Budget and finance committee im supervisor connie chan. Im joined by supervisor melgar. Short low by vice chair mandelman. Our clerk is brent jalipa i would like to thank sfgovtv for broadcasting this meeting. Mr. Clerk . A reminder to those in attendance to silence electronics to prevent interruptions. Should have you documents to be included part of the official file submit them to myself the clerk. Public comment will be taken on each item. When your item of interest come upline up on the left side of the chamber along those curtains and not necessary to provide comment we invite to you fill out a comment card and leave them to the left by the door if yous wish to be recorded. You may submit comment in writing. E mail them to myself the budget clerk at brent. Jalipa sfgovtv. Tell be forwarded to the supervisors and part of the file. You may send comments by Postal Service to city hall at 1 dr. Carlton b. Goodlett place room 244, San Francisco, california, 94102. Items acted upon today will appear on the board agenda of may 21. Madam chair. Thank you. Lets go ahead and call item 1. Item number 1 is a resolution authorizing the Office Economic and workforce develop want to accept a grant increase in the amount 1. 4 million for a total of approximately 5 opinion 6 million from the California Employment Development department. Recipients from the United States department of labor for the workforce and opportunity program. During the grant period, through june 30 of 24. Madam chair thank you we have office of economic and Workforce Development. Thank you chair chan and supervisor melgar to hear our grant today. Im workforce impact manager for office of Workforce Development division. Requesting per notification accept 1. 4 million beyond what we were budgeted from our state granted evergrantor for 2224. These are form well funds this is a routine q. And for context we other local workforce for federal workforce you know too act funding. And is the party responsible for accepting and over seeing federal funding and implementation in the local area. The federal d. Labor agency allocated additional form well funds at this time state of california and california. Development department made grant adjustments to the 45 local workforce boards. And these dollars funds our job net cork and Sector Training and in house staff. This grant is retroactive because Additional Funding was awarded by our grantor. Via various Grant Agreement modifications we received after the fact. We did in the receive prior notifications before the agreement modifications. And the state has discretion to make modifications to our total award as need. Ure on legislation consolidated for the 4 grants. The funds were begin a consolidated agreement and the Controllers Office said we could proceed with one legislation. Funds have been distributed and need to be spent by june 30 of 24. The grant does include costs of 10 . Thank you. And i would like to be added as a cosponsor to this. And really appreciate the work you are doing and i am pleased hear we are receiving Additional Fund its is great news, thank you for your work and go to Public Comment on this item. We invite the public who are joining us who wish to peek to lineup now. And come forward. And all speakers will have two minutes to speak. We have no speakers. Thank you. No Public Comment it is closed and mr. Clerk i would like to move this item to full board with recommendation and the roll call. And on that motion to forward this to the full burden with positive recommendation vice choir mandelman. Absent. Member melgar. Aye. Skwoo chair chan. Aye. Thank you. Motion passes. And mr. Clerk call item 2. Item 2 is a resolution approving a Second Amendment to the agreement with the department of technology, office of Contract Administration and kara soft technologies for sales force products increasing the agreement amount by 10. 9 million for a now not to exceed of approximately 20. 6 million and extending the term for additional 5 years madam chair j. We have department of technology here. Good to see you thank you. Good morning supervisors and colleagues thank you for the opportunity to present. Im hol sheer. Manager at d. Technology. Im here to seek approval of the Second Amendment to the agreement. For procurement of sales force product. The proposed amendment have 2 major changes. First, increases not to exceed amount. Second. Expands the by 5 years. There is no other major change. If it established this agreement in 2016. City could get the higher discount and from all standard sales force products. And also avoid the mark up fees. In the city to digitalize the work load. Public service test of the and this improvement. 19 City Departments are using the agreement. And the total cost worth 1. 6 million per year in the past two years. This city agreement brought many benefits to the city. It grand father, the oldest count of 35 for all the major sales force product. It was chose to do a premesistation and negotiate a new concept. In addition, the city will have to pay a total 10 . To the seller. This agreement most dupe katd effort by department of the 19 City Departments will have to negotiate their own agreements and complete many of the step [inaudible]. Last but not least this. Agreement create Greater Transparency on expenditure across the entire city and enable more effective management. Now im upon happy to answer your questions before that i like to thank my colleague marco bruno and wong for outstanding work in negotiating and managing the citywide agreement. Thank you. Thank you. Good morning, nick from Analyst Office am item 2 a resolution approves an amendment to the city gentlemen with cara soft this extends the existing agreement by 5 years through june of 2030 and the not to exceed to 20. 6 Million Dollars. This agreement is used by City Departments to purchase sales force products a mark that you want is higher than the mark up in other similar government contracts. And we detailed the budget for this on page 5 our report you seat 10. 9 Million Dollars of spending. And based on the departments uftz contract to date we estimate a third of spending will be funded by the general fund we recommend approval item two. Thank you. Looks like it is funded by earnprice and other revenue i appreciate and i dont have other questions lets go to and i understand that we have to use t. Otherwise there is no other way to be able to continue to utilize the sales force product without this contract. Public comment is closed. And i would like to make the motion to move this item to full board with recommendation and i roll call. On this motion to forward to the board with positive recommendation vice chair mandelman. Absent member melgar. Aye. Chair chan. Aye. Thank you the motion passes. And mr. Clerk call item 3. Item 3 is a resolution approving and authorizationing the director of Mayors Office of housing and Community Development to execute loan documents for permanent financing of 1005 paul street pursuant to mall fights program for a total loan amount 20. 9 million confirming planningace determination is consistent with the general plan and priority policies of the planning code and authorizing the director of ocd or designee to make modifications to loan documents and action in furtherance of this resolution. Thank you. And we have Mayors Office of housing and Community Development here. Good morning. Chair chan and supervisor melgar i work on Preservation Team at Mayors Office of housing and Community Development it is a pleasure to be here this morning to present on 1005 powell. It is is located at powell and clay. At the border of china town and knob hill in district 364sro units. And has 2 ground floor commercial units and throughout rehab of the project tenant lounge and lawned row facilities and Property Management office. The property was acquired by china town Community Development center in december 2021. And under went upon a significant rehab. You tell on the slide that the hard cost for rehabilitation were 3 times the acquisition with soft costs 3 and a half times. There was much work to do. In addition, the project is receiving a senior operating subsidy. The board of supervisors approved that in early april. Providing 6. 2 Million Dollars over a 15 and a half year term for 35 of the units. So critical housing for senior there is and the subsidy enables the total rent to be 60 ami, tenants in the units will pay 15 or 25 rents. I uponed recognize that c c dc stepped forward tong about the longterm stability of the commercial units in contributing 338 thousand dollars to commercial upgrades during the rehabilitation and 100 thousand dollars once permanent tenants of commercial space are identified. This building was built following the earthquake in 1907. And over its history. It fell in disrepair. There were several notices of violation at the time of the acquisition and history of unpermitted work. Lots of life safety issues to address. After acquisition in december 2021. Rehabilitation took place residential rehab was completeod schedule and the relocation also was contained a 12 mont period. Some opted stay later while the commercial rehab was finished. All permits were finished in march 2024 and here we are today requesting your approval of a permanent lone on the project. Include a couple of bulletos rehab scope i wanted note a few begin this building serves seniors. And elevator modernization it makes that safe and possible. There is also now accessible bathrooms on every floor and the ground floor as well. In many ways this was a gut rehab there was dry rot repairs needed and i wanted to show you a couple of picture this is quite striking. On the left, the 4 on the left are pictures at the timearc way position on the right we have construction photos. Lots of water penetration. A lot of need to replace windows and so forth. After the building is just gorgeous. And ccdc worked with the local artist as you see to add art both inside the building on every floor and outside on the facade. You see photo of the accessible shower. The top right is the new kitchens put in more safe and a lot of thought busy how seniors and seniors of chinese emdecent would go about using the kitchens and for the types of preferences they are in that regard. So, we have achieved a couple objectives with the progress and we will achieve a few more. At the time acquisition despite about 25 occupancy in the building there were over 150 tenants living there. And ccdc worked over time to occupy the vacant units and right size unit this is were over crowded today we are looking at 110 residents in the building. Those that were permanent low relocated were begin tremendous assistance, half of the 8 house holds that were relocated secured section 8 vouchers the other half given assistance in finding housing and identifying resources that would work for their household. The picture shows on the right is a yen of sign aspects that increased the sustainability and helped reduce operating costs. Looking at lighting and energy star appliances. Heat pump in thes basement of the with the permanent financing the building will be restricted for seniors as long as the senior subsidy is in place. 99 years of afford act through restrictions 60 of ami and the permanent loan funds operating reserves. This is an unusual structure ocd is providing reserve up front. The building can draw on if ever their operating costs exceed income but ccdc more then and there matchd that with a contribution of 1. 8 Million Dollars over 10 years in operating reserve. Mostly so longz it as an operating subsidy the funds will not be needed but it is an important step upon and measure to make stewart that the building has a longterm sustainability and stable financial outlook. The total loan is 20, 900 thousand dollars. This is all soft debt on a 40 year term. The per unit subsidy sewithin small sites guide lines. Project is part of the mall sights program it is 64 units. We like to refer to this as a big site and i wanted note that the majority of the funds used for the loan from Art University settlement to preserve sr units taken off the market by the university over time very pleased answer questions and have ccdc represent in the audience as well. Thank you. Item 3 approves a 20. 9 Million DollarsLoan Agreement with the Mayors Office of housing and china town srollc china Community Development center this loan pertains to a small site Affordable Housing project 1005 powell street we detailed the uses of the loan on page 10 of the reportful you see that the bulk of funning is used to pay down acquisition and rehab costs and 1. 8 Million Dollars in financing provided by ccdc and the housing accel rirt fund and funds the sinking fund the project is projected jen rit an operating deficit following the expiration of the subsidy in year 15 of the project recommend approval of item 3. Thank you. If i could make a comment before i call on supervisor melgar. Im pleased to support this project. The thinga worries me if we want to do more small sites and i think we need to, is this with this idea about the sinking fund. That in itself is a name already tells it all temperature is bisqually sinking money putting in the investments but no we know as a city and with our nonprofit partner im grateful for for our china town Community Development to come in to support this project. But clearly weer a journal tow garth as a city and nonprofit house and manager this we know that we near an endeavour that is staring down operating deficits for the longhaul. And so im really curious to learn that today. But just really as we continue around mall site what is is it we can do to may be to figure out ways to become revenue neutral so to peek for the city and could it be identifying other source of funding from a state and federal level. Could it be finding the consistent Funding Source for the longhaul. Through other means within this the citys Public Financing tools that we can help sustain small sites and extend them acquisitions throughout the city that is my comment today and im looking forward to see more of these projects coming through. Not in but with a thoughtfulness and potential fund that really subicize its for the longhaul. Supervisor melgar. Thank you. So much chair chan. I had similar thoughts. Thank you for articulating that. I did have a couple questions. Specifically about the rehab. In when that does to the operating costs. If anything can be done. You talked about the electric cook top and it is Energy Efficient windows. How are the folks accepting the electric cook tops and in terms of the operations the heating costs. The electricity costs. If you have data about that over time . Thank you very much for the question. With regard to the uptake of the electric cook tops, i will say our team toured the building 6 weeks ago at scomplufrn saw robust use. We also heard from ccdc they intalled special grease traps above them knowing a lot of wo k based cook would occur and explain about the choices. They used a shower material for the walls to go over the walls in the kitchen for longterm maintenance expecting again that wear and tear. Is there anything to add there . I was asking about the operating costs. Is has it saved you money to not have gas or leaky winnose single paned . The operations over time . If there is anything that you wish could have been included in you know the scope work that would save operating costs. Before you answer identify yourself and for the roeshd. Im shaning a project manager with china town cdc. I want it say that we after we acquired the building we had standard relocating residents on the building. We dont have a lot of historic data on what was electricity usage or the gas usage before we acquired the building. But we were as part of this we were able to put a lot of effort in looking at Energy Saving measures as well as we apply through programs that do a lot of including electric upgrades. Plumbing installations . And lighting just to help us to look at different areas where we can help to reduce operating costs . But as far as how it compared to previously we dont have a lot of data on that. Thank you. Thank you. And so with that lets go to Public Comment on this item. Do we have members in the chamber who wish to address the Committee Regarding item 3. Approach the lect urn. We have no speakers. Public comment is closed. And vice chair mandelman. This project is the same concern as all small sites and so many i think all our Affordable Housing portfolio how to keep the buildings going over time given inadequate revenue for operations. That said, im glad to see it happening and grill to everyone who is working on and like to be add as a cosponsor. With what i would like to move this to full board with recommendation. And the roll