers? >> hi. this is [indiscernible] evans. i was a proponent of prop c, and i'm very excited to see the deployment of the prop c dollars to finally get to this point where we're seeing tremendous new investments in our permanent supportive housing. i'm really excited for the opportunity that this building specifically creates. it is a building that is new construction. i've been inside. it has, you know, rooms that i can see families being very happy and very successful in, having private baths, having private kitchens, and also having these units that have multiple doors for families with young kids, as well as what we call street families, folks that are three or four people that have lived together all their lives and would like to continue to be together, and i urge you to support this project. >> clerk: thank you for your comments. mr. atkins, do we have any further callers in the queue? >> operator: mr. clerk, we have no further callers in the queue. >> chair ronen: thank you. public comment is closed. i would like to make the most enthusiastic motion one can make to approve this item -- i mean, to send this item to the full board with recommendation. if we could have a roll call vote. >> clerk: yes. on that motion to forward this resolution to the full board with a positive recommendation -- [roll call] >> clerk: we have three ayes. >> chair ronen: thank you so much. the motion passes unanimously. thank you, everyone. thank you. so exciting. mr. clerk, can you please call item 10? >> clerk: yes. item 10 is a resolution authorizing the issuance and delivery of alternate credit facilities to support the outstanding city and county of san francisco finance corporation lease revenue refunding bonds, series 2008-1, moscone center expansion project and city and county of san francisco finance corporation lease revenue refunding bonds, series 2008-2, moscone center expansion project, approving the form of a first supplement to trust agreement, the form of a first amendment to project lease, the forms of the reimbursement agreements among the city and county of san francisco, the city and county of san francisco finance corporation, and one or more credit providers, the forms of the fee agreements, the form of a remarketing supplement, the forms of the remarketing agreements, the forms of the custodian agreements and certain other related financing documents, approving modifications to said documents, and taking the necessary actions in connection there with. members of the public who would like to make public comment, dial 415-655-0001, meeting i.d. 2487-879-8094, then press pound and pound again. when prompted, enter star, three to enter the queue and wait until the system indicates you have been unmuted before you begin your comments. >> chair ronen: thank you. may we have the presentation, please. >> great. thank you so much for hearing this item this afternoon. i'll give you a brief overview on the bonds and what we're doing here. the issue of lease revenue bonds was first approved in 1993, and then, lease revenue bonds were issued in 2000, and then, they were refunded in 2008. these bonds are somewhat unique in the city's debt portfolio. they get remarketed every week with a new interest rate -- at least -- and then interest on the bonds gets paid monthly to the bond holders. [please stand by] this facility we need to support the bond is expiring and we need to replace it. in order to do that we did request for proposals. we received nine responses. t.d. bank was selected as the top scoring firm as the requirements put in the proposal request, including bank ratings, experience, providing these types of facilities, their overall fees and credit process to move this forward for the city. the proposed agreement we're asking you to approve is up to five years term, there is a marketing agent as i mentioned, that service is provided by bank of america. there are two series of bonds 2008-1 and 2. and each of one has the series they're marketing every week. we get competitive r.f.p. from the agent. and jpmorgan was selected based on the criteria we have laid out, including the cost services, the capital commitment and the experience providing such services. they were selected to service both series of bonds 2008-1 and-2. so, we are requesting that the committee send forward with positive recommendations this resolution authorizing issuance and delivery of these alternate credit facilities as well as forms of the documents to support the outstanding lease revenue bonds series 2008-1 and 2. if you have any questions, i'd be happy to address them. >> chair ronen: thank you. before questions, if we can hear from the budget & legislative analyst. >> this resolution approves the delivery of a new letter of credit related to lease revenue bonds issued to pay for the moscone center expansion project. it also approves agreements as described. the letter of credit will be provided by t.d. bank which is selected through a competitive process. there are one-time costs for establishing this letter of credit of $400,000. and in addition to that, there are ongoing costs during the five-year term of the agreement of approximately -- at the time of our report, were estimated at $90,000. the ongoing costs are a function of the outstanding debt and the credit rating on that debt so it may change over time. we do recommend approval. >> chair ronen: thank you so much. any questions, colleagues? nope. if we can have the item up for public comment. >> yes, members of the public who wish to speak on the item and joining us in person should line up to speak now. for those listening remotely, call 1-415-655-0001. the meeting i.d. is -- oh -- i'm sorry. just receiving notification that our bridge line has dropped and we will need to recess for a couple of minutes and set that >> okay, we should be back from recess, madame chair. i was reading public comment for item -- for item 10. so, members of the public, who wish to speak on item 10 and are joining us in person, should line up now along the curtains. for those listening remotely, please call 1-415-655-0001, meeting i.d. is 2487 879 8094 # #. once connected, you will need to press star 3. for those in the queue, continue to wait until the system says you've been unmuted. that will be the cue to begin the comments. there are no in-person speakers. any on the phone line? >> mr. clerk, there are no callers in the queue. >> thank you much. >> i have a question. >> chair ronen: i'd like to make a motion to send this to the full board with positive recommendation. can we have a roll call vote. >> on that motion, vice chair safai? >> commissioner safai: aye. >> commissioner mar: aye. >> commissioner ronen: aye. we have three ayes. >> can you please call item 11, >> item 11 is ordinance appropriating $13.1 million of general fund general reserves to the fire department, department of public health, supervisors department and department of emergency management for increased workers compensation costs and the authority to receive and expend these funds in the department of human resources in fiscal year 2021-2022. this ordinance will require a two-thirds approval vote of all members of the board of supervisors. members of the public who wish to comment on the items please call 1-415-655-0001 and enter the i.d. number of 2487 879 8094 # #. press star 3 to enter the speaker line. a system prompt will indicate you've raised your hand. madame chair? >> chair ronen: thank you. >> i am peggy sherman. i'm the workers compensation director for human resources. we're here today to ask for supplemental appropriation as was mentioned to cover the acquired payments for workers compensation benefits. this is largely in administrative and technical adjustment to this year's budget. let's talk for a minute about what this is for. workers compensation is required under state law to provide benefits to our employees who suffer work-related injury or illness while doing their jobs for the city. this requires medical, job retraining and benefits and benefits. i have been the director of that program for almost 10 years now. this year's budget as in prior years was based on our expenditure trend and analysis, filing history and inflation factors that we can anticipate so that we have each department has enough money in their department to pay for their obligations. so, we are coming to you today from the supplemental appropriation. and why is the city facing this cost overrun? as can see from the departments needing the funds, these are front-line workers, we experienced a surge of compensation claims that have competed our crystal ball assumptions. our claims have risen 43% across the city. this is driven in part by covid and attributed to workplace exposure that i'm sure all of you will agree this has been quite a year. secondly, the city of california mandates benefit rates and fee schedules that are passed on to all workers compensation insurers and their employers. as a result, temporary disability, permanent disability and medical expenses are all more expensive this year than forecasted. so, as you know, the department, fire department, the public health department, sheriffs department and department of emergency management have been hit and do require the additional appropriation to meet their obligations. you can see $6 million for the fire department, 3.6 for the department of public health, .24 for the department of emergency management and $3.4 million for the sheriff's department. we are requesting approval of the funding that is necessary to pay our required benefits to help care for the employees who have been injured or become ill as a result of their work for the city. thank you for your attention to this. i'd be happy to answer any questions. >> chair ronen: thank you. and before we have questions and comments, if we can hear from the budget & legislative analyst. >> so this ordinance would appropriate $13.1 million from the general reserve to the workers' compensation budget and the public fire health sheriff and emergency management. and as we show on page 43 of the report, claims for workers' compensation increased by 34% this year relative to average number of claims that the city typically has seen. one thing i do want to note is that there are positions that the city has that are responsible for ensuring workplace safety. these are called safety officer positions or industrial hygienists. and, really, it's true that the workers' compensation costs have been going up, but the most effective way to manage workers' compensations claims is to prevent them from happening in the first place. so we surveyed the departments that were subject of this appropriation to see if they have the safety positions, the fire and sheriff department do. emergency management does not. and the two hospitals, laguna honda and general hospital and public health have the positions and they're funded, but they're not filled. so the duties are being provided by another division within d.p.h. i just wanted to raise that as a policy consideration as you consider this legislation today. as we show, the total workers' compensation budget by vision -- division is $79.9 million. it is being pulled from the general reserve which will have to be paid at the end of the year. we recommend approval. >> chair ronen: thank you. colleagues, any questions? no. i have a few. so, this supplemental is going to d.p.h., fire, and the sheriff department, but i noticed that city-wide the workers comp increase has gone up 34.2%. which is in other departments. are they going to -- how are those departments paying for this major increase? >> other departments saw cost overruns, but they have savings in their parts of the budget, mostly work orders, so they're able to address those overruns from savings elsewhere. the others did not have savings they could use toward this cost. >> chair ronen: i see. other than covid, why -- what are other possible reasons, for example, that the fire department had 141.2% increase in workers comp claim? i have my theories, but i would love to hear, you know, from the budget director, but more importantly from ms. sugarman why these claims are going up so much. it doesn't ring true to me that this would be covid alone, but perhaps it is. >> well, certainly, chair ronen, there is an increase in just overall volume of claims as you noticed. the other problem, though, is the severity of the injuries that we are getting. and so it's not just existing claims. it really the severity. if you think about the fire department, we have legal presumptions, cancer for example, heart disease. our public safety officers are presumed to be related to their -- so we're dealing with lots of catastrophic types of illnesses, injuries that are severe that are increasing our medical costs. we also have, again, a lot of the medical costs are tied to the state c schedules which are -- fee schedules which are regularly updated. disability cost, because the rates have gone up. i think severity is really one of key issues. i think that if we vetted out just the covid claims, we might see an overall decrease in the rate of injuries in the city, but again, the severity of the injuries. >> chair ronen: do you have any idea why we have such an increase in severe claims? >> well, again, we get what we get when someone is filing a claim. so we are seeing a lot of cancer claims from our public safety, fire. we're seeing very severe heart cases. so we are providing medical care for employees whose claims are even closed but are still entitled to future medical care. so all of these things are the perfect storm for where volume of severity is really affecting us this year. more than expected. >> chair ronen: okay. and is there anybody here from dem and d.p.h.? >> i'm here on behalf of emergency management. >> chair ronen: you heard from the budget & legislative analyst that you have a funded -- is it called a health officer -- >> the department does not have a safety officer. >> chair ronen: safety officer. that you have a funded safety officer in the budget but it's not a filled position and i'm wondering why this is. are you there? i'm sorry, i didn't catch the name of the person from the office of emergency management that spoke up. >> we do not have a safety officer position in our budget. >> chair ronen: if we can hear from the budget & legislative analyst. >> the dem does not have that position at all. public health has them and they're funded, but they're vacant. and the two hospitals -- >> chair ronen: i see. >> in both cases there is perhaps an opportunity to provide more staffing for the purpose of ensuring workplace safety. >> chair ronen: okay, i'm sorry, i misunderstood that. there is no one here from d.p.h.? okay. we will ask this question -- >> chair ronen, i do note that there are two people on the call. >> okay, they're not answering, so maybe they're away from their computers. >> there they go. >> this is james alexander budget director from d.p.h. and also joining is the budget director for occupational health and safety. >> this is ed, can you hear me? >> we can. >> i'm the department of public health, occupational safety and health. and i'd like to start off as a 40-year health and safety professional, it is extremely painful that we have these vacancies within our department. it's a very difficult recruiting environment to bring in qualified individuals. we've had a series of rekruments in the past that have been less than successful in drawing in qualified candidates. particularly for hospitals in the middle of a pandemic. as a preface, i would like to say that the appropriation being requested at this point is sort of unrelated to the vacancies within health and safety. with more health and safety professionals on staff, we believe -- i believe that we could be moving more effectively to reducing future injuries. but right now we're looking at costs for injuries that have already occurred. so if we could kind of break and lower the curve by not injuring as many workers in the future, that would be a very effective and very needed thing for safety professionals, including safety officers and senior industrial hygienists. but the budget we're looking at here, we're looking at costs for injuries that already occurred in this year or previous years, the increase in medical cost, the increase in disability cost and everything associated with injuries from what i would call water under the bridge, things we can no longer prevent, we can only learn from. we're starting to use our data to identify areas that we could use that we could intervene to hopefully reduce future injuries. again, that's where our staffing need comes from. we need people to work on these interventions. but right now the budget adjustment we're asking for is already addressing existing injuries. >> chair ronen: i understand that, but if we're going to be approving $13 million additional workers' compensation appropriation, we need to figure out how to try to keep the costs down. more important than the cost is the injury and the wellness of our staff down for the future. so you said you had two attempts to recruit a safety officer that were unsuccessful. >> yeah, we've had multiple attempts to recruit both safety officers and industrial hygienists, the two within the past two years. and it's a difficult recruiting environment. again, we're in extreme competition with outside industries. we lost a safety officer in zuckerberg to a private concern who quite honestly, they were offering more money for less work. and i mean it was very painful, because i had recruited the employee and trained the employee for years. so we're competing with the outside industry. with jobs that are viewed to be somewhat more -- would be viewed to be less glamorous than in other segments. it takes a special breed of people. i kind of thrive on it personally, but then i'm not viewed to be quite normal either [laughter]. >> chair ronen: will have [laughter] well, we're glad you're here. i'm wondering if you have strategies to recruit qualified candidates like yourself since the strategies we have been using aren't working? >> it's really sort of we're going to keep on trying. we can -- i mean, we're increasing the amount of outreach in some of the other job classes. we modified the minimum qualifications to make them a little bit easier to bring in people to put them into the advancement cycle. at the senior level, it's a difficult skillset. hospitals require really -- i had the safety officer position at zuckerberg and the senior industrial hygienist position at zuckerberg for roughly 14 years. and it takes a very kind of special skillset to walk in there and deal with the business. so you're looking at rating other hospitals, other things like that. or training people to be able to eventually take on the job. so right now, what we have done is we're increasing the pipeline. it's not going to help us in the short-term, but in the longer term, if we can train people and get them interested in this as a long-term commitment, pipelining people, and then hoping that we can also recruit qualified candidates from the outside. so increasing on outreach. in some ways i dread it, but it looks like we have to wait for a financial downturn outside the city government before people start taking interest again in the city. but i don't want that to be the case. >> chair ronen: okay. well, that's helpful to understand it. maybe something we can discuss more during the regular budget process. supervisor safai? >> commissioner safai: i want to add on to this conversation, because i think it's very timely given some of the problems that are happening at laguna honda, particularly with the most recent survey done. a number of the findings that c.m.s. had to do with workplace safety issues. things as simple as individuals not wearing masks when they needed masks and shields. how long has the safety position been vacant at laguna honda? >> i believe it has been vacant for -- let's see, we had -- we hired a candidate for the safety officer position there roughly at the start of the pandemic. they didn't like the work, so they actually left. after that, we tried a couple of temporary infill steps, but realistically that position has been fully vacant since before the pandemic. >> commissioner safai: so over two years. do you think having that safety position vacant has contributed to some of the issues that c.m.s. found as laguna honda? >> i don't believe it would be directly -- i mean, there may be with the appropriately motivated safety officer, there may have been some additional advocacy, but a lot of that is done at the trench level, getting people to follow instructions, getting people to do the right thing. and that's not necessarily where your safety people are best for interventions. you're safety people are better at looking at injury trends and saying, look, this is our big injury, for example right now we identified musculoskeletal at laguna honda and zuckerberg, the number of injuries and the high cost. your people would focus on we have this, how are these injuries occurring, what can we do to intervene? versus the masking and the use of p.p.e. you can do some education, but it really comes down to a lot of command and control over staff. >> commissioner safai: how about the industrial hygienist position? >> industrial hygienist would go same for that. the industrial hygienist, they're two sort of nesting specialties with each other. industrial hygienist particularly focus -- and i'm trained in industrial hygienist. we traditionally focus on the long-term injuries, from things like chemical exposure, safe chemical handling, chronic disease, body mechanics, ergonomics and the like. and the safety people focus on what is going to injure. there are two specialties together. so either of them wouldn't have immediately -- have immediate impact on laguna honda. >> commissioner safai: they could be loosely related though in some ways. what would be telling is the number of claims increased, but related to covid, is at the same time as these two vacancies. increases of claims are going to be awarded and honored and i think that would be expected, but at the same time it does help with the overall situation to have the position vacant during the entire time during covid. as supervisor ronen said, i think that it's important that we figure out a way, whether it's as you said temporary reassignment, maybe asking some individuals that have the expertise that are maybe in a higher classification or doing additional work, maybe for them to be the position until the recruitment is done and the position has been filled on a more permanent basis as you've been cultivating individuals. but to have it vacant at the same time, we've seen a major 34 -- is that the number? 34% surge in claims, i think that's important. my last question is to the controller. it talks here about the choice of which fund to pull from in terms of rainy day versus general fund reserve, or general reserve. what was the decision in terms of not using rainy day versus general reserve? i think there is different requirements in terms of the balance requirements. it says in the b.l.a. report, the balance requirement is reduced to 1.5% of general fund reserve. the city with draws from the rainy day reserve and increases a quarter percent a year until 3% balance requirement is restored. so there is a slight difference in terms of the balances, am i reading that correctly? i know we're going to have a hearing on this, but thought i would ask real quick. >> so the choice to use the general reserve as opposed to the rainy day one-time reserve is that these costs are not considered one-time in nature. and as we talked about last week, presented last week in our march update report, we assume that the general reserve is replenished next fiscal year for the costs as well as other general reserves supplementals that have taken place throughout the fiscal year. >> commissioner safai: so you anticipate it's not a one-time surge in the overall amount that is budgeted? >> no, in fact, one of the big updates in our march update report that we presented on last week is assuming ongoing -- an ongoing increase in workers compensation costs throughout the city. that was one of the big drivers for why the projected surplus went from what it was to -- >> commissioner safai: got it. you're anticipating because this presumptive injury is allowed for over the next two years, for workmen's compensation? over the next four years? >> yeah. >> that makes sense why it's not a one-time. thank you, madame chair. >> chair ronen: thank you. i just want to say before we open up for public comment that this has been a good conversation, one that i think we should continue to focus on during the budget process. i am very concerned that the overwhelming number of vacancies in our department have caused or contributed to the increase in workers compensation. when i talk to department heads and their staff, many of those departments are, you know, working -- workers are working more overtime than ever because they're severely understaffed. many are being asked to implement new programs without any additional funding or additional staff and we're just taxing our workforce at this point in a way that it doesn't surprise me we're having an increase in workers compensation claims. so it's something i know we're all very committed to addressing during this budget process, but will be something that we -- that i continue to bring up, that i know our controller's office, our budget director are all working on remedying, our mayor is. but this is such a great illustration why it's so important that we keep our eye on the ball there and that we properly staff city departments so we can be serving the people of the city without injuring our workforce. and with that, i will ask the clerk to open this item up for public comment. >> clerk: thank you, madame chair. members of the public who wish to speak on this item and they're joining us in person should line up. for those listening remotely, call 1-415-655-0001. enter the meeting i.d. of 2487 879 8094 # #. once connected, you'll need so press star 3 to enter the speaker line. continue to wait until the system indicates you've been unmuted. we have no in-person speakers. how about the telephone? >> mr. clerk, there are no callers in the queue. >> thank you much. >> public comment is closed. can we have a roll call vote? >> on that motion to forward to the full board with recommendation. >> we have three ayes. >> can you read item number 12. >> yes, madame chair. item 12 is a resolution approving and authorizing the director of property on behalf of the police department to enter into a lease for a 2,242 square feet of meeting space at 1090 quintara street with christ church lutheran for an initial three-year term commencing on april 1, 2022 through april 1, 2025 at a base rent of $42,000 with 2% annual adjustments and 20% of utilities upon landlord invoice. authorizing the director to execute the documents, make certain modifications and take certain actions in furtherance of entering into the lease and this resolution, adopting findings under ceqa and making findings that it's in conformance with the plan. members of the public who are joining us remotely and wish to comment, please call the public comment number of 1-415-655-0001. enter the meeting i.d. of 2487 879 8094 # #. once connected to the meeting, you'll need to press star 3 to enter the speaker line. the system prompt will indicate you've raised your hand. once unmuted, that is your cue to begin your comments. >> chair ronen: we have director pennic, who has been waiting this entire time. you are so kind. >> good afternoon, chair ronen, supervisor safai, supervisor mar. i had three items today, so it's just my turn. i am before you looking for your positive recommendation on a resolution to lease space at 1090 quintara on behalf of the police department. i'll go through the major terms as well as some substantive amendments to the resolution, but first i'd like to introduce captain dave fazon of the police department. >> good afternoon, chair ronen, supervisor mar, long time no see. last time i saw you we were talking liquor licenses and very special hello to supervisor safai, i'm a past resident of his district and we have exciting projects going on in his district, but today i'm talking about the behavioral science unit. for over a decade, it was substandard space. treasure island is evolving. working with director, we found an ideal location. this has been a great collaboration with the lutheran church. across the board, this is a win. it's been a long day for you all, very high level of behavioral science unit is the unit that works with officers in crisis. as everyone can imagine, especially during covid, with the staffing level -- supervisor ronen, you spoke to all the overtime being required of the many departments, this is a critical time for our behavioral science team. they are working very hard and they deserve appropriate work someplace. we have found it. this has been a 6-month effort. we are very excited. i'll leave it at that. i welcome questions. thank you very much. >> thank you, captain. now comes the boring part. mr. clerk, if you could pull up slide 3, please? that's just a visual of the site. here's the lease terms. leasing 2200 square feet of classroom type space from the landlord which is a church. there is no permanent staffing. the initial term of the lease is three years. the annual base rent is $45,000 a year which works out to $3750 per month. the annual increases are 3%. we also have a three-year extension option should we choose to exercise it at 103% of the then current rate. at this point, i want to walk through a couple of substantive amendments to the resolution before you. due to inadvertentance, a draft was submitted into the final and we have a substitute resolution that reflects the true terms. in essence, the annual rent is $45,000, not $42,000 as indicated in your resolution. because of that, there are some cascade changes that need to be made. first, i would ask that the resolution be amended to say $45,000 instead of $42,000 wherever it occurs. secondly, the monthly rate should be $3750 instead of $3500 wherever it occurs. thirdly, the annual increase is 3%, not 2%. and lastly, the start day is may 1, not april 1st as indicated in the resolution. that concludes my presentation. i'd ask that you consider and approve the amendments and recommend the resolution as amended. thank you. >> chair ronen: thank you. >> commissioner mar: thank you. i just wanted to thank the director and the captain for their work on this lease agreement with a wonderful church in my district. i had heard this discussed by the leaders of the church, glad to see moving forward. we convened a meeting of the other churches in the sunset district how they could better utilize their space to serve the city or the community in the sunset. so this is a good example of one project that is moving forward from those discussions. and, yeah, just thank you. i would love to be added as a sponsor of this and i would move that we amend the legislation -- or adopt the amendments as the director presented. >> chair ronen: before we take that motion, could we call for public comment? >> yes, members of the public who wish to speak on this resolution who are joining us in person should line up to speak now. for those listening remotely, call 1-415-655-0001. the meeting i.d. of 2487 879 8094 # #. please continue to wait until the system indicates you've been unmuted. that will be your cue to begin. we have no in-person speakers. any on the phone? >> mr. clerk, there are no callers in the queue. >> chair ronen: public comment is closed. can we have a roll call vote? >> on that motion by member mar to accept the amendments as offered by the department of real estate, vice chair safai? >> commissioner safai: aye. >> commissioner mar: aye. >> chair ronen: aye. >> we have three ayes. >> chair ronen: can i make a motion to continue this item to april 27 as amended. >> on that motion, by chair ronen, that this item be continued to our next meeting of april 27th, of the budget and finance committee meeting on april 27th, as amended. >> commissioner safai: aye. >> commissioner mar: aye. >> chair ronen: aye. >> we have three ayes. >> chair ronen: thank you so much. the motion passes unanimously. are there any items left on this agenda? >> madame chair, this concludes the budget and finance committee. >> the meeting is adjourned. before you two go, can we just start the budget and appropriation meeting that we will then recess. i thought the meeting is adjourned. >> budget and finance, yes. but did you want to convene budget and appropriations? >> chair ronen: i do. >> okay. so the record will show that the budget appropriations committee has convened at -- let's start over. the budget and finance committee has adjourned at 1:47 and the budget and appropriations committee has convened at 1:48. >> can we recess to 2:10? >> yes. thank you, madame chair, we'll be in recess until 2:10 p.m. >> thank you, the meeting is in recess. >> we are providing breakfast, lunch, and supper for the kids. >> say hi. hi. what's your favorite? the carrots. >> the pizza? >> i'm not going to eat the pizza. >> you like the pizza? >> they will eat anything. >> yeah, well, okay. >> sfusd's meal program right now is passing out five days worth of meals for monday through friday. the program came about when the shelter in place order came about for san francisco. we have a lot of students that depend on school lunches to meet their daily nutritional requirement. we have families that can't take a hit like that because they have to make three meals instead of one meal. >> for the lunch, we have turkey sandwiches. right now, we have spaghetti and meat balls, we have chicken enchiladas, and then, we have cereals and fruits and crackers, and then we have the milk. >> we heard about the school districts, that they didn't know if they were going to be able to provide it, so we've been successful in going to the stores and providing some things. they've been helpful, pointing out making sure everybody is wearing masks, making sure they're staying distant, and everybody is doing their jobs, so that's a great thing when you're working with many kid does. >> the feedback has been really good. everybody seems really appreciative. they do request a little bit more variety, which has been hard, trying to find different types of food, but for the most part, everyone seems appreciative. growing up, i depended on them, as well, so it reminds me of myself growing up. >> i have kids at home. i have six kids. i'm a mother first, so i'm just so glad to be here. it's so great to be able to help them in such a way because some families have lost their job, some families don't have access to this food, and we're >> hello everyone. welcome to the bayview bistro. >> it is just time to bring the community together by deliciousness. i am excited to be here today because nothing brings the community together like food. having amazing food options for and by the people of this community is critical to the success, the long-term success and stability of the bayview-hunters point community. >> i am nima romney. this is a mobile cafe. we do soul food with a latin twist. i wanted to open a truck to son nor the soul food, my african heritage as well as mylas as my latindescent. >> i have been at this for 15 years. i have been cooking all my life pretty much, you know. i like cooking ribs, chicken, links. my favorite is oysters on the grill. >> i am the owner. it all started with banana pudding, the mother of them all. now what i do is take on traditional desserts and pair them with pudding so that is my ultimate goal of the business. >> our goal with the bayview bristow is to bring in businesses so they can really use this as a launching off point to grow as a single business. we want to use this as the opportunity to support business owners of color and those who have contributed a lot to the community and are looking for opportunities to grow their business. >> these are the things that the san francisco public utilities commission is doing. they are doing it because they feel they have a responsibility to san franciscans and to people in this community. >> i had a grandmother who lived in bayview. she never moved, never wavered. it was a house of security answer entity where we went for holidays. i was a part of bayview most of my life. i can't remember not being a part of bayview. >> i have been here for several years. this space used to be unoccupied. it was used as a dump. to repurpose it for something like this with the bistro to give an opportunity for the local vendors and food people to come out and showcase their work. that is a great way to give back to the community. >> this is a great example of a public-private community partnership. they have been supporting this including the san francisco public utilities commission and mayor's office of workforce department. >> working with the joint venture partners we got resources for the space, that the businesses were able to thrive because of all of the opportunities on the way to this community. >> bayview has changed. it is growing. a lot of things is different from when i was a kid. you have the t train. you have a lot of new business. i am looking forward to being a business owner in my neighborhood. >> i love my city. you know, i went to city college and fourth and mission in san francisco under the chefs ria, marlene and betsy. they are proud of me. i don't want to leave them out of the journey. everyone works hard. they are very supportive and passionate about what they do, and they all have one goal in mind for the bayview to survive. >> all right. >> all right. >> president moran: please call the roll. [ roll call ] vice president ajami is excused today. you have a quorum. >> clerk: this meeting is held in-person at san francisco city hall room 400 as authorized by the california code. all individuals attending the meeting in person today that our health and safety protocols must be adhered to at all. failur

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