Good morning and welcome to the march 15 meeting of the government audit and oversight committee. My name is jane kim and im joined by our vicechairman supervisor aaron peskin and present london reed. I want to of knowledge and think our community clerk erica meijer and also think the folks at sfgov tv Jessica Larson and jim smith for the courting our meetings and making them available to the members of the public. Mdm. Clerk any announcements . Yes these make sure to sounds all the phones and electronic vices. Complete speaker cards and any documents as part of the file should be submitted to the court. Items acted upon today will appear on march 21 board of supervisors agenda unless otherwise stated thank you. Im clerk please also the matters of the committee are here. If you would call item number one and two yes item number one resolution receiving an acuity and or board for the Noe Valley Community Benefit District for fiscal year 201516s amended as required by the property Business Improvement district lot of 1994. Item number two a resolution of receiving and approving the annual report of the ocean avenue Community Benefit district for fiscal year 201516. Thank you thank you i understand were joined by [inaudible] executive director of noe Valley Committee benefit district. So why dont we start with the noe valley cbd and then move on to the ocean avenue cbd. I still understand dan weaver the executive director of the ocean avenue cbd is here as well. Before we start the presentation colleagues any comments . I just have one overarching comments. Now the were all cut up and backlog has been cleared. Which is i think would be helpful for the committee and the public to see the metrics over time because they come in snapshots of 2015, 16, 201415. Relative to the for performance criteria there may be interesting to actually see without having to do whatever Research Whether they were met in the Previous Years but i think that would be worthwhile just to include in these records Going Forward a matrix so that we can say look at that theres been improvement over time and learn the lessons from the Previous Year and then when we talk about the noe Valley District already some questions. I think fundamentally the original Management Plan was unrealistic and discussed the way to fix it because the reality is when youre doing with such a small amount of money there is no way that you can have it at 10 admin overhead and thats the way was originally envisioned and interestingly enough, im glad these two items were called together because the cbd that mr. Weaver runs is about the same dollar value has been only valley cbd they start out with more realistic predictions and projections are rather going to this thing where every year we we say you did meet this management criteria theres got to be a way to go back and fix that because it becomes a meaningless metric. [inaudible off mic] yes. Im here to help you on that point in a finger. I think at the beginning we all come in i do these budgets all the time and you want to say 10 seems like a reasonable thing and way back when because you know we valley was one of the earliest cbds the first, it seem like symantec i did the original cbd enabling law and which was by the way i felt was going to be for north beach and here we are 15 years later in north beach doesnt have one is the know a valley goes first or that alternate over to the chairman thank you supervisor peskin. Mr. Cordis. Thank you chairman kim supervisor peskin president breed can supervisor peskin your comments are well received and ill include that and view feature cbd reports going back to five as fiscal years for the cbds been around thus far. Today we are here tonight but this meeting noe value valley cbd 1516 and or part the cbds are governed by stu oz is a lot also by the 1994 act can be fine in the highway code 3600, etc. And the local law article 15 of the San Francisco business and tax regulation code. This resolution covers the end report for fiscal year 201516 80 ew ensures all cbd bids are meeting their Management Plans that oewd staff conduct an annual review excuse me i lost my place there. Of annual reports and cpa financial reviews and oewd provides the board with a summary memo on the results of those unnatural review and handle reports reviews. The note noe valley cbd was formed in 2000 as previous you mentioned were the first cbd in San Francisco. It currently has approximately 2050 parcels in that district it is probably based started with an assessment budget of 203,001 38. It set to expire on june 30 2020. The staff is executive director deborah eman, who is here today to speak about programmatic achievements of the cbd in the past fiscal year there served areas of public rightofway, sidewalk operations from district identity and street improvements. In administration and corporate operations. Oewd reviews for benchmarks for related to all cbds first is whether the variance between the budget and the Management Plan and the fiscal year budget was within 10 Percentage Points. Whether 5 of no we valley cbds actual came from sources other than assessment revenue. Whether the variance between the budget amounts for each Service Category was 10 Percentage Points of the actuals and whether cbd is indicating amount of funds carried over from current fiscal year and designating projects to be spent in the upcoming fiscal year. For benchmarks one, noe valley cbd did not meet the requirement was an account review added post cbd establishment which increased expenses. Additionally the cbd board elected to allocate more money on activating the street. The combination of these two items cause variances to surpass permitted levels. For benchmarks you, noe valley cbd economic this benchmark. It was a significant decrease in the percentage of nonassessment revenue. This was due to a few events which are revenuegenerating for noe valley cbd not occurring. As was the cbd not receiving city grant money in fiscal year 20152016. For benchmarks three, noe valley cbd did meet this requirement could they maintain the variances within their budgeted categories. And for benchmark for, noe valley cbd did indicate their carryover funds from fiscal year 1516 did meet this requirement. Oewds findings are recognitions inclusion is in completing the review of noe valley cbd annual reports they implement it all the recommendations from fiscal year 20142015 the cbd will sunset in 2020 10 ew references cbd because preparation for a new campaign this current fiscal year. Benchmark one and benchmark two discrepancies need to be corrected and supply quality per conversation on that. Oewd has been working on with noe valley cbd on this in fiscal year 6070 that carly on track to meet those benchmarks for the next fiscal year. If theres no questions for oewd, debra nieman is here to address it achievements of the cbd. Thank you if we can have ms. Nieman. I agree with you, arun in terms of changing that you cant do it into you renew. At least thats my anderson. Quickly, we are starting our 12 year. We are smallest cbd. Were only eight city blocks per like to think of us as the mightiest because of all the improvements weve made to the street. Eva Green Committee weave an event committee. If two guys on the street. Sam and said a work 7 am3 pm every day clearing off junk and sweeping the gutters. We do tend steam cleaning spurrier which is more than any cbd in the city. We know when people come from palo alto to say you can eat off your starbucks they will rather than opt you know youre doing a good job. Mcspadden we do longterm Strategic Plan in 2006, which enabled us to apply for a lot of Capital Improvements from the city and other resources. We plan 144 new trees on eight city blocks which is a lot. We have eight sidewalk gardens, 22 planter boxes, to park was, but the flower baskets and people always love. The first thing people ask for the longterm Strategic Plan was high visibility for crosswalk that our First Priority and last year we completed that almost every intersection except the Church Street which is tricky because of muni. We created three new bus bulb outs to reduce pedestrian traffic on cultural castrol 24th because he are the land of baby strollers and dogs. We put in 44 bike racks. We did notnevermind and its three new benches installed in the district. And we are about to enter we traded a logo for ourselves from our director who those in the neighborhood could we partner heavily and enthusiastically without the know eval emergency friends of noe valley we have this New Town Square which we are trying to activate and create more of a Living Community space. We do summerfest. We do 24 holidays on 24 street that we have reindeer in the park with and were entering our 13th year of cleaning cleaning and printing public space to a questions . Supervisor peskin vote up to the earlier stuff i spoke to, i think of we saw a matrix over time benchmark number two would actually show that in other years, you exceeded the 5 absolutely. That would be awful because when you look at this. Shut its like okay and benchmark chart number one was unrealistic in 2005. Benchmark number two lead me to say well ms. Nieman, what were you doing in the answers, know weve actually gotten grants and previous fiscal years that took us above the 5 . So this is really more of a comment to staff which is, if god and country could see that we would say, they did great in 2014 and 2015 and theyre still writing that out if you will. It carryover if you will. Absolutely. We had over 1 million in grants and Police Capital improves weekend to honor him. No. I totally get its really common for oewd to how these metrics should be displayed for the committee and for the public to realize you are actually over a larger snapshot in time over performing the right peppers Management Plan is a joke. In many ways. It didnt work but when you first go out with any policy or any piece of legislation its never perfect to we were the first ones and you are behind that so away we go. Thank you. So can we now have and weaver dan weaver. Actually, im sorry mr. Cordis juergen present. Yes ill be presenting on the Financial Data and those for benchmarks all go through this as quickly as possible to get mr. Weaver of two discussed the programmatic achievements of the cbd. Ocean avenue cbd is a propertybased district was formed in 2010. Expires in on june 30, 2025. Its initial assessment budget was 239,000, 570. The staff is executive director dan weaver along with a few part time assistants. Dan is here to speak about those programmatic achievements of the cbd. They provide safety and Community Service ambassadors to the district of data cleaning program beautification program, and they activate the public spaces of zone number to which dan can speak out more. Before benchmarks once again are the 10 percentage point variance is from the Management Plan budget to the actual budget for the fiscal year. Whether the ocean avenue cbd met 1 of sources other than assessment revenue. Whether the variance between the budget amount for each Service Category was within 10 Percentage Points from the actual and whether the cbd is indicating the amount of funds carried over from the current fiscal year and designated projects to be spent in the upcoming fiscal year. For benchmark number one, ocean avenue cbd met this requirement. Everything was within the variance percentages. Benchmark number two, ocean avenue cbd achieve this benchmark your bed 18. 21 of their budget come from nonassessment sources. For benchmark number three, ocean avenue cbd met this requirement that all variances were that within the prescribed point system and for benchmark number four, ocean avenue cbd did meet this requirement as well. In conclusion, ocean avenue cbd has performed well and implemented in service plan in the district. They implemented all of the oewds recommendations from the fiscal year 1415 annual report. A market and produce Liberty Events including they streets, increase their opportunities in partnering with Community Stakeholders and riskiness will agencies and a meeting and active board of directors and several subcommittees. Are there any questions for staff . Here is dan weaver. Good morning supervisors. Dan weaver executive director of the ocean avenue cbd. I am here to say a few words about our program accomplishments. First, i have to correct chris in one matter. We have engaged with livable city to have sunday streets but you have to wait in line for a few years for that good since we have a streetcar line that never rests , at least during Daylight Hours we are going to have to figure out a simple version of that taking one lane of traffic for bicycles and pedestrians but we are working towards having some type of sent sunday streets in the future. As with noe valley were working primarily on beautifying and then skipping the district and as well as activating. In the past year we have new plaza which connects the streetcars and buses on ocean avenue to the City College Campus and its also immediately adjacent to the new bus terminal and a new Affordable Housing complex. So we are busily trying to identify how to activate backspace. In the past year we have also seen the completion of a series of on and off ocean avenue landscaping from the Public Works Department from a city bond issue which also contributes. It seems that assessment payers and general merchants and people in the neighborhood once they are used to having their graffiti cleaned and their streets clean, and gutters clean, then they want it more beautiful. So that is basically the focus of our improvements to the district that we are working on. Let me go through this. This is a map of the cbd. You will notice it also includes the City College Campus as well as the balboa reservoir side which is where future Housing Project is coming in. All of that is in theory part of the cbd. I think when the reservoir gets developed it gets developed we will actually be doing work there as well but that would require a change in assessment because right now, what we clean in this area of the reservoir and the City College Campus is right along ocean avenue, the landscaping right along the sidewalk. The district runs basically from the City College Campus in the freeway of two the el rey theater. We are looking forward to seeing its improved, rehabilitated. First come i should say landmark, improved rehabilitated and being made again part of the community. Which is an excellent model for how to get things going on the rest of the neighborhood. That is the old part of the neighborhood because the new part of the neighborhood right around City College Campus and the freeway is something that is really working well. The other day for example i was walking with a friend, ocean avenue and shei said, the all these New Buildings . These were parking lots an old bus turnarounds and she said, so did you not fuel buildings down and i was happy to say, no, they are over there. We have not knocked him down. We hope not to knock down during many of them but at the same time weve had the opportunity to create a new part of our Retail District in the last eight years. I may get through the slides here. Besides the board of directors we have a Street Life Committee that focuses on the activation of the neighborhood or the ocean avenue Retail District. Two public Arts Entertainment and design improvements. It is this committee which focuses on individual Business Opportunities particularly in terms of Small Businesses. We are partner with this year with the western neighborhoods project to focus on history of the neighborhood the angle side neighborhood, and the bubble city to get activating programs including sometime in the future, a sunday streets effort. Friends of the urban forest for landscaping and neighborhood organizations in terms of working with the residential neighbors as well as the merchants and Property Owners in the commercial district. These are some of the Government Agencies that we work with. In the most recent fiscal year ocean ave. , association was able to bring in 224,000 in nonassessment funding to augment our 302,000 of assessment funding. The basic were the primary expenditure category for our budget is cleaning maintenance and safety and we have a Company Named clean skates that those daily street maintenance. Has two people out on the street six days a week. Arborists now is also involved with maintaining trees in the district and substantial part of our maintenance budget goes towards maintaining the streets. Ocean avenue on the side streets of our district. Hopefully, that will change to some extent as the city steps up and takes over more responsibility for maintaining street trees. Currently, or in the last year, and into this year, we are working on landscaping the city owned property in the corridor at geneva and ocean. As well as maintaining and improving the sidewalk gardens on and your ocean avenue. Let me go back here. We put an effort into getting neighborhood volunteers and increasingly it seems that the best volunteers are School Students who, for example bv has a volunteer day twice a year they are able to maintainhelp us maintain a lot of the district. The corridor the design process is a program that went forward to deal with access by pedestrians and bicyclists to and from the bart station to city college in other parts of the commercial district. That design process has some shortterm parts of it being carried out currently and longterm aspects of it being worked on i guess between the city and city college. With that design process focuses on a number of improvements which would make things easier for pedestrians and bicyclists by doing things like widening sidewalks and providing bike lanes where there are none now. We are working with city college to try to get additional land in parts of ocean avenue to achieve that. We have a marketing and Promotion Program for the corridor in our businesses called second sundays. Which include music events at various venues on the street. We are continuing to promote that so that we can get people to come out and check out the neighborhood. We are planning to grow second sundays we can activate the newly completed unity plaza which is about 65 60 feet wide by 200 feet long. Its no small closet. Here we are at oktoberfest event at one of our venues. We also have childrens entertainment and second sunday. Here is a performance at the angle side library. The childrens entertainment part of our promotion activity is funded by omicc grants as opposed to assessment funds were oewd funds. Challenges to expanding volunteer base and retaining volunteer interested in doing with vacancies to provide guys are service. Now that we have a bank again on hardware store, and a Grocery Store people are refining their inches in what they would like to see on the street. Sometimes this conflicts with what Property Owners and property lease holders have to offer. Especially when theres new developments coming along its important thing to try to deal with. Your mix of chain stores and Small Businesses and right now, the event it seems to be clearly with the chain stores because of their ability to fund expansion. Compared to Small Businesses. So we are doing our best to help the Small Businesses to succeed in this new environment. One of the big problems we have with the old building stock is the lack of investment in it. The Property Owners in the Property Owners the Business Owners often times have the ability or the inclination to fix up their buildings mr. Weaver i do have a question about Small Businesses. We can wrap up after that. I know there is supervisor yee cares a lot about making sure theres multilingual access to Small Businesses in ocean avenue particular is quite a number of chinese speaking small Business Owners. So could you tell us how many of the chinese small Business Owners your organization the cbd has reached to queen all of them every single one . We have. You go to every single Small Business several times a month with various activities, programs when you say stuff people they speak cantonese queen not all the time. But you do of Staff Members that language capacity queen we can get that capacity through oewd. So youre recognizably a partner with oewd to reach out to the small Business Owners right. Could you tell us a little bit about summary outcomes about outreach . Well, the outcomes of the our reach come in the fact that we have programs for Small Business. The most successful one and one that was free to them was to get an ada evaluation of their business. We had, i would say a least 30 Small Businesses now that ive had that done and theres a long list of interest. We also have a secondsf shines program were number of Small Businesses have been able to participate how many of them were chinese speaking businesses . That either participated in sf china or the ada evaluation queen a number of them could i was eight approaches 50 50 , okay. Thats great. To do you have plans to greater work around crater outreach to these businesses . In the future . Yes were always visiting him with a new city Funding Source that they can apply for. Okay. That would be great thank you to much mr. Weaver for your presentation okay. So at this time we will open up for Public Comment on items number one and two. Seeing none, items one and two are close [gavel] i did you see we have a legislative staff member from supervisor yee office. Would you like to say anything . Colleagues can we take a motion on items one and two queen i move items one and two to the board with a recommendation so we have a motion to move these four. With a positive recommendation to the full board. We can do that about opposition. [gavel] thank you both to noe valley and ocean avenue cbd and lew as well. Mdm. Clerk please, call item number three item number three is a hearing on the operation of maintenance status on the citys Emergency Water supply system. From the Fire Department in 2010 receiving an update on plans to suppose was surprised he no longer use for necessary to the ongoing functions of the system. Mdm. Clerk i made a mistake i didnt get a request by Member Committee to actually call item number five first. Because we have members of the public that cannot stay for that item. My apologies and we will be quick. Im clerk, please, all call and five the item number five and resolution urging the cow 40 state legislature to amend the revenue and taxation code to enable local california jurisdictions [inaudible] personal and Corporate Income tax. Thank you mdm. Clerk to knowledge the author that item supervisor peskin to introduce item number five. The thank you mdm. Chairman and member breed. This item is actually been in front of the board of supervisors in almost identical version a couple of times and received seven votes but needed eight so we reintroduced it and send it to committee so thank you for your indulgence to we have a representative hear from the Controllers Office with a very short powerpoint but let me just speak to this resolution for a brief moment. This is a resolution urging the state legislature to amend the california revenue and taxation code at section 17041. 5 which was put in there in 1963 which prevents any local musicality from considering a personal work Corporate Income tax in any municipality in the state of california. As many jurisdictions throughout the United States of america. States cities counties that do levy such income taxes could i wanted to urgent state legislature to do this and acknowledge our summary member phil king, has introduced Assembly Bill 1007 which would amend this portion of the revenue and taxation code but i want to introduce this so we can have a menu of options to discuss as we move forward acknowledging that our sales tax failed this last november, debbie of huge transportation and Homeless Needs to address obviously if the revenue and taxation code were to be amended by the state we would have to craft something here locally, which could be a corporate or personal income tax and that of course would be subject to a vote of the voters, most likely two thirds vote but in certain instances to be a 50 vote, but that is a long way in the future. But i thought it is a conversation worth having and want to acknowledge and thank Assembly Member king for having the courage to do this but hes not the first. Our own Assembly Member who used to be a member of this body mark leno, did such in 2003 was not able to get it passed. The county of los angeles actually attempted to get the state legislature to amend the revenue and taxation code last year so this part of an ongoing conversation mistake of california and we will hear from the controller about how much this is quote unquote worth but its all worth a lot in outsourcing Peter Strauss from the San Francisco transit riders brought this concept to my attention. Would that turn it over to the Controllers Office mdm. Chairman. Good morning supervisor that my name is carol blue, with a Budget Analysis Division with the Controllers Office. So this first slide shows you state to state law that prevents a local income tax that this measure seeks to amend. You will see it says explicitly that no city, county city and county, will be allowed to collect tax base on income. The next slide shows that the states largest tax resources personal income tax and its Third Largest source is corporation tax. Its much smaller, the thirdlargest one. California state income taxes very progressive, varying from 1 12 and then theres an additional 1 on personal income greater than 1 million which funds the Mental Health services act program. Then the Corporate Tax rate is flat at 8. 84 of gross income. So weve done a preliminary analysis with a 0. 5 tax rate on incomes over 1 million would be. That comes to 62 million the we picked 0. 5 because the last time la proposed an income tax it was of that amount. So depending on what is proposed it would just be a multiplier of this. This is based on Franchise Tax board data from tax year 2014. Then lastly, in other places in the United States income tax local income tax is more prevalent so 11 states cities or counties that actually a personal income taxes. You will see some examples here a kind of very by jurisdiction and theyre not really super comparable but it gives you a flavor of the fact that this is not new. With that ill take any of the questions. Mdm. Chairman i have no questions but i want to put this in the context of possible federal income tax reduction and to the extent that happens, i think there is an imperative for states and local governments to capture those so we can fund the same types of services that are given through the federal government to states and municipalities. So i think this is the right time to be having this conversation and its probably going to be conversation that takes a number of years and if the state legislature were to ever rescind this part of revenue and taxation code we can ever robust conversation here at the board with a public vote out what the right tax to craft is and of course it would have to receive a vote by the people he four it ever went into affect. Well, thank you so much for this presentation ms. Look at its actually very interesting and i would love toonce absorbed some of this information cannot have it deeper discussion and ive been with this could mean for the city but want to thank supervisor peskin kirbyintroducing the resolution to the board and hopeful to be a good conversation at the state level about this. Thank you so much speed as if Columbus Ohio can do it, so can we. So see no further comments from members of the board, at this time will open up for Public Comment purchase item number five. Good morning supervisors Peter Strauss from the San Francisco transit riders with endorse this resolution before you today. I like to address my remarks in particular to supervisor breed who did not support this was before the full board. I think you urge that you consider revising that vote today when it comes back before the full board its important to realize this is not an endorsement of any specific proposal. This is to grade another option of progressive option, for the city and county of San Francisco and potentially other municipalities in the state particularly, as our values and commitments are under threat as was stated by the Current Administration in washington. Its important that the city have this option available to it and i urge your support. I dont think any to pdr and evan made. 170 maze of alleys within the United States to impose an income tax. My own inspiration with indianapolis, not columbus, but this is certainly a valuable source both financially and. Likely that the city should avail itself of. Thank you. Thank you mr. Strauss. Other any other members of the public that were to speak on this item . If you would like to speak, please, line up. Hello. My name is david brin could i have been talking to various budget legislators but this idea of backfilling federal tax cuts with local and state taxes under ad hoc cowboy budget firewall. And read over the resolution. I just want to point out that if we are going to be collecting personal income taxes with managers have the right to collect him. We want the state to help us to do it. We want to require to be able to send the state here are local tax brackets and then have them include that on the state income tax form because otherwise it 20 another set of paperwork and people to be underweight or they wont do it in the first place. To add onto that the mileage be able to see her like to see San Francisco have negative tax rates for certain income tax brackets. That way that the estate tax because the state currently requires us to collect 8 and a Quarter Sales tax. We should have some ways to reverse that. So we be could create a tax cut for lowincome and middle income san franciscans at the same time we pay for that with a tax increase on higher income san franciscans i think of be great for everybody and avalon would San Francisco values. Thank you very much. Seeing no other members for item number five, Public Comment is now closed. [gavel] supervisor peskin would you like to make a motion for this item . Yes i would. I think this would be a great way to if you were to come to pass to address our growing income inequality here in San Francisco which is rivaling wanda. I would like to move this but like to hear from our colleague, supervisor breed im so sorry president breed thank you i will not be supporting this item. Again. I realistically, i dont think its ever going to happen. I know theres a bill in the state of california to allow local governments to try and take these kinds of issues to the ballot to happen and i just, realistically i realize supervisor peskin wants to put all options on the table but i dont see this happening and i also have concerns over the fact that we have a overnight billiondollar budget in a city that has a population of less than 1 Million People and with our current revenue there is a lack of accountability on so many different levels. I do think that part of our role should also be to look at how we are spending money now and where the accountability for those who receive honey from the city from that department the lease money in the city and how are we going to do a better job of spending the current revenue that we have not to mention all the setasides, all the different layers of issues with our budget in general. If i thought that this could happen and its a long ways off from happening, if it does, i would be livid more open to it but im just not really a fan of local income tax. Im not a fan of a lot of the decisions that get made in the city about people and their incomes and i just cant get with this. So im going to pass and vote, no. Thank you. Thank you president breed. Justin response to that i think that there certainlytheres two different buckets of discussion. One is how we spend public taxpayer dollars here in the city and the second is, whether we need to raise revenue through it last year this board put several revenue measures on the ballot and was not a discussion of whether we spend our existing dollars wisely. Supervisor peskin and i do not support the sales tax increase because we thought it was regressive and flat bedded overly burdened impact the data shows it overly burdens will income consumers more than regular middleclass and upper income consumers. Personal income tax is a progressive form of taxation and taxation partially of course as in its origin was to ensure that we have the public publicly investing in infrastructure whether schools, roads, Fire Departments from public safety. But actually, the origin of tax policy is very progressive. Was also about creating greater equity in our country and in our society. In many ways, its about addressing the inefficiency of when wealth accumulates amongst the few leaving vast majorities of the country in poverty and impoverished. So the other purpose of taxation is also to address issues of equity. Because in greater societal [inaudible] making sure we do not open to an oligarchy but without we were ensuring that we dont have what i think were seeing here today which is the Fastest Growing income gap in the country in a country that has put the growing wealth and income gap its well as well. I do think a personal income tax policy is worthy of discussion. Is i support it is progressive and i think youre in San Francisco and the state of california we are just going to see a continued exacerbation of the wealth and income gap that were already seeing here in San Francisco today. Our middle class is shrinking and the communities of growing our low income and are upper income communities and we need to make sure that we have Programs Services and infrastructure in place that can support a growing lower income communities and i know yesterday i talked the livid about this at the board of supervisors but automation is happening and thats only going to further exacerbated. Are going to give you see wealth grow in the hands of the few is your low income working Class Community grow and im not sure where that have the Resources Available to invest in reeducating and retraining our population to be prepared for the economy of the future. That being said, i agree it is a longterm discussion and its uphill battle but i think that we also put resolutions before the board not because we think the policy [inaudible] because we believe its the right thing to do and so i will be supporting this resolution at of committee today. Sosupervisor president breed thank you thank you for your comments supervisor kim. I just want to add two things to that. Number one, i guess because were looking at a income tax and were looking at an income tax potentially if this ever were an option for us if the state legislation passes, we are talking about the wealthier community of the city and the wealthier community of the city damn resources, they probably have several races where they live, their residencies, and why would they continue to use San Francisco as her primary residence. I mean, there are just ways around it when you have money theres ways around avoiding a local income tax, and i am not certain how this could potentially be effective, number one. Number two, im really not certain how this could actually help the middle class in San Francisco which it has been a consistent challenge as it relates to housing. We know that we are doing with this right now and trying to figure out Additional Resources to provide more lower middle Income Housing options but again a long ways off in terms of this conversation if it happens at all. But realistically i just dont know how this is actually going to work and be effective and help with some of the challenges that we are doing with which is a big reason why im going to continue to not support this at this time. Thank you president breed. Supervisor them peskin i dont believe appointing obviously we should vote but i do want to say we went in San Francisco voted to enact the first minimum min wage in the country, there was a lot of skepticism that jobs would flee in the world would change not for the better and that did not come to pass. I believe that whether this is a millionaires tax or billionaires tax rate progressive tax that reflects the way the state assesses its income taxes, it would be a benefit for the city and others would follow. Supervisor them peskin would you like to make to make a motion to recommend without recommendation alleges that mr. The full board with recreation and happy to have a vote on it we have a motion to move it with a positive recommendation. Mdm. Clerk please take roll call on the item on a motion to move forward, breed nay peskin aye kim aye. Mdm. Chairman is to aye and no nay with breed dissenting. Thank you mdm. Clerk. My apologies to those that are here for item number three. And we are to call the item we have a request with the City Attorney to actually hear item number four before we hear item number three. So we have no past item number five. The positive recommendation to adam clerk please call item number four item number four ordinance amenity minister of code to revise the residential unit conversion speed is to acquire hosting platforms to excise reasonable care verify that a residential unit is on the city registry. Thank you mdm. Clerk. We have both of the authors of item number four here today. So i want to allow president breed or supervisor peskin to make opening comments. So thank you for that opportunity and thank you to president breed for cosponsoring this matter as. As you recall last summer the board of supervisors unanimously passed a piece of legislation that would hold hosting platforms as well as hosts accountable, airbnb data indicated it would challenge that if we passed it and indeed, they made good on their threat and sued us and there has been some initial rulings by judge did not 0 in federal court. In airbnb lawsuit was joined by home away and challenged the amendment chapter 4180 of her ministry to code judge did not a interpreted section 41a of the ordinance and concluded that the ordinance only penalized hosting platforms for collecting booking fees for unregistered rental units if the platform acted intentionally or recklessly or negligently. The judge said that other interpretations of the ordinance would be unconstitutional. The proposed ordinance before us today would amend chapter 41a to clarify that section consistent with the judges reading which is our own reading. The ordinance would require hosting platforms to exercise reasonable care to confirm that units are registered before collecting booking fees and that sums up what is before us. Thank you supervisor peskin. Just want to thank supervisor peskin and president breed for moving forward with this policy. Ive always thought that shortterm rental proceeds i should be responsible for ensuring that every single post on their site has a Registration Number before they are able to postwar rent their residential units. The race small asking something we know that technology, these are capable of doing good so i appreciate this coming before our committee. Seeing over the comments from members of our committee, we will now open up for item number four for Public Comment. Seeing no further Public Comment of the comment is now closed on this item [gavel] i would like to make a motion to move this item to the full board with a recommendation. Thank you we have a motion to move this forward the recommendation. We can do that without objection [gavel] thank you the clerk is all recalled item number three so we do not need to do that. I want to thank members for your patience could supervisor peskin has introduced this hearing i do want to knowledge that deputy chief intimate anthony brother from the San Francisco Fire Department is here as was david brooks and David Meyerson from the San Francisco Public Utilities commission they we presenting here today but before beginning presentation i would like to hear from supervisor peskin in any of the members of the committee the like to make opening remarks. Mdm. Chairman supervisor breed ill be very very brief. As we all know after the 1906 earthquake and fire the city realize it needed a redundant highpressure independent water system known as the auxiliary water supply system, aws us for short, that over the last hundred plus years has been buildout primarily on the eastern side of the city but subsequently has moved in a westward fashion. In 2010 it was a jurisdictional transfer of that asset from the Fire Department to our Public Utilities commission in a general fund cost savings maneuver. I will call it what it was. And last year it was some attention about a number of allegedly surplus parts of the aws us in that article brought me to hold our hearing was exactly a year ago. Unfortunately, those parts do not get auctioned off and are still city assets. That first hearing was really quite informative and we learned a lot about portable water supply systems and our system systems and would have been done in the 84 bond and would have been done in subsequent bonds and i thought it was time to get an update from the puc and or Fire Department as to the status of the program and specifically whats happened with the 12 inch hot [inaudible] concert which seems a little dubious to me at the time another Committee Members of the government and up Audit Oversight Committee last year as well is what happened to these spare parts and we are we are going from here. With that, i would turn it over to staff. Thank you supervisor jim baskin good morning david briggs puc. Favor the introduction opportunity to give you a state of the system report would get a brief presentation on joined by her several of my colleagues at the puc as was the Fire Department and be happy to answer questions during a drought or after and without international handed over to assistant deputy chief intimate rivera to begin the remarks. Good morning supervisors. My name is assistant deputy chief anthony with era. They took over this quickly. The San Francisco Fire Department emergency firefighting water system which is also known as aws us the San Francisco Fire Department retains a Collaborative Partnership with the sf puc for comanaging emergency firefighting water system also known as aws us which was immortalized in 2015 via and mou following the transfer of the system to the puc and 2010. The performance the formalized performance standards are the following. A stand alone firefighting system. That the sf puc show maintain engineering standards, seismic performance of components, must be the same word existing aws us standards. The mou also outlines the corridor needed Emergency Response and maintenance expectations for the San Francisco Fire Department and the sf puc. The sf puc also funds 50 of an sf deep position to monitor the system. I like to bring up mr. David briggs to continue the presentation. Chief, both up to the 12 inch hose your predecessor mr. Lombardi, indicated something that the Fire Department was supportive of, despite the fact that he could not give fire trucks much less cars over as you lay them out on the west side of the city in a [inaudible] what is the Fire Departments position on and how queen thats a great question. The Fire Department is edition is, after looking after further into the specifics of the fws the system we found there were a lot of logistical issues that were prohibitive and would be would not be a efficient system to deploy. We also, with my stuff 102 berkeley Fire Department, spoke to the members out there, and we did a handson drill. That was a 12 inch hose they were the runup diversity avenue in Berkeley Queen that is correct. We found was conceptually a great idea but we actually went out and tried to deploy it wouldve taken a lot of staffing that we would not have in that situation and was also some maintenance issues and some proprietary fittings that were that would have to be purchased to maintain the system. Do you were puc never purchased any of that hose or fittings queen that is correct. Nothing was purchasing collaboratively came up with the conclusion that although this is a great concept would not work in San Francisco. Then relative to the additional parts that are left over from the 84 bond, have you been able to look at those parts and independently assess whether not they have any value for the current aws assistant . Yes, sir. I attended with my stuff and imagery check of the current aws us components that are it three different puc facilities and we do agree that there are few items that are not useful today but weve also come up with an agreement to the sf puc that before any item is disregarded or removed that the San Francisco Fire Department would have have to approve the removal of that item. Thank you chief rivera. Thank you, tony get good morning tv breaks with the puc. The morning supervisor kim im a peskin and fewer. In 2010 the puc inherited the system there was a sense of pride just with a new water system a privately share with the hetch hetchy water system we operate regionally within San Francisco. He viewed it as a way of imparting some of the knowledge we have a water distribution to add value to the aws us. Through those characters taking responsibilities in the maintenance practices as was the capital upgrades that you will hear about another part of the presentation, the system is getting stronger and more reliable every year, year by year. The first subtask that we took undertook, is the new owner is probably the dirtiest task that was to examine the seawater channels or tunnels that can date they were to pump stations on the periphery of San Francisco serve as an emergency backup supply to the pipe network should we run out of storage. Over time, sediment and bay mud had nearly caught those channels up to greatly reduce the capacity of those stations. So with a very concerted effort by katie miller at the puc blood sweat and tears, took about 12 months we got the tunnels cleared and recovered the capacity of those pump stations. Probably, i would say the single most beneficial Maintenance Activity we did in terms of increasing the systems reliability. Mr. Breaks, have you tested a believe its pump number two at the base of van ness cleaned welders capital driven schedules under the easter bond when those are done we will but interestingly, theres a pump test plan for pump station number one thats never been conducted before. Grassley could charge the entire system from pump station number one which is Fire Department headquarters at second and thousand and five. What is the pipe network which we never tied before when is that scheduled for . Next month, soon. We just finished the capital upgrade were about to. I think it substantially complete. Number two queen about to start. Has that been cleared . Bs both tunnels have been clear but the nature of the capital upgrades and Capital Program are doing with the pumps themselves so the structural aspects. Pump two has not been tested yet we . Is been tested routinely by such award for two has that closed loop test just rainwater locally around immediate piping but weve neverto my knowledge, tried to go all way up the hill. At least recently. Doubt be scheduled . We will, yes. When the capital [inaudible] so second thing to highlight is the top of San Francisco literally at the top since the crown jewel of aws us the Twin Peaks Reservoir which is a 10,000,000 gallon reservoir facility. From that elevation we can charge the pipe network anywhere in the city with highpressure water without the use of power electricity which is of course very significant benefit in a disaster. Refill capacity of that reservoir is greatly upsize a few years ago. So this enables us to give that water coming in to refill the system that were utilized by the Fire Department. Effectively a spinning the storage available and supply available to the system. In 2014 was a five alarm fire in mission bay mud single structure highrise. The fired upon applied millions of gallons of water to contain that raise. There would have been a bigger dent were larger dent in the system storage had we not had this capacity. That was a single structure albeit a highrise. So this is very valuable in keeping storage in the system and we were pleased to see that come online. Over the years, we have been able to find leaks in the system that are keeping now that theyve been repaired the giving fire thousand gallons of water in the system that would otherwise have leaked out probably unnoticeable into the sewer somewhere. Thats why they were going on for so long. Now the water can be used, saves water, better for firefighting and indicative of just being a good steward of this water system. Maintenance of aws us is tricky. It involves specialized craft components are specialized they are unique. Youll get training on aws us some are ousted got to acquire the. The components are old and hard to get to but none of those challenges were not shy the puc with the Fire Department were not shying away from those challenges in using estimates used to knock it maintenance done. Were taking it on my finding the resources, and scheduling difficult work such as shutting down the street in the financial district just so we can accessible to their about or replace batteries. Mr. Meyerson will talk about the capital upgrades but of course thats pretty profound value in terms the performance of the system. Last, just to point out some of the remarks assistant deputy chief rivera, the more use this in our two departments. We comanage an asset. Its needed you need to know what they are doing and what we are doing 20 angelique also amends the system but i think the mou is more than the. Regardless of whether theres one department were three managing a w assess that document which is publicly available and i to have it recorded, represents the print for plaintiff to be taken care of the system. I think it has greater value in just a winning cup roles in response ways between two departments. The majority management, we maintain and still maintain spare parts on hand in the city locally so we can conduct repairs either plan repairs were emergency repairs. We also enough on hand to accommodate grace projects in San Francisco that required funds to be relocated. Central subway for example requires many many linear feet of aws as i find to be relocated to accommodate the project. Larger Scale Development projects make direct factory orders to the supplier massive amounts of material there. When its can and when its costeffective we refurbish the toes we have onsite that may be decades old but we are attempting to do what its costeffective. Transitioning to design standards, design is not Engineering Design is not a static field. Especially california seismic engineering. You want to take advantage of the best Available Technology for a w assess and we want to integrate that with a use through the use of a thirdparty objective reviewer was are already employing to a consultant. This is not an attempt to use other technology to save some money. This is a way of Getting Better technology and her performance into the system and using a thirdparty reviewer to make sure were using in the right way at the right time at the rate place. As tony mentioned, it goes without saying that the performance standards are what they are make only go up to thats not even a conversation were having and thinking the system is over design work trying that thirdparty reviewer were reviewers is what individual or company . Is to meyerson will talk about it a little bit but it comes in a couple different forms could essentially there are thirdparty consultants or academic folks debut the project from a distance peer reviewer if you will . Yes exactly. We been doing a lot when you peer review at this committee were familiar with the concept. So getting the other driver for some of the Design Change is to increase the number of suppliers that are in the marketplace. These specialized components over time have not yielded a big marketplace and the spiders are limited. Thats not helping. We want to change the design in ways that its been Peer Reviewed to get more people in the marquis that of audience benefits of it lowering price, increasing availability, shortening delivery time, which at times can meet 56 months for some of these components after you make a factory order. Thats another driver. Last, the many of the components in the old design the way pipes were put together involved leaded joints were led fittings as we call them. We would like to transition away from the use of lead in the water system even on portable system like aws as. So that does drive some of our design and it does render some of the components not necessary anymore. And thats just the last point to later on. No led fittings. Well, they are there right now. We are trying to not put any new ones and overtime replace them. But they are all the joints most of the pipe network. So that of course ill be here to respond as things go. We want to transition out of the capital upgrades to the system. The use of the easter bonds and thats mr. Meyerson zero. Thank you [inaudible] very involved and knowledgeable about the auxiliary supply system for many years. And some of the first people i was introduced to when i came to work your. They were integrally involved with the planning study done for easter 2010. We extended our consultant pool that way for our pipeline assessment. I apologize the second bullet should read, easter 2010, pipeline assessment not 2040. Jack baker from Stanford University and Michael Orourke from Polytechnical Institute assist us along with thomas over work and charles sullivan. Finally from easter 2014 and future bonds, we are in the process of making final arrangements with Charles Hawthorne to define the scope of work to assist us with those topics. The way our planning study involved, we sought to represent graphically the capability of the firefighting system gives a very supply system, to serve after an earthquake. The of an intact system to date after an earthquake. Theres likely to be leaks and breaks as we had to do a probabilistic analysis to determine what the performance and the system would be after a design earthquake event. So before any of the most recent easter bonds came into play, we did an assessment of the cities coverage and you can see in the current graphic thats been displayed. The goal is to move towards the darker blue colors which represent a higher reliability. So we divided the city into a believe it was 43 different fire response areas which roughly correspond to the Coverage Area from the individual fire stations that exist. We calculated how much water is delivered versus with the theoretical models told us we needed to deliver. We came up with a percentage for each of the fire response areas. Those were aggregated across the city to come up with what we call citywide reliability. Sue can see before we started the east upon citywide liability calculated at 47 . 27 the fires on series 3 not go below our goal of 50 reliability. So we embarked on easter toys and still underway. The graphic on display now shows that 42 of the projects are either in construction or been completed and six remain in design or in the bidding phase. The results that we expect for citywide reliability for firefighting have to after completion easter jordan are shown on the current exhibit. We will more prevalence of the dark blue colors and many of the fire sponsors have improved in their shading towards the darker colors. Citywide reliability grew to 67 and now 16 fire response areas are below the goal of 50 . We move into easter 2014. 15 of the projects are in construction were completed. Any remain in design were in the bidding phase. One of the key components of easter 2014 was an examination working to be known as a flexible water supply system or fw ss was discovered earlier today during this presentation. And some of the limitations of the department of that equipment have been described. So there listed here a little more detail and there were significant challenges to the concepts behind rolling out this system after an earthquake. Traffic control, lighting, Pressure Control various other problems that were identified and the Fire Department and the city Water Distribution Division determined that that would not be a project to pursue any further. So we are implementing to new projects. One is an extension of the auxiliary water supply system pipeline along victoria and holloway. Pretoria street and holloway avenue with the eventual hope that it could tie into the pipeline thats going to be built coming out of lake merced. That will pass through the Development Area in that area. When all that is incremented if its all implement it funded and implemented, it would not provide lake merced is water supply to the entire auxiliary water supply system which would be a big benefit for the system. Also another project that we are now going to institute is known as a [inaudible] pipeline runs through the sunset richmond areas could all discover a little more coming all. This is a depiction of the holloway victorian auxiliary water supply system pipeline could we will not be able to build all of it at this time with current funding. We will proceed from ocean avenue in victoria is that using the after uss money . Yes its a reason for the water system what was that . I dont have the exact numbers in the 20 25 million range. This is shown conceptually is which street we will go good with the maternal analysis to see victoria is exactly the vested with the notices of intent etc. But this is approximation of the people pipeline layout to be a long holloway avenue. Again well look at the various alternatives look of it is planning and design phases for that. Closer in towards the areas that are in sort of a lighter shade, that represents the lake Merced Development and adopt off to the left represents the lake merced pump station which exist today. Moving on to the pipeline, we started at Sunset Reservoir. Presumably and again well look at the alternatives on this, reasonably we rest on ortega north on 31st work to the park heading back e. On cabrillo st. Not all this can be funded immediately but we will apply funding from the easter bond as was from the water rates because a pipeline was describe a little bit more in the moment will do deliver on a daily basis to Potable Water to businesses residence and so on the features built into it engineered into it that allow it to be isolated from other Service Connections and provide allow it to be pressurized to a higher pressure see you get similar performance. To what you get with the auxiliary water supply system is the intent how do youwhat technology exists that you can isolate all of the sub laterals and all of the connections . A couple different methods. Theres some 12 hours activated a seismic event we have throughout the system out and motorized control values which typically install battery units nearby and they will be capable of running independently of the local pg e power source at that moment. Those can be operated to open or close as needed to isolate. Has anybody else done this . Has this happened in japan rather seismically challenge areas . In terms of controlling these hours or [inaudible] the of many of these motorized control valves within the system today that we operate and maintain i mean a cobenefit highpressure line along the lines are talking about . Not knowledgeable i can speak to whats occurring elsewhere. The was this concept is been peerreviewed by independent third parties mostly yes we intend to bring prof. [inaudible] to assess a was assessed a review. This is poor mans aws is because we can charge the rapier . Is that theyre mostly im not there to comment on that. Sorry. Onto the current slide pressure in the seismic hydrants can be increased for fire suppression. We have the ability to automatically and remotely isolate me pipeline from the bigger Service Connections after an earthquake. On a daily basis we do deliver audible water to residents and businesses as mentioned. We can leverage resources from couple different Funding Sources and it also improves spatial requirements under the street which tends to be a challenge sometimes. Getting all utilities in the streets. Before you get going we do have a question from supervisor fewer thank you very much supervisor kim. Yes, the question. What is the cost of this since which can potable the benefits pipeline . I see on page 16 of some costthese are in the millions. Is itso the whole for the richmond its 22 is that correct . Thats in the future. Thats a portion that is not going to be funded by the easter 2014. So, give me a second just to find my correct line. So the portable benefits pipeline for the sunset the contribution of the easter bond is just under 8 million. I believe its approximately 3 times that for the contribution from the water rates group. Hold on just one second. If the overall project its entirety is on the order 52 million but only portion of that is intended to be built using the easter 2014 bond funds. The rest would be captured by the rate payers . This abortion would be and if theres future funding from future bonds that can also be applied to that completion be so , sorry chairman can i want to ask one more question. So sorry im new to this and so when you say that this is from water rates, doesnt mean that just water users will be all of San Francisco water users will pay into this . Is not just some the areas it serves . Dave breaks again. We have the puc has funding from rates to repair and upgrade the Potable Water system we have a large Capital Program to rebuilding pipelines. We would use those funds to upgrade this pipeline to very high aws has seismic standards and produce a dual benefit thereby creating a nexus with the rate payer base because we have benefits in each area. So the funding is secured already . Well, so the budget debussy adopt just that the city does a twoyear budget. We are the middle of that cycle right now. The rates, the funding that is needed for this Capital Program actually i think it might be in fy 18 can that actually may be in part of the adopted budget. The Capital Program at the puc has is charted out for 10 years and thats bolted the rate structure which we adopt for many years at a time. So technically, some of this money may not have been appropriated yet but its in all of our capital planning. Okay. Thank you. So after completion of the easter 2014 work as currently anticipated, using the betrayal holloway pipeline as was the sunset portion of the sunset richmond portable benefits pipeline, we expect citywide reliability of 87 and now five fire sponsors will be calculated as being below the 50 reliability goal. How do you determine the reliability numbers . Theres a theoretical model as to how much water is needed various locations around the city. Based on design earthquake of 7. 8 san andreas, as well as density of the buildings, Construction Material and so on, a lot of that was developed by prof. Scott four and so we developed commands in each of the fire response areas and how many gallons permitted are needed to serve the theoretically derived fires . So the percentage numbers you see percentages you see are what portion of that water will actually the system be able to deliver. So its 50 is half the water of the present its all of the water. Those are individually verified by thirdparty reviewers . The lows the demands were provided by a thirdparty reviewer from a prof. Scott thornton is fairly unique calculation. So this is the professors seal of approval . Well, the lows would provoke by him and they form the basis of our planning study for easter 2010 and we continue to use those values in our calculations. The professor Scott Thornton has reviewed these ever increasingly dark blue maps and concurs that after the easter 2014 bond projects are completed that we will have this 87 city reliability . Professors hawthorne saw the maps the blue maps as they developed through the easter 2010 planning study. We refer to as cs199 which the contact number. We have not brought him into analyze the Methodology Since then but we use essentially the same methodology was developed with the guidance of prof. When we were working with him. Probably would not be a bad thing to have them take a look. He was may i have one question, chairman yes thank you. When looking at this chart on page 15, and this is after 2014 and looking at firefighting reliability am looking in my district and quite frankly im looking at my home that this spot here in the Richmond District remains this light to color. I am wondering what does this color legend willie tell us . When you were telling us you look at how many gallons of water new permit, you look at density of looking at construction of materials, what is it that in my neighborhood im still seeing this lightcolored blue when most of our homes actually i would construction, please very close to each other,highly president ial with businesses . Why is thisso i look at this color blue, and again, im sorry this layperson looking at this, but it tells me that there isnt as much protection as the dark blue areas. Tell me why in that section im seeing this bluecollar and what does that mean in comparison to the lowest level blue . Just how unprotected are we there i guess thats what i question is. Well, a lot of questions that identify can answer all them. Okay. The answer i like if it makes it easier, the answer doesnt have to be immediate but you can always email me the answer also. If you dont have that information or email the Committee Also but i think my main question is, when i look at this color, blue, in this segment of the Richmond District, what does it mean in terms of reliability in case of a fire . Why is it this color . House a change in the dark blue actually and was the mechanism to change it up more reliability . Those questions if you could answer those that would be great and because i think that would give me sort of a overall picture about this section of my neighborhood. Thank you. I will do so. So the next slide shows some projects that we recommend for the future. As a result of our existing Pipeline Analysis are some recommended projects that could be pursued. There some additional aws ss pipeline that is recommended and you can see the costs there. There also some structural includes the physical plants. Some of the tunnels of the reservoir and so on the weve identified as needing some improvements. So the projects limited to Land Development projects. So what improvements are necessary to support the various Land Development improvements around the city and what would be the contribution to the bond funds to that were the developers funds . Finally additional construction for portable benefits and the mclaren park area and the additional pipeline that we talked about earlier in the richmond area. So this map provides the reliability for firefighting after those future projects are implemented. Uca citywide reliability of 96 and zero fire response areas below the goal of 50 . Mr. Meyerson, is it my imagination, or in looking at that slide, 16, is the highpressure aws has pipeline less expensive than the cold benefit pipeline . Or is this a function of distance . When im looking at your diamond street for 4 million among holloway pretoriabased two for 11, University Mound west for you 11, and then looking at mclaren at 51 million, richmond at 22 million, it would lead me to believe that the a w ss highpressure is cheaper but perhaps an issue of linear feet . I like to introduce and summons project manager for [inaudible] there are consultant to the planning process through for easter 2010 and easter 2014 to answer that i love to hear from and before we do that the sunset code benefit pipeline is different than the future richmond the pipeline. Is that correct or are they one and the same . And bring that microphone down. Thank you thank you supervisor. They are the richmond, the sunset richmond totality includes the richmond pipeline. One pipeline going to be designed together all the way across the only question is, the level of funding for the initial stage initial construction how far that gets. The first question was is the costthe cost is higher for aws this pipeline. Its a function of distance so the diamond street extension is a relatively short extension from aws us up the hill into the dining area. Diamond district. What is the difference furcal benefit versus aws s per linear foot . I dont know what the top of my head. Sorry. No problem. Could you please, repeat poster foaming im sorry mark sweet and simons ms. Simons, relative to the second question which is whether that december single benefit pipeline was same or different, and the one on slide 16, what was your response to that . 16 shows the richmond extension the entire project for 52 million is both sunset and richmond. So is shown on slide of 13 is the whole project and shown on slide 16 at 22 million is about half a project . Well is less than half, yes. Part of the reason im asking this is well with me ask you this. What is the source of funds for slide 13 . Theres approximately 1 million from easter 2014 and the balance which i believe is approximately 3 times that amount would come from the water rates that dave briggs described earlier. Okay. The balance of the approximately 20 25 million going to use for fw ss is going to victoria holloway. Is that correct . What im trying to figure out is, that this cockamamie active uss skin you have abandoned. You have money left over. That money were now going to use for nearterm aws has projects at holloway victoria and for a portion of sunset richmond. Is that true . That is correct. The breakdown of that is 8 million to a portion of sunset richmond and the balance in some unspecified amount to holloway victoria . Portable benefits through sunset boat line is proximally 7. 85 million. The victoria holloway is the same amount to 7. 8 5 million. Then to place a pump station at University Mound to augment the pipeline thats intended to go in there is 4 million. That is separate and distinct from slide 16 pipeline for University Mound in the amount of 11 million so that is the pump station. So approximate, you said 60 million between victoria holloway and sunset richmond, plus an additional four for the University Mound pump for total 20 . Correct. Okay thats cozier 2025 guests on the aws us. Next question, which is along the lines that supervisor fewer was going down which is i dont see how you end up with your liability numbers after easter of 2014 in the other richmond and outer sunset assuming that you have only partially funded the sunset richmond cold benefit pipeline. I could see how you would get there in the future projects but insofar as that is only partially funded, it seems like you got to dark blue to fast. I mean ive no idea what im talking about but thats the way it looks. Ms. Simons tijuana comments on that mark sweet if you look at the slide but its 13, that shows the lineup into the richmond, pink visit nation on that which may be hard to see on the tv, is an indicator of how far we think we can get with that in 2014 and so we do actually get into that fra that westernmost richmond fra. So we allow that to be the full score and to answer supervisor fewers question, until we cross that redline on the map we dont get to your fra. So youre in between the aws us which ends on 19th, believe. One sound 12 and you need another source of water supply in the richmond. So we can get you from sunset or we can get you from the aws us and 12. So let meim sorry yes so i dont understand how this makes sense actually from the reservoir to pump water over to this area but how would this coverage actually meet my whole district excrete i know we ended i think opposition not to have with you is specific to my district is in looking at this map the youre giving us i can really understand how you think is going to be adequate water coverage in case of an emergency in the outermost richmond area. I know that right now, i see this dark circle rate out here this dark area on the westernmost part how is that taken care of in isolation of the rest of my district . To me is just odd, yes maybe thats a conversation we need to have. I actually, look at this upset over bit my neighborhood is going to be in the event of a big fire. I just want to look at this. Im not assured that my neighborhood is safe and prepared if theres a fire. I look at downtown i am sure downtown is getting all the water coverage they need. But i look in my district i am seeing this is very sparse good read i dont know the signs of it but what your responses have been also is not actually alleviating my anxiety about it. Yes. [inaudible] good to see you. We definitely need to have a briefing with you about your specific neighborhood to go over all the various projects we do have that scheduled with your staff could fortunately we were unable to get you before the hearing will suddenly schedule that but i want to point to the slide nine is after the 2010 and you can see that we then the score on the other richmond is still the two letter blues and then we state in 2014 we have 23 total projects so if we go back to slide tensor of those projects and can go to every single project that were doing, their projects that obviously bring up the scoring that Outer Richmond that are not necessarily this potable cold potable benefit line were talking about. So those 23 projects admittedly bring up this court if we slip back to slide 15. You can see the Outer Richmond score went up. I dont you think you may project and that is just as pipeline from the Sunset Reservoir is bringing it over so is that outer score aws us . The mark sweet the outer dark area in the richmond which is furthest west systems probably yes book about you all the projects within that neighborhood. I have those pretty but will meet with you why that outer score went up so when the human the with make and you bring the answers to the questions that i asked this gentleman . Yes i have them written down two things i want to drill down into the sunset richmond cold benefit pipeline. You said that the entire cost of that from the reservoir all the way to what is that, 12th queen ugly to cabrillo cabrillo, yes. Spears is how much money . Im talking i was simons referred to as the pink line which is phase 1. Im not doing the math off the top of my head but it would be four times the third 2 million. Approximately in the neighborhood of the third 2 million good we could come back to you with the exact number got it. The additional 22 which is in your future project on page 16, takes you from 43rd down cabrillo 2 24. Is that correct . If im getting the streets for you but phase 2 29th, believe it says. Okay. 29th, im sorry. Again, this is noti dont do this for a living and you guys do so take everything am saying with a grain of salt but be look at the distances are for me to understand that you can get fromall the way up to ortega always on 41st all across the park four 32 million and then a portion of it which is like less than a third of it causes additional 22 million. Is that because its cost escalation in the out years . You are very correct. This slide did not get change. The distance on the side that change yesterday and the number did not get change. So you are correct mea culpa no worries thats what these hearings are for. Its all fun. Heres the larger context which is thats called wade is supervisor fewer said just write it post on general six earthquake we built out be side. Its robust and i think were all delighted that you guys abroad it into the dawn of the 21stcentury the fire and pc are working together. Hats off to you. I mean it totally sincerely. A year ago we were going to deal with the gaps on the west side was through after the uss so todays hearing actually signals a complete turnaround and the sharon is that rather than using this 12 inch hose we are going to go down the road of cold benefit pipeline which was not what we were talking about a year ago. So the reason for oversight hearings that this is for us to ask questions and secondguess you a little bit and have a conversation that this is a seachange in a year but how were going to do with the west side and then we start asking the questions that we talked about a little bit a year ago which is okay, tell us what your analysis is as to why we are choosing go benefit over fw assess which i think we understand active uss sound like a good idea but would take a third army to deploy which probably was not going to happen in the middle of a huge else will fire event posted huge earthquake. I think we got that right but have we done any analysis as to why go benefit versus highpressure independent aws us extension with the cost benefit is on that . We did in the original planning study. Our initial three alternatives included one that had hyperextension through this area. Aws us by the extension to this area. The total capital cost that alternative was in the water of 600 million. Something like that. When we presented that to as the puc they said that is not going to happen. To extend aws us throughout the entire city so they recommended management and sectoral teams recommended we look at options that would find a nexus of where the portable system also needs to be improved and this is an area where the richmond potable system transmission lines need to be improved so this is an area where we can do both things with one project. Maybe. I mean, look you are pioneering it sounds like Uncharted Waters no pun intended and i think we should really have a real policy conversation about whether or not we should bite the bullet and talk about half 1 billion investment for the west side. Book we have a seawall to fix on the east side of the city in the district that supervisor kim and district i represent that to the cost phase 1 of that is going to cost on the order of three 400 million. Voters from the westside are not going to see anything out of that. These are the conversations that policymakers need to have which is should we bite the bullet and start doing more aws us expansions further to the west . This is been an ongoing expense of conversation for a century and 84 in the 90s and 2010 and 2014. So i would like to, if i may respect we say, secondguess whether or not you should be going down the cobenefit road and particularly, the thing that so great about the aws us system except for where you have to dredge, is that it as you said, a gravity fed system. Its completely independent and after 9006 style event thats what you want to have. I worry about backup batteries and what have you that you need to maintain because we have seen what happens over time despite the best intentions when things dont get maintained and the outflows dont get dredged. So for my money, i prefer to have supervisor fewer and supervisor tangs district with their own aws a system if we can afford it. As the conversation worth having. So just want to leave you with those highlevel thoughts in one year weve completely abandon fw assess and moved to a new thing. Thats keep our options open and on the table i like to know what is the difference in cost . Is it really as cheap as an order of magnitude of 10 . Is a 52 million versus a half 1 billion . Is that true . Has that been independently assessed . That would be held fully maybe my colleagues would indulge me we can have that hearing at some point in the nottoodistant future. Supervisor peskin i completely concur and agree. I would like to look at all options of this is a matter of just cost but im talking a matter of human lives of people in my district. So i dont want my district to be part of some sort of experiment or never been done before and i want to make sure that the people in my district and lets not forget, theres 80,000 of them, that theyre going to be protected and i want to emphasize again other than older part of San Francisco. Homes are built in 1922. Theyre all wood frames on a very quiet day i hear my neighbors flush the toilet could this is how close are names arent together good i would make sure with the ultimate protection in case of a fire. My husband a First Responder after 19 a. M. Earthquake i do not see him for three weeks and i think what can be seen a lot of people in my district for three weeks afterwards. So we will have to be with to declare ourselves. I want an independent water system that can actually deploy it immediately and we will need a lot of what he is saying this back up stuff. We have to depend on ourselves first 94 hours and we acutely aware of that. Were 96 hours so we are completely aware of that. I want a system that is independent for my district because quite frankly i think that we also pay property taxes we pay high property taxes we pay into the water bills. I mean, this is a matter of cost but sealed [inaudible] really had think its a matter of efficiency so lets not wait this with money but lets human lives and adjusting to emphasize that the largest population that is going in my neighborhood are seniors. Many of them are homebound and actually not able bodied. We have a very vulnerable population is growing in my neighborhood. I just make sure theyre protected. Thank you. Yes thank you supervisors. We certainly appreciate your concern especially regarding the westside. Our goal if there look our final slide must live 17 from that is the final slide you will see all of the richmond completely dark blue completely highest reliability. So start the discussion me to have this was the best way to get us to that dark blue good thats a discussion subject of supervisors want us to have. So they had a hearing and individual briefings will want to get to that dark do what is the best way of doing and what is the cost . Spews this was way down the weeds i apologize but i did bring up to mr. Briggs which is summary showed me a picture of some connections that an oldies were done with tie rods in the current days are not done with tie rods. Is that being a thirdparty independently reviewed . I realize this is serious financial but insofar as its on my mind i want to know if prof. Of workhorse hawthorne has said, yes this is a good idea . Spews outermost is we which are referring to are usually tie rods are used in pipe connections to ensure the principle apart they didnt accelerate. Its a form of the strange and engineering speak and that although the maybe different ways of achieving that axial restraint in the linear insulation pipe, we are not changing the performance. Inmate physically look different and katie miller or others may have some specificity on that but i need a little bit more information. Im just a visual person so these tie rods used to be as linear connections on the outside with collars and tie rods on the outside and lately, since the puc took over those joints dont have those tie rods. I just want to determine that some independent thirdparty has said that they are as well link and seismically resilient as the previous incarnation. Katie miller is here with puc to give you some response to that. Good afternoon supervisors. Im katie miller with formerly engineering manager at cbd starting in 2011. When the aws us was transferred. At that time, the design of new [inaudible] of aws us i was without tie rods and it didnt come to our attention until we took over the Design Projects and we were surprised that there were not tie rods in their befitting. There are still tie rods on all joints were all anyplace there is a fitting anyplace theres a valve, anyplace there is a deviation of direction but for the street runs, tie rods were not being used. That is the way the design standard came to us from dpw. We are now having a thirdparty review by a consultant. They are completely looking at the existing design were developing the design criteria that is at or above beyond more expensive than what the former design criteria was and we will have a full evaluation of the tie rods in future design. That is peerreviewed . Yes that is correct thank you. Okay. Thank you so much. To the department for presenting on this item. At this time will open up for Public Comment on item number three. I do have one speaker card. [calling Public Comment cards] i see 2 min. Here. Is that the amount of time i have . Okay. I will be if you need more time we can extend it thank you mr. Peskin. Pres. Breed, im glad to see her as much as your bomber fire commissioner this is definitely a fire related issue. Chairman kim, thank you supervisor peskin, brief background. My name is thomasi am in been a Richmond District resident for over 60 years. I cant seven years [inaudible] 32 years in the San Francisco Fire Department saw been a Public Servant for 39 years of my 67 years. I guess ill get right to the point here. In addressing the issue that supervisor fewer raised which is how do you go from light blue on the charge to dark blue . If you look at the cobenefit pipeline in the Richmond District which extends from 42nd43rd ave. To 20,000, i agree thats completely incongruous that this one pipeline without workup hydrides hydrants will be on the pipeline we dont know what kind of pressure be on the pipeline but am willing to bet its not going to equal pressure that is in the [inaudible] that goes to three and 23,000 pounds per square inch. The way i suspect and i would stand to be corrected by the people from the qc that theyll do start blue in the other richmond one tie such a pipeline with the unknown types of hydrants is the relying on systems because of the many systems into the richmond in addition to the few that were there before and i might say on a compliment them on the job theyre doing on the system. I know were the systems are being built in the city the time has been continued thank you. But the problem with the system the system is a great backup device. Its definitely making century device but its great backup device when all your water the systems failed which will be the case in a part of the city does not have the exhilarating water supply system. If we are depending on hardening some the municipal means off which come lowpressure hydrants on every corner in the city, we have to understand that also coming off those means are the Water Services going into every building in the city. 10 of the stopoff in an earthquake which is not implausible, we will have no usable firefighting water pressure in the lowpressure hydrants. Which means any area that doesnt currently have or have in the future highpressure a w ss hydrant with depending on systems. Systems as i said a great but a system requires two fire engines for every fire. One at the system and one at the fire. One to take take the water out of the system. One of the bar to add pressure so the water is usable for firefighting. Okay, i richmond outer sunset combined with promptly 42,000 structures. Mostly residential. Many are 60 or 70 years old but right up against read each other know fire resistant. Everyone took one of those 40,000 soldiers have gas pipes which is as old as the buildings. If one in every 1000 of those structures develop a ghastly it 42 potential simultaneous fires in the other richmond and outer sunset did the math is not that hard. We are left with some parts of these areas with only systems to use. Two fire engines require for the system. Three Engine Companies in the Outer Richmond, three Engine Companies in the outer sunset. Holy fires a gun fight from systems . Three. At the most. The other 42 potential fires if you think the math is possible, according to go unchecked. You have about an hour after major earthquake to establish a fire lines. If you dont do this, you will be overrun there will be multitude of collapsed buildings in major earthquake because the San Andreas Fault runs 1000 years off ocean beach. In these collapsed buildings will be people who could be saved if the incipient fires before two fire trucks that i spoke about can be put out were not down as we say the Fire Department in their incipient stages. If not you of all blocks going at a time. And thousands perhaps, tens of thousands of people trapped in collapsed buildings will burn to death. Now i commend the Public Utilities commission for the work theyve done so far on tweet bistros are in position number one, pump station number two. I do hope youre dredging and take the cm takes in not letting the silt buildup again because i need to be done on a rigorous schedule. For pump station number one and two. But to go with cobenefit pipelines in lieu of extending the age of uss is the voters were led to believe would happen in both 2010 2014 is a recipe for disaster. Tens of thousands of people will die if we dont have reliable immediate highpressure highvolume water source it in the 15 neighborhoods where does not now exist, we can talk what the cost of this although i believe debussys figures might be a little bit high. Im sure that something the supervisors can look into. Im not picking out one project as being good or bad or otherwise but lets look at the cost of the tunnel for Market Street to let say chinatown for lack of a more precise location what is the cost . I dont know. Can some of you might need. When under nine, 200 million. I honestly have not paid attention to that. The subway. Central subway. [inaudible off mic] a lot more than the cost of extending the age of uss to the 15 neighborhoods where does not now exist but if we dont do that if we dont extend the age of uss into the 15 neighborhoods, you will lose a major portion of San Francisco and you will lose tens of thousands of citizens who we burned to death. I was the captain of the engine, and also the Truck Company at 26 and geary for 15 years. Was the captain of the fire boat for five years. Primarily purpose of the fire boat is to supply the age of uss with Emergency Water in event of an earthquake. My last assignment headquarters i had the job tony rivera has now as assistant deputy for support services which oversaw water supply when the 2000 and bond issues past i was newly arrived in a position in a great hopes for working with the puc but would have seen in the past recent past is weve gone from what was sold to the public in the 2010 2014 bond issues which is which and extension ocean avenue etc. Such a addressing the need in the 15 neighborhoods were doesnt exist. Todont worry bout that will drop 12 inch hose off the back of a flatbed trucks even though the virtual impossibility of me never tried it. D meinrad cannot clean i will. I would suggest im sorry would you mind wrapping up isnt coming upon the supervisors of abusing another nonsense go back to something that been lacking in areas of the city that are far too large for far too long. Thank you. Thank you so much. Is there any other Public Comment on this item queen seeing none, Public Comment is now closed [gavel] supervisor peskin is the author of the hearing sponsor of the hearing. July test to continue this item to the call the chair please motion to continue this item to the call the chair and we can do that without opposition [gavel] thank you. To the puc and the Fire Department being here today for this item with the board to the continued conversation. Also thanks to supervisor fewer for attending our committee hearing. Adam clerk please, call the next item item number six a ordinance authorizing settlement of a lawsuit in Eminent Domain fight against the city and county is San Francisco against line rental b was before take a motion to getting closed session will take Public Comment on this item is there any Public Comment on this item before us queen seeing none, Public Comment is closed. [gavel] motion to go into closed session so moved. We have a motion we can do that without opposition. [gavel] we are now back in open session. Can we have this City Attorney . For the record proposed settlement with a positive recommendation and fortitude aboard. Thank you. Committee can we take a motion to not disclose closed session. We have a motion we can do that without opposition [gavel] mdm. Clerk any other items before the committee. Theres no other items. Seeing none, the meeting is adjourned. [gavel] [adjournment] i have 2 job titles. Im manager of the tour program as well as i am the historyian of city hall. This building is multifaceted to say the very least its a Municipal Building that operates the city and county of San Francisco. This building was a dream that became a reality of a man by the name of james junior elected mayor of San Francisco in 1912. He didnt have a city hall because it was destroyed in the earth wake of 1906. Construction began in april of 1913. In december 1915, the building was complete. It opened its doors in january 1916. Its a wonderful experience to come to a building built like this. The building is built as a palace. Not for a king or queen. Its built for all people. This building is beautiful art. Those are architecture at the time when city hall was built, San Francisco had an enormous french population. Therefore building a palace in the art tradition is not unusual. Jimmie was an incredible individual he knew that San Francisco had to regain its place in the world. He decided to have the tallest dome built in the United States. Its now stands 307 feet 6 inches from the ground 40 feet taller than the United States capital. You could spend days going around the building and finding something new. The embellishment, the carvings, it represents commerce, navigation, all of the things that San Francisco is famous for. The wood you see in the board of supervisors chambers is oak and all hand carved on site. Interesting thing about the oak is there isnt anymore in the entire world. The floors in china was cleard and never replanted. If you look up at the seceiling you would believe thats hand kof carved out of wood and it is a cast plaster sealing and the only spanish design in an arts building. There are no records about how many people worked on this building. The workman who worked on this building did not all speak the same language. And what happened was the person working next to the other person respected a skill a skill that was so wonderful that we have this masterpiece to show the world today. This is obviously a really fun part of celebrating our Irish Community and national day st. Patricks day for our friend, immigrants, our families, i am saying thank you for all coming and well do more speeching now. One the most symbolic things we can do is raise the irish flag in San Francisco yeah there it is [applause]
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