President breed hur present campos, present. Cohen, present. Farrell, present. Kim , not present mar, present. , present. , present. Tang, present. Wiener, present. , present. And president you have a quorum thank you. Please join us in the pledge of allegiance. [pleage of allegiance] all right madam clerk are there any communications . None to report today can you please read the Consent Agenda items one through 12 comprise the Consent Agenda. These items are considered routine the member object item may be removed and considered separately. See no names on the roster item clerk please call parole supervisor mark. Cameras were to pull item 11 . Okay on the remaining items excluding item number 11 madam clerk please call the roll supervisor mar aye, peskin aye, supervisor tank aye supervisor wiener aye yee aye, avalos, aye, breed, aye, campos, aye. Cohen, aye. Farrell, aye. Kim aye. There are 11 aye these are finally passed on the First Reading and adopted unanimously [gavel] betake please read item number 11. Item 1111 is urging to establishing a local match commitment to the National Housing trust fund. To further support the National Housing trust fund with expanded sources of revenue. Supervisor mar im urging you to support this resolution that would help us fund and increase funding and preservation of this housing for low Income Housing. Including Homeless People and will also increase homelessness for these very vulnerable households. I want to thank the Community HousingPartnership International coalition is working to match all National Housing self funding awarded to the projects in our community. Really important to urge our senators and representatives to further support, not only National Level support for the National Housing trust fund, but also expanded at the local level at as well. As many of you know afford housing in our city is crucial. Maybe the most crucial issue that we are addressing in order to ensure all residents can be housed. The federal government has sincerely cut back on its funding for Affordable Housing and the federal response to homelessness need to include serious recommitment to funding Affordable Housing. For example, in San Francisco our area Median Income last year for Single Person was 71,000 for year according to the Mayors Office of housing however many of our residents and families are considered by federal definition extremely low income or very low income. Thats a household that makes 30 or less of the area Median Income. Iolani household for example in San Francisco makes 23,000 or less. A very low income household makes 50 of the area Median Income or less. These households making equal to or less than 36,000 a year and guess the Fair Market Rent for a twobedroom apartment in San Francisco is about 2000 per month walks in the low income renter households can only afford to pay about 720 per month. So, this is really helps the National Housing trust fund is a permanent federal program with dedicated sources of funding not subject to annual appropriations and this resolution puts us on the record in support, but also a commitment to local matching funds for this. I strongly urge your support. Thank you to paul gordon, james tracy, and the Community Housing partnership and the coalition is pushing for the good i urge your support. T thank you. Can we take this item, same house can we take that without objection . Without objection its adopted unanimously [gavel] can you call items 13 and 14 item 13 an ordinance to prove the requirements for the project delivery agreement for oryx developed for the design and construction proposed improvement to future cityowned real estate at 555 shelby st. 1975 and 450 told st. To great new facilities for the relocation of the cities central Fleet Maintenance shop from 1800 gerald st. The total anticipated project of 50 m 5 million in San FranciscoPublic Utilities commission Wastewater Enterprise Fund and accepting the project from the contacting requirement by waiving certain sections of the minute a chapter 6 and approving of the project architect in the general contractor without Competitive Bidding. Item 14, and ordinance to appropriate a 62. 2 million transfer from the Public Utilities commission Wastewater Enterprise Fund to the city administrator to implement central shops relocation project in fiscal year 205016, 20162017 and placing . 5 million on budget and Financing Committee reserve thank you. Supervisor cohen thank you. This is an important item to me and not just to me personally but also to the Bayview Community because it said key component on the Critical Path for the rebuild of the Wastewater Treatment plant. As many of you know, a percent of our city waste is processed at this particular facility. The facility is currently operating based on 1950s technology, and has having an adverse effect on the neighborhood every day. Particularly, with terrible odors and other environmental injustices that are occurring on a daily basis here. The Bayview Community has been waiting for approximately 20 years for a new facility to be built. While i dont typically like cold source contacted many of you have voiced her concerns about this in the previous Budget Committee meeting, and i actually join you in your concerns about solesource contract, i want to ask that you weigh and consider that we do need to ensure the community does not face any more delays in receiving the muchneeded upgrade to this plant, and im asking you to consider, make a special consideration, that, this be a special priority and we move forward to get the new location percent. Would allow the facility to stay in the bayview Hunters Point community, which is a better option for the one previously considered, which would have moved the facility to brisbane california. Additionally, going out to bid would delay the project a minimum of three years and the cost ratepayers of 3 million a month as a result of the escalation. So, all other requirements and obligations are being met. Obligations for the contractors that would still be in place, including local hire and our own cities goals. The only exception being asked for today is the sole source. This project is long overdue and colleagues, i do hope you will join me today in supporting this item. Thank you. Thank you supervisor cohen. Supervisor peskin thank you. I have a number of questions for puc staff if they are here we have the director ilan crowley. Mr. Kelly we please come for to answer questions . Thank you mdm. Pres. First of all i want to say is a member who worked with then District Representative supervisor sophie maxwell, ive been committed to having our Sewage Treatment plant reach the dawn of the 21stcentury for 15 of those 20 years. What is inexplicable to me is that given the long history that all of a sudden this has become a game of hurry up where i think everybody, as you said should be and we are troubled by the solesource nature. The fact that chapter 29 of the administrative code is not being applied, the fiscal feasibility section of the code, i think is equally troubling. Quite frankly, on behalf of the ratepayers, i have concerns that the qc is paying twice for a piece of property that was arguably paid for by the ratepayers through their sewage charges. So, either series of concerted honestly, we want to see this project move forward, but i like to ask mr. Kelly, sorry, sorrymr. Toad, first of all, do you own does the puc own or central shop in possession of all the property that it needs these projects, central relocation and obviously you would have all the land you need for the Sewage Treatment plant can do have all the land we would need for central shops . Can we take that without objection . Without objection to make sure i understand the question, sorry mr. Kelly could you identify yourself, please hi lynn valley general manager of the San FranciscoPublic Utilities commission. To answer your question, the actual property that the shop presently is occupying was bought by wastewater bonds, but when the puc, or when wastewater was transferred to the puc, that acid was not transferred to the puc. It is still was under the dpw or city administrator. That was a decision that we got from the City Attorneys office. The second thing is that we realize that site will be the ideal spot for our digesters. So, we look at other pieces of property to put our digesters, but we wanted our digesters can be furthest away from the community, because as of right now, the digesters are right adjacent to the community and these are floating tops digesters that release gas. So, weve been having Emergency Contacts to repair that. So, its really in the best interest of the puc and the community to move the digesters. As far as the location is concerned, we previously passed the resolution to allow us to acquire the property amount which is in a nearby location and also assume a lease. That will be the site in which we will build the new facility for the center shop facility at that location. So, for us, its a race against time. We would like to build those facilities and take possession of a site so that we can move quickly to rebuild the digesters that the community has been desperately needing. Mdm. Pres. If you would indulge the supervisor for a few more questions. Sure supervisor peskin. Wasnt central shops going to move to spain recently . With this of all been happening in some orderly fashion . But i dont understand here is how all of the sudden 1520 years later theres this emergency call this process when this has been a subject of planning for the better part of two decades. How can it all of the sudden be so pressing, and i think the answer is, for some reason, the puc abandoned the idea of relocating central shops to the property that mr. Updike was negotiated for him brisbane. I dont understand that but i think from what i can drive, which led to this solesource contract, chapter 29 and all the rest of it. So, again one of the i can go back as part of the hetch hetchy ballot measure, it was contemplated at the time to include the wastewater portion but at that time they felt that wouldnt be the appropriate vehicle, so thats where we actually dropped answer to do the water system improvement program. Since proposition e asked that we look at we need to focus on the wastewater site. So, we had this wastewater or biosolids has forced with the community because at that time the Community Felt if youre not quick to fix it, move it. So weve been looking at what the cost would be and how would you build with moving the facility. We finally got the community to understand that if we were to rebuild it, it would be 2 million in the community and we will move the digesters and come up with a latest technology. In doing that, we then realized that where is the best place to put the digesters. That, we identified the center Shop Property is a possibility because, under ceqa, you can predetermine. You have to come up with some alternatives. That was the preferred alternative. So, we were looking scouring the whole area to look at what property we can purchase. There was another piece of property, and i can have john talk about it, that we were actually placing a bid in and we got outdated. So we started looking around for a property and the one in brisbane became available. But that had some challenges because that had contaminated soil. So, it became really a project that actually was going to be delayed and the puc we started getting nervous. Also, it was some question by the Mayors Office and board of supervisors to move our facility in brisbane. The police and the Fire Department was concerned because of the deadhead time of going to brisbane and back was another problem. Then, all of a sudden, this land became available. It became on the market and thats when we jumped in rudely moved quickly to get this piece is a property and piece them together to actually solve the problem. So, thats why we were moving quickly. The other thing i want to mention is that our project is reallythis is a critical part of the project now because we have been moving as quickly as possible since weve identified the source System Program and identify the alternative. That is actually costing us 3 million a month in escalation if we dont move quickly. So, that is white when we talk about we need more studies, its costing our ratepayers a lot of money. So, i do feel the Current Location is probably the best location because it keeps all of those jobs and all the facility in that area. That is why its urgent that we move as quickly as possible. Then, you indicated mr. Kelly, that the central shops purchase was originally purchased with sewer bonds. I assume that those bonds were repaid with sewer fees. Is that correct i believe so. So, if that is the case how is it that a nonenterprise agency is invested with this property that is really been paid for by the rate payers and not by the taxpayers . I would defer to the City Attorney actually on that finding because it was part of their finding. But, i would say that the delay of this actually would cost the ratepayers more money because, if you look at the price of the property, which is 11 million, and if we were to stall and wait for months, i just lost 12 million in escalation. So, thats why, for me, its so important to move this project i had and if theres accounting issue we can deal on the backside i would rather deal with that on the backside. Well let me ask you this. How long ago did this site with central shops become the preferred alternative . The location of the center shops it became about how long ago . The actual location of the digesters at central shops . Not the property . I think about two years, when we went through a process to look at what the preferred location of the digesters, which would be by center shops. Colleagues, it seems to me two years advance notice, i just personally have deep concerns about waving our competitive bid requirements. I have deep concerns aboutand i hear general manager kellys argument with regard to even if were charging the ratepayers twice, its justified because of cost escalation, but im going to have a lot of trouble voting for this. I always able to get this project done. I am happy and this is not, obviously, my area of expertise to try to make constructive suggestions. I think at 5. 3 acres central shops could possibly be as other cities have shown, much more efficient sizewise. Perhaps there are ways to keep central to move to the galvez site. But, i just cant justify waiving competitive bid in this instance. I am speaking for one supervisor. I do have one question i asked initially and maybe mr. Updike is best suited to answer it and that is whether or not the city now has site control of all of the properties that it needs on both sides of the steel . John updike dir. Of properties. Supervisor, yes. Since the approval to pursue the two acquisitions in the one most recent in december we close the escrow for 555 selby and of possession of that site as a tenant. That tendency will be terminating thats printed 1975 galvez purchase and Sale Agreement is fully executed entering escrow. Theyre doing an exchange that will be in an escrow through the end of the month end close and then the lease for 450 has been fully executed. We position of that site and first mates rental payment. Thank you, mr. Updike. Supervisor spot spats peskin is that it . Yes thank you supervisor avalos thank you madame president can i do question for the qc as well. That is how this contractor was selected for this solesource contract. Like, what i can usually we put out this to bed and i want there to be delays but i also dont want to cut corners. Im wondering how this contractor was selected to get the munificence of a solesource contract . Supervisor avalos, john updike. So, we briefly review the timeline with respect to this current assemblage of three properties. The timing for when we went out to find a developer that could execute the project. So, in july we had finished the luminary project assessment and deliver that to planning. It actually included the selby and galvez property the contemplated a different beast site than we actually one chose. Those negotiations failed to produce a lease at a good price. As of july we thought we had a sense of the project. We were just beginning design. Less than 20 design. At that point, given the mandate to move this project along at a very swift pace, we look at alternative means of delivering the project and we had a broker team engaged. Who assisted us in getting out in the marketplace and seeking someone who, their outlook