Transcripts For SFGTV BOS Replay Budget And Finance Committee 31616 20160323

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be sufficient funds-talk about revenue over expenses associated with super bowl l come a week may come back in the future after the controller's reports to deal with 50 port tenants, 150 subtenants i'm in receipt of this letter which you all may have from the merchants of the ferry building, who writes, the reality was a regular customers the people who lived here and shop with us frequently stayed away. the reality was that the city did not coordinate well with us and the resulting crowds mostly words of upset people who cannot get into the super bowl village wondered about making the ferry building an attractive. we had a spike in shoplifting and vessel as some visitors decided they'd rather take their anger out on us. the route is some top and sales close to 40% at one of our vendors had a event total 7 sales one day that we could our defenses went up as well because of street holders and disclosure. it goes on but should the be sufficient funds supervisor wiener, we can come back and revisit this but i think that we have a moral obligation to the street artists and the other valid permit fees and licensees that is what is before us today >> thank you for that supervisor peskin. i think my question is been answered to boil that down to what i think is now in the proposed legislation is that the $100,000 is very specific group of vendors, the street vendors, in the justin herman plaza general area, and it up to $600 per vendor, the $100,000 will be entirely consumed i those claims assuming they all made complaints. the doctor they all make the maximum claim it won't cover that. it's important to note that means for example i know there was a lot of discussion about the impacts of the super bowl on the castrol merchants and we do have some representatives of castro merchants here today. due to the elimination of the streetcar service but i think it's important to be for this legislation could this fund to absolutely nothing does nothing for the castrol merchants. i am imagining their other neighborhoods where the merchants are stating they were impacted as well obviously because my district is one hearing from. i'm sure my colleagues have heard from merchants in their own districts. so, it seems that when this was announced record was the perception that was something that would benefit a broader swath of march did it raises also subissues about how to prove which are losses when you were displaced. i can understand the simplicity of making a more narrow, but this is basically selecting one group of merchants to compensate and not compensate other merchants who may very well have suffered very significant impacts. for example, the customers who do a fair amount of forest business and historic streetcar. in addition to the broader impact of the super bowl city was obviously drawing a lot of people who may potentially have gone and chopped in other areas. it's unclear. so, either real concern about that. i also want to just say this is not a criticism at all to provide peskin is not a member of the board of supervisors at the time . in 2012, this board of supervisors including 4 of the 5 members of this committee to much everyone except for supervisor yee was not a member of the board at the time unanimously approved a resolution to 2 2nd motion old super bowl process. at the time, i don't recall hearing any demand that the city be reimbursed for police or for beauty service, which is something we don't charge any other street festivals good at the time i don't recall hearing any statement from a district supervisor saying my vendors are going to be impacted by the displacement and i want make sure the deal includes $100,000 were the case may be to compensate the physically displaced vendors. instead, in 2013 we heard nothing. june 2014 we heard nothing. in 2015 we heard nothing and then in the end of 2016 a couple months before the super bowl, after years and years of planning, after the money that was raised a $50 million raised was budgeted and allocated, all of a sudden there was a demand that we need 5 and others for police and muni and hey, we need money to reimburse and, save these vendors. i just question again it's not racism a supervisor peskin was not a member of this body until december, but other members of this board who do not say a peep in 2012, 2013 and 2014 and most of 2015 and then all of a sudden, 60 days before the event when i got a lot of headlines we start hearing a lot about this. i does have a real problem with that. this could have been worked out at the beginning as part of a deal. i imagine it would not have been an issue at all to say that $50 million raised you want $100,000 to subside for $200,000 for street vendors and now here we are with the proposal that doesn't even cover many merchants in the city who have stated they saw significant drops in business. i have a problem with that. i therefore to the continued discussion. >> supervisor yee >> if i may just respond >> supervisor peskin >> first of all, let me say we have as supervisor wiener indicated a plethora of activities in our public spaces good b-day street fairs, ebay in this case an event for a for-profit corporate organization national football league is a for profit organization. be it the america's cup come up but i do believe as a matter of policy, colleagues, to the 4 of 50 you got did not raise those questions in 2012, did not raise those questions in 2013, or 14 and only reasonable late in 2015, particularly given the america's cup experience and i personally enjoy the america's cup experience. i went to every single race but was not only aware that the city was losing a massive amount of money on that i actually participated in litigation against this body that i'm now part of because i do not think that giving a 11 peers to the 3rd richest man in the united states of america for 66 years was good public policy. so i agree with supervisor wiener that these issues should as a matter of policy be addressed, that the city should do with the city of santa clara did, which is to get full cost reimbursement, and i profoundly hope that if there are not millions of dollars that the city has realized from this that we are able to share with merchants in the castro and merchants at fisherman's wharf and merchants in the ferry building and merchants at boulevard restaurant were negatively financially impacted by this. >> supervisor yee >> first of all, i want to thank supervisor kim and peskin to bring this resolution. as most of us know, different artists and different business people that are really considered very small that something like what happened can really devastate their whole business. yes, i agree maybe this is not the answer to everything but am so grateful that somebody stepping up to say at least for the smallest businesses that actually great survivor all those in favor say, aye torus want to come we are going to actually try to mitigate some of their losses and hopefully as we see more income coming in that we can help out with other businesses. so, for me it's a positive thing. i don't make it a negative thing. in fact, one of the things my office has been looking into for a while now but we have not found the right formula is can we ask reasonable fund for businesses when we actually lose money from when street closures and beyond fairs, when they do construction in front of their business for 6 months that we know there's a drop in business. so, it's something that interested in trying to find a way to help those type of businesses, but today is about helping these 240 or so vendors that are very small and for $600, i hope it's not to be too cumbersome for them to apply for these things. it should be easy. because if it takes them a lawyer to figure out how to get the $600 it's not worth it. so, i will be supporting this >> supervisor tang >> thank you supervisor peskin and kim for bringing attention to this. i think my only, my main question reference for this legislation with a package here was what was done before hand, and so i heard the arts commission had tried to work with some of the vendors on this before the event started and i do know someone is here actually she's become what those efforts are? as cbr commission director. so, if you could just let us know what happened prior to the super bowl event and whether there was any outreach onto the street artist in the area? beatnik good afternoon supervisors on tom mckinney director of social affairs of the event arts commission. just to give some facts but the timeline and planning for super bowl l, the arts commission on the public record the impact of super bowl city on the spaces at justin herman plaza for the street artist just to clarify the street artist licensing program the program of the arts commission deigned back to 1972. individual street artists can pay quarterly for a street artist license. the annual total fee currently is that $750 for the annual fee. we first announced on the public record of super bowl city would be impacting the 116 spaces at justin herman plaza at our street artist committee meeting on november 4 and then we later announce to the whole street artist membership the memo on january 4 that the arts commission was working with the super bowl host committee to identify 10 alternate spaces to be created to enable artists to participate in the super bowl festivities. this is certainly not the number of spaces that traditionally would be available in justin herman plaza. but there were 10 spaces because shared with the super bowl host committee that were located between 3rd and 4th street to take advantage of the fact there would be increased for traffic. the super bowl l host committee did ask we assemble a pool of no more than 90s 90 artist to be selected so that poor was also made limited. currently, there are 313 artist license in the street artist program we have 70 artists apply for those 10 spaces to be administered via a daily lottery. >> so out of those 70, how many were able to get a space inside super bowl city? >> to be clear this is not immediately within super bowl city. it was adjacent to super bowl city on market street between 3rd and 4th street. 2 additional spots available as part of the regular street artist licensing spaces so that was approximately 100 other spaces you can regularly access the were not impacted by super bowl city. i would need to check with staff to see exactly how many of those 70 artists access those tend oftentimes the weather and other variables come into play as to who shows up for the daily lottery >> i'm glad to hear the was an outreach from the arts commission before the event and he said the vacation went out in november. but >> november of 2014 winter public notice hearing to discuss super bowl city would have an impact on spaces at justin herman plaza. at that time we did not have a clear plan of the designated alternate spaces but we announce on public record we were working with super bowl host committee to identify alternative spaces. was not until january 4 of 2016 that a memo was sent out to all street artist confirming the spaces and the plan for implementing them >> so, i don't know if this might have to be answered by some of public, tours here today but to understand that despite this effort here why some people were still displaced or not be able to sell their goods during the super bowl the studies, so that is something i do know you can explain but maybe the artist, they can share what happens. >> i would deftly differ to each individual street artist position and story but we have heard concern from a number of street artists that historically access the lottery spaces at justin herman plaza at a place where there is the greatest amount of foot traffic and that sales than to be a bit higher in justin herman plaza then at some of the other sites around the city that are approved by the board of supervisors. >> thank you for that rundown of events. i think that my other concern was about the broad 2nd category of uses under item number 2, which was any other business adversely impacted by super bowl related event at the figure supervisor wiener pointed out castro district isolator from our urban street merchants even that with super bowl coming why were they able to benefit from certain things and again, if they raise issues about people being jampacked at one part of the city not route to the western part of the city with a qualified for something like this. so, i just thought it was overly broad but if it is as what supervisor peskin stated earlier it would not apply to them to my that i think perhaps the language should be fine tuned their. i leave my questions at that. ongoing to listen to the public comment but i want to say i'm very supportive of the street artists . i had many close family members who work in that same role i would say half of my jewelry collection home is from street artist. so the terminus respect for them. i do want to make sure that we are really looking to address these issues before events happen so we can prevent this from occurring in the future. alternative to my colleagues >> supervisor kim >> i just want to ask if the arts commission is supportive of this appropriation establishment of the fund? >> yesterday our staff has been working closely with supervisor peskin's office and the contorted out the language used up before you today. we would be happy to work with the controller and the supervisor's office to ensure aransparent and thorough process of any claim so be filed to administer the funds >> i just want to address some of the questions and concerns were brought up by members of the committee. first of all, we did very much want to delineate which businesses would be eligible for the fund because we knew that there could be an infinite pool of businesses were impacted by super bowl l. i certainly heard from many of them in the south beach corridor said they lost business due to the special event. we know there was a direct impact from the displacement of the village for the street vendors that specifically are at these locations that lost business and that is therefore how we limited the scope of the universe of businesses that will be a tuple. otherwise, this could have grown into an infinite fund and would've been very difficult for city and county to administer. but i think it's important for us to tell the narrative of how this historically happened here in the city and are we tell the narrative to our voters could when we are supported the bid in 2012 it was a very simple resolution saying we supported a host committee being formed to bid us to host the parties for the super bowl. there was nothing in the resolution about who would pay for the cost of the event, how much would get raised from what the expectations are, and from the board of supervisors perspective as we went out to that we thought all that would get worked out later. in fact, this board did ask questions about the cost of the super bowl and masters budget process that came up in every single department hearing and what we got the cost of the event were little under $300,000. the only department to summit the cost was the department of emergency management and i believe a little bit from the fire department. we approved those cost it we said that was appropriate and reasonable and 11 members of this board and said we support that. there was nothing about a $5 million price tag for the cost of that event. last year would've been the appropriate time for the department to that those cost for the upcoming fiscal year. this port started asking questions in the fall. we knew the event was coming closer we want to get a good understanding of who was negotiating behalf the city and county of san francisco. we asked over and over again finally we were not getting answers and supervisor cohen call for hearing in october demanding a response. in terms of what the city had finally negotiated. unfortunately, this board does not see contracts below $10 million or below 10 years. that is something we're trying to fix the ordinance supervisor avalos, peskin and myself trying to make sure this never happens again. america's cup i think supervisor avalos to talk what this board to make it clear we want to fund raise for the cost of the special events that's what we are able to negotiate the america's cup course endeavoring to not quite cover the 11-$50 million bill america's cup cost the city but was something we had negotiated and asked for back in 2012 could i think that certainly is appropriate that the board would ask for that again with the super bowl. so, i think all this went up to the situation where here today were returned to make cold after event has occurred for something that we also agree should've been taken care of before as santa clara did for hosting the super bowl on their end. so, i think it's important to make those clarifying comments subsidized and how this nerd truly occurred. >> supervisor avalos >> i want to respond to the resolution stated by supervisor wiener. it was a similar resolution akimbo for the board of supervisors regarding the america's cup. for any negotiations happen and actually we approved the resolution i believe unanimously because we can expect the resolution was going to say giveaway the store. make sure that merchants who were displaced get some kind of compensation or anything else that was going to the detriment impact on the city we ate supported the idea in concept. when we approve the resolution regarding the super bowl, we were actually the middle the whole america's cup discussions and those are really difficult discussions that we are having to make sure that we were not to be shellacked by larry ellis and not be giving away the store to larry ellison. we didn't. we actually saw that actually the impact of the america's cup to san francisco was up with about $30 million to our general fund. the port was able to get some facilities out of that 12 offset a potentially was going to be there was a big hit us america's cup did raise the money they were supposed to rate to be able to offset the funds to say. so we were hit hard. there was a context we approved the super bowl resolution. we're expecting the city was going to be hard negotiating to make sure we would not be socketed to residents. i fully support the idea of reimbursing people. i believe this huge impact not just the people in justin herman plaza were super bowl city was but merchants as well. all of our san francisco. we had castro margins as well who are affected. other neighborhoods as well. we also saw a lot of services delivered public safety services that were moved from our district to serve the super bowl city event. that was actually a minimizing diminishing services in our district all for the nfl to make a profit or to sell their merchandise for their own profit. that's just-i'm hoping we don't go through that process again. we have a resolution that is about supporting big corporate events that would not necessarily give away the store when we approve that. i will leave now but i had to comment because my ears were burning. >> thank you. i appreciate your comments and appreciate all my colleagues comments and policy disputes here that's been going on for months. i would just say a few comments here. regarding these measures. i very much do support of our small businesses especially our street artists and everyone else. curiosity. a few things though that bothered me about these items. first of all, to me, it is in many ways out of much respect to my colleagues, however, the height of hypocrisy that my colleagues were the ones bashing our city on a national stage for weeks leading up to the super bowl but being vocal meteor national tv and really causing a black guy on the city of san francisco. i don't think that's what we should be doing here as members of the board of supervisors. it's fair to question policies but to take advantage of the situation of that magnitude for some political coverage, i think, was completely unwarranted and fortunate for our city. and bad for our city. for these colleagues to be now saying given that there are-we are spending too much money on the super bowl to now say looks like were actually going to make money on the super bowl so let's than the profits on policies that we care about, ideas ironic and incredibly hypocritical. 2nd of all, the president we are setting here as well as was discussed funds ago we put on many large civic events. san francisco weatherby are gay pride parade, but chinese new year's parade, we are free week give so many things that i'm failing to mention here. all we not going to be going to the same exercise every single time we host a major civic events here in san francisco? we have not talked about that yet another would create a slush fund here that is not tailored and i think we need to do that in the context of every other event that we have here in the city of san francisco. if we want to do that, let's do it. but to isolate this for my perspective , permit political angle to me is unfortunate. lastly and most importantly, for my perspective today, is that we're doing this without full information. our comptroller's office is doing a full report on the cost and the revenues of the super bowl to the city of san francisco. minor thing for mr. rosenfield that report be done within a month. i have no idea why we are considering this item , item number 2 especially item number 3 when reallocating funds without actually knowing it for in the black, but from my perspective, what we actually need if we are in the black, and i hope we are, but my comment colleagues we should talk like this when the needs arise. i think we should have an apology for my colleagues who are criticizing and badmouthing the city of san francisco on a national stage if we are to make money from this event as a city. so, not to be supporting this item today. be happy to continue this until such time as we have a full accounting from our comptroller's office over the cost and revenues from the super bowl, but since we don't believe in it today. supervisor kim >> i'm not sure which my colleagues made the comment that we made money off the super bowl. i don't think we have determined that yet. we arty no san francisco does well on hotel and sales tax the month of february we know our hotel occupancy rate without the super bowl is anywhere between 80-90%. so the question for me is how much above and beyond what we have normally made that spending 5-$7 million on the special event did we actually make. i'm sure we made money from the super bowl the question is, should we make the same amount as we normally make? do we make only 5 million more which is breakeven. those are the questions we need to ask. i think regardless of whether we made additional income from the super bowl event we need to have a program that at least tries to endeavor to make whole these versions that we note definitely lost business because of the super bowl displacement that occurred. i think, regardless of what we've made in the city this is what were putting forward for the merchants who were not able to sell any of their wares because of the special events. i also really disagree with colleagues that say we should not be thoughtful and critical in terms of what our public policy option that positions are. i still hold to this day that we should not be subsidizing private corporate events. san francisco. i think there is a humongous difference between a corporate entity like the nfl and their marketing that occurred here in san francisco and civic celebrations like chinese lunar new year and gay pride parade which are marketing vehicles for specific corporate entities that make over $12 billion a year. the nfl makes over $12 billion a year. it's top seo in 2012 8 $44 million and lester made be something million dollars. for them, $5 million is nothing. weaver sitting country that is a 8 $9.9 billion budget and i think whether we made money or not from this event we should be subsidizing private corporate events even if we make a $9 and this event i think is a public policy matter we should not be subsidizing private corporations and subsidizing their marketing parties. now, doesn't mean we don't want them here. we certainly welcome them here. i just think the city should be negotiating strongly for our residents and our small business owners that are public taxpayer fund should be going toward other needs in the city. but it's housing or family supporting our small businesses could so, it's not a question of whether we made money or not and that's how we determine whether we subsidize private events are not. i think truly public policy question is how we spend public taxpayer dollars and i think any of our colleagues should apologize for making those statements in the public. in fact recently represent the sentiment of many of our residents and small business owners. this is a country where we encourage lively debate that we encourage a diversity of opinion. that's only make good policy decisions and no one should be censored from doing it. it's not an attack on the city. it's merely a discussion in how we best spend down public taxpayer dollars is certainly a disagreement on the floor. i don't look down upon the position that my colleagues have though we should be subsidizing these private corporate parties. they believe this is a good investment of taxpayer dollars the government turn from investing in this event. i just disagree with utilizing our public has fared dollars the way, dorothy is bashing the city to say that somehow we should utilize it to nor is it a criticism that is a good investment in public taxpayer dollars. i think important for us to have vehicles have this disagreement both here in this chamber and in the public as well. >> site ratios, civil charges supervisor wiener and a 2nd but i do want to make a clarifying comments and an objection once again. i appreciate the talking points from 2 months ago have been hauled out once again. the events that took place in the city of san francisco were put on by a nonprofit entity that was formed for the city of san francisco and the bay area. it's not a private corporate entity. there were no private parties that were subsidized by any public dollars. these were events put on by the super bowl host committee. that's as supervisor wiener mentioned raise over $50 million here in the city of san francisco over $30 million went to local bay area nonprofits. i think shane for criticizing them for all their efforts they made to put on as well all of the free events that happened down on the water. the thousands and thousands and thousands of people that attended and also were unfortunately shut out because there wasn't most space of the free, along the waterfront and all the other bands in the city of san francisco. again appreciate these talking points but i think they're completely misplaced the time to talk about the truth about exactly happened there. talk about the benefits that we've seen from it and look forward to the controllers reports to analyze the next profit or net loss from the event. absolutely agree we should look at above beyond what we normally make during those months and during that week in february. supervisor wiener >> i don't think anyone is being censored here. in fact, supervisor kim has been incredibly vocal for months but this and has been anything but censored and statements she's been made public and no one suggesting she wants to make it i can make whatever simmons i want to make overall subject to criticism the statements we make them especially if were providing misleading information. i think i want to reiterate what supervisor farrell just that. this is not a private event. this was an event open and free to the public. one can support or not support having a super bowl city could perfectly legitimate topic of discussion. everyone is entitled to their opinion but one really heard savings especially early on that this was a private event for billionaires over and over again private party for billionaires, private party for billionaires, i went out to super bowl city. i was wondering if his current people to meet also to billionaires everywhere. i may have seen some billionaires. i can always pick out a billionaire and a crowd but what i saw was an awful lot of just regular people from san francisco and from the bay area and elsewhere were there with her kids were there with her friends and there with her parents walking around enjoying super bowl city. the mantra we get hearing it's a private party for billionaires. the private party for billionaires and that is a huge disservice to the public. we don't super bowl city, it's perfect as a i don't super bowl city. i don't like you could animate we should close down the street. we should've kept it open and celebrate in different ways. perfectly legitimate opinion trap that this whole business of a private party for billionaires is especially early on supervisor kim was articulate over and over again was a disservice to the public.. in terms of private events were privately sponsored events, david breakers is a sponsor by for-profit. we are not asking beta breakers to pay every penny of muni service and police service that is needed on that day. so, i think putting all of these issues aside, because we continue to debate should the host committee have raised is that of 50 million raised 55 million to pay for muni service, to pay for police? i get market have a point of view. the biggest issue is not whether we have a point of view but why ways that just a couple months before the event? one not asked those questions in 2012, 2013 and 2014 for most of 2015? why be out in the news and on tv and in the paper it week, 2 weeks, 3 weeks before this event but it's clear it was absolutely too late to do anything about that. $50 million that this nonprofit host committee had raised have been allocated 13,000,002 youth serving nonprofit money to pay for the host committee money to pay for the alicia keys freak on the concerts. it had been allocated everywhere the host committee to pay it had been allocated everywhere the host committee to pay $5,000,000.03 municipal services like police and muni, the time to do that was years ago. not after the money had been already allocated. so, that is just i think a huge issue here to start raising the issue and to supervisor farrell said give a black it san francisco when it was too late to do anything about it as opposed to earlier on when if you really believe that you could potentially done something about it i think it speaks volumes. >> supervisor peskin >> i don't belabor this matter. i realize that i sit in a unique position insofar as i was not here in 2012 or 13 or 14 and didn't get here until december 8 of 2015. let me at a high level and others many people come out here basically defer public comment but let me just say first of all, if you look at this item, the source of funds can be for the super bowl l impact funds private donations. those private donations could come from the host committee and supervisor farrell i know that as a member of that host committee efforts that you endeavored and did indeed raise tens of millions of dollars. as you indicated, some $13 million went to nonprofits and to charity. here is my position. we are on the board of directors of a nonprofit charity called the city and county of san francisco. we have members of our nonprofit and they are our street artist. they are our vendors. i'm not here to rehash the public policy considerations or point fingers about this board's previous choice to host this event and knock it cost reimbursement. my job here today is to take care of a bunch of street artists licensees, and burmese who i believe are our moral responsibility and obligation and with that, i'm ready to call up the speakers >> supervisor kim >> passion for the sake of the members the public of it waiting i will do for my comments until after public comment >> i will just make one last item may be apropos here. i'm actually momentarily for sure while to go to a parent teacher conference but i do want to say also in the context of calling this private corporate events, i spent a great deal of time that it super bowl city and also the nfl spirits into my perspective it was a family events. i saw so made children and families and parents at these things. my young son and daughter could not get enough trying to get the ball to the field-goal at the nfl experience with great failure that day. but they're the most amazing time and to supervisor wiener's comments as well, calling this a party for billionaires, it just so misrepresentative vote was actually taking place. at super bowl city and around san francisco at the time. so, my apologies for having to scoot out. i'll be back shortly as soon as the parent-teacher conferences over. >> thank you i like to call the first speaker speak on. [calling names] >>i support the reimbursement for the street vendors who were shut down to make room for super bowl this davies. this is the least the city can do after treating them in such an unjust cavalier manner. disrupting peoples livelihoods just because of a football game. with the approval of this proposed funds you can make a move to help undo that wrong, to help remove the harm and embarrassment of the cities unsportsmanlike conduct. >> thank you. next speaker, please. >> good afternoon, supervise. my name is-i own a business called-i'm the only retailer on that street who is shut down for 22 days could for today zero i could not open my business. i had the interview with cbs local news. i do of the tape here. if you want it so i can show it to you. for 22 days it really impacted my visit. 75%, down. >> thank you. next speaker, please. >> good afternoon, supervise. i must have skype. i did a street artist since 1974. i'm here to speak for my wife who cannot be here. we love the big events that the city hosts. we actually do quite well when they are here. some of them do displace us at justin herman plaza might be for a day or 2, but this one was a lot larger. in fact this was kind of like the houseguest would not go away. we heard about this in the late summer and we also heard was an el niño year. so many street artist like to work much more to make up for one might be a terrible rainy season and also the nfl events. so, we do not hear the details of the event we figured maybe it'll be a few days were long weekend. when we did hear the details of the event that it was good to take 11 days to set it up, 149 days, and then part of the next week another 4-5 days to break down, suddenly we were displaced. as artist, was for the home team on that turf. we were there and we are at the beck and call of parks and recreation and sometimes we are displaced but for a few days and we can handle that. but when the nfl events came and seemed unwilling to provide of is considering the huge size of their events, that they didn't want to have an arts and crafts section for us, that they said will put the money outside what was 3-4 blocks away on the other side of-were people at the wood through security so yes it was a lot of traffic coming down into that area but that traffic was running down for that event. so the people that did work their pre-much they saw people on the way tried to get into that event. as much as we love to have these events in the city i hope this sets a precedent that when the city is negotiating for a big event that will displace people will take into consideration some the small people like the artists who will be displaced and you cannot make up for the time lost especially in an el niño year. >> may i ask a question? you mention you have been waiting to hear the details of the event mib this many days in the later heard how ashley be one was that roughly? >> there was a small super bowl city in september. it lasted about a week and we lost the plaza but we had spaces adjacent to it on market street. so most of the artists who want to work were able to work right next to it. so we thought that probably could be pretty similar to the january event. but we do not hear details at all from the arts commission or our program director until really until january. i then, it was kind of too late for people to make other plans and as i said in an el niño year you to work every sunny day you can. course, this year the super bowl was very lucky that some of the best weather that week while they were setting up and leaving. a lot of street artist lost a lot of time and business but which can't be made up. i'm sure they'll appreciate 6 and her dollars if it comes through that's hardly the amount of money they would've made >> clarify again i know that some comments we should try to work many of these issues out in advance try to figure out how to find, but you yourself did not know the impact the length of displacement, even if you would be displaced until about january, maybe 2-3 weeks before the super bowl l began? >> that is correct. not until the whistle blew you might say the game >> thank you. next speaker, please. >> good afternoon. my name is charlie randall a member of the city street artist program. i have a license to sell since 2011 could i make and sell expedia jewelry and related products i sell at justin herman plaza 2-4 days per week. it's a large part of my income. i sell at justin herman plaza because down there we have a working environment. when not isolated workspaces and other parts of the city. we actually form a community there and work it is a destination people come to visit could we also level with parks and recreation looking after the plaza and we handle a lot of the situations that happen down there. that's why don't sell spaces in the city. as i mention i've had a license from the city of san francisco, and when the super bowl event came in all license sellers were removed from our selling area by the very same city that cuts the money for licenses to be there. the super bowl as far as i know didn't pay anything for their use of justin herman plaza or the surrounding streets owned by the public did not only with the laces artist removed for the weeklong event were also removed for the week prior and the week after that even though the sidewalk cement open to pedestrians during the set up and tear down we were able to use our selling area for 3 weeks. unable to make a living for 3 weeks and the supervisor spoke provided no conversation, no viable alternatives despite cleaning otherwise and the city did not put our license fees. the so-called 10 spaces (market were highly restricted and not available to everyone and the income that each artist varies but the president has been used to in her dollars per day as a general sales figure. with oakland succumbed to justin herman plaza, that's what they paid to compensate people. artist working 2-4 days per week would've lost 1200-$24 for a three-week event. some artists were lost more money. thank you for your support. i would just say to the others of visor may not be supporting were doing here think about or be like if you us 3 weeks of income for some internal party in your area. >> thank you. [calling names] >> supervisors among my name is linda patterson i'm one of the artists at justin herman plaza. like to add to what i spoke about here in february. the 3 free will and careful the life of the artist can be shown to be a myth for artists want to have the opportunity to sell their work in san francisco. here are documents, all of us needed to obtain and display in order to sell our artwork. these are the california state board of equalization sellers permit, city and county of san francisco business fax registration certificate, and san francisco arts commission street artists license. originally applied for my street artist license in 1970 and was waitlisted 2 years before i was able to go through the screening process and paid a fee than $80 a year. the business fax registration fee has risen in 2 years from $25-2 $76, 2 $91 last year and last year the bureaucracy and the tax office was so befuddled as to been unable to track my receded cash payment for 2 months and 4 in person visits before was successfully resolved. so, you can see we are artist. were also businesspeople. my business expenses for just january alone totaled $596. that figure includes square fees for transactions in the price of a new jacquard contractors leader a new phone to be able to use the new leader by quarterly street artist license renewal now $179. and that's a 2015 fourth-quarter celtic. if you had half the rent on my sro hotel room and half before the figures $973. you a days of brain and 9 days wasn't super bowl city by income was $252. i would have sold the 3 saturdays during the $22-as for reimbursement for those 3 days and i also mention the to and her dollars paid to us by film crews when they take our spaces and hope you will consider that as reimbursement for us. >> thank you. sorry for what you are going to. next speaker, please. >> my name is jonathan oriana get on the finest venture for-a chocolate shop in the ferry building. i think the most important figure for me to give you right now is that we do about 40% of our total annual revenue with christmas and valentine's day. so super bowl city straddled valentine's day and pretty much killed it for us and a lot of vendors in the ferry building with the exception of the pool had food and drink. we had a 32% decline in revenue and that is just for the week of valentine's day and the 2 weeks leading up to it. that amounts to approximately $50,000, which for small business a lot of money. conveniently, we assigned a lease for a 2nd location for us which is going to cost approximately $50,000 for us to build out. this money were counting on. one of our biggest hobbies. we had access peril because her planning on big blowout event at least the way it was sold to us it would bring more traffic and also bring more revenue. the exact opposite was true. i would like to comment on hearing a lot of statements by supervisor wiener and supervisor farrell could've should've and one of the things i do. we are here and even in light of recent discussions recent comments is seems that this fund would not apply to my company and still i like to say i think there's something to lease owed at least to street artist. people are promised a spot in this area who pay for spot in this area and are displaced for another event regardless of being corporate or nonprofit. i think the discussion that san francisco could possibly be in the black on this event and having that positive income should absolutely be shared with the people who were displaced the people are not that hard time paying their bills for example, us who can no longer grow due to the operational hardship that this event has caused. >> thank you. next speaker, please. >> good afternoon, supervisors. my name is nancy bill and selling my artwork since i've been 15 years old. it's a long time. i've actually gone through 3 super bowls in this one was the most terrific. horrific. the claim that by the arts commission the people were not notified is not entirely true. at the november 4 meeting kate patterson was not in the chamber was behind the commissioner and behind howard was our the director of the street artist program whispering in their ear that they did not need to respond to public comment and they did not to answer anything. she did not even identify herself to the people, the street artists were being impacted. there was a member of the media there videotaping did she give her card to that person and later gave false information in an interview to the san francisco chronicle. that's pretty common. that was clear and deliver it. people were not told. the questions were not answered and they were hit with this just like that. i think there's this other thing that i struggle to talk about, a number of us had our artwork confiscated. in my case, it was a loss. it was about 3 months of work i was told i would get a letter to the later, letter never came. so i would urge you to support this. a lot of us are struggling. >> man, and he's the just-can you speak you are were being confiscated? can you speak about? >> i was at the montgomery bart that i not gone out to work for quite a long time. i just came out of the hospital. a lot of people came up and surrounded me. first they tried to bait me to i've super bowl pins? no, sir i don't have wasn't. oh by 100 if you have it. no, sir i don't have them. so there was a lot of discussion . more people came. i got a property receipt. i didn't even know what agency they came from and it's only by making a lot of calls to washington dc in this time there was able to follow freedom of information request and am waiting to find out where my goods actually went. i was told by these people among homeland security, some detail that would get a letter 3 weeks in the mail because it was artwork. no letter ever came. >> thank you. next speaker, please. >> good afternoon good i'm bill petrocelli one of the owners of-a bookstore in the ferry building. briefly, on the impact on escobar business during this period time was depleted by about 35-40%. every 10 in the ferry building had the same problem. it's really tough sometimes to get this business back when people go away and they get out of the habit of coming to your store but it wasn't just the loss of business. it was the increase cost. the delivery people had to take another hour to go all the way around the security area to come in from the southern part of the city to get to the store. we have problems with our staff getting to work at some of the bart stations were closed off. there's also the question of increase cost being passed on to us from the trashing of the building. i want to address something one of the supervisors raised early. yes, the city does big splashy dance there's a trade-off and sometimes we benefit and sometimes we don't. the trade-off is, when you have something a big event yes, a lot of the local people can't come to the business that they would feel deterred but you feel like you may get some business from some of the people who were there for this one big events. that's the thing that's sometimes it works out. but this one was different. it was fully different in a way that nobody has addressed so far. that is, within a couple months before the thing started, the decision was made to put a security fence around the super bowl party. this affected us more than anything else. because sure, i'm in favor of secured. there was a real security threat to proper response would be to put more security in the middle of the party. security threat was so great that close the whole party number if there was a security threat like this but the decision the city made to the whole fence around this area that basically lasted for 3 weeks was what impacted us more than anything else. when you have a fence like that >> surgeon about your time is up >> sure. but only do impact the economy because you don't get that back and forth of people coming in, you don't create a security real security. think about this way to go through security at the airports all of a sudden you decide you either cannot you not going back past the security line to go get that candy bar as you don't want to wait in that extra half hour. that's what happened here. people went into this place would not come out >> we've got your point that i much appreciate your raising it. next speaker, please. >> my name is hannah soaked and i am a skincare massage studio and the lower pacific heights district. so i was not physically displaced by the super bowl. however, several supervisors spoke about the ripple effect that is happened in several other neighborhoods and i want to take the time to speak to that today because i have a appointment based business could ibm business since 2009 semi revenue is pretty predictable throughout the year. during the week of the super bowl i was at about 50% and people called and e-mailed means that so he said they were not coming to the city because of predictable traffic jams and some people were not even leaving their houses. to come to appointments with me. so, my revenue for that week was down by about 80% and i have like i said people contacted me specifically citing the super bowl traffic and street closures and all those things surrounding that. so i lost quite a bit of income. >> thank you for your testimony. next speaker, please. by the way all this testimony i think is very helpful to the span of the entire board. >> i name is-and i own a mobile food cart called-give 2 months downtown in one of the permits is on market street between drummond and davis. we got a notice from dpw on january 19 from jenner 23rd for 3 weeks we could not operate. it was not enough time-dpw work with us to find the location it was enough time to get the location to inform my regular customers. 75% of my business or my regular customers that come everyday. [inaudible] my main concern is one is the timing of when we were informed just 3 days before closure we were going to be displaced. my 2nd was the length of the closure. a lot of supervisors earlier mentioned the city does hold gay pride parade, other big events but all those events are contained within one-2 days. ask a business to close down for 3 weeks or for a month is quite a bit of time to expect a business to operate. so other events, they come in as a san francisco president i'm very proud [inaudible] and their 31 or 2 days. 3 weeks the super bowl event was asking businesses [inaudible] >> thank you. next speaker, please. >> i know one street artist that left the country because of this. he moved to brazil. he was living as a neighbor of mine and his recreational vehicle industry to we would have coffee every morning and talk about what's going on in our city. on top of all this i lost a friend because of the super bowl. i actually lost a friend that had to move to brazil to get away from all this nonsense. this was a real taking of the commons and i so feel by the other man said about the security in the fence, i go to races and parades and it's inclusive. it's all-inclusive. everyone is included. this was not. i've never seen an event, be it a gay pride, the asian lunar new year parade, i've never seen a thing where there is these huge machine guns. anyway, thank you so much. these, peskin kim please keep asking the hard questions and keep up the constructive comments and criticisms. >> thank you. next speaker, please. >> money ms. julie meyer on the street artist at justin herman plaza. i sell t-shirts. just make a long story short i try to be quick i lost over half my income for the month of january. generate is a slower month for the year that the people sellout in justin herman plaza during january and separate their the ones like cat was saying we need to the other. it's part of our budget. it's part of our income. we need that kind of thing. i lost half my income. i'm rolling with it there's a lot of people on this in the program that are not going to speak that are on completely fixed incomes. they have no recourse. they're scared to come out of. unscheduled but i'm here. this only people not hearing from. that's the main thing i want to say. it had a real fact it was systemic over 100 artists. the one thing i want to bring up is , 2 things really-i wasn't a can of twisted old thinking i didn't question the whole thing. were being closed down. to the artwork patient is est. present one of the comedy comes in to justin herman plaza reuses a space. artists are compensated for moving because the moving company is for-profit they're doing this to generate revenue. super bowl city might be a nonprofit but to generate revenue and generate advertising. it's a giant advertisement for the nfl. not against that but that tenant spaces november 14 days edward garrow offer us alternative spots. okay you to find alternatives but for 100 people selling templates where spaces could that's a general-are they offered 10. if you had the time i would've shown you the spots they actually offered one in the traffic flow. it would just often the boondocks of market street not in the full super bowl city. i wasn't even allowed to do because [inaudible]. so at all the qualifications but it was the right vendor for the right type of thing. i was completely out. just those 2 things. the spaces were inadequate and there is est. precedent for payback. >> thank you. next speaker, please. >> minds courtney riddle number the small business owners who suffer the losses caused by super bowl l. i run a bookstore at market and stuart street directly into the parameters of super bowl city. had i known sooner i would have been here advocating for some compensation for all this a long time ago. but in the weeks leading up to the event i've been talking with rosie spalding and david perry were liaisons between the super bowl and the merchants i think would be nonprofit agency. i've been reassured on multiple occasions that i would be a will to [inaudible] this ended up being false. highlight known maybe i could've coordinated with change to a different kiosk or anything like that. instead i was struggling with false promises for about a month by business was repeatedly blocked from access by construction equipment and fences during regular business hours. ultimately, was able to be at the event for 3 days during super bowl city and i made on average $25 a day, which is about 20% of what i usually do. the resounding feedback i heard from people at super bowl city was supposedly a fun family event but members of the public who went there 3 days i was open, they came up to me saying how bored they were by it and how it wasn't a great civic celebration. that said, it goes beyond permits. for my business alone i written report a loss of over $2200. the super bowl's private party was different than any normal civic events as jane kim was same. those committees simply a façade behind which the nfl is hiding in order to shirk financial responsibility that i believe they hold the tenants and a newman displaced. anyone that was displaced >> thank you. next speaker, please. >> i'm a japanese artist. since super bowl l came to -after that we had a hard time paying bills and the event and also still am having a hard time because [inaudible] so this affected so much. we need some help wheelie. really. a lot of people say they cannot pay the bills we just need help. >> thank you. next speaker, please. >> good afternoon. my art is performance art and i am a musician. drummer caution must percussionist. thank you supervisor peskin kim for making this discussion possible for us today. i will tell you a few things about myself referred because i have a somewhat unique or special relationship with that particular area of town. over the last 15 years my name and my one-man drummer percussion show has become synonymous with the ferry building, justin herman plaza, and that embarcadero area. i have a deep and affectionate relationship with the san francisco bay area locals, and the immediate surrounding neighborhoods. i call my show and has been called since i started 15 years ago st. beat, the sounds of san francisco. i've many nicknames such as the ferry building drummer, the energizer drummer, for my marathon sessions the funky drummer and more. my popularity and recognition have traveled from the city throughout the bay area in northern california and because san francisco is such an international landmark in our fans all around the world. i have been publicized on youtube and all over the internet by discover northern, that suggest we go to the ferry building my act is one you need to see. featured in the hbo documentary san francisco 2.0 that is about the evolution of the city and its culture. some video periods on a tv series, 10%. today's ago i wrote a letter to supervisor peskin stating that as an artist is everyone to present his or her art that works on-to the world on the streets of san francisco our whole lives wrapped up in our ability to do so. like myself, many of us this is our soul form of survival and income. it's a devastating blow to our family budgets and a lot of situations in many cities in a major event comes to the city it's a shot in the arm the whole local economy including >> sir, if you could wrap it up >> i overstayed my time. i appreciated >> thank you. next speaker, please. >> good afternoon. i name is norma tang and i'm the founder of a better chinatown tomorrow. here what i notice yesterday in the journal because i'm bilingual i read that there is a hearing today however, i called the restaurants and the shops to let them know and most of them are pretty limited english survey said we can't do anything about it but while you speak up for us. at that time, at this super bowl, it so happened that the new year happening was a huge amount of traffic. the seniors trying to get out of the bus was rerouted and all that. that is one thing but mostly around-corridor impacted by central subway that it was hugely impacted merchants such as the hollywood honolulu café and quite a few restaurants on washington street, which they are crying that it was really bad for them, the super bowl, they were expecting the business that it did not happen it was just like i know that saturday night they usually are pretty busy and i frequented it was pretty scarcely attended. so, i wish that the board of supervisors would pay more attention to the community in chinatown because they are mostly monolingual or limited english that they don't know what's going on could mention about the supposed i said what super bowl. so we need to be more informed about what is going on in the city and have to seniors to understand what is going on. >> thank you. next speaker, please. >> i'm a working glass artists for 44 years. my name is patrick keller. i'm here to talk with respect to this body. many artists was the opportunity to sell and a lot of artists are kind of on the fringe. essentially working homeless working day-to-day to eat, pay their bills, and i like for you to consider that. they're like real people. not some kind of, oh, those people. i've been successful. a lot of artists out there i just day-to-day. so you take all that away and it makes a lot harder. in other words, you are just like kicking people who are down. i would appreciate if you provide accommodation to those people. >> thank you. next speaker, please. >> a gift shop their sales were down 18%. [inaudible] this is done 25%. 8% down. [inaudible] 7% on. these are all small businesses that are paying for permits, pay for licenses, and paying rent. >> thank you. next speaker, please. >> my name is nico. i'm a business owner i have 2 businesses in the castro. we spent the same in addition to the possible everything that we do daily comes to pay wages to our employees to pay anything like that. i think the super bowl impact is beyond just the herman plaza. the economic impact has been through the whole city. that has to be addressed. for me, under 32-$40,000 [inaudible]it didn't take me months and months. i appreciate what you're doing for the artist but has to be for the whole city not just the artist of the city. >> thank you. next speaker, please. >> first, i'd like to thank supervisor-i'm sorry. my name is tonya k license street artist. first i like to think supervisor peskin for the eloquent and articulate way in which he expressed the plate of the street artist. i didn't expect that empathy and appreciate it very much. also the other supervisors who have afforded us thank you for your empathy. i was offended by many of the comments by supervisor farrell, who if i have it right, expressed the citizens of san francisco did not subsidize the nfl events. i beg to differ. the street artists are very unique and diverse group. we do not also for the same way but we all have personal stories. i sent a letter in. but we do pay several licensing. we pay for street artist bison gear we pay for a seller's permit and a business license to san francisco. by being denied the opportunity to make those potential sales during the event we were not able to make money to pay taxes for that event it was coming out of money we've already earn. i would like to say something that has not been addressed not to rehash everything else. i assume there were amounts set aside for things like cleaning during the set up, for safety issues, helping tourists get around the city. this is something that the street artist -were not vendors. i know that word was not intentionally misused or not vendors. we are artist. we are ambassadors to the city. we provide free services which no one talks about. we get to the lottery between 6 am in the morning -sorry and before we can set up we need to sweep the streets were our space this is often the city does not pay us for nor do they provide. it often includes human feces. we all do all those for free just so we can set up and potentially make some money. we have also protect the public from very very luck violent street people and we provide information, tour guides we show tors went to go. we provide transportation information. so, we don't just sell our wares. we also provide service. >> thank you. next speaker, please. >> i just want to speak as the director of california on behalf of of supports to make up for the damages that were suffered by the artist community and small businesses as a result of her successful hosting of the super bowl. it was successful in many ways. we are proud of the cities on the map but we also need to take care of some the collateral damage that occurred good thank you very much. we know how fragile our arts ecology is today and we don't want to see more artists lost in san francisco. >> thank you. mr. roth >> my name is stan rocket i own san francisco cards hot dog stands. i've been in business-first of all i want to say thank you to supervisor peskin and kim and avalos for bringing this to everybody's attention. i found out about this on 19 january. this is the notice i received from dpw on that afternoon. giving me 3 days notice i was going be out of business for 22 days. i think anybody who's run a business or own a business how difficult it is to plan your expenses by heart goes out to the street artists we did make money for 22 days. i only did not only made money i had expenses that are committed to come up, say, trucks, drivers. i lost 2 employees and about $20,000 in sales. i don't think p6 and dollars would do me much benefit after what i've been through. i have it goes to the street artist in him here to support them, but the bigger issue to me is i just want to think a little bit of my perspective having been done business on the streets on 41 years since 1934. the climate has changed. for the first 37 years is regulated by the police department. when something like this would happen for some reason it was much easier to go in and meet with them and say, i need to move and they would find another spot. if you look at this letter, the requirements to find another spot was my permits are sold their grandfather. they were granted before these regulations. under these regulations now, after not only find a new spot that complies with the code to get the permission of the building that i would be fronting. that's impossible. so i know how 4 locations that are inoperable because of different things going on. that's a business climate that i will say all and with this, 41 years of business the last 4 been most difficult i've ever faced. >> thank you. our apologies. mr. ricardo >> thank you for taking the time to look into this matter. i would love to thank supervisor peskin and kim for sticking up for the street artists. we have been notoriously treated like the bastard stepchild by the arts commission. it's a known fact. it should be a known fact that we are always the last on the list to get any kind of compensation. so they could change the name from the super so they could change the name from the super bowl lii the super bill city fiasco. it was a fiasco for people that lived in that area. it didn't have to happen it could've happened in mark farrell statistic on arena green. ncos his friends would like to. it just messed up also. it was basically a tradeshow. this was nothing but horizon, chevron, and god for bid, that something happened. it looked like an armed camp. there were swat teams all over the place. there were snipers on the roof. if somebody did something out of order, that whole thing could've been a disaster. those guys were needed possibly but they should've been out of sight. there's no need to have a guy with a machine gun at every entrance. it looked like a third world country down there. what were you showing by doing that? what was that saying about san francisco? i'm running out of time but i like to bring fewer attention to this. when we have a displacement there is a policy in place by the arts commission to pay street artists to enter dollars per day for space. it would come out to a huge amount down there of $500,000 for that amount, but we would have been willing to move some roster we can move to. 39, golden gate park a quality space. i also want to >> mr.-because pj johnson he was on the film board he was on this commission and he knows about it and he was the spokesperson of the super bowl l. >> thank you. next speaker, please. if there's any other speakers if you line up to your right, my left could otherwise after this gentleman we have one more speaker. go ahead, sir >> my name is john-and down the plaza for 15 years. i sell art there every week. now the super bowl displacement not only made it impossible for my customers to find me or for us to be goodwill ambassadors to the city, which most of us are out there, we know the city better than just about anybody especially in that area. not only did i lose for those 3 weeks, 22 days but that meant that i'm now after slow holidays, i made arrangements for pg&e and water as you know from last meeting i did mention those. but we also took off with the wood to make the material to make the arts. the money that i was supposed to make during january and the beginning of february that was going to cover that. i don't have it. i am sorry. we are ambassadors to the city. we help people. we direct them to whatever they need to get to. we are one of the first things they see that a lot of people come to the city to go to that plaza, to see the individual artists that are out there. a lot of them-they continue to look for us. yes, we are small but we are also ambassadors to the city that are never ever thanked or compensated. we don't, say should we just want what is right and due to us. >> thank you. for those who do not hear this gentleman's previous testimony, the artist program is where is help this individual move from homelessness to being housed making a living in this town. the 6 under dollars that is the subject of this proposal can make all the difference in the world to him. next speaker, please. >> my name is debra came. i sell san francisco st. artist license for 40 years now, april. in my history i have seen a lot of artists and one thing i know about this community of artists across people were very proud and independent people. for some many of us to come in and ask for help is a different thing. people will struggle, live in their cars, living office space, what ever rather than ask for help and we are here today asking for help and we are grateful that you are considering us for my small business are micro-businesses that 6 underdog, tatian i also want to let you know that although the nfl said that they wanted [inaudible] and we were displaced they actually started today's early in the day they let us back in we could not drive in near the area. they reseal all the barricades, the water containers, all that stuff and it was not an acceptable selling area that incoming day as well. silly ashley lost 24 days. concerning the accusations that people are getting given a black eye to the city of san francisco, i disagree. because i heard 2-3 times on the news, how much the nfl loves being in san francisco everything about it. >> beginning of other any other of the members of the public alike to testify on items 2 and 3. seeing none, public comment public comment is closed. there is a him and works before this panel that needs to be moved and hopefully adopted and then colleagues, the matters are in the hands of your committee. >> supervisor kim >> i like to make a motion to accept the amendment is articulated by visor peskin >> i just want point out, colleagues that in the 2nd paragraph the 2nd to last line, us, should be used and needs a e in it. >> we do have the amendment before us. is there a 2nd? >> moved and seconded. just to clarify for me personally am okay with the first amendment. the 2nd one i actually would prefer that there are rules regarding the program adopted prior to this. >> so, if i made to the acting chairman insofar as we have set forth above the limitations and given the authority to the controller to develop administrative the grant application calculation award and disbursement process, that is why we remove that sentence from the previous paragraph. we have done quite a bit of work as you heard from mr.-the arts commission. we've actually now received from dpw the universe of permits and in subsection d if were oversubscribed have created a mechanism for a proportionate reduction for claimant so the rules are pre-much there. i think that ultimately, the process is in good hands in the controller's office. >> there are enough. let me move on the roof that supervisor kim or wiener. i don't have the buttons. >> i made the motion. i don't know for voting on the motion to amend? >> we are on a motion to amend only ran up. supervisor wiener >> i think we could verify that the beginning but it is the case this amendment will eliminate the provision in the legislation that indicates other merchants can also access and i read that language at the beginning. i can read it again without the help of. >> i believe the 2nd item the creation of the impact fund would control item number 3. i think your concerns through the acting chair to supervisor wiener with the language in the appropriation but it's the language in the creation of the fund that would control and with the amendment subparagraph d i think that answers your concerns. >> right now, for use of funds subsection c and i'm talking about the legislation that establishes the funds, subsection c use of funds is for people who are physically displaced and that quote other businesses were merchants virtually impacted by superlow super bowl related events.". you are now adding subsection d that says administration of the grants program and it says not to exceed $600 per street artisan limited to the street artist. apparently, if they all seek compensation that will consume the entire 100,000. so, as the appropriate p1 without maybe do that, given what we have c that is other merchants are eligible but in subsection d talks specifically about street artist, will other versions be eligible to see, tatian from the spine? >> we can do for to deputy city attorney but i'll tell you what what the supervisors was that of intent is. is that the first $100,000 that is the subject of the appropriations ordinance be dispersed to doubt permit the zen licensees in the super bowl city affected zone mainly the street artists and secondarily, the dpw permit in that area. but however, as i previously indicated, if this board should choose to appropriate additional funds, or should the host committee or the national football league choose to make a contribution to the fund i would hope we could disburse it to other businesses that can prove adverse negative economic impact , so that's what i like to keep it but this legislators intent is to spend the $100,000 on those individuals who as i said earlier believe we have a moral sponsor ability to compensate as previous speaker said, empathize with. with that, perhaps if someone was the deputy city attorney mr. gibner might suggest >> john gibner. i agree with that. subsection d effectively entitles the street artisan permit holders to this grant up to $600. it is possible that not many will apply. the might be some money left over in a fund that will sit in the fund for other potential uses it is possible the board can appropriate were summoned to donate a large chunk of money that will then go to the fund broader set of uses, but the board of supervisors would have to designate how the money will be used perhaps with a new type of grant program for other businesses that were missed displaced or lost money in the super bowl. >> thank you for that clarification. first of all, i'm very sympathetic to the street artists were displaced and i'm not saying that i'm categorically or opposed to china fund to help them. i'm concerned. either merchants in my district were not just in a just business was down paraguay harmed be a market which was pretty important tourist wife unto the castro was cut off for that entire time. there was tangible image of the castro. if this is appropriate thing to do, but it seems like this is for certain class of merchants and not others. i've concerns about that. and about this amendment. >> any other questions or comments? maybe we will take to anita rollcall vote on the amendment >> will call vote on amendment >> on motion to amend item number 2, supervisor tang aye, yee aye, kim [inaudible] wiener nay farrell, hassan. therefore aye there are 4 [inaudible] i'm sorry. featured at this time we do only a for voting committee members so if commanders are amenable to this day we can push the vote supervisor farrell returns unless there might be-i don't know were going to be reaching consensus at this moment with 4 people. >> if i may, the chairman of this committee should visor farrell betas number intention of voting for either of these items so if it would be my respectful request that this body for these instruments to the full board either without recommendation or if you should so choose with a recommendation of 2 not pass, but i see no reason to further delay this in front of all these individuals spend their afternoon with this. >> do we have a consensus on that? basic idea okay with senate for 8 nope okay to the full board >> supervisor wiener >> i think we should put it to the full board. i would prefer to do it with no recommendation. it seems to make sense to me and will take it up as a full board. the amendment has been maybe it was put out to the board and as a courtesy to supervisor peskin. as for that >> so, there's a motion than for a no. moved and seconded. without recommendation. or with a nope vote? >> without a recommendation >> without recommendation. okay. to anita rollcall potato without objection. without objection we are sending forward to the full board without recommendation. now, we received a request to actually call up item 13 re: nonprofit assessment given there are individuals to comment on that. down to turnover to the sponsor of that supervisor kim >> i'm sorry if i'm clerk and call 13 >> item 13 hearing on the initial findings and impact of the nonprofit displacement mitigation program and requesting mayor's office of housing and to meet development arts commission office of academic and work first abutment in the northern california loan fund to report >> now under turnover to supervisor kim >> i just want to appreciate thank you so much for being here-members of the public better here for this important item. we have read a lot about the rising rents in a real estate market notches for housing but for commercial and office as well. while we welcome the new jobs with creating here in the city and certainly excited but the incredible. san francisco there's been unintended impact on our nonprofit organizations who simply cannot compete on the market with many of the office and company spaces that are coming to want to be in san francisco as well. we know that nonprofits and arts organization a part of the fabric the diversity of our city that they provide essential services that help her committee thrive keeping us healthier, safer and stronger and they do also create many jobs.. san francisco. for those that want to serve the public our community and also provide arts and those sorts of things here in san francisco. the location in the city often are in transit corridor in the district i represent, at the opposite. so they can provide services they offer easily to residence in our neighborhood and of course throughout the san francisco can also hosting events that are easily accessible. the study is here before us today was commissioned by the northern california grantmakers,, which we'll present in that 7 in 10 bay area nonprofits the real estate affordability could cause them to move the current location within the next 5 years. i many of our residence including myself can not imagine a city without these organizations that provide services like afterschool youth programs them a community house clinics, legal assistance to our seniors and elderly and of course our arts theaters and organizations to provide events my classes and support for the artists which we just heard about in our last hearing. that's why it's so pivotal first to make sure that skyhigh rent does not impact the function of our nonprofits. i was proud to work closely with then supervisor david chiu and supervisor avalos to create the nonprofit and arts mitigation fund and support secure enough funding through the increase of property tax revenue we were able to generate in midmarket after many of our companies moved in the midmarket texas solution but i do want to recognize the mayor's office of housing, director brian schuh who's here today. our arts commission director tom-for working so closely with our office and a nonprofit organization to spend time to put together a report that came before the board and then work to actually spend down the dollars that we secured to actually address and target those needs that were put together by our community together. really excited that we also have secure nonprofit sectors staff at the mayor's office of economic and workforce development acknowledging that nonprofits and art because small businesses and large companies need dedicated support from the city. we've completed the committee facilities nexus study and committee arts facility in central summer. a new area plan in this district which we coming before the board at the end of the year or the beginning of next year, and we have passed that jesus repair and arts more toward him in central summer until this plan is complete to make sure we are protecting our arts and nonprofits in manufacturing industry in our neighborhood in the time that we are doing this plan. we are also convening ongoing artists displacement workgroups with supervisors david campos and will continue to work on a multiprocess approach to make sure we keep our city diverted without father due at like to go to a presentation from staff. we have brian chu from the director of mayors office of housing and committed about. we then have tom-structure of our arts commission and richard--of northern california grant makers and joanne--from northern california here to answer any questions about how that fun has been spent on for arts organizations. mr. chu. >> >> financial systems for the building purchase and for the tenant improvements. i turn it over to tom who talk a lot more about the actual financial system part of the program. >> thank you and good afternoon supervisors. i'm going to spiegel about the overall impact of the program but before i do i want to speak to the fact that the nonprofit displacement mitigation program has i think also resulted incredible partnership across city agencies. i think this may be the most in-depth partnership the arts commission has ever had with another city departments working as closely with the mayor's office of housing and community development also with the nonprofit business sector ways on at the office of economic and workforce of elements as was other city partners including graham city arts and other city agency. i think would've incredible things about this program is close coordination and align policy across city apartment. with that, i want to showcase that to date $2.1 million in financial assistance grants have been awarded to the program. those grants were made to 35 organizations, 12 in arts and culture and 23 in social services. over 50 nonprofits have received technical assistance analgesia without technical assistance included in a moment. of those organizations serves 40 organizations have been able to secure leases of 3 years or more. which i think is incredible [inaudible] for the program. to give you a sense of the numbers of organizations applied and served to the 2 rounds of request for proposals, arts and culture financial systemsthere were 6 applications with 12 hour. all the words for the financial systems are conducted by a panel process that includes city department staff as well as representatives from private philanthropy and experts in nonprofit finance and facilities.sustaining long-term security and real estate and that cow hornet committee loan fund raise and expertise to this area. i don't been contacted by national orders to see how this program has worked because of the success. we've also been adapting to feedback from applicants and the community the program has evolved. we after the first ran for the challenges by many applicants that securing a five-year lease term of site control for eligibility was challenging in the current state market swing modified to lease terms with 3 years or more. therefore expanding pool of eligibility. we moved technical assistance to a rolling admission and approval process subtly be more timely in a response to community needs and most recently were piloting a new speed seed grants for $35,000 for organizations that may not have completely been able to wait for the needs and expenses until the formal rp rfp is administered. next is a funding summary of the allocation of the funds per the board's directives could you can see an overview of the financial assistance. there was a $1.2 million of the 2 million for arts and culture dedicated for direct financial assistance meeting the board's director of 60%. social service nonprofit 64% of those $2.515 million was out of her direct financial assistance could of technical assistance to see 524,000 hours for arts and culture were 26% of the fund, and then $528,000 approximately 421% of the fund and also you see the administrative meeting the board's directive not to exceed. in total, 11 total 4000 with around 2 equally $503,000. on one social service grants were 566,000 hours run to social subs grants totaling approximately $698,000. balance is remaining for arts and culture remain until assistance pool for arts and culture around 3 and the seed grants totals 20 $96,000 this approximately 3 or 44,000 for social services for both the seed grant program and 3rd round of funding. is either main technical assistance funds here. it was divided and plan to be a two-year program so technical assistance was spread out evenly over all 3 years of the program so you see the remaining funds. then you can see the administration drawdown to date. our next slide i want to invite joanne lee from the northern file california [inaudible] book is we want to give you couple case studies to show the impact program is at. >> without a number of crate success stories immigrant highlight a couple for you right now. the-theater which i'm sure you're familiar with, they sought technical assistance from us to extend their lease. they were negotiating with the landlord was threatening to double the rent they were just weeks away from being evicted. we were able to help with lease negotiations and put together a strategy and identified a pro bono attorney. ultimate, the landlord agreed to a three-year lease extension rent that's affordable to the roxy. they received a $50,000 grant from the program for tenant improvements which will really enhance the quality of the programming and services. we will continue work with the roxy to plan for their future after this lease expires. the next case study, tandem, partners and early learning they were formally raising arrears you might've heard their form when they promote early childhood literacy. they actually had an 1800 square-foot office in some of the past 10 years. they were facing a substantial rent increase. with assistance from our program they were able to secure 6000 ft.2 in the bayview hunters point neighborhood a seven-year lease, the space is 3 times larger than what they had before much closer to the population that they been serving. now they're able to hold workshops and trainings their own committee room and provide their services on site. they received a $50,000 financial assistance award from the program to help offset some moving expenses are limited rent stipend and tenant improvements. boxcar theatre was actually on a month-to-month lease since you can imagine being a theater went on a month-to-month lease of difficult that must be too old performances. in 2014, they had to suspend their speakeasy event while they look for any location. we are thrilled that they have found a new space in north beach on broadway, and every 10 year lease. so, they recently received a $50,000 grant for the development and tenant improvements. larkin street youth services, they were facing a 25% rent increase their former location on fetter street and the same time they were really outgrowing their space. so they were able to secure a 15 year lease on golden gate, which is where they are now, could they received $100,000 grant and coupled with some private fundraising of their own, they were able to renovate their space they moved in last year. >> thanks, just quickly touching so the others that came up in the white paper developed from the nonprofit working group. as recall we talked about technical assistance. we us a look at planning zoning and development incentives, look at identifying other double space direct financial assistance and public-private partnerships. we touch on the ta portion and supervisor kim mentioned that the verse on the city launched nonprofit sector initiative in the same way we says other kinds of business initiatives through the office of economic and workforce the moment like lifelike former executive director of-was hired on to be the first ever dedicated purse person on nonprofit assistance which were excited about. as you can see with a direct financial cystogram the northern california loan fund. developer and incentive initiative as supervisor kim mentioned, the central soma nexus study is the first of its kind that were aware of in the probe country look at the impact of commercials about and whether not we can show a nexus between that and the cost that would accrue to community facilities as the report is being finalized were optimistic that it can provide support for nonprofits for ongoing development. we discussed many benefit of the missing as you call to to the 5m agreement was a conscious [inaudible] to the discussion with the developer. in terms of identifying available space, some of you know, a number of years ago the committee arts stabilization trust was est. as a real estate holding entity for smaller arts nonprofits that would not be able to manage the acquisition and oversight of significant piece of real estate. we have entered into an agreement with the northern california community loan fund to create a white paper to investigate the possibility of grading that same kind of holding entity for social service organizations that the benefits from a group that could both purchase buildings, lease them could serve as a master lease holder and can help identify underutilized below-market rental spaces. we are looking at possibility of co-locating within existing nonprofits for example, legal aid into with lgbt committee center giving a more permanent home and opening the lgbt [inaudible] we also activated within our upcoming of housing abutments jamestown community center is working with chinatown development committee center at 17 and fulsome new site to be started up. [inaudible] association is working with mission economic developers association again to the combined affordable housing nonprofit space which we think is a wonderful model and to the office of committee investment oci, ocii, through agreement of their office the there but bueno redevelopment area we've identified a long-term home for the youth organization at the crossroads at jesse street pace or competitive rfp of the crossroads i think is a good example that organization that serves homeless youth. as many of you may be aware because of the demand for commercial office space, it's now become virtually impossible for any social service organizations actively serving clients especially when of those that may serve portable population such as home was used to be able to access commercial office space this was kind of an almost once-in-a-lifetime opportunity. >> another recordation was to be sure we were engaging private philanthropy and other private partners and long-term sustainability of nonprofits in san francisco. so early on we reach out to the san francisco foundation and other private philanthropic partners and under the leadership of northern cal 20 grantmakers coalition of private philanthropists and foundations decided to conduct a bay area wide survey to better understand regional needs of nonprofits. nonprofits and their space concerns. this new report that came out just recently in march night of 2016 on nonprofit displacement in the bay area has been getting broad with you. that will include a working group composed of philanthropy and local government to meet in april and determine next steps for long-term investment in ownership for nonprofit organizations. with that, i like to invite up richard-who's actually with harder an company which was the consulting firm contracted by northern california grantmakers to conduct the survey and report. with that all introduce richard. >> good afternoon. thank you for hearing me. we were founded here in san francisco 30 years ago. with the goal of helping our public-sector nonprofit foundation partners use data to answer questions just like this. so we are engaged by northern california grantmakers and the partners that the mentioned previously to actually put evidence to all questions and concerns you been hearing about availability in san francisco and the and the other 58 area counties to understand whether this issue is-when has artie happen and going to happen in the future. quickly, about the survey the task force of public and private funders came together in 2015. we issued the survey in december. we reached out to almost 1700 nonprofit organizations in 6 counties you see here.-organizations responded and they actually operate more than 800 unique spaces. a few things to know about these organizations. this was for all 6 counties. but, the greatest concentration of representation is san francisco county could always organizations responded were grantees of the task force were member funders so this isn't a representative survey of every nonprofit in the region but it's really reflective of the experiences of these nonprofits. about two thirds of them exclusively rent their spaces, which nothing is important to point out. we were talking about how to mitigate the issue of displacement. so we asked respondents a few general categories of questions. the first was really about concerns for the future broadly and i think one most important findings that the vast majority of respondents are concerned about the real estate market affect on their long-term financial sustainability. what that means is that 82% of respondents said they were either very concerned or somewhat concerned about this issue. organizations within san francisco that have locations in san francisco were actually more likely to say they were very concerned and organizations that did not. [inaudible] also questions whether they anticipate having to decide whether or not to move. in that case, we found that more than two thirds anticipate making a decision about moving out of their space in the next 5 years. of those, almost all of them, three quarters of them, say that cost is going to be a reason for them the siding to move. deciding to move. what does that mean for san francisco? well respondents with at least one location in san francisco were more likely to think that god have to make a decision about moving. 72% of organizations with the patient in san francisco think they're going to have to move, and about 70% of those locations think they want to do that in the next 2 years. so, if you think about that, we asked them to identify within the next 5 years for every single location gsm to identify what year they think it would have to address that problem. in the next 44 months most of the organizations said they think they're going to do with this problem will be confronting it. this very immediate concern. for many of the respondents. the last thing i want to mention here is we also asked respondents for their stories and be spun as were very generous in sharing perspectives not only the concerns that the perspectives on what has worked and what they think could work. we want to highlight 2 things we really heard. first, buying property which is difficult for many nonprofits has provided a lot of stability for the organizations said they were able to do so. 2nd, working in spaces that are specifically designated for nonprofit. either through code location or through municipally funded programs, have been cited as real boon to organizations they mention places like the night straight consortium here in san francisco as well as the soprano center and flight deck in our neighboring counties. was one of the part of the report. as part of our study so the task force and partnering funders and looking at all these findings develop their own set of ideas about how to potentially address these issues . i'm not going to read everything on your a lot of point out that sort of an array of shorter and nger term responses here and they put these in basic categories around communication, technical assistance, and funding and lastly, policy change. there's a lot of detail from the partners within the report and subsequent conversations and meetings we've had available. thank you for your time >> we just have a few more slides before we conclude our presentation. just let you know in april 2016 will be giving out our first round of seed grant from the roosevelt fire grants and april 2016 the philanthropy working group will convene as a result of the good work they've done in collaboration with northern california grantmakers. the summer of 2016 northern can tell california will be issuing the feasibility of creating a real estate holding company. in september 26 to be the final round for financial assistance. a few seen, although we hoped people to get out 3 relatively equal rounds of funding the first 2 rounds that command so will not have as much about the round but would have a little bit left.. thousand dollars in both the arts and social services part of funding. december 2016, hopefully depending on the work of ncci left and the city and our partners may be able to examine the state holding entity. from january-october 27 in, we will be accepting vital organizations into the technical assistance program, and then in october 2017, the ansi cl fta program will end. so, again, that will mean that as of september 2016 will be releasing the final round of our financial assistance and october 2017 the ta program went because that's the end of the three-year round of funding. so, we're delighted to be able to give you a summary of the work date and what lies ahead for the upcoming year and were available to answer any questions might have for us. >>thank you to director chu and dir. do gainey. it is really great to hear about the outcomes of the $4.5 million that supported a nonprofit and are arts organizations. i think even then i vaguely could've really imagined the impact that these dollars can have. it's not actually that much money but i think it really is a testament to the coalition worth of all our community base organizations but also departments to figure out how to smartly target these limited dollars to as many organizations as possible and it's great to see that almost all of the organizations who applied were able to get some assistance, some funding, to be able to stay in place and san francisco be able to serve our residents or to provide arts and performances here in the city, which is why we all love to live. san francisco. i really want to commend your leadership, your effort, and of course to all our nonprofits who volunteer their time to participate in this on this process to keep our organizations here in the city and services that are introduced. i think the real question is where do we go from here. i think this is demonstrated in immense success and i know we've many members could you speak about today that of 2 short questions and manage want to open up for public comment. one question that i have matured this is to ms. leah northern california loan fund, but feel free fathers want to answer the question. given the pipeline of applications in the ongoing challenges that continue for nonprofits organizations what level of support do you think is reasonable to ask for to continue this program? to continue to have the success were seeing today? >> good afternoon supervisor kim over the 8 past 18 months of the program we have given-we done to funding rounds that has been about $2 million total. 35 organizations. we took a look in our technical assistance pipeline and granted, there are organizations that don't need our technical assistance services, but still need of financial assistance after able to secure safe control on their own. in sort of a quick back of the envelope early estimate 26 organizations in our technical assistant headline with an average of about $75,000 per organization which is really just an average, we are looking about $2 million. to take us through june 2018 to more funding rounds. on the 2nd goal assistance piece, our contract for technical assistance services goes through october 2017. for the additional 8 months to take us through june of 2018, that would be about $380,000. first to continue funding providing the same level of technical assistance purposes. we are continuing to get new organizations requesting services every month. there's a few more coming in that have month-to-month leases, or have leases that are expiring in the next 18-24 months. we work with them and we been pretty clear that right now are funding goes through 2017 and we may not be able to take them all the way to site control of the new place that will help them for as long as were able to in their planning and getting them ready. >> thank you so much. beyond this fun, long before that your organization was able to help us purchase 2 buildings in our district on turk street in on market street. which are now permanent buildings for our arts organization and i think that is a tremendous long-term solution to ensuring were able to keep our arts and nonprofit organizations here. >> will not give more than a one year lease. in the past 2 years the rent has gone umby $44,000. my daughter is home baking brownies for a bake sale to raise money because every girl is trying to raise $250 as part the girls commitment. we are getting tech nical assistance from ncls and hope to get financial assistance in the next round. thank you >> thank you and thank your daughter and have her come to the board meeting tuesday with all those brownies >> good afternoon, my name is dona and on staff with senior and disability action and want to briefly tell our story. we are now facing our third move in 5 years. in 2011 we were given a rent increase we couldn't meet that led us to move in with the sister organization. we merged planning for elders and senior action network, merged and a happy relationship and glad it happened but it was initially contemplated because of the financial downturn and meet thg new rent and as soon as we moved in the landlord raised the rent 50 percent which we couldn't meet and moved to another building at 9th and mission and the building is sold and the downstairs art gallery moved out. the displacement we see all around us, members and people associated with our organization is also happening to the non profits who serve them and we feel they are a important part of the life of the city and fight hard for affordable housing for seniors and people with disability squz fight for people to stay in the home jz not forced into-nursing home jz want to make sure people can live in dignity and insure their wellbeing but this constant moving is disruptive to us and our program. [inaudible] we appreciate your attention to this and really hope that the funding for the- >> thank you. >> fund will continue. >> thank you mrs. [inaudible] and thank you for the strong advocacy of anordable housing and vision zero. >> deborah [inaudible] ceo of san francisco conversation corp. we are work force development for opportunity youth from the ages of 18 to 26. we run a charter high school for those that drop out of the san francisco unified district and do sirfbic engage frment the buf fiication of the city of san francisco. we do work under many city agencies, puc, dpw, rec and park and the port and have partnerships throughout the city. the young people are 80 percent boys and men of color and about 95 percent low income and 200 perlt below the poverty level. we have been displaced from our location at fort mason we found out we lost our lease two years ago so we were living on our own for a full year and it was a struggle. in terms of staffing and capacity you don't have expertise on your staff so it was a god sent we were able to through city haul work with the real estate folks and find [inaudible] they are a true partnership z extension of the staff and helping us now because july 1 we have to be out of our space full stop and they have helped find locations short term and long term solution jz the benefits we received on the technical assistance side cannot be understated unterms of they are asking you to ask the question, we do the work but they help us think through the best options to use the resources the best we can so full support of continuing to fund and thank you so much for putting this agenda item and sharing our success we have had so far. >> thank you, mrs. goreman >> good afternoon, nancy nielsen, deputy director for lutheran social suvss. we were the early ben fishraries of the program. i say thank you thank you thank you for vg the forsite to put the program together. when we were notified in 2013 the lease woulden be renewed we had a year to find something and the bad news is where do you go. with support from mcls and task force and great real tor we found a location and negotiated a 10 year police with two 5 year renewals. we paid a lot for renovation but it was worth it oo to be in the tenderloin where the client are and accessible. we couldn't have done that with all the [inaudible] we got from receiving the grants. it made a difference applying for funding to do renovation, it gave confident and if the city trusts you and thinks you will do a good job we can to. thank you and there are other mon profits out there waiting and needing help. >> thank you mr. nielsen and brf mr. hursh speaks i forgot to call up [inaudible] from david compose office. >> good afternoon supervisors, thank you supervisor kim. shealy chunk haighen on behalf of david compose. we cosponsored this hearing and this issue is so important to supervisor compose because the mission is home to one of the largest hubs of non profits in the city as well as a significant number of individual artist. these organizations and individuals make san francisco the beautiful and creative place that attracted so many people and providing a social safety network for the poor and those in need of critical services. however, it is the same groups at risk of loseing their own safety net as commercial rents sky rocket. the [inaudible] in 2014 thank tooz the leadership of supervisors kim and avalos the board of supervisors established the displacement mitigation fund. pr visor campos is proud to cosponsor the effort. sadly displacement continues today as we heard from richard from the northern california [inaudible] 72 percent the non profits they surveyed in san francisco fear they will have to move within the next two years because of anticipatederant hikes. our office has also been hearing from many individual artist they too are grappling finding affordable work spaces soory hope from this hearing today the mayor and his budget office will work to baseline this fund as well as to expand by at least $400,000 to include support for individual artist in the upcoming budget. we want to thank you the mayors office of housing and community development, san francisco arts commission, northern california community loan fund and the community arts stabilization trust for you tremendous work in making the displacement mitigation fund a tool and thank you to the organizations who came out to share the stories and why the fund is so meaningful to them. thank you. >> thank you for being here. mr. hursh thank you >> bill hursh with aids legal panel. we are a fugle operation on a small budget and leverage over a million dollars in donated services each year. a year and half ago theerant doubled from 40,000 to 90,000. that is a huge hit for us. we were able to get grants from the fund that helped defray the cost of about a half year in the incraes in the rent. that made a huge difference for us as we transitioned trying to use the fund raising to cover the difference moving forward. i urge your support for the fund moving forward and also ask you to consider actually paying for the cost of providing the services that the city contracts with as another strategy. >> thank you, mr. hursh. >> thank you, supervisors. [inaudible] here to say great work on the mitigation fund and i want to speak on behalf of the individual artist. i will echo what [inaudible] had to say and we have a lack of direct funding into artist success here in san francisco and the non profit mitigation has done a lot but we need to do more. last year the artist budget coalition put in $400,000 north dakota to art suvs organization and we don't get funding locally and really really need it. if we help the displacement of what is our most amazing creative capital which is individual artist we need support. last year the art commission recommended the [inaudible] attheened of the year it was cut and really need to have that money because we are the ones who are able to give professional development service to artist that help them stay in san francisco and thrive and make their work and connect to the public and make san francisco a great place. my organization was given $50 thousand to the art commission and turned it around to give to artist to do their work at a low cost which is amazing. 50 thousand dollar is amazing to turn it around [inaudible] please think about the idea going to individual artist because the non profits help a lot but the individuals are the ones we need to turn to and the oergz as mentioned by alma [inaudible] the dancers group, theater bay area and arts [inaudible] give artist direct support and please hup us do so. thank you for the hearing. >> i didn't realize i cycled through the last set of cards. betty lurmen [inaudible] and-i called these other two cards already. mr. [inaudible] >> thank you supervisors. thank you for holding this hearing today, it is really important to so many people. terri bezric and executive director of [inaudible] historical society. we are a 31 year old non profit. we have a small museum in the castro where we show exhibits from the archives located at mission and third in the yerba breny district. in 2013 we were given notice our rent would increase 150 percent and this is a increase we can't fund on the current level of support in the community and city and other grants that we receive, so we immediately had to turn to whatever resources we could find and find a alternative home for our archive. we have 8 hundred collections we brought from the community from the last 30 years. extensive archives were in 7500 square feet of space. we turned to the ncclf, the non profit mitigation displacement fund and they were extremely helpful to us. i'm happy to report today we are getting ready tosign a lease for a new space. the space is down in mid-market areament we found the space with the assistance of the program and every step of the way we are assisted by the program. we haven't yet received funding from the program and we are very hopeful the program continue into the next year because our rent is increased by over 50 percent even with the new space. we are very excited about it and happy we have a temporary solution for our long term needs and thank you for listening to me. >> thank you mr. buzzwick. >> good afternoon supervisor. [inaudible] executive director of counter pulse. i'm here representing [inaudible] i represent the-one of the many san francisco bay artist and [inaudible] experiencing displacement we speak of. but my organization is benefited by the experience of partnership with the fund [inaudible] in the tenderloin. we are about to commission our first series of performances. it was a long road and need thd support of the fund to navigate real estate acquisition, renovation and construction and opening season. thankfully we are able to represent a permanent home for arts in the city of san francisco. we are happy to present the provockative challenge to the tenderloin to place art in the center and look forward to years of success on that block. thank you. >> thank you mr. [inaudible] next speaker, please. >> hi supervisor kim and supervisors. sharen [inaudible] with cultural space coalition, it is group of artist and people who support the arts in the city. the arts commission recently shared with me a figure for every dollar spent on the arts 7 dollars comes back to the economy so this is a minimum to support the arts organizations here. i have been asked to keep it short but this is a crisis as you can hear everybody is just one rent increase away from being chased out of the city and one of the few art est left in the mission, we have lost hundreds and need to buy buildings, investing in the arts, believe tg is a investment for the future of the city because closeed offices with mono cultural won't expand the resources of the city the ways the arts and culture always have. thank you. >> thank you. good afternoon supervisors. paul cohen and executive director of the eviction defense collaborative and we were not evicted in 2015 but were displaced at 995 market. we are fortunate to work with northern california community loan fund. if is a fluid process where you land in the middle of the displace mentd process and having the weekly phone call to keep you moving forward is what the loan fund provided. we were awarded 75 and reduced to 50 because we didn't get a 5 year lease but still negotiating with the landlord so we can get that. our rent increased by more than 100 percent and so we are starting our first capital campaign. it is a needed service and we hope you fund it to the extent you can. >> thank you. >> good afternoon, my name is page [inaudible] i'm the cofounder of [inaudible] in the tender line. i think it is pretty clear and obvious by the big line a lot of time we feel we don't have recourse and [inaudible] we hear you and will stick up for you and help you. a year ago i didn't know what nc [inaudible] they helped renegotiate may lease and apply for fund because of the 100 percent increase in rent and we have a education program reaching out to youth in the tender erloin and created a piece for interviews. we are part the neighborhood and proud the neighborhood and without the nclf we very well could be out of our neighborhood so thank you for the time >> i loved the tenderloin, probably - >> shirly [inaudible] proud native san franciscan and a writer, a consultant and i am also a attorney though practicing now. i'm here to support the ongoing funding of this important funding sources and here to support my friends who work for legal aid, legal service squz other non profit organizations as well as my friends in the artist community, writer community, those that continue to live and work in san francisco. i want to express my support for them and urge you to continue to fund the non profit mitigation-displacement mitigation fund. thanks. >> thank you, mrs. hui >> good afternoon, [inaudible] with cartoon art museum and realize weed are not the only agenda item but want to speak on behalf of continuing the funding. we have been work wg them fraover a year and still in negotiation with a new space in temporary offices for more than 6 months and we hope to find a new space. the technical assistance they provide is invaluable and is going go for a lot of organization beyond october 2017 so urge you to consider the funding beyond that. thank you. >> thank you. >> hello supervisors my name is betty trainer and i'm the board president of senior and disability action and want to thank you very much for allowing us to tell our stories and thank you for visor kim for your kind words about our organization. as dona will mont already told you we had to move a few time squz for us it is very important where we are. we serve seniors and people with disabilities and it is important we remain in the south of market area or mission area that is near good public transportation and also near bart and unfortunately over half of the staff is having to move to the east bay and so bart is very important internally. i'm sure that we are going to need because of the new ownership of our building we don't know what to expect. we definitely are in fear and the technical assistance will definitely be something we will use and if things do not work out we may need financial assistance for a move and hopefully in the central location of the city. as others said we urge you to continue the funding for this very important mitigation program. thank you. >> thank you, mrs. trainer. >> hello supervisors, debbie [inaudible] san francisco human services network. in 2013 we became aware of the growing crisis about non profit space. quadruple rent, organizations that couldn't get a lease. we approached supervisor kim's office which was ground zero for the crisis at the time and thanks to her leadership we had a study through the legislative analyst office and creating the working group on non profit displacement and have a 40 page report from the group with short, medium and long term recommendation tooz address the non profit space crise js that is from may 2014. there are a lot of midand long term solution that need to be implemented and some are in process but there are no quick fixes and it will take some years to get those things in place. the only short term measure is non profit mitigation displacement program. you heard about the successs and now the fundsing is all most deplated so i want to thank supervisor kim and campos and avalos for your leadership and brian shew and northern california community [inaudible] fund and the great work of joan lee and her crew and i want to say please do whatever you can through the mayors office and board of supervisors to renew the fundsing. you heard how valuable the funding is we thank you and hope we have your support. >> thank you mrs. [inaudible] seeing no further public comment through the chair, may we close public comment? >> public comment is closed. >> i know there are more people that want to speak so i want to appreciate you making space because we have several other items at budget committee today for giving us the time to move on. this is a incredibly important fund and successful despite the limited amount of dollars that help the organizations throughout the city. i look forward working with the group to continue this because we know that this struggle continues for many more non profits andorts organizations we dependent on and want to keep here in san francisco. it is emens pleasure to attend many ribbon cuttings whether it is as recently as saint james infirmry [inaudible] and seeing your space in the neighborhood continuing to serve, so thank you for all your work in making this happen. many are committing your volchb tear hours to support one another and it speak tooz the strength of the community and the support we give to one another so thank you . thank you to my colleagues for hearing the item. take a motion to file the hearing. jerk motion by supervisor kim and second by spl visor tang and take that without objection. item 4, please. >> item 4, hearing to receive the budget update on the municipal transportationagy for fy 15-16 and 16 [inaudible] >> i thank the mta. a important piece as well. we'll hear from the mta first. >> thank you supervisor. i think director riscon is on his way. we have a powerpoint presentation for you. we would like to begin with a overall view of the mta. as you know we are a pretty large agency and have all most a billion dollar in the operating budge and 3.3 in the capital budget and serve a lot of san franciscans and visitors to san francisco. the numbers show the large mandate we have as a agency. so, we do benefit everybody as most of you know. we have 700 new [inaudible] this past year. [inaudible] rapid network of 12 miles of tra lane jz work on the cross walk and implement better feature frz the customers like now you can buy tickets on the smart phone. we are creating a new fleet, 147 new buses. 250 trains are on their way and we also have worked on 26 miles of safety improvement jz a new radio network nearly complete to improve service and safety. we started the fy 17, 18 with a budget with a short fall this year. we have a [inaudible] and 14.3 million short fall in fy 18 and the 5 year gip estimate is 3.3 billion which is about the same as the current cip. operating funds are pretty diverse. we get 19 percent from the transit fairs, the biggest line item is parking and [inaudible] general fund transfer and for the first time we have development fees as well as population based adjustment to move funds into the capital budget so you see the capital budget number. in fy 16 the budget was all most 1.1 billion. fy 17 at this point not being balanced. we are pretty close to about the same amounts. operating funds are used for similar to most departments 61 percent go tooz salary and benefits, next is contraction of the services and you can see the various other line items here. the next slide is the most important which are the changes proposed to the mta budget before the board yesterday. the next two slides talk about revenue measures that are being considered. the first one is change in definition of use which is at 17 accept in the free muni programs and increasing at age 18. there is a regional effort underway to do that because most transit operators have different definitions of age and because we participate in clipper there is a desire to make that standard. the next is set the disconet fair to 50 percent of the adult fairs and those are folks not in the low income program so the folks that can pay the seniors and disabled there is a a therd of the adult fair squz propose to set them as 50 percent for senior jz disabled youth riders who can pay for the pass. the last is discount for clipper users so encourage less cash in the system the mta board is considering setting a 25 percent differential between clipper use and cash fairs so those that continue to use cash pay 25 cent more. this is a adopted in a variety of systems in the region. we are also proposing increase of vendor. we have several vendors who sell the passes and products for us and get 50 cents for each item they sell and proposing to increase by 25 [inaudible] the thecs item is increase a multi-a pass that gives access to bart and muni. as you remember we pay bart per jide bart is increasing the amount we have to pay them based on the contract you approved a couple years ago so this covers the mt a's cost. the next is support our non profits that now purchase tokens and passes for needy population. they asked for relief. now they pay full fair so the proposal is allow to buy tokens and passes at 50 percent. the last item i won't discuss because we went through this yesterday. the next several slides talk about the- >> can i quickly interrupt. someone informed me of a article saying because of the toww fee change you are exploring night time parking meters is that true? >> yesterday there was discussion at looking at ways to offset the fees and one way is night time parking in certain parts the city that has a night time use. there is no decision made on them. we were asked to study that so now that isn't in the 2 year budget. >> thank you. >> next set of slides are expenditure requests from the various decision. the first is a 2 percent service increase above the 10 percent. there was discussion at the mta board yesterday not to move forward because the 10 percent we already added may be enough and given our financial situation this was discussed not to move forward. the next several lines talk about request fraument transit and sustainable streets division. the second is improve the level of service in the system and here comes mr. riscon. >> can you go back to the 2 percent service increase has been deferred >> there was a discussion yesterday whether the item has a high priority given all the needs of the agency and funding availability so there was discussion not moving this forward and looking at the subsequent year where a financial condition may be better. the transit department felt the more effort should be placed on improving the quality of service we added to the system which is the second line item given our resource limitation and not adding the 2 percent service. we added 10, the tp proposed 12 so the two percent incremental is deferred. >> is that because the agency decided they dont think it is necessary? >> [inaudible] >> good afternoon chair farrell and members the committee. sorry for being early than late. so, no it isn't we believe the service increase isn't necessary, it is just trying to given the fiscal reality and other needs of the agency it is a matter of balancing what things we can advance and when i given we just as of the end of april we'll have increased service by 10 percent over the current two year budget which is a lot. we felt given the fact we are starting the budget process with a baseline shortfall given some cautionary notes we heard from the city controller and city economist that it might be best to invest at this moment or target additional investment with a operating budget at investing in the existing enhanced service oppose today atdsing additional so it isn't that it isn't needed it is just something i will recommend to the board we defer to the next budget cycle >> i appreciate the realty. i find it very troubling. i feel like we are-muni is finally on a positive trajectory because of investments of the agency made and vehicles both rehabilitation of older ones and maintaining vehicles better and acquiring new vehicles as well as hiring more operators and clearing the training bottleneck that slowed the hiring operators and then the service increase, there is a noticeable improvement in muni service on the light-rail line and bus line and we are seeing that in the chamber of commerce poll that came out that muni approvalerateings are going up and think it absolutely has to do with the invesment in additional service that the agency has made and we passed prop b, which has infuseed funding into the agency and prop b ties transit fundsing to population grouth and prop a, the transportation bond. we need to keep up the momentum so that is why i raise the issue in our debate yesterday about the towing contract when unfortunately the board of supervisors has a very bad history of demanding things from the mta without paying for it whether it is free muni passes which can be a excellent thing or reducing towing fees, which can be a excellent thing. these are all positive things in many ways but the board has a history of demanding those things from the mta and when it has the mta over a barrel because the contract is up for approval and the board dozen pay for it and take the lazy way out having mta pay for it and that was my point when i introduced the appropriation for 3.5 million dollars to say if we force them to reduce towing fees we should pay for it. the last thing we need to do is have mta delay the forward momentum because the city isn't shrinking and the vehicleerize still crowded and don't want to see a bart situation where the system is unraveling and can't accommodate people, so i want to encourage mta the find a way to keep service expansion going. i think it is critically important and i-this is why we are fighting to put a half cent sales tax for transportation on the ballot this november consistent with the transportation 2030 plan which inafuses more funding and get concerns that could get side tracked just at a time when we have forward momentum. i dont know if you have thoughts how to keep the momentum going instead of sliding back for city hall abandoned muni. >> we absolutely want to keep momentum moving forward and think whether or not the board were to advance another additional two percent service increase, there is a lot of investments we made in the previous budget cycles and current ones. we made a investment in maintenance on the order of $25,000,000 a year we are now starting to the manifestation of and more buses providing service on the road and less back in the shop is in effect a service increase. we invested in training of the operators so we are at a point we deliver 95 percent of our service plan and up to mine 9, so that is a service increase. some of what we are weighing against adding more service hours which is the first line of service increase versus continue other investments which are about largely about safety and maintenance, either way we go we continue the momentum by investing in safety, we hope to be able to reduce collisions and therefore every time we have a collision whether it is minor or major the bus is out of service and people are off the bus and that is a service reduction. more vehicle maintenance investment. we have new buses coming in and those buses are performing much better than our existing fleet so think there is a lot we are trying to do to keep up momentum to have a dedicated training facility for not just new operators but retraining existing operators to reduce the likelyihood of collision to improve our ability to train our maintenance folks without taking the maintenance facilities off line for the training. so, there are a number of things in the proposed budget with or without the suv service increase i believe will help continue the good momentum forward. the last budget cycle, big investment in maintenance and this cycle big expansion in hours and the next budget cycle i will probably propose we continue the investment and training and street supervisors and along with the new vehicles will enable us to maintain the momentum so that by the time central subway comes on line and van ness brt comes on line and will have big suvs increase in the next budget we are well positioned to execute those. >> thank you, director. >> so, i wasn't going to necessarily go through all of what is on these additional slides. just wanted to kind of point out that there are lots of needs that the agency has, some are very clear and direct like adding more hours of muni service. others are maybe a little back of house but equally important. for example, the federal transit agency which is part of the united states department of transportation through a recent rule making that came out of mat 21 passed federal transportation bill and was reinforced in a more recent fast act that the new transporpation bill created a new requirement that transit agencies implement a safety manenment system and think it is a good requirement. it will take staff resources on our end to implement that and think it will make a better agency and safer system but there are a number of things like that, additional outreach we hear from the board of supervisors they would like to see more outreach for the things our agency is doing so we have a number of smaller items we are considering as well and this spans across the entire agency from being able to put more taxi investigators on the street to improve the way side maintenance-pretty long list of things we would like to do. we are starting off the year with a baseline shortfall so we have to cut things or find revenue to make space for some of these to the extent we want to be able to fund them. i did also want to note, or board of directors established the 10 percent reserve policy which we main a reserve equivalent to 10 percent of our operating budget. on a budget of 1.1 billion dollars that is a 1 mill dollar reserve. by the end thoch year the reserve because of increase in revenue coming from the city and other places that you saw on the revenue slide up front of the presentation, our reserve will be up over $200 million so i'll recommend some spend down of that reserve, maybe not down to the 10 percent level, but some expenditure of that reserve for one time use only and for investments that will impact safety or efficiency which is the direction i got from nigh board of directors of what they would like to see. here is a list of examples-the final list won't be this big but these are things not currentsly funded in the budget that could be good use for expenditure of one time funds that is part in some version of the list will be part of my budget propolesh proposal to the mta board of directors. and >> thank you

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