00:00:07 MEETING WILL NOW COME TO ORDER. THIS IS THE SEPTEMBER 2ND 2026
00:00:12 MEETING OF THE BUDGET AND LET AND FINANCE COMMITTEE.
00:00:16 I WOULD LIKE TO WELCOME EVERYONE BACK FROM THEIR
00:00:17 LEGISLATIVE RECESS WHICH IS IN PART WHY WE HAVE A LENGTHY
00:00:20 AGENDA TODAY. I'M SUPERVISOR MATT DORSEY,
00:00:24 CHAIR OF THIS COMMITTEE. I'M ALSO JOINED BY VICE CHAIR
00:00:26 SHYANNE CHEN AND MEMBER DANNY SAUDER.
00:00:27 OUR CLERK TODAY IS MR. BRANT HALPER WHOM WE THANK IN ADVANCE
00:00:31 FOR STAFFING AND KEEPING US ON TRACK AS WELL.
00:00:34 WE'RE APPRECIATIVE TO THE ENTIRE TEAM AT S.F. GOV TV FOR
00:00:36 FACILITATING AND BROADCASTING TODAY'S MEETING AND THAT'S
00:00:39 ESPECIALLY FOR OUR PRODUCER JEANETTE EGAN LOFTON MR. CLERK,
00:00:43 DO YOU HAVE ANY ANNOUNCEMENTS? >> THANK YOU, MR. CHAIR.
00:00:47 JUST A FRIENDLY REMINDER TO THOSE IN ATTENDANCE TO PLEASE
00:00:50 MAKE SURE TO SILENCE ALL CELL PHONES AND ELECTRONIC DEVICES
00:00:52 TO PREVENT INTERRUPTIONS TO OUR PROCEEDINGS AND SHOULD YOU HAVE
00:00:55 ANY DOCUMENTS TO BE INCLUDED AS PART OF THE FILE THEY SHOULD BE
00:00:59 SUBMITTED TO MYSELF. >> THE CLERK PUBLIC COMMENT
00:01:00 WILL BE TAKEN ON EACH ITEM ON THE AGENDA AND WHEN YOUR ITEM
00:01:04 OF INTEREST COMES UP IN PUBLIC COMMENT IS CALLED PLEASE LINE
00:01:06 UP TO SPEAK ON THE WEST SIDE OF THE CHAMBER TO YOUR RIGHT MY
00:01:09 LEFT ALONG THOSE CURTAINS AND ONE THAT REQUIRED TO
00:01:11 PROVIDE PUBLIC COMMENT. WE DO INVITE YOU TO FILL OUT A
00:01:14 COMMENT CARD AND LEAVE THEM ON THE TRAY BY THE TELEVISION TO
00:01:17 YOUR LEFT BY THE DOORS IF YOU WISH FOR YOUR NAME TO BE
00:01:19 ACCURATELY RECORDED FOR THE MINUTES.
00:01:22 ALTERNATIVELY YOU MAY SUBMIT PUBLIC COMMENT IN WRITING
00:01:23 IN EITHER OF THE FOLLOWING WAYS EMAIL THEM TO MYSELF THE BUDGET
00:01:26 AND FINANCE COMMITTEE CLERK AT B.R. E.A. DOT JLI IPA AT SFD
00:01:34 OVER YOUR ORG IF YOU SUBMIT PUBLIC COMMENT VIA EMAIL IT
00:01:37 WILL BE FORWARDED TO THE SUPERVISORS AND ALSO INCLUDED
00:01:39 AS PART OF THE OFFICIAL FILE. YOU MAY ALSO SEND YOUR WRITTEN
00:01:42 COMMENTS ABOUT A US POSTAL SERVICE TO OUR OFFICE IN CITY
00:01:45 HALL AT ONE DR. CARLTON BECAUSE THE PLACE ROOM 244 SAN
00:01:49 FRANCISCO CALIFORNIA NINE FOUR 1 OR 2 AND FINALLY DUE TO OUR
00:01:52 OBSERVANCE OF LABOR DAY ITEMS ACTED UPON TODAY ARE EXPECTED
00:01:55 TO APPEAR ON THE BOARD OF SUPERVISORS AGENDA OF SEPTEMBER
00:01:59 15TH UNLESS OTHERWISE STATED. >> MR. CHAIR THANK YOU, MR.
00:02:03 CLERK. AND BEFORE WE CALL ITEM NUMBER
00:02:07 ONE, I WOULD LIKE TO REMIND OUR VIEWERS AND ATTENDEES THAT WE
00:02:11 HAVE BUDGET AND LEGISLATIVE ANALYST REPORTS FOR ITEMS 1 TO
00:02:14 3 AND THEN SEVEN THROUGH 24 ON TODAY'S AGENDA FOR THOSE ITEMS
00:02:17 WE WILL HEAR FROM THE DEPARTMENT FIRST WITH THEIR
00:02:20 PRESENTATION FOLLOWED BY THE BUDGET AND LEGISLATIVE ANALYST
00:02:23 . WE WILL THEN FACILITATE
00:02:24 QUESTIONS FROM THE COMMITTEE AND THEN INVITE A PUBLIC
00:02:26 COMMENT. MR. CLERK, WOULD YOU PLEASE
00:02:28 CALL ITEM NUMBER ONE? YES.
00:02:30 ITEM NUMBER ONE IS AN ORDINANCE AMENDING THE POLICE CODE TO
00:02:32 PROHIBIT THE RETAIL SALE OF NITROUS OXIDE WITH EXCEPTIONS
00:02:36 FOR MEDICAL OR DENTAL PROCEDURES, RESEARCH
00:02:39 AND DEVELOPMENT, MANUFACTURING OR INDUSTRIAL OPERATIONS
00:02:43 AND FOOD PRODUCT PURPOSES MAKE VIOLATIONS OF THE PROHIBITION
00:02:47 AN INFRACTION OR MISDEMEANOR SUBJECT TO IMPRISONMENT AND OR
00:02:50 A FINE AND AUTHORIZE THE DIRECTOR OF PUBLIC HEALTH TO
00:02:54 ENFORCE THE PROHIBITION AND MAKE VIOLATIONS OF THE
00:02:58 PROHIBITION A PUBLIC NUISANCE SUBJECT TO ADMINISTRATIVE FINES
00:03:01 ,CIVIL PENALTIES AND REVOCATION OF A TOBACCO
00:03:02 SALES PERMIT. >> MR. CHAIR.
00:03:05 THANK YOU, MR. CLERK. IT'S MY UNDERSTANDING THAT THIS
00:03:06 ITEM HAS WILL LIKELY BE CONTINUED BECAUSE THERE IS A
00:03:09 REQUEST FOR A MEET AND CONFER BUT IT'S SUPERVISOR SANDERS
00:03:14 ITEM AND I'D LIKE TO ASK SUPERVISOR SLAUGHTER TO SAY A
00:03:15 FEW WORDS. THANK YOU CHAIR DORSEY AND THIS
00:03:17 IS AN ITEM THAT WE'VE BEEN WORKING ON SINCE A DRAFTING
00:03:21 REQUEST IN FEBRUARY OF THIS YEAR AND WE'RE DOING SO BECAUSE
00:03:24 AT THE MOMENT NITROUS OXIDE IS A SUBSTANCE THAT IS ADDICTIVE
00:03:28 DEADLY AND AVAILABLE AT IS IN SAN FRANCISCO AND ACROSS
00:03:35 MUCH OF THIS STATE. >> NITROUS OXIDE FOR THOSE NOT
00:03:39 FAMILIAR ALSO REFERRED TO AS LAUGHING GAS OR WHIPPETS HAS
00:03:41 BEEN EXPLODING IN POPULARITY. ONE STUDY OVER FOUND THAT OVER
00:03:47 THE PAST DECADE THERE WAS AN INCREASE OF 600% IN DEATHS
00:03:51 EMERGENCY ROOM VISITS UP SOME 500%.
00:03:52 THIS IS A SUBSTANCE THAT CAN LEAD TO LIFE THREATENING HEALTH
00:03:57 COMPLICATIONS INCLUDING NERVE DAMAGE, PSYCHOSIS, HEART ATTACK
00:04:03 AND MUCH MORE. AND IT IS FOR THIS REASON
00:04:04 AND MORE THAT WE HAVE GARNERED WIDESPREAD SUPPORT FOR THIS
00:04:08 ITEM INCLUDING SUPPORT AND ENDORSEMENTS FROM THE SAN
00:04:12 FRANCISCO MARIN MEDICAL SOCIETY FROM RECOLOGY, FROM TEAMSTERS
00:04:16 350 FROM NEMS, THE NORTHEAST MEDICAL SERVICES AND FOR MANY
00:04:19 INDIVIDUALS PARENTS IN PARTICULAR WHO ARE WORRIED
00:04:23 ABOUT THIS SUBSTANCE IN THE YEARS THAT IT IS AVAILABLE
00:04:27 AND IS ALSO FOR THIS REASON THAT THERE ARE AT THE MOMENT
00:04:30 TWO SEPARATE STATE BILLS THAT ARE AWAITING SIGNATURE FROM THE
00:04:34 GOVERNOR. SO WHETHER IT IS FROM THE STATE
00:04:38 BILL, THIS BILL OR A COMBINATION OF BOTH, WE
00:04:39 ANTICIPATE THAT THERE IS A THAT THERE WILL BE A RETAIL BAN
00:04:45 AND THAT THERE IS A NEED FOR AN ENFORCEMENT AND IT IS FOR THAT
00:04:49 REASON THAT WE WANT A BIT MORE TIME TO WORK OUT THE DETAILS OF
00:04:53 THE ENFORCEMENT. I WILL STILL ASK FOR PUBLIC
00:04:57 COMMENT AS I ANTICIPATE THAT WE HAVE SOME PUBLIC COMMENTERS
00:05:01 HERE THIS MORNING AND AFTER THAT I'LL MAKE A MOTION THAT WE
00:05:04 CONTINUE THIS TO A DATE UNCERTAIN.
00:05:07 >> GREAT. THANK YOU.
00:05:08 SUPERVISOR SAUTER I THINK AS WE'RE GOING TO BE CONTINUING
00:05:12 THIS PRESUMABLY TO THE CALL OF THE CHAIR I THINK THE BILA IS
00:05:15 OFF THE HOOK ON THIS ONE WILL COME BACK WHEN WE ARE
00:05:17 ADDRESSING IT SUBSTANTIVELY, SUBSTANTIVELY AND AT THIS TIME
00:05:19 MR. CLERK MAY WE INVITE OUR PUBLIC COMMENT?
00:05:23 >> YES. RIGHT NOW OPENING PUBLIC
00:05:26 COMMENT FOR THIS ITEM NUMBER ONE, IF WE HAVE ANY MEMBERS OF
00:05:28 THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
00:05:36 >> GOOD MORNING. THANK YOU FOR THIS OPPORTUNITY
00:05:37 TO SPEAK MY NAME IS PETE WILSON.
00:05:40 I AM THE PRESIDENT OF T W A LOCAL 258 WE REPRESENT THE 6126
00:05:45 120 TWOS AND 6124 HEALTH INSPECTORS AND WE'RE A LITTLE
00:05:49 CONCERNED THAT THERE HAS BEEN NO NOTICE TO THE UNION ABOUT
00:05:52 THIS. >> LET ME BE CLEAR T W A T W
00:05:56 LOCAL 258 NOR T W INTERNATIONAL WOULD SUPPORT THE IDEA OF
00:06:00 PEOPLE DOING WHIPPETS AND NITROUS OXIDE.
00:06:03 SO WE SUPPORT THAT IDEA. WE'RE JUST A LITTLE CONCERNED
00:06:07 THAT THE UNION HASN'T BEEN NOTIFIED.
00:06:08 I SPENT AFTER SPENDING SOME TIME ON THE STEPS OF CITY HALL
00:06:14 WITH TWO OF THE SUPERVISORS YESTERDAY I THEN WENT OVER TO
00:06:16 THE DEPARTMENT OF PUBLIC HEALTH AND WE HAVE THREE OF OUR
00:06:19 DEPARTMENT OF PUBLIC HEALTH ARE THREE OF OUR INSPECTORS HERE.
00:06:23 HEALTH INSPECTORS ARE HERE TO SEE THIS.
00:06:26 >> THEY ARE NOT HAPPY. THEY HAVE NOT BEEN I MEAN WE
00:06:30 NEED WE NEED TO HAVE SOME SORT OF MEETING WHERE YOU GUYS HEAR
00:06:34 ABOUT WHAT THEY TYPICALLY DO SOUND CHECKS, FOOD CHECKS GO
00:06:38 OUT TO HARDLY STRICTLY BLUEGRASS TO MAKE THING MAKE
00:06:39 SURE THINGS ARE SET UP CORRECTLY.
00:06:42 OH SOMEBODY PUT A BUNCH OF TOXIC STUFF NEXT TO THIS PUBLIC
00:06:45 GARBAGE CAN AND YOU KNOW, WE NEED TO MAKE SURE THIS IS
00:06:49 CLEANED UP. BUT THERE'S AN ELEMENT OF OF
00:06:52 ILLEGAL ACTIVITY HERE THAT IS MORE SET UP FOR THE POLICE
00:06:57 DEPARTMENT. SO WHILE I SUPPORT THE IDEA THE
00:07:01 CONCEPT AND PEOPLE NOT PARTICIPATING IN THIS ILLEGAL
00:07:05 SUBSTANCE OR THIS SUBSTANCE, THE CONTROLLED SUBSTANCE DOES
00:07:08 HAVE A PART IN OUR SOCIETY. >> THIS IS WHAT THEY ARE NOT
00:07:16 THE PEOPLE TO DO IT. THE POLICE IS THE PEOPLE TO DO
00:07:18 IT. THE POLICE?
00:07:20 YEAH. ARE THEY HAVE A GUN THERE?
00:07:24 >> I DON'T KNOW HOW TO SAY IT AS A CRIMINAL CRIMINAL ELEMENT
00:07:28 THAT COULD BE PARTICIPATING HERE ARE PEOPLE ARE NOT
00:07:29 PREPARED FOR THIS AND WE'RE GOING TO NEED A MEET AND CONFER
00:07:35 AND JUST A GENERAL CONVERSATION.
00:07:36 >> THANK YOU AND THANK YOU PETE WILSON.
00:07:39 >> NEXT SPEAKER PLEASE. >> GOOD MORNING CHAIR DORSEY
00:07:47 AND MEMBERS OF THE COMMITTEE. MY NAME IS DEMARIO JACKSON.
00:07:50 I'M THE GOVERNMENT AND COMMUNITY RELATIONS MANAGER
00:07:51 FOR ECOLOGY AND TODAY I'M HERE TO SPEAK IN SUPPORT OF THE
00:07:54 ORDINANCE PROHIBITING THE RETAIL SALE OF NITROUS OXIDE
00:07:58 IN SAN FRANCISCO. THE ORDINANCE WILL CLOSE A
00:08:01 CRITICAL GAP IN THE EXISTING LAW TO HELP ADDRESS GROWING
00:08:03 PUBLIC HEALTH AND ENVIRONMENTAL CHALLENGES.
00:08:06 NITROUS OXIDE HAS BECOME INCREASINGLY ASSOCIATED WITH
00:08:09 RECREATIONAL MISUSE AND CREATING SERIOUS HEALTH
00:08:13 AND SAFETY CONCERNS IN OUR NEIGHBORHOODS BEYOND THE PUBLIC
00:08:16 HEALTH IMPACTS THE PROLIFERATION OF DISCARDED
00:08:17 NITROUS OXIDE CYLINDERS HAS CREATED A SIGNIFICANT BURDEN ON
00:08:22 LOCAL GOVERNMENTS AND WASTE MANAGEMENT AGENCIES.
00:08:25 FOR EXAMPLE, THESE DANGEROUS CYLINDERS ARE FREQUENTLY FOUND
00:08:29 IN RECYCLING STREAMS WHERE THEY POSE AN OPERATIONAL AND SAFETY
00:08:33 RISK TO OUR EMPLOYEES AND OUR FACILITIES.
00:08:37 TO MITIGATE THOSE RISKS WE SORT THEM OUT INTO A HOLDING AREA
00:08:40 BEFORE PAYING A VENDOR TO PROPERLY EMPTY AND DISPOSE OF
00:08:44 THESE CYLINDERS. THE COST IS APPROXIMATELY UP TO
00:08:47 $20 PER NITROUS OXIDE CYLINDER BY RESTRICTING THE RETAIL SALE
00:08:51 OF NITROUS OXIDE IN SAN FRANCISCO WE CAN REDUCE THE
00:08:53 VOLUME OF CYLINDERS ENTERING THE WASTE STREAM, LESSEN
00:08:56 DISPOSAL COST AND IMPROVE THE SAFETY OF THE COLLECTION
00:08:59 AND PROCESSING OPERATIONS. THANK YOU SUPERVISOR SADR FOR
00:09:04 YOUR LEADERSHIP ON THIS ISSUE AND WE RESPECTFULLY ASK FOR YOU
00:09:07 TO SUPPORT IT AND THEN GIVEN THE COMMENTS EARLIER WE LOOK
00:09:11 FORWARD TO THE CONTINUED DISCUSSION AS THE LEGISLATION
00:09:12 DEVELOPS. THANK YOU AND THANK YOU JAMARI
00:09:14 JACKSON. NEXT SPEAKER.
00:09:21 GOOD MORNING CHAIR DORSEY WHO RUNS JONESBOROUGH SOUDER.
00:09:25 >> MY NAME IS ROBERT SANDOVAL AND I AM THE PRINCIPAL OFFICER
00:09:27 OF TEAMSTERS LOCAL 350. REPRESENTING THE ESSENTIAL
00:09:29 WORKERS WHO PROVIDE THE WASTE AND RECYCLING SERVICE ACROSS
00:09:33 THE CITY AND COUNTY OF SAN FRANCISCO AND THE GREATER BAY
00:09:34 AREA. I STAND HERE TO SAY THAT WE
00:09:38 STRONGLY SUPPORT SUMMARIZE OR SOUDERS ORDINANCE TO BAN THE
00:09:40 RETAIL RETAIL SALE OF NITROUS OXIDE.
00:09:44 >> WHILE MUCH OF THE CITY'S FOCUS IS ON PUBLIC HEALTH
00:09:46 AND RIGHTFULLY SO. OUR LOCAL UNION IS HERE TO
00:09:49 SPEAK FROM A DIFFERENT PERSPECTIVE.
00:09:51 ONE REVOLVING AROUND WORKER SAFETY AND THE IMPACT THAT HAS
00:09:53 ON MY MEMBERS IN THE FIELD RIGHT NOW THESE PRESSURIZED
00:09:57 NITROUS CANISTERS ARE BEING DISPOSED IN TRASH BINS ACROSS
00:10:03 OUR CITY IN PRIVATE HOMES, APARTMENTS IN COMMERCIAL TRASH
00:10:07 AND BOXES AND IN PUBLIC CITY CANS.
00:10:12 >> WHEN OUR MEMBERS SERVICE THE PUBLIC THESE COLLECTION TRUCKS
00:10:16 THAT ARE RECOLOGY TRUCKS COMPRESS THEIR GARBAGE IN THE
00:10:17 RECYCLING ON OUR NEIGHBORHOOD STREETS AND THOSE NITROUS OXIDE
00:10:20 CANISTERS VIOLENTLY EXPLODE AND IGNITE FIRES DIRECTLY
00:10:24 INSIDE THE TRUCKS IN WHAT'S CALLED THE HOPPER.
00:10:28 >> OUR DRIVERS HAVE NO WAY OF KNOWING WHAT'S HIDDEN INSIDE A
00:10:32 CLOSED TRASH BIN OR WHAT'S IN THE HOPPER UNTIL IT'S TOO
00:10:36 LATE. >> BANNING RETAIL SALES CUTS
00:10:39 THIS HAZARD OFF OF THE SOURCE BEFORE THESE DANGEROUS GAS
00:10:42 CANISTERS EVER HIT OUR COLLECTION ROUTES.
00:10:43 >> NOT ONLY ON ROUTES BUT ALSO AT SORTING FACILITIES.
00:10:50 WE'VE HAD SEVERAL EXAMPLES IN THE SOUTH BAY AND SAN JOSE
00:10:53 WHERE RECYCLING FACILITIES HAVE HAD LARGE FIRES AS A RESULT OF
00:10:58 THESE CANISTERS BEING RUN OVER BY HEAVY EQUIPMENT.
00:11:01 >> SO THIS BILL PROTECTS OR THIS ORDINANCE WOULD PROTECT
00:11:03 OUR STREETS, OUR COMMUNITIES AND MORE IMPORTANTLY IN MY
00:11:06 OPINION THE ESSENTIAL WORK THAT OUR MEMBERS PERFORM ON A DAY TO
00:11:09 DAY BASIS FOR THE CITY. I STRONGLY URGE YOU VOTE YES.
00:11:13 THANK YOU SIR, FOR YOUR LEADERSHIP AND LOOK FORWARD TO
00:11:15 THE CONTINUED DISCUSSION. >> THANK YOU.
00:11:18 THANK YOU MUCH ROBERT SANDOVAL. NEXT SPEAKER.
00:11:28 >> GOOD MORNING. MY NAME IS JULIA AND I'M HERE
00:11:29 BECAUSE I KNOW FIRSTHAND HOW DEVASTATING, HOW HOW THE
00:11:32 DEVASTATING HARM NITROUS OXIDE CAN DO TO A PERSON'S LIFE.
00:11:39 I CAME FROM A GOOD FAMILY. I ATTENDED A DEMANDING CATHOLIC
00:11:41 COLLEGE PREP SCHOOL IN SAN FRANCISCO'S OUTER SUNSET
00:11:43 DISTRICT AND GRADUATED FROM THE UNIVERSITY OF SAN FRANCISCO.
00:11:47 I BUILT A SUCCESSFUL CAREER IN TECH AND MY LIFE WAS HEADED
00:11:51 IN THE EXACT DIRECTION I HAD HOPED FOR.
00:11:55 THEN ADDICTION TOOK OVER. FOR SIX YEARS NITROUS OXIDE
00:11:58 STATIC STEADILY TOOK PIECES OF MY LIFE THAT I CAN NEVER GET
00:12:02 BACK. I SPENT HUNDREDS OF THOUSANDS
00:12:03 OF DOLLARS SUSTAINING MY ADDICTION.
00:12:05 I LOST MY CAREER, MY HOUSING AND WENT IN AND OUT OF
00:12:10 HOMELESSNESS. >> I FACED LEGAL PROBLEMS
00:12:13 IN THREE SEPARATE COUNTIES INCLUDING THIS ONE DECLARED
00:12:17 BANKRUPTCY AND MOST PAINFULLY HURT THE PEOPLE WHO LOVE ME.
00:12:21 >> IT ALSO PERMANENTLY DAMAGED MY BODY.
00:12:24 >> I HAVE HAD COUNTLESS HOSPITALIZATIONS INCLUDING
00:12:28 SPENDING A MONTH AT STANFORD HOSPITAL COMPLETELY PARALYZED
00:12:31 FROM THE WAIST DOWN. AT JUST 24 YEARS OLD I HAVE
00:12:35 ENDURED YEARS OF NEUROPATHY AND HAD TO RELEARN HOW TO WALK
00:12:39 MULTIPLE TIMES. JUST THIS PAST APRIL I SUFFERED
00:12:43 SEVERE THIRD DEGREE BURNS FROM FROZEN NATURE STINGS REQUIRING
00:12:48 SKIN GRAFTING SURGERY. MOST RECENTLY I COMPLETED MY
00:12:52 NINTH INPATIENT REHABILITATION PROGRAM FOR SEVERE NITROUS
00:12:56 OXIDE ABUSE SINCE 2021. >> AND YET THIS DRUG HAS ONLY
00:12:59 BECOME EASIER TO OBTAIN. >> I'M ASKING SAN FRANCISCO TO
00:13:03 RECOGNIZE THE ENORMOUS DIFFERENCE BETWEEN LEGITIMATE
00:13:06 MEDICAL CULINARY AND INDUSTRIAL USES FOR NITROUS OXIDE AND ITS
00:13:09 WIDESPREAD AVAILABILITY FOR NUTRITIOUS.
00:13:13 >> I'M HERE. I'M NOT HERE BECAUSE I READ
00:13:17 ABOUT THE DANGERS OF NITROUS OXIDE.
00:13:18 I'M HERE BECAUSE I LIVED THEM. NITROUS NEARLY TOOK MY LIFE.
00:13:21 PLEASE DO NOT WAIT UNTIL MORE PEOPLE HAVE TO LOSE THEIR YEARS
00:13:24 OF THEIRS. >> THANK YOU MUCH FOR
00:13:25 ADDRESSING THIS COMMITTEE, JULIA.
00:13:27 NEXT SPEAKER. GOOD MORNING, CHAIR
00:13:34 AND COMMITTEE MEMBERS. MY NAME IS DAVE RODRIGUEZ
00:13:35 AND I'M A TEACHERS LOCAL 350 BUSINESS REPRESENTATIVE.
00:13:38 OUR MEMBERS ARE ON THE FRONT LINES IN OUR NEIGHBORHOOD EVERY
00:13:40 SINGLE DAY AND THEY DEAL WITH HAZARDS THAT THE MAJORITY OF
00:13:43 THE PUBLIC IS UNAWARE OF AND IS OUT OF THEIR CONTROL.
00:13:45 WHEN OUR MEMBERS PULL UP TO A CURB LOAD LOAD WEIGHS IN THEIR
00:13:47 TRUCKS AND TURN ON THE COMPACTOR BLADE TO COMPRESS THE
00:13:50 TRASH, THEY CAN'T SEE WHAT'S HIDDEN INSIDE A SEAL TRASH BAG
00:13:54 OR CLOTHES BIN. AND SO WHAT TOOK PLACE THIS
00:13:55 MORNING IF SOMEONE THREW A PRESSURIZED NOT NOT NITROUS
00:13:59 OXIDE CANISTER INTO THAT TRASH ,THE COMPACTOR CRUSHES IT
00:14:02 UNDER MASSIVE PRESSURE AND IT COULD DETONATE RIGHT RIGHT
00:14:05 BEHIND THEIR CAB. THESE AREN'T SMALL POPS.
00:14:07 IT'S AN EXPLODING TANK THAT CAN RUPTURE HYDRAULIC LINES, SEND
00:14:10 SPARKS INTO THE DRY TRASH AND IGNITE ACTIVE FIRES RIGHT
00:14:13 IN THE MIDDLE OF A RESIDENTIAL STREET OR A DENSE COMMERCIAL
00:14:14 CORRIDOR. SUDDENLY A ROUTINE PICK UP
00:14:17 TURNS INTO AN EMERGENCY WITH FIRE HAZARDS NEXT TO PARKED
00:14:20 CARS, HOMES AND PEDESTRIANS. WE HAVE THE ABILITY TO TAKE
00:14:24 SOME CONTROL HERE AND PROTECT WORKERS.
00:14:25 BANNING RETAIL SALES STOP THESE DANGEROUS CANISTERS FROM EVER
00:14:28 BEING TOSSED INTO CITY BINS IN THE FIRST PLACE.
00:14:29 OUR MEMBERS JUST WANT TO COMPLETE THEIR ROUNDS SAFELY
00:14:33 AND GET HOME TO THEIR FAMILIES. PLEASE VOTE.
00:14:34 PLEASE VOTE YES ON THIS ORDINANCE.
00:14:37 >> THANK YOU. THANK YOU MUCH DAVID DAUGHTRY.
00:14:40 AND SEEING NO OTHER SPEAKERS. MR. CHAIR, THAT COMPLETES OUR Q
00:14:43 THANK YOU MR. CLERK PUBLIC COMMENT ON THIS ITEM IS NOW
00:14:47 CLOSED. SUPERVISOR SAUTER WOULD LIKE TO
00:14:48 MAKE THE MOTION I WILL AND BEFORE I DO SO I APPRECIATE
00:14:52 EVERYONE FOR COMING OUT FOR PUBLIC COMMENT ESPECIALLY THOSE
00:14:56 WHO HAVE BEEN IMPACTED BY THIS AND SHARING YOUR STORY.
00:14:59 >> AND WE WILL DO OUR WORK TO MEET AND CONFER AND FIGURE OUT
00:15:06 A WAY FORWARD HERE. AND WITH THAT I'D LIKE TO MOVE
00:15:08 TO MAKE OR MAKE A MOTION THAT THIS ITEM BE CONTINUED AT TO
00:15:11 CALL THE CHAIR AND WE HAVE A ROLL CALL ON THAT MOTION.
00:15:14 >> AND ON THAT MOTION BY MEMBER SAUTER THAT WE CONTINUE THIS
00:15:21 ORDINANCE OF THE CALL THE CHAIR VICE CHAIR CHIN CHIN I MEMBER
00:15:25 SAUTER SAUTER I CHAIR DORSEY I DORSEY I WE HAVE THREE EYES.
00:15:29 >> THANK YOU MR. CLERK THE MOTION PASSES.
00:15:32 >> MR. PORTER COULD YOU PLEASE CALL ITEM NUMBER TWO?
00:15:34 YES, I DON'T NUMBER TWO IS A RESOLUTION APPROVING A
00:15:37 MODIFICATION TO A PROFESSIONAL SERVICES AGREEMENT FOR
00:15:40 COMMISSIONING ACTIVATION AND SIMULATION SUPPORT SERVICES
00:15:44 BETWEEN FAITH GROUP PMC AND TO JAY-Z.
00:15:48 >> A JOINT VENTURE BETWEEN FAITH GROUP LLC AND PMC M2 LLC
00:15:52 AND THE CITY AND COUNTY ACTING BY AND THROUGH ITS AIRPORT
00:15:55 COMMISSION TO INCREASE THE CONTRACT AMOUNT BY 9.5 MILLION
00:15:59 FOR A NEW TOTAL NOT TO EXCEED AMOUNT OF 17 MILLION WITH NO
00:16:02 CHANGE TO THE CONTRACT DURATION OF FIVE YEARS FROM JULY 1ST,
00:16:08 2024 TO JUNE 30TH 2029 PURSUANT TO THE CHARTER.
00:16:09 >> MR. CHAIR THANK YOU, MR. CLERK.
00:16:12 >> WE ARE JOINED BY MS.. DIANA BULLOCK, GOVERNMENT
00:16:15 AFFAIRS MANAGER WITH THE AIRPORT.
00:16:16 WE WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE.
00:16:20 >> MS. BULLOCK THE FLOOR IS YOURS.
00:16:21 THANK YOU. GOOD MORNING.
00:16:23 THE AIRPORT REQUESTS YOUR APPROVAL OF MODIFICATION NUMBER
00:16:27 ONE TO THE PROFESSIONAL SERVICES AGREEMENT CONTRACT
00:16:28 WITH FAITH GROUP PMC TO JV FOR COMMISSIONING ACTIVATION
00:16:35 AND SIMULATION OR CARS SUPPORT SERVICES FOR THE CAPITAL
00:16:38 IMPROVEMENT PLAN. >> THIS MODIFICATION INCREASES
00:16:39 THE CONTRACT AMOUNT BY 9.5 MILLION FOR A NEW NOT TO EXCEED
00:16:45 TOTAL OF 17 MILLION WITH NO CHANGES TO THE CONTRACT
00:16:47 DURATION. >> CAR SUPPORT SERVICES HELP
00:16:50 GUARANTEE THAT FACILITIES ARE PREPARED AND FUNCTION PROPERLY
00:16:54 PRIOR TO BEING OPEN TO THE PUBLIC, THUS REDUCING
00:16:57 OPERATIONAL RISK AND MAINTAINING CONTINUITY OF
00:17:00 AIRPORT OPERATIONS. SERVICES INCLUDE SCHEDULING
00:17:01 PREPARATION OF TEST PLANS, EQUIPMENT AND SYSTEMS, TRIAL
00:17:06 AND TRAINING SIMULATIONS SERVICES AND COORDINATION WITH
00:17:09 PROJECT TEAMS AND STAKEHOLDERS IN ACCORDANCE WITH THE
00:17:13 AIRPORT'S CA'S STANDARDS THE AIRPORT DETERMINES WHICH
00:17:17 PROJECTS REQUIRE CASH SUPPORT SERVICES AS PROJECTS WITHIN THE
00:17:20 AIRPORT'S CAPITAL IMPROVEMENT PLAN ARE IMPLEMENTED.
00:17:24 THE CONTRACT IS FUNDED BY AIRPORT REVENUE BONDS UNDER THE
00:17:25 CAPITAL AIRPORT'S CAPITAL IMPROVEMENT PLAN AND IS THE
00:17:30 RESULT OF A 2024 COMPETITIVE REQUEST FOR PROPOSALS PROCESS
00:17:34 FAITH GROUP PMC M2 JV HAS MET OR EXCEEDED EXPECTATIONS
00:17:39 IN PERFORMANCE EVALUATIONS. THERE IS A LOCAL BUSINESS
00:17:43 ENTERPRISE SUB CONSULTING PARTICIPATION REQUIREMENT OF
00:17:47 14% WHICH FAITH GROUPS SURPASSES WITH 2,020%.
00:17:49 THE BLR HAS RECOMMENDED APPROVAL AND I'M JOINED BY THE
00:17:54 PROJECT TEAM AND HAPPY TO ANSWER ANY QUESTIONS.
00:17:57 >> THANK YOU SO MUCH HEZBOLLAH WE'D LIKE TO INVITE UP THE
00:18:01 BUDGET AND LEGISLATIVE ANALYSTS.
00:18:02 >> GOOD MORNING SUPERVISORS CHRISTINA MALEMA FROM THE
00:18:05 BUDGET AND LEGISLATIVE ANALYST'S OFFICE.
00:18:06 >> ITEM TWO IS A PROPOSED RESOLUTION TO APPROVE AN
00:18:10 AMENDMENT TO AN EXISTING CONTRACT BETWEEN THE AIRPORT
00:18:14 AND FAITH GROUP PM S.M. TWO JOINT VENTURE TO INCREASE A NOT
00:18:18 TO EXCEED AMOUNT BY 9.5 MILLION FOR A NEW TOTAL OF 17 MILLION
00:18:21 WITH NO CHANGE TO THE FIVE YEAR TERM.
00:18:22 THIS IS FOR COMMISSIONING ACTIVATION AND SIMULATION
00:18:25 SUPPORT SERVICES. THIS ENSURES THE EFFECTIVE
00:18:28 START UP OF NEW AND RENOVATED AIRPORT FACILITIES.
00:18:32 THE CONTRACTOR WAS SELECTED THROUGH A COMPETITIVE
00:18:35 SOLICITATION PROCESS AND THERE WERE NO PERFORMANCE ISSUES THAT
00:18:37 WE COULD IDENTIFY. THE NOT TO EXCEED AMOUNT IS
00:18:40 BASED ON THE CONTRACT BUDGET WHICH REFLECTS THE LIST OF
00:18:44 PROJECTS THAT THE AIRPORT HAS IDENTIFIED IN THEIR CAPITAL
00:18:48 IMPROVEMENT PROGRAM REQUIRING THESE SERVICES.
00:18:51 IT'S FUNDED BY THE AIRPORTS CAPITAL IMPROVEMENT PLAN AND WE
00:18:55 RECOMMEND APPROVAL OF ITEM TWO. >> THANK YOU MR. ELEMENT I
00:18:59 THINK THIS LOOKS STRAIGHTFORWARD TO ME AND I
00:19:00 DON'T SEE ANYONE ON THE ROSTER WITH QUESTIONS OR COMMENTS.
00:19:03 MR. CLERK WHY DON'T WE OPEN THIS ITEM UP TO PUBLIC COMMENT?
00:19:06 >> YES WE ARE OPENING PUBLIC COMMENT FOR THIS ITEM NUMBER
00:19:07 TWO IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS
00:19:11 THIS COMMITTEE. >> MR. CHAIR, WE HAVE NO
00:19:14 SPEAKERS. THANK YOU MR. CLERK PUBLIC
00:19:15 COMMENT ON THIS ITEM IS NOW CLOSED AND I WOULD MOVE TO
00:19:18 FORWARD THIS ITEM TO THE FULL BOARD WITH OUR POSITIVE
00:19:22 RECOMMENDATION. MR. CLERK MAY WE HAVE A ROLL
00:19:23 CALL ON THAT MOTION? >> YES.
00:19:25 AND ON THAT MOTION THAT WE REFER THIS RESOLUTION TO THE
00:19:28 FULL BOARD WITH RECOMMENDATION VICE CHAIR CHEN CHEN I REMEMBER
00:19:32 SAUTER SAUTER I CHAIR DORSEY DORSEY WE HAVE THREE EYES.
00:19:36 >> THANK YOU MR. CLERK. THE MOTION PASSES.
00:19:40 >> CAN WE PLEASE CALL ITEM NUMBER THREE?
00:19:41 YES, I DON'T. NUMBER THREE IS A RESOLUTION
00:19:43 APPROVING MODIFICATION NUMBER THREE TO THE PROFESSIONAL
00:19:46 SERVICES AGREEMENT FOR PROJECT MANAGEMENT SUPPORT SERVICES FOR
00:19:50 THE AIRFIELD IMPROVEMENT PROGRAM 2020 FORWARD TO 2029
00:19:53 PHASE FOUR THE AIRPORT WITH THAT KINS REALIZE USA INC
00:19:57 AND THE CITY AND COUNTY ACTING BY AND THROUGH ITS AIRPORT
00:20:01 COMMISSION TO INCREASE THE CONTRACT AMOUNT BY 8.4 MILLION
00:20:03 FOR A NEW TOTAL NOT TO EXCEED THE AMOUNT OF 17 MILLION WITH
00:20:07 NO CHANGE TO THE CONTRACT DURATION OF FOUR YEARS FROM
00:20:12 FEBRUARY 14TH 2025 TO FEBRUARY 14TH 2029 PURSUANT TO THE
00:20:15 CHARTER. >> MR. CHAIR THANK YOU, MR.
00:20:16 CLERK. WE WELCOME BACK MS..
00:20:19 WALLACH FROM THE AIRPORT OR IS YOURS THE AIRPORT REQUESTS YOUR
00:20:22 APPROVAL OF MODIFICATION NUMBER THREE TO THE PROFESSIONAL
00:20:25 SERVICES AGREEMENT WITH ATKINS WIRELESS USA INC FOR CONTINUED
00:20:29 PROJECT MANAGEMENT SERVICES FOR THE AIRFIELD IMPROVEMENT
00:20:32 PROGRAM 2024 TO 2029 PHASE THIS MODIFICATION INCREASES THE
00:20:37 CONTRACT AMOUNT BY 8.4 MILLION FOR A NEW NOT TO EXCEED TOTAL
00:20:40 OF 17 MILLION AND NO CHANGE TO THE CONTRACT DURATION.
00:20:44 >> THE AIRFIELD IMPROVEMENT PROGRAM CONSISTS OF RUNWAY
00:20:47 AND TAXIWAY REHABILITATION PROJECTS TO HANCE AIRFIELD
00:20:51 SAFETY AND OPERATIONAL EFFICIENCY AND BRING FACILITIES
00:20:54 UP TO CURRENT FEDERAL AVIATION ADMINISTRATION STANDARDS.
00:20:58 >> ATKINS REALIST IS PROVIDING DESIGN MANAGEMENT CONSTRUCT
00:21:02 ATION MANAGEMENT PROJECT CONTROLS CONTRACT
00:21:03 ADMINISTRATION COST ESTIMATING SCHEDULING AND FIELD INSPECTION
00:21:07 SERVICES THROUGHOUT THE AIRFIELD IMPROVEMENT PROGRAM.
00:21:11 THE CONTRACT IS FUNDED BY AIRPORT REVENUE BONDS UNDER THE
00:21:14 AIRPORT'S CAPITAL IMPROVEMENT PLAN AND IS THE RESULT OF A
00:21:18 2024 COMPETITIVE REQUEST FOR PROPOSALS PROCESS.
00:21:22 THE CONTRACT HAS MET OR EXCEEDED THE CONTRACTOR HAS MET
00:21:25 OR EXCEEDED EXPECTATIONS FOR NEARLY ALL SUBCATEGORIES
00:21:29 AND THE AIRPORT IS WORKING WITH THE TEAM ON THREE AREAS
00:21:31 IDENTIFIED FOR ADDITIONAL IMPROVEMENT.
00:21:34 >> THERE IS A 2.5 PERCENT SMALL BUSINESS ELEMENT GOAL AND THE
00:21:37 CONTRACTOR IS COMMITTED TO ACHIEVING 22% PARTICIPATION.
00:21:41 >> THE BLA HAS RECOMMENDED APPROVAL AND THE PROJECT TEAM
00:21:45 AND I ARE HAPPY TO ANSWER ANY QUESTIONS.
00:21:48 THANK YOU SO MUCH. WE'LL HEAR NEXT FROM THE BUDGET
00:21:49 LEGISLATIVE ANALYST. MS. ELEMENT THE FLOOR IS YOURS.
00:21:53 ITEM THREE IS A PROPOSED RESOLUTION TO APPROVE AN
00:21:56 AMENDMENT TO AN EXISTING AIRPORT CONTRACT WITH AIRPORT
00:21:57 WITH ADKINS RELEASE USA INC TO INCREASE THE NOT TO EXCEED
00:22:01 AMOUNT BY 8.4 MILLION WITH NO CHANGE TO THE FOUR YEAR TERM.
00:22:06 THIS IS FOR PROJECT MANAGEMENT SUPPORT SERVICES FOR THREE
00:22:10 RUNWAY AND TAXIWAY REHABILITATION PROJECTS.
00:22:14 THE AIRPORT SELECTED THE CONTRACTOR THROUGH A
00:22:15 COMPETITIVE PROCESS AND AS NOTED BY THE DEPARTMENT THE
00:22:18 CONTRACTOR IS GENERALLY MEETING PERFORMANCE EXPECTATION PLANS
00:22:22 ALTHOUGH ROOM FOR IMPROVEMENT HAS BEEN IDENTIFIED IN THREE
00:22:24 AREAS INCLUDING COST MANAGEMENT ,THE NOT TO EXCEED AMOUNT IS
00:22:28 BASED ON THE CONTRACT BUDGET AND THE 17 MILLION AMOUNT
00:22:32 REFLECTS ABOUT 5% OF THE TOTAL BUDGET FOR THE THREE PROJECTS
00:22:39 COMBINED AND APPEARS REASONABLE.
00:22:40 IT'S FUNDED BY THE AIRPORT'S CAPITAL IMPROVEMENT PLAN.
00:22:44 >> WE RECOMMEND APPROVAL OF ITEM THREE.
00:22:46 >> GREAT. THANK YOU MR. ELEMENT I THE
00:22:49 ONLY QUESTION I HAD ABOUT THIS IS THE WORDING THAT IT IS
00:22:53 BRINGING OUR RUNWAY AND TAXIWAY UP TO FAA STANDARDS.
00:22:57 >> ARE THEY BELOW FAA STANDARDS NOW?
00:22:58 OH I'D LIKE TO CALL UP ANTHONY LUM AND SPEAK MORE ON TO THE
00:23:02 STANDARDS THAT WE ARE MEETING. >> OKAY.
00:23:07 HI. GOOD MORNING EVERYONE.
00:23:11 I'M ANTHONY LAMB, PROJECT MANAGER WITH THE AIRFIELD
00:23:13 PROGRAM. TO ANSWER YOUR QUESTION, THE
00:23:15 FAA WILL CONTINUE TO ISSUE THESE ADVISORY CIRCULARS FOR
00:23:19 OUR ENGINEERING TEAM TO MAKE SURE THAT WE'RE UP TO SPEED BUT
00:23:22 YEAH, FOR THE MOST PART OUR AIRFIELD IS MEETING AIRFIELD
00:23:26 COMPLIANCE WITH THE FAA. WE RECENTLY HAVE A PART 1 IN 39
00:23:30 INSPECTION AND EVERYTHING AMONGST OUR AIRFIELD HAS HAS
00:23:34 BEEN IN GOOD CONDITION SO WE DON'T HAVE ANY CONCERNS ABOUT
00:23:37 IT NOT NEEDING AIRFIELD. >> OKAY COMPLAINTS OKAY GOOD TO
00:23:42 HEAR. OKAY.
00:23:44 I DON'T SEE ANYBODY ON THE ROSTER WITH QUESTIONS OR
00:23:46 COMMENTS. >> MR. CLARK WHY DON'T WE
00:23:49 INVITE A PUBLIC COMMENT ON THIS ITEM?
00:23:50 YES. >> WE ARE NOW OPENING PUBLIC
00:23:53 COMMENT FOR THIS ITEM NUMBER THREE IF WE HAVE ANY MEMBERS OF
00:23:56 THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
00:23:57 >> MR. CHAIR, WE HAVE NO SPEAKERS.
00:24:00 >> THANK YOU SIR FOR PUBLIC COMMENT ON THIS ITEM IS NOW
00:24:01 CLOSED AND I WOULD NOW MOVE TO FORWARD THIS ITEM TO THE FULL
00:24:04 BOARD WITH OUR POSITIVE RECOMMENDATION.
00:24:08 MR. CLERK, MAY WE HAVE A ROLL CALL ON THAT MOTION AND ON THAT
00:24:10 MOTION TO REFER TO THE FULL BOARD WITH RECOMMENDATION VICE
00:24:12 CHAIR CHEN CHEN I REMEMBER SAUTER SAUTER I CHAIR DORSEY
00:24:18 DORSEY WE HAVE THREE EYES. >> THANK YOU MR. CLERK.
00:24:19 THE MOTION PASSES. >> THANK YOU VERY MUCH.
00:24:23 THANK YOU. MR. CLERK, CAN WE PLEASE CALL
00:24:26 ITEM NUMBER FOUR? >> YES.
00:24:27 ITEM NUMBER FOUR IS A RESOLUTION RETROACTIVE TO FULLY
00:24:31 AUTHORIZING THE DEPARTMENT OF PUBLIC HEALTH TO ACCEPT
00:24:32 AND EXPEND GRANT FUNDS PARDON FROM THE NATIONAL INSTITUTES OF
00:24:35 HEALTH THROUGH A LUNA HEALTH FOR PARTICIPATION IN A PROGRAM
00:24:39 ENTITLED PREP BLUEPRINT EVALUATING IMPLEMENTATION
00:24:42 AND THE PREP CHOICE BLUEPRINT ON PREP UPTAKE AND PERSISTENCE
00:24:45 APPROVING A GRANT AGREEMENT BETWEEN THE CITY ACTING BY
00:24:50 AND THROUGH H AND LUNA HEALTH FOR A TERM OF EIGHT MONTHS FROM
00:24:53 APRIL 1ST, 2026 DURING THE NUMBER 30TH 2026 AND FOR A
00:24:59 TOTAL NOT TO EXCEED AMOUNT OF APPROXIMATELY 149,000 AND TO
00:25:02 AUTHORIZE THE DIRECTOR OF HEALTH TO MAKE NECESSARY
00:25:06 NON-MATERIAL CHANGES TO THE GRANT AGREEMENT BEFORE ITS
00:25:07 EXECUTION. >> MR. CHAIR.
00:25:10 THANK YOU MR. CLERK. WE ARE JOINED BY HYMAN SCOTT,
00:25:14 CLINICAL RESEARCH MEDICAL DIRECTOR FOR BRIDGE HIV
00:25:15 POPULATION HEALTH DIVISION AT THE SAN FRANCISCO DEPARTMENT OF
00:25:18 PUBLIC HEALTH. WELCOME TO THE BUDGET
00:25:21 AND FINANCE COMMITTEE FOUR IS YOURS MR. SCOTT GREAT.
00:25:23 >> THANK YOU FOR INVITING ME. I'M PLEASED TO PRESENT OUR ONE
00:25:28 OF OUR GRANT PROJECTS CALLED PREP BLUEPRINT WHICH IS FOCUSED
00:25:30 ON EVALUATE IMPLEMENTATION OF A PREP CHOICE BLUEPRINT FOR
00:25:33 HELPING PEOPLE START AND STAY ON PREP AND THIS IS A PROJECT
00:25:40 THAT IS GOING TO BE IN MULTIPLE SITES INCLUDING IN SAN
00:25:42 FRANCISCO AND IT IS AT THE REQUEST OF A GRANT AMOUNT OF
00:25:47 148,843. THE TIMELINE IT DID START
00:25:52 IN APRIL OF 2026 AND IT IS TO GO THROUGH NOVEMBER 30TH OF
00:25:55 THIS YEAR IS FUNDED BY THE NATIONAL INSTITUTES OF HEALTH
00:26:00 THROUGH JUNE TO HEALTH AS A FISCAL INTERMEDIARY AND THIS
00:26:03 GRANT WILL SUPPORT THE DEVELOPMENT OF A BLUEPRINT TO
00:26:04 HELP CLINICS PROVIDE PREP BETTER FOR THEIR PATIENTS
00:26:08 AND ALSO TO SUPPORT THE CLINICS IN DEVELOPING PROGRAMS TO MAKE
00:26:12 IT EASIER FOR THEIR PATIENTS TO INITIATE PREP OR PRE-EXPOSURE
00:26:15 PROPHYLAXIS FOR HIV PREVENTION AS WELL AS TO STAY ON PREP.
00:26:19 ONLY ABOUT 30 TO 40% OF PEOPLE WHO INITIATE THIS PREVENTION
00:26:23 STRATEGY STAY ON IT AFTER A YEAR.
00:26:26 AND SO THIS PROJECT IS REALLY DESIGNED TO HELP BOTH THE
00:26:28 CLIENTS AND THE PROVIDERS TO PROVIDE THIS OPTION FOR PEOPLE.
00:26:32 WE AT THE SFO WILL ASSEMBLE AND TEST THIS IN TWO DIFFERENT
00:26:37 CLINICAL SITES ACROSS THE UNITED STATES INCLUDING IN SAN
00:26:40 FRANCISCO. WE ARE SEEKING RETROACTIVE
00:26:44 AUTHORIZATION TO ACCEPT THIS GRANT.
00:26:45 WE RECEIVED THE AWARD LETTER AFTER THE PROJECT START DATE
00:26:51 AND WE RECEIVED A LETTER ON APRIL 27TH WITH THE START DATE
00:26:54 OF APRIL 1ST OF 2026 THAT WE'RE BRINGING THIS ITEM TO THE BOARD
00:27:00 OF SUPERVISORS AFTER GOING THROUGH THE FISCAL APPROVAL
00:27:01 PROCESS INCLUDING COMPTROLLER'S OFFICE REVIEW AND APPROVAL.
00:27:05 AND I'D LIKE TO ALSO INVITE A COLLEAGUE UP TO READ ADDITIONAL
00:27:09 MOMENTS INTO THE RECORD. GOOD MORNING SHADOWS
00:27:15 AND MEMBERS OF THE BOARD. MY NAME IS GREG WONG AND I'M
00:27:19 THE ADMINISTRATIVE ANALYST WITH ONE PUBLIC HEALTH.
00:27:20 WE WOULD LIKE TO PRESENT PROPOSED AMENDMENTS TO THE
00:27:24 RESOLUTION ON PAGE ONE LINES 7 TO 9.
00:27:27 WE WOULD LIKE TO REMOVE THE SENTENCE SEMICOLON APPROVING A
00:27:31 GRANT AGREEMENT BETWEEN THE CITY COMMA I CAN BY AND THROUGH
00:27:35 THE PUBLIC HEALTH COMMA AND HOMEOWNER HEALTH ONLINE 10
00:27:42 TO 11 WE WOULD LIKE TO REMOVE THE SENTENCE SEMICOLON AND TO
00:27:46 AUTHORIZE THE DIRECTOR OF HEALTH TO MAKE NECESSARY COMMA
00:27:48 NO MATERIAL CHANGES TO THE GRANT AGREEMENT BEFORE ITS
00:27:51 EXECUTION AND ON LINE 15 WE WOULD LIKE TO REMOVE THE
00:27:55 SENTENCE THE NATIONAL INTO INSTITUTES OF HEALTH OPEN
00:27:58 BRACKET NIH CLOSING BRACKET THROUGH ON LINE 1314 YOU LIKE
00:28:04 TO REPLACE AND SENTENCE HAS AGREED TO FUND WITH IS THE
00:28:09 RECIPIENT OF A GRANT FROM THE NATIONAL INSTITUTES OF HEALTH
00:28:13 BRACKET. NOW EACH CLOSING BRACKET COMMA
00:28:16 AND HAS AGREED TO ENTER INTO A SUB AGREEMENT WITH ON PAGE TWO
00:28:23 LINE SIX WE WOULD LIKE TO REPLACE A SENTENCE PROPOSED
00:28:24 AGREEMENT WITH SOME AGREEMENT ON MY SIXTH GRADE WE WOULD LIKE
00:28:30 TO REPLACE THE SENTENCE IS SUBSTANTIALLY IN FINAL FORM
00:28:33 WITH ALL MATERIAL TERMS AND CONDITIONS INCLUDED COMMA
00:28:37 AND ONLY REMAINS TO BE EXECUTED BY THE PARTIES UPON APPROVAL OF
00:28:39 THIS RESOLUTION WITH REFLECTS FOLLOWING A HEALTH AGREEMENT
00:28:46 VOID NIH FUNDING TO PROVIDE OVERSIGHT OF THE BLUEPRINT
00:28:49 PROJECT COMMA INCLUDING THE PAYMENT ASSEMBLY ADAPTATIONS
00:28:54 WITH THE HUMAN CENTERED DESIGN ON LINE NINE WE WOULD LIKE TO
00:28:57 REPLACE THE WORD GRANT WITH SOME AWARD IN 2015.
00:29:02 WE WOULD LIKE TO REMOVE FOR THE RESULT COMMA THAT THE BOARD OF
00:29:06 SUPERVISORS HEREBY APPROVES THE AGREEMENT IN SUBSTANTIALLY THE
00:29:10 FORM CONTAINED IN FILE NUMBER 260712 SO MY AND BE IT THANK
00:29:16 YOU JOE DORSEY AND MEMBERS OF THE BOARD THANK YOU SO MUCH.
00:29:23 I JUST WANT TO EXPRESS MY APPRECIATION TO THE DEPARTMENT
00:29:26 FOR THIS. I'M A CO SPONSOR AND I THINK
00:29:27 THIS KIND OF WORK ON PREP ADHERENCE IS REALLY IMPORTANT
00:29:31 TO ACHIEVING OUR GOALS FOR GETTING TO ZERO.
00:29:35 SO I APPRECIATE AND APPLAUD THE WORK YOU'RE DOING.
00:29:36 I GUESS ONE THING THAT I A QUESTION THAT I OFTEN HAVE WHEN
00:29:39 IT COMES TO FEDERAL FUNDING IS THERE IS THIS WHAT ARE WE
00:29:42 SEEING AND FROM YOU KNOW, WE'VE HAD SOME CHALLENGES IN THE LAST
00:29:49 COUPLE OF YEARS. I HAVE BEEN ENCOURAGED ON OTHER
00:29:50 FRONTS TOO. WHEN I WENT INTO AND I AND I H
00:29:54 AND OTHER THINGS RYAN WHITE FUNDING THAT SEEMS TO BE
00:29:58 HOLDING STEADY BUT I JUST ALWAYS APPRECIATE THE
00:30:01 OPPORTUNITY TO HEAR FROM THE PEOPLE WHO ARE ACTUALLY DOING
00:30:02 THIS WORK. HOW IS OUR RELATIONSHIP WITH
00:30:05 THE FEDS AND CAN WE COUNT ON FUNDING IN OUR YEARS?
00:30:09 SO WE HAVE DEFINITELY EXPERIENCED THOSE CHALLENGES
00:30:13 WITH OUR GRANT CANCELLATIONS WHICH THANKFULLY HAVE BEEN
00:30:15 REINSTATED THE ENTIRE PROCESS FOR GRANT SUBMISSIONS HAS
00:30:20 SHIFTED WITH AN I H AND IT'S CONTINUING TO SHIFT.
00:30:23 THERE'S BEEN SOME VERY MORE HIGH PROFILE REQUESTS TO CHANGE
00:30:27 COMPLETELY OUR GRANT REVIEW PROCESS WHICH HOPEFULLY WILL
00:30:34 NOT COME TO PASS WHICH WOULD ESSENTIALLY INTRODUCE A LOT OF
00:30:38 POLITICAL REVIEW OF OUR GRANTS THROUGH THE SCIENTIFIC REVIEW
00:30:42 PROCESS. SO SO FAR WE HAVE BEEN
00:30:46 SUCCESSFUL IN HAVING OUR GRANTS REVIEWED FAVORABLY AND FUNDED
00:30:50 AND I THINK WE ARE ALWAYS SORT OF TRYING TO KEEP TRACK OF ALL
00:30:54 THE THINGS THAT ARE CHANGING BECAUSE IT'S A VERY SHIFTING
00:30:58 LANDSCAPE. BUT SO FAR WE HAVE HAD SUCCESS
00:31:01 IN RECEIVING OUR GRANT FUNDING TO SUPPORT OUR WORK IN HIV
00:31:04 AND STI PREVENTION. >> OKAY, GREAT.
00:31:08 THANK YOU SO MUCH. I DON'T SEE ANYBODY ELSE ON THE
00:31:09 ROSTER WITH QUESTIONS OR COMMENTS.
00:31:12 >> MR. CLERK WHEN WE OPEN THIS ITEM UP TO PUBLIC COMMENT YES
00:31:16 IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS
00:31:17 COMMITTEE REGARDING THIS ITEM NUMBER FOUR THAT WAS YOUR
00:31:21 OPPORTUNITY MR. CHAIR. >> WE HAVE NO SPEAKERS.
00:31:24 THANK YOU, MR. CLERK. PUBLIC COMMENT ON THIS ITEM IS
00:31:28 NOW CLOSED AND IT IS MY UNDERSTANDING THAT THESE
00:31:31 AMENDMENTS ARE NOT SUBSTANTIVE AND THAT WE MAY I MAY MOVE TO
00:31:35 ACCEPT THE AMENDMENTS AS PRESENTED BY THE DEPARTMENT
00:31:36 AND FORWARD THIS TO THE FULL BOARD WITH OUR POSITIVE
00:31:39 RECOMMENDATION. MR. CLERK, MAY WE HAVE A ROLL
00:31:43 CALL ON THAT MOTION? >> YES.
00:31:44 AND ON THAT MOTION TO AMEND THIS RESOLUTION AND THAT WE
00:31:46 REFER THIS RESOLUTION TO THE FULL BOARD WITH RECOMMENDATION
00:31:50 AS AMENDED VICE CHAIR CHEN CHEN I REMEMBER SAUTER SAUTER I
00:31:54 CHAIR DORSI I DORSI I WE HAVE THREE EYES.
00:31:58 >> THANK YOU MR. CLERK THE MOTION PASSES.
00:32:01 >> MR. CLERK PLEASE CALL ITEM NUMBER FIVE.
00:32:02 YES, ITEM NUMBER FIVE IS A RESOLUTION RETROACTIVELY
00:32:06 AUTHORIZING THE DEPARTMENT OF PUBLIC HEALTH TO ACCEPT
00:32:09 AND EXPEND A GRANT IN THE AMOUNT OF APPROXIMATELY 204,000
00:32:12 FROM THE SAN FRANCISCO HEALTH PLAN FOR PARTICIPATION IN A
00:32:16 PROGRAM ENTITLED SAN FRANCISCO HEALTH PLAN COMMUNITY HEALTH
00:32:20 ASSESSMENT A COMMUNITY HEALTH IMPROVEMENT PLAN C H IP GRANT
00:32:24 FOR THE PERIOD OF JULY 1ST, 2025 THROUGH DECEMBER 31ST
00:32:27 2026. MR. CHAIR THANK YOU, MR. CLERK.
00:32:32 >> WE ARE JOINED BY LUCIA ANGEL, DIRECTOR OF PEOPLE
00:32:35 CULTURAL AND VITAL CULTURE AND VITAL RECORDS FROM THE
00:32:39 POPULATION HEALTH DIVISION OF S.F..
00:32:40 WE WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE.
00:32:43 MS.. ANGEL I HOPE I PRONOUNCE YOUR
00:32:44 NAME CORRECTLY THE FLOOR IS YOURS.
00:32:47 >> YEAH. GOOD MORNING SUPERVISORS.
00:32:50 AS I SAID, MY NAME IS LUCIANNE AND I AM WITH THE POPULATION
00:32:52 HEALTH DIVISION AND MY TEAM HAS LED THE DEVELOPMENT OF THE
00:32:57 THREE D HEALTH ASSESSMENT AND COMMUNITY HEALTH
00:32:58 IMPROVEMENT PLAN FOR THE LAST FEW YEARS.
00:33:01 AND I'M HERE TODAY TO PRESENT THE TERM SCHOOL HEALTH PLAN
00:33:04 CHART AND CHIP GRANT THAT AIMS TO SUPPORT THIS WORK.
00:33:08 >> SO FOR A LITTLE BIT OF CONTEXT, THE CALIFORNIA
00:33:12 DEPARTMENT OF HEALTH CARE SERVICES HAS ASKED MEDI-CAL
00:33:14 MANAGED CARE PLANS TO MEANINGFULLY COLLABORATE WITH
00:33:17 THEIR LOCAL JURISDICTIONS IN THE DEVELOPMENT OF THE CHA
00:33:21 IN THE CHIP. >> AND SO ONE WAY THAT THEY'RE
00:33:24 ABLE TO SHOW MEANINGFUL COLLABORATION PARTICIPATION IS
00:33:28 BY PROVIDING SOME FINANCIAL SUPPORT TO ENABLE THE
00:33:31 DEVELOPMENT OF THESE REPORTS. >> AND SO HERE WE PRESENT THIS
00:33:33 GRANT AWARD FROM THIS FROM SCHOOL HEALTH PLAN WHO'S
00:33:36 CURRENTLY ABLE TO PROVIDE ABOUT $200,000 TO SUPPORT THE CITY
00:33:39 WITH THIS WORK. >> THE GRANT WILL PRIMARILY
00:33:43 SUPPORT COMMUNITY ENGAGEMENT MEETINGS, FEEDBACK SESSIONS AS
00:33:46 WELL AS IN-PERSON INTERPRETATION SERVICES AT
00:33:51 THESE EVENTS AND OTHER REQUIRED TRANSLATION SERVICES.
00:33:55 >> NEXT SLIDE WE ARE SEEKING RETROACTIVE AUTHORIZATION TO
00:33:59 ACCEPT THIS GRANT. SFO RECEIVED THE AWARD LETTER
00:34:06 AFTER THE PREDETERMINED START DATE IN JULY OF IN APRIL 26TH
00:34:12 FOR JULY 2025 START DATE. SO WE BRING THIS TO THE BOARD
00:34:16 AFTER GOING THROUGH FISCAL APPROVALS INCLUDING THE
00:34:19 COMPTROLLER'S OFFICE REVIEW AND APPROVAL.
00:34:21 AND I AM AVAILABLE FOR ANY QUESTIONS.
00:34:24 >> OKAY. WE HAVE NO VARIABLE A REPORT ON
00:34:28 THIS. I THINK IT'S STRAIGHTFORWARD.
00:34:29 I DON'T SEE ANYONE ON THE ROSTER WITH QUESTIONS OR
00:34:31 COMMENTS. >> SO MR. CLERK, WHY DON'T WE
00:34:33 CALL UP PUBLIC COMMENT ON THIS ITEM?
00:34:34 YES, WE ARE OPENING PUBLIC COMMENT ON THIS ITEM NUMBER SIX
00:34:37 IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS
00:34:40 COMMITTEE. MR. CHAIR, WE HAVE NO SPEAKERS
00:34:43 . >> THANK YOU, MR. CLERK.
00:34:44 PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED.
00:34:46 MR. CLERK MAY WE MOVE TO SEND THIS ITEM TO THE FULL BOARD OF
00:34:51 SUPERVISORS WITH OUR POSITIVE RECOMMENDATION?
00:34:55 >> MAY WE HAVE A ROLL CALL ON THAT MOTION?
00:34:56 YES. AND ON THAT MOTION THAT WE
00:34:57 REFER TO THE FULL BOARD WITH RECOMMENDATION VICE CHAIR CHEN
00:34:59 CHEN I REMEMBER SAUTER SAUTER I CHAIR DORSEY ALL RIGHT.
00:35:03 DORSEY WE HAVE THREE EYES. >> THANK YOU, MR. CLERK.
00:35:07 THE MOTION PASSES. CONGRATULATIONS.
00:35:11 >> THANKS, MR. CLERK. CAN WE PLEASE CALL ITEM NUMBER
00:35:12 SIX? YES.
00:35:14 >> ITEM NUMBER SIX IS A RESOLUTION RETROACTIVELY
00:35:15 AUTHORIZING AND APPROVING A GRANT AGREEMENT BETWEEN THE
00:35:18 CITY ACTING BY AND THROUGH THE DEPARTMENT OF PUBLIC HEALTH
00:35:22 AND THE SAN FRANCISCO GENERAL HOSPITAL FOUNDATION TO ACCEPT
00:35:26 AND EXPEND A GRANT FROM THE S.F. G H F FOR PARTICIPATION
00:35:29 IN THE PROGRAM ENTITLED SOLID START FOR A TERM OF THREE YEARS
00:35:32 FROM JULY 1ST, 2025 THROUGH JUNE 30TH 2028 AND FOR A NOT TO
00:35:36 EXCEED AMOUNT OF APPROXIMATELY 2.3 MILLION.
00:35:39 APPROVING THE GRANT AGREEMENT PURSUANT TO THE CHARTER AND TO
00:35:43 AUTHORIZE THE DIRECTOR OF HEALTH TO ENTER INTO AMENDMENTS
00:35:44 OR MODIFICATIONS TO THE AGREEMENT THAT DID NOT
00:35:47 MATERIALLY INCREASE THE OBLIGATIONS NOR LIABILITIES TO
00:35:51 THE CITY AND ARE NECESSARY TO EFFECTUATE THE PURPOSES OF THE
00:35:54 GRANT FOR THIS RESOLUTION. >> MR. CHAIR.
00:35:55 THANK YOU, MR. CLERK. >> WE ARE JOINED BY ANGELICA
00:35:59 ALMEIDA, CHIEF INTEGRATION OFFICER AT ZUCKERBERG SAN
00:36:02 FRANCISCO GENERAL HOSPITAL. >> WELCOME TO THE BUDGET
00:36:03 AND FINANCE COMMITTEE. AS I MADE OF THE FLOOR IS
00:36:06 YOURS. >> THANK YOU SO MUCH AND GOOD
00:36:07 MORNING SUPERVISORS AGAIN MY NAME IS DR. ANGELICA MEAD.
00:36:10 I'M THE CHIEF INTEGRATIVE OFFICER AT ZUCKERBERG SAN
00:36:11 FRANCISCO GENERAL HOSPITAL AND I OVERSEE THE BEHAVIORAL
00:36:13 HEALTH WORK ON CAMPUS. AGAIN, WE ARE SEEKING APPROVAL
00:36:17 TO ACCEPT A GRANT FROM THE SAN FRANCISCO GENERAL HOSPITAL
00:36:21 FOUNDATION IN THE AMOUNT OF $2.3 MILLION WITH THE TERM OF
00:36:25 JULY FIRST 2025 TO JUNE 30TH 20 28.
00:36:29 >> THIS GRANT WILL SUPPORT THE SOLID START PROGRAM WHICH
00:36:32 PROVIDES PERINATAL BEHAVIORAL HEALTH SERVICES AS PART OF A
00:36:36 MULTIDISCIPLINARY TEAM AND WILL FUND EXISTING STAFF THROUGH
00:36:41 UCSF PATIENT NAVIGATION SERVICES, MENTAL HEALTH
00:36:44 SERVICES AND CONSULTATION AS WELL AS A CONTRACT FOR THE
00:36:48 HOMELESS PRENATAL PROGRAM. >> AS NOTED, WE ARE SEEKING
00:36:52 RETROACTIVE AUTHORIZATION TO ACCEPT THIS GRANT.
00:36:55 >> WE RECEIVED THE AWARD LETTER AFTER OUR ANTICIPATED START
00:37:00 DATE OF JULY 1ST, 2025. THE AWARD LETTER WAS ISSUED ON
00:37:05 JUNE 29TH 2026. >> OF COURSE WE WENT THROUGH
00:37:07 THE FISCAL APPROVAL PROCESS INCLUDING COMPTROLLER OFFICE
00:37:10 REVIEW AFTER THAT AND BROUGHT IT TO THE COMMITTEE AS SOON AS
00:37:12 POSSIBLE. >> I AM HAPPY TO ANSWER ANY
00:37:14 QUESTIONS YOU MAY HAVE BUT APPRECIATE YOUR TIME TODAY.
00:37:18 >> THANK YOU MISS ALMIGHTY. I THINK IT'S STRAIGHTFORWARD
00:37:20 FROM MY PERSPECTIVE I DON'T SEE ANYONE ON THE ROSTER WITH
00:37:24 QUESTIONS OR COMMENTS. >> THERE IS NO BLUE ITEM FOR
00:37:27 THIS. SO MR. CLERK WHY DON'T WE OPEN
00:37:29 THIS ITEM UP TO PUBLIC COMMENT ?
00:37:31 >> MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE
00:37:35 REGARDING THIS ITEM NUMBER SIX NOW IS YOUR OPPORTUNITY.
00:37:39 >> MR. CHAIR. WE HAVE NO SPEAKERS.
00:37:40 THANK YOU, MR. CLERK. THE CLERK A PUBLIC COMMENT ON
00:37:43 THIS ITEM IS NOW CLOSED AND I WOULD NOW MOVE TO FORWARD THIS
00:37:47 ITEM TO THE FULL BOARD WITH OUR POSITIVE RECOMMENDATION.
00:37:48 MR. CLERK, MAY WE HAVE A ROLL CALL ON THAT MOTION?
00:37:51 >> YES. AND ON THAT MOTION THAT WE
00:37:52 REFER TO THE FULL BOARD WITH RECOMMENDATION VICE CHAIR CHEN
00:37:55 CHEN AMBASSADOR SAUTER I CHAIR DORSEY AND DORSEY WE HAVE THREE
00:38:01 EYES. >> THANK YOU MR. CLERK.
00:38:02 THE MOTION PASSES MR. CLERK MAY PLEASE CALL ITEM NUMBER SEVEN
00:38:08 THROUGH 14 TOGETHER. YES.
00:38:10 ITEM NUMBERS SEVEN THROUGH 14. ITEM NUMBER SEVEN THROUGH NINE
00:38:14 ARE ORDINANCES APPROPRIATING GENERAL OBLIGATION BONDS
00:38:18 AND PLACING THESE FUNDS ON CONTROLLERS A RESERVE PENDING
00:38:19 THE RECEIPT OF THE BOND PROCEEDS AND ITEM NUMBERS TEN
00:38:25 THROUGH 14 A RESOLUTION AUTHORIZING THE ISSUANCE
00:38:26 AND SALE OF ONE OR MORE SERIES OF BONDS ON A TAX EXEMPT OR
00:38:30 TAXABLE BASIS WITH THE CITY AND COUNTY SORRY OF CITY
00:38:33 AND COUNTY GENERAL OBLIGATION BONDS PRESCRIBING THE FORM
00:38:37 AND TERMS AND ANY SUB SERIES DESIGNATION PROVIDING FOR THE
00:38:41 APPOINTMENT OF DEPOSITORIES AND OTHER AGENTS AND THE
00:38:45 ESTABLISHMENT OF ACCOUNTS AND OR SUB ACCOUNTS AUTHORIZING
00:38:48 THE SALE OF SUCH BONDS BY COMPETITIVE OR NEGOTIATED SALE
00:38:52 APPROVING THE FORMS OF THE OFFICIAL NOTICE OF SALE A
00:38:53 NOTICE OF INTENTION TO SELL BONDS AND DIRECTING ITS
00:38:56 PUBLICATION APPROVING THE FORMS OF THE PURCHASE CONTRACTS
00:39:00 AND PRELIMINARY OFFICIAL STATEMENTS AND THE EXECUTION OF
00:39:03 THE OFFICIAL STATEMENTS APPROVING THE FORM OF THE
00:39:05 CONTINUING DISCLOSURE CERTIFICATES AUTHORIZING
00:39:07 AND APPROVING MODIFICATIONS TO SUCH DOCUMENTS RATIFYING
00:39:11 CERTAIN ACTIONS PREVIOUSLY TAKEN AS DEFINED AND GRANTING
00:39:13 GENERAL AUTHORITY TO CITY OFFICIALS TO TAKE NECESSARY
00:39:17 ACTIONS IN CONNECTION WITH THE AUTHORIZATION, ISSUANCE, SALE
00:39:20 AND DELIVERY OF SUCH BONDS AS DEFINED.
00:39:24 ITEM NUMBER SEVEN APPROPRIATES APPROXIMATELY 202 MILLION OF
00:39:27 BOND PROCEEDS TO THE MAYOR'S OFFICE OF HOUSING AND COMMUNITY
00:39:29 DEVELOPMENT INCLUDING APPROXIMATELY 107.5 MILLION OF
00:39:34 PROCEEDS FROM SERIES 2026 TO DATE AFFORDABLE HOUSING GO FOR
00:39:38 GO BONDS FOR MEDICAL FACILITY FOR MIDDLE INCOME AND SENIOR
00:39:42 HOUSING PROJECTS 47 MILLION OF PROCEEDS FROM SERIES 2026 E
00:39:47 AFFORDABLE HOUSING GO BONDS FOR LOW INCOME HOUSING PROJECTS
00:39:53 AND APPROXIMATELY 47.4 MILLION OF SERIES 2026 PRESERVATION
00:39:57 AND SEISMIC SAFETY GO BONDS TO ACQUIRE, IMPROVE
00:40:01 AND REHABILITATE AND TO CONVERT AT RISK MULTI-UNIT RESIDENTIAL
00:40:05 BUILDINGS TO BERM TO PERMANENT AFFORDABLE HOUSING IN FISCAL
00:40:10 YEAR 2026 TO 2027 AND ITEM NUMBERS 12 THROUGH 14
00:40:13 AUTHORIZES THE ISSUANCE AND SALE OF AGGREGATE PRINCIPAL
00:40:17 AMOUNTS NOT TO EXCEED APPROXIMATELY 107.5 MILLION OF
00:40:21 SOCIAL BONDS AFFORDABLE HOUSING 2019 2026 DATE 47 MILLION OF
00:40:27 SOCIAL BONDS AFFORDABLE HOUSING 2024 SERIES 2026
00:40:30 AND APPROXIMATELY 47 MILLION AFFORDABLE HOUSING 2016
00:40:36 PRESERVATION AND SEISMIC SAFETY SERIES 2026 F ITEM NUMBER EIGHT
00:40:40 D APPROPRIATES APPROXIMATELY 43.5 MILLION IN BOND PROCEEDS
00:40:46 FROM THE 2020 HEALTH AND RECOVERY GEO BONDS SERIES
00:40:49 2020 5G FROM THE DEPARTMENT OF PUBLIC HEALTH AND APPROPRIATING
00:40:53 APPROXIMATELY 83 POINT 5 MILLION OF BOND PROCEEDS FROM
00:40:57 2020 HEALTH AND RECOVERY GEO BONDS SERIES 2026 B TO DP
00:41:01 AND REC PARK IN FISCAL YEAR 2026 THROUGH 2027 AND PLACING
00:41:05 APPROXIMATELY 83.5 MILLION IN SERIES 2026 B IN ITEM NUMBER
00:41:11 TEN AUTHORIZES THE ISSUANCE AND SALE OF NOT TO EXCEED
00:41:15 APPROXIMATELY 83.5 MILLION AGGREGATE PRINCIPAL AMOUNT OF
00:41:21 ONE OR MORE SERIES OF BONDS ON A TAX EXEMPT OR TAXABLE BASIS
00:41:25 OF GEO BONDS. >> HEALTH AND RECOVERY 2020
00:41:26 SERIES 2026 BEAT ITEM NUMBER NINE APPROPRIATES 2015 MILLION
00:41:32 OF GENERAL OBLIGATION BOND PROCEEDS FROM 2020 EARTHQUAKE
00:41:36 SAFETY AND EMERGENCY RESPONSE JAIL BONDS SERIES 2026 C TO THE
00:41:43 PUBLIC UTILITIES COMMISSION AND DEPARTMENT OF PUBLIC WORKS
00:41:47 IN FISCAL YEAR 2026 TO 2027 AND ITEM NUMBER 11 AUTHORIZES
00:41:53 THE ISSUANCE AND SALE OF NOT TO EXCEED 215 MILLION AGGREGATE
00:41:56 PRINCIPAL AMOUNT OF JAIL BONDS EARTHQUAKE SAFETY AND EMERGENCY
00:42:00 RESPONSE 2020 SERIES 2026 SEE MR. CHAIR.
00:42:06 THANK YOU MR. CLERK. THIS IS GOING TO BE A LITTLE
00:42:11 UNUSUAL AND THE PRESENTATIONS WILL GO SLIGHTLY OUT OF ORDER.
00:42:14 WE'LL HAVE THREE SEPARATE PRESENTATIONS GROUPED BY FIRST
00:42:18 HEALTH AND RECOVERY GENERAL OBLIGATION BONDS, SECOND
00:42:22 EARTHQUAKE SAFETY AND EMERGENCY RESPONSE OR USER GENERAL
00:42:26 OBLIGATION BONDS AND THEN THIRD VARIOUS AFFORDABLE HOUSING
00:42:30 GENERAL OBLIGATION BONDS THE VLA HAS REPORTED ON THESE ITEMS
00:42:34 AND WILL PLAN TO PRESENT THE REPORT AT THE END OF ALL THE
00:42:35 PRESENTATIONS. WITH THAT WILL START WITH ITEMS
00:42:38 EIGHT AND TEN AS PRESENTED BY STACY BRADLEY IS MY
00:42:41 UNDERSTANDING. >> STACY DIRECTOR OF CAPITAL
00:42:44 AND PLANNING SAN FRANCISCO RECREATION AND PARKS DEPARTMENT
00:42:48 ISABELLA CORA FACILITIES AND CAPITAL PLANNING PROJECT
00:42:52 MANAGER AT THE DEPARTMENT OF PUBLIC HEALTH AND MICHELLE
00:42:54 TRIVEDI FINANCIAL ANALYST COMPTROLLER'S OFFICE OF PUBLIC
00:42:57 FINANCE. WE WELCOME ALL THREE OF YOU TO
00:42:59 THE BUDGET AND FINANCE COMMITTEE.
00:43:00 >> THE FLOOR IS YOURS. I THANK YOU VERY MUCH, MR.
00:43:03 CLERK AND MR. CHAIR AND MEMBERS OF THE COMMITTEE, THANK YOU FOR
00:43:07 HEARING THIS ITEM. THIS IS MY NAME IS VISHAL
00:43:10 ALREADY FROM THE COMPTROLLER'S OFFICE OF PUBLIC FINANCE YET
00:43:13 THANK YOU THANK YOU FOR EXPLAINING IT WILL BE BREAKING
00:43:15 IT UP INTO THREE SEPARATE PRESENTATIONS.
00:43:17 THERE ARE FIVE DIFFERENT BOND ISSUANCES.
00:43:19 WE'RE HERE BEFORE YOU TO ASK FOR YOUR APPROVAL I WE PLAN TO
00:43:22 ISSUE IT IN A SINGLE BOND TRANSACTION BUT YEAH WE'LL BE
00:43:26 DOING THREE SEPARATE PRESS PRESENTATIONS FOR THE SAKE OF
00:43:30 MAKING IT A LITTLE BIT MORE DIGESTIBLE FOR EVERYONE IN THE
00:43:33 PUBLIC. SO WITH THAT I'LL TURN IT OVER
00:43:35 TO STACY BRADLEY FROM REC PARK. I'M NOT SURE IF OUR
00:43:38 REPRESENTATIVE IS HERE. >> IF NOT, I CAN TRY TO WALK
00:43:42 THROUGH THIS PROJECTS AS BEST I CAN.
00:43:47 >> GOOD MORNING SUPERVISORS. I'M STACY BRADLEY, THE DIRECTOR
00:43:52 OF OUR CAPITAL AND PLANNING DIVISION AT REC AND PARK.
00:43:55 THE ITEM BEFORE YOU TODAY IS THE FOURTH ISSUANCE OF THE 2020
00:43:58 HEALTH AND RECOVERY BONDS. THERE ARE TWO DIFFERENT THERE'S
00:44:01 ONE RESOLUTION AND ONE ORDINANCE THAT THAT IS MOVING
00:44:04 FORWARD FOR THIS BOND SALE. >> THIS IS THE SUMMARY OF THE
00:44:09 BOND SALE. IT'S HAS COVERED NOT JUST REC
00:44:12 AND PARK BUT HOUSING AND AND PUBLIC WORKS AND HOWEVER THIS
00:44:19 ISSUANCE IS JUST FOR IT'S A FINAL ISSUANCE FOR REC AND PARK
00:44:24 AND THE AND AN ISSUANCE FOR D H .
00:44:27 >> I WILL STEP THROUGH A VERY QUICK OVERVIEW ON THE PROGRESS
00:44:31 OF OUR OF THE REC AND PARK PROGRAM AND WHAT WE'RE SELLING
00:44:35 TODAY OR THIS ISSUANCE. >> SO OVERALL OUR HEALTH
00:44:39 AND RECOVERY BOND HAS PROVIDED 29% OF OUR FUNDING FOR 38
00:44:45 DIFFERENT PROJECTS THAT WE'RE DELIVERING OVER TEN PROGRAMS WE
00:44:49 HAVE LEVERAGED OTHER SOURCES FOR OVER 70%.
00:44:52 >> WE HAVE OUR EXPENDITURE HOURS AND OUR ENCUMBRANCES ARE
00:44:57 SHOWN HERE IN THE DARKER COLORS AND THEN THE LIGHTER ONES ARE
00:45:01 THE WHERE THEY'RE ALLOCATED BUT NOT YET ENCUMBERED OR EXPENDED.
00:45:05 >> WE HAVE SIX PROJECTS RIGHT NOW IN CONSTRUCTION ONE
00:45:09 IN BIDDING WAR THAT IS GOING TO BE AWARDED AT REC PARK
00:45:12 COMMISSION THIS MONTH AND WE HAVE 17 PROJECTS THAT ARE
00:45:15 IN THE PLANNING AND DESIGN PHASES ALONG WITH 14 PROJECTS
00:45:19 THAT ARE OPEN TO THE PUBLIC. >> THIS ISSUANCE SUMMARY SHOWS
00:45:22 THE OVERVIEW OF THE TOTAL BOND ALLOCATION PLUS THE ISSUANCE TO
00:45:27 DATE AND OUR ISSUANCE TODAY. >> SO WE HAVE A FEW OF OUR
00:45:32 RECOVERY PARKS CROCKER, AMAZON AND JACKSON PLAYGROUND WILL
00:45:35 BOTH GET FUNDING FROM THIS ISSUANCE AND IN OUR CITYWIDE
00:45:39 PARKS AND PROGRAMS WE HAVE THE REMAINING FUNDING FROM OUR
00:45:43 CITYWIDE PARKS WHICH IS GOLDEN GATE PARK, JOHN MCLAREN PARK
00:45:47 AND ALL OF THE FUNDING FOR LAKE MARSTON.
00:45:50 >> AND THEN WE HAVE COMMUNITY OPPORTUNITY FUND.
00:45:54 WE RAN THROUGH A PROCESS EARLIER THIS YEAR AND ALLOCATED
00:45:58 SEVEN PROJECTS TO RECEIVE FUNDING FROM THE COMMUNITY
00:45:59 OPPORTUNITY FUND WITH A ROBUST ENGAGEMENT OF THE COMMUNITY.
00:46:04 WE HAD ALMOST 40 APPLICATIONS FOR THESE FUNDS.
00:46:07 >> WE ALSO HAVE THE REMAINING FUNDS FOR OUR PLAYGROUNDS THAT
00:46:11 IS GOING TOWARDS FIVE DIFFERENT PLAYGROUNDS IN OUR SYSTEM INDIA
00:46:15 BASIN SILVER TERRACE, CROCKER AMAZON PURPLE PLAYGROUND I'M
00:46:21 SORRY RANDOLPH AND WRIGHT AND TENDERLOIN REC WHICH HAS
00:46:25 ALREADY BEEN OPEN AND THEN WE HAVE REMAINING FUNDS FROM
00:46:26 SUSTAINABILITY WHICH IS GOING TO SUPPORT THE INDIA BASIN
00:46:30 PROJECTS AND THIS IS A QUICK OVERVIEW OF HOW WE EXPECT TO
00:46:34 SPEND THE FUNDING FROM LOOKING AT THIS MONTH ALL THE WAY DOWN
00:46:41 THROUGH T THREE YEAR PERIOD TO OCTOBER DECEMBER 2029 WHERE
00:46:45 WE WILL BE AT MOSTLY BASICALLY SPENT DOWN WITH OUR CURRENT
00:46:49 PROJECT TRAJECTORIES, RIGHT? THAT IS IT FOR MY PRESENTATION.
00:46:53 I'M GOING TO HAND IT OVER TO VISHAL OR DEEPAK.
00:47:01 >> GOOD MORNING. MY NAME IS SABRINA ROBINSON.
00:47:03 I'M THE CHIEF OPERATING OFFICER AT ZUCKERBERG SAN FRANCISCO
00:47:06 GENERAL AND PRESENTING THE SLIDES HERE THIS IS A SUMMARY
00:47:13 OF OUR THIS IS A SUMMARY OF OUR SLIDES AND THE HIGH LEVEL OF
00:47:18 THE ISSUANCES TO DATE YOU WILL SEE P.
00:47:22 >> S IS BUDGET OUR PSYCH EMERGENCY SERVICES BUDGET FULLY
00:47:26 ISSUED AT THE FIRST SALE OF $5 MILLION IN PLANNING FUNDS FOR
00:47:29 THE BEHAVIORAL HEALTH ACQUISITIONS PORTION OF THE
00:47:32 BOND THAT $5 MILLION HAS FUNDED PRE-DEVELOPMENT WORK FOR THE
00:47:35 TREASURE ISLAND FACILITY. >> A NUANCE IS ALTHOUGH WE ARE
00:47:41 REQUESTING $42.1 MILLION FOR TREASURE ISLAND, WE WERE ALSO
00:47:42 RECENTLY AWARDED A STATE B CHIP GRANT FOR THIS PROJECT AND IF
00:47:48 ANYTHING GOES ACCORDING TO PLAN THEN WE WILL ONLY ANTICIPATE
00:47:51 ISSUING $30 MILLION IF THAT IS THE CASE WE WOULD REALLOCATE
00:47:55 THE 12.1 OF THE BALANCE FROM THE 42.1 TO THE HEALTH RECOVERY
00:48:01 AND CONNECTION CENTER TREASURE ISLAND RESIDENTIAL STEPDOWN
00:48:09 FACILITY, STEPDOWN BEDS WERE IDENTIFIED AS A CRITICAL GAP
00:48:13 IN A CONTINUUM OF CARE. SO THIS IS THE TREASURE ISLAND
00:48:17 FACILITY AND IT WILL PROVIDE ADDITIONAL STEPDOWN BEDS.
00:48:21 THESE ARE BEDS THAT PROVIDE TRANSITIONAL HOUSING TO CLIENTS
00:48:24 EXITING RESIDENTIAL SUBSTANCE ABUSE DISORDER PROGRAMS TO
00:48:27 PROVIDE CONTINUED SUPPORT IN A LESS CRITICAL SETTING TO
00:48:29 SUPPORT THEIR CONTINUED RECOVERY.
00:48:32 IT ALSO SATISFIES AN OBLIGATION TO REPLACE BEDS LOST TO
00:48:36 REDEVELOPMENT ON TREASURE ISLAND AND WILL ADD CAPACITY
00:48:37 BEYOND THAT. THE RECENTLY AWARDED B CHIP
00:48:40 GRANT WILL ALSO FUND FIRST FLOOR RESIDENTIAL BEDS,
00:48:44 RESIDENTIAL TREATMENT BEDS. THE OTHER FOUR RESIDENTIAL
00:48:48 FLOORS WILL REMAIN STEPDOWN BEDS AND THE GROUND FLOOR WILL
00:48:51 BECOME AN AREA. IF YOU RECALL THIS PROJECT WAS
00:48:54 PRESENTED AS PART OF THE THIRD ISSUANCE OF THIS BOND BEFORE
00:48:56 ULTIMATELY DROPPING OUT. THAT WAS DUE TO A DELAY IN SITE
00:49:00 READINESS WHICH IS OVERSEEN BY TITA.
00:49:03 THEY WERE ALL OF THE DELAYS WERE WEATHER RELATED AND WILL
00:49:06 BE ONGOING WITH SOME CONTRACT NEGOTIATIONS AND CONSTRUCTION
00:49:11 WILL START AUGUST 22ND SIX THROUGH NOVEMBER 2026 THIS IS
00:49:21 AGAIN JUST A SUMMARY OF THE TREASURE ISLAND BEACHHEAD GRANT
00:49:22 AS I MENTIONED EARLIER, THE $14.2 MILLION WAS AWARDED TO
00:49:26 FUND THE RESIDENTIAL TREATMENT BEDS.
00:49:29 THIS IS JUST EXPANDED REGARDING THE 12.1 MILLION TOWARDS
00:49:33 CAPITAL COSTS BASED ON THOSE BEDS PROPORTIONATE SHARE OF THE
00:49:37 OVERALL BUILDING WE ARE EXPECTED TO A&E TO BE AT BNF AT
00:49:40 ON SEPTEMBER THE 30TH AND TO BE ABLE TO EXECUTE THIS AGREEMENT
00:49:46 BY OCTOBER 30TH. AND THEN THIS IS AN OVERVIEW OF
00:49:51 ALL OF OUR SCHEDULES. WE DO EXPECT THESE WILL BE
00:49:55 COMPLETED BY MAY OF 2026. WE EXPECTED IT TO BE COMPLETED
00:49:58 BY MAY OF 2026. IT IS DELAYED SLIGHTLY.
00:50:02 THAT'S PRIMARILY BECAUSE ONCE WE GET INTO CONSTRUCTION WE DID
00:50:06 FIND A FEW THINGS AND OUR CAFETERIA IS ABOVE IT.
00:50:09 THERE'S A LOT OF NUANCES WHY THAT IS DELAYED BUT WE ARE ON A
00:50:13 BETTER TRACK AND IT SHOULD BE COMPLETED BY THE END OF THIS
00:50:17 YEAR FOR SUBSTANTIAL COMPLETION AT THE VERY LEAST LATEST THE
00:50:20 FIRST QUARTER OF 2027 AND I BELIEVE THAT IS IT FOR EACH
00:50:29 OKAY. >> THANK YOU.
00:50:32 I'LL SPEAK BRIEFLY ABOUT THE FINANCING PLAN FOR THESE BONDS.
00:50:36 WE'RE ASKING FOR OUR TOTAL NOT TO EXCEED PAR AMOUNT OF 83.5 OR
00:50:42 JUST UNDER $83.5 MILLION. WE'RE EXPECTING TO HAVE A 20
00:50:45 YEAR TERM FOR THESE BONDS AT OUR MUNICIPAL ADVISOR HAS GIVEN
00:50:49 US AN ESTIMATE OF 4.48% TRUE INTEREST COST WHICH TRANSLATES
00:50:53 TO AN AVERAGE ANNUAL DEBT SERVICE OF $6.3 MILLION PER
00:50:56 YEAR AND A TOTAL INTEREST COST OF 42.8 FOR THE BORROWING.
00:51:02 >> THIS IS WITHIN THE CITY'S DEBT CAPACITY IN TERMS OF ITS
00:51:07 CHARTER CAPACITY OF 3% AND ALSO IS CONSISTENT WITH THE CITY'S
00:51:11 CAPITAL PLANNING POLICY TO MAINTAIN ITS FISCAL YEAR 26
00:51:14 PROPERTY TAX RATE UNDER THE CAPITAL PLAN.
00:51:20 WE WE'RE HERE BEFORE YOU TODAY ON THE SECOND AND IF ASSUMING
00:51:23 BOARD APPROVAL OF THE LEGISLATION FOR THIS BOND ITEM
00:51:27 WE EXPECT TO CLOSE THE SALE WITHIN THE MONTH OF OCTOBER.
00:51:31 THIS SCHEDULE ALSO PERTAINS TO ALL THE OTHER BOND ISSUANCES.
00:51:35 I THINK THIS SLIDE IN SOME FORM OR OTHER IS IN ALL THE
00:51:39 PRESENTATION SO I WON'T BELABOR IT ON THE SUBSEQUENT
00:51:41 PRESENTATIONS BUT THIS IS OUR ANTICIPATED FINANCING SCHEDULE
00:51:44 AND WITH THAT WE'RE HAPPY TO TAKE QUESTIONS ON THIS ITEM OR
00:51:47 IF YOU'D LIKE WE CAN MOVE ON TO THE NEXT PRESENTATION.
00:51:50 DID THE BOND WHY DON'T WE DO ALL THE BOND PRESENTATIONS THEN
00:51:53 WE'LL HEAR FROM THE BUDGET AND LEGISLATIVE ANALYST GREAT.
00:51:57 THE NEXT ITEM IS THE PROPOSED ISSUANCE OF 2026 C ESSER BONDS
00:52:02 FOR UNDER THE R 2020 AUTHORIZATION WE'LL HAVE A
00:52:07 PRESENTATIONS FROM SPU C AND DEPARTMENT PUBLIC WORKS AS
00:52:12 WELL WITH THIS ITEM WE DO HAVE A COUPLE OF REQUESTED
00:52:16 AMENDMENTS ON BOTH THE SALE RESOLUTION AND THE SUPPLEMENTAL
00:52:21 APPROPRIATION. >> I HAVE A HARD COPIES OF
00:52:24 THAT. I HAVE FOUR HARD COPIES ONE FOR
00:52:25 EACH OF THE COMMITTEE MEMBERS AS WELL AS THE CLERK IF YOU'D
00:52:28 LIKE. >> THEY'RE SITTING ON THE RAIL
00:52:31 SO YOU'RE WELCOME TO HAVE THAT. >> I THINK THE THE AMENDMENTS
00:52:33 WE'RE ASKING FOR ARE PRETTY STRAIGHTFORWARD.
00:52:35 WE'LL GET INTO MORE DETAIL ON THEM BUT ALSO THAT THERE THEY
00:52:40 SHOULD NOT BE SUBSTANTIVE SO HOPEFULLY WILL NOT REQUIRE
00:52:43 FURTHER HEARING AFTER TODAY AND THAT I'LL START THE
00:52:47 PRESENTATION HERE THE TWO ITEMS BEFORE YOU ARE TO FILE NUMBERS
00:52:53 HERE THEY ARE A RESOLUTION AUTHORIZING APPROVING THE SALE
00:52:54 OF THE FOURTH ISSUANCE OF ISA 2020 BONDS AND IN MOUNT
00:52:58 CURRENTLY THE LEGISLATION SAYS NOT TO EXCEED 215 MILLION
00:53:01 AND WE'RE OUR AMENDMENT IS REQUESTING THAT TO BE REVISED
00:53:05 DOWN TO 138 MILLION AND THE REASON FOR THAT IS THAT WE HAD
00:53:10 ORIGINALLY ANTICIPATED THAT THE SFP CS EMERGENCY FIREFIGHTING
00:53:14 WATER SYSTEM PROJECT WOULD BE PART OF THIS ISSUANCE.
00:53:18 THAT PROJECT HAS FACED SOME DELAYS WHICH THE PUC STAFF WILL
00:53:21 GO INTO AND AS A RESULT WE DECIDED IT WOULD BE PRUDENT TO
00:53:25 WAIT AND ISSUE THOSE THE BONDS FOR THOSE PROJECTS AND A
00:53:30 SUBSEQUENT ISSUANCE. >> AND WITH THAT I WILL HAND IT
00:53:34 OFF TO OLIVIA CHEN FROM PUBLIC WORKS.
00:53:40 >> GOOD MORNING CHAIR DORSEY VICE CHAIR CHEN MEMBERS OTTER
00:53:47 CLERK CLERKS OF THE BOARD. MY NAME IS OLIVIA CHEN AND I'M
00:53:51 HERE ON BEHALF OF PUBLIC WORKS TO PRESENT OUR REQUEST FOR THE
00:53:54 FOURTH ISSUANCE OF THE EARTHQUAKE SAFETY AND EMERGENCY
00:53:55 RESPONSE 2020 GENERAL OBLIGATION BONDS SHOWN HERE IS
00:54:02 AN OVERVIEW OF THE ENTIRE BOND PROGRAM AS IT WAS AUTHORIZED BY
00:54:03 THE BOND MEASURE AND 2020 PROJECTS IN THIS BOND PROGRAM
00:54:06 WHERE PRIORITIZED IS BEING CRITICAL TO SAFEGUARD THE
00:54:10 UNINTERRUPTED DELIVERY OF ESSENTIAL EMERGENCY RESPONSE
00:54:14 AND PUBLIC SAFETY SERVICES HERE IN THE CITY.
00:54:17 >> THE TOTAL OF THE BOND PROGRAM WAS 628.5 MILLION
00:54:24 AND OVER 6% OF THE BOND PROGRAM OR THE BOND CAPACITY HAS BEEN
00:54:28 EXHAUSTED THROUGH THE FIRST THREE BOND SALES IN THIS TABLE
00:54:34 THAT WE'RE SHOWING HERE. THIS SALE WILL DRAW DOWN FROM
00:54:39 THE NEIGHBORHOOD FIRE STATIONS AND SUPPORT FACILITIES AS WELL
00:54:43 AS THE DISASTER RESPONSE FACILITIES, BOND COMPONENTS,
00:54:46 SUBSIDIES AND BALANCES THAT WILL REMAIN AFTER THIS BOND
00:54:51 SALE FOR THE EMERGENCY FIREFIGHTER OR FIREFIGHTING
00:54:55 WATER SYSTEM OR FWC AND THE DISASTER RESPONSE FACILITIES
00:54:59 COMPONENT. SO THESE ARE THE THREE PROJECTS
00:55:06 THAT WILL RECEIVE PROCEEDS FROM THIS BOND SALE.
00:55:07 THE FIRST IS THE DIVISION OF TRAINING WHICH WILL BE THE FIRE
00:55:11 DEPARTMENT'S SINGULAR TRAINING FACILITY WHEN IT'S COMPLETE
00:55:15 CONSTRUCTION STARTED IN THE SPRING OF THIS YEAR AND THE NEW
00:55:18 LOCATION IN BAYVIEW HUNTERS POINT.
00:55:22 THE PROCEEDS WILL CONTINUE TO FUND CONSTRUCTION.
00:55:25 >> THE SECOND PROJECT IS FIRE STATION SEVEN LOCATED IN THE
00:55:28 MISSION. A SEISMIC EVALUATION OF THIS
00:55:31 STATION DETERMINE THAT REPLACING THE FIRE STATION
00:55:33 WOULD BE MORE PRACTICAL THAN A COMPREHENSIVE RETROFIT.
00:55:37 >> THE TRAINING BUILDING ONSITE WILL ALSO BE DEMOLISHED
00:55:40 AND FACILITY PROGRAMING AND PROJECT PROJECTS SCOPE ARE
00:55:44 CURRENTLY BEING FINALIZED. >> THE THIRD PROJECT IN THIS
00:55:48 BOND SALE IS THE TERRIBLE STATION LOCATED IN SUNSET.
00:55:51 WORK WILL GO TOWARDS FORTIFYING THE POLICE STATION AGAINST
00:55:54 SEISMIC HAZARDS AND EXPANDING THE SPACE FOR PROGRAMING
00:55:56 AND NEEDS AT THE STATION AND DESIGN IS COMMENCING THIS
00:55:59 FALL. I'LL NOW PASS IT OFF TO MY
00:56:03 COLLEAGUE AT THE PUBLIC UTILITIES COMMISSION TO
00:56:06 CONTINUE THE PRESENTATION. COLLEAGUES FROM PUBLIC WORKS
00:56:10 AND MYSELF ARE AVAILABLE FOR QUESTIONS AFTERWARDS.
00:56:17 >> GOOD MORNING COMMITTEE MEMBERS.
00:56:21 >> MY NAME IS JOSH ANDRESEN, SENIOR PROJECT MANAGER.
00:56:25 THAT'S A PICTURE AND I'M GOING TO TAKE OUR TWO SLIDES OUT OF
00:56:26 ORDER HERE. IF YOU'RE FOLLOWING ALONG
00:56:29 IN YOUR PACKET PLEASE SKIP TO SLIDE SEVEN.
00:56:31 THE PUC IS PARTNERING WITH SAN FRANCISCO FIRE DEPARTMENT TO
00:56:35 CONSTRUCT A NEW SEISMICALLY RESILIENT EMERGENCY
00:56:36 FIREFIGHTING WATER SYSTEM IN SAN FRANCISCO'S WESTERN
00:56:39 NEIGHBORHOODS. THE MAP ON THE LEFT SLIDE SHOWS
00:56:43 ON THE LEFT OF THE SLIDE SHOWS THE WEST SIDE EMERGENCY
00:56:44 FIREFIGHTING SYSTEM WITH CONTRACT A PIPELINE AND PUMP
00:56:47 STATION IN RED. THE SCHEDULE ON THE RIGHT SHOWS
00:56:51 WE'RE PROCEEDING WITH CONSTRUCTION TO APPROVE THE
00:56:55 PUMP STATION IN 2027. WHILE WE ARE SEPARATING THE
00:56:59 PIPELINE WORK AND EXTENDING THE SCHEDULE FOR THE PIPELINE ONE
00:57:02 AND A HALF YEARS AS WE SHALL MENTION DUE TO UNEXPECTED
00:57:07 SCHEDULE EXTENSIONS ON CONTRACT PIPELINE WORK WE WILL RETURN TO
00:57:10 THE BOND SALE FOR THE BOND SALE CLOSER TO CONSTRUCTION.
00:57:14 >> FOR AN OVERVIEW CONTRACTS B AND C ARE ALSO SHOWN IN THIS
00:57:17 SLIDE IN BLUE WE'RE EVALUATING HOW TO COMBINE THESE
00:57:21 AND ACCELERATE THEIR SCHEDULES .
00:57:24 >> WE HAVE ENOUGH WE CURRENTLY HAVE SUFFICIENT FUNDS TO
00:57:26 PROCEED WITH CONTRACT THE PUMP STATION CONSTRUCTION AS WELL AS
00:57:33 CONTINUE WITH CONTRACT A, B AND C PLANNING AND DESIGN.
00:57:37 SO NOW PLEASE FLIP BACK TO SLIDE SIX.
00:57:43 SO THERE ARE TWO REASONS THE CONTRACT DATE SCHEDULE IS
00:57:45 EXTENDED BY ONE AND A HALF YEARS.
00:57:47 THE FIRST IS THE PIPE TECHNOLOGY WE DESIGNED WAS NOT
00:57:50 ABLE TO MEET THE PRESSURE AND DEFLECTION EXPECTED AND THE
00:57:54 SECOND IS CONCURRENTLY THE FIRST SCORPIO DELAYED THE
00:57:57 PROJECT FOR TWO FIVE MONTHS. SO THE PHOTO ON THE RIGHT SHOWS
00:57:59 HOW A PLASTIC LOCKING RING EJECTED FROM THE PIPE DURING
00:58:02 TESTING WHICH WAS UNEXPECTED. NOW THE TEAM IS ANALYZING
00:58:05 DIFFERENT PIPE TECHNOLOGY FOR GEO HAZARD AREAS AROUND LAKE
00:58:10 MASUD AND WE WILL CONTINUE TO WORK WITH THE PIPELINE
00:58:13 MANUFACTURERS. >> WHILE THESE DEVELOPMENTS
00:58:17 EXTENDED THE CONTRACT SCHEDULE ,THEY REFLECT OUR COMMITMENT
00:58:21 TO THE SUCCESS OF THIS CRITICAL LIFESAVING ASSET.
00:58:24 WE REMAIN FOCUSED ON CONSTRUCTING THE SYSTEM IN THE
00:58:28 WEST SIDE AS QUICKLY AS POSSIBLE.
00:58:29 WE LOOK FORWARD TO COMING BACK BEFORE YOU ON THE NEXT BOND
00:58:32 SALE. AND PLEASE LET THE PROJECT TEAM
00:58:36 AND I ARE AVAILABLE TO ANSWER ANY QUESTIONS YOU MAY HAVE.
00:58:46 >> THE SOURCES AND USES FOR THIS PROPOSED ISSUANCE WITH THE
00:58:50 REVISED NOT TO EXCEED AMOUNT OF 138 MILLION.
00:58:57 AGAIN THE TRUE INTEREST COST FOR TAX EXEMPT BONDS FROM OUR
00:59:01 ESTIMATE FROM OUR MUNICIPAL ADVISOR IS 4.48% WHICH
00:59:04 TRANSLATES TO AN AVERAGE ANNUAL DEBT SERVICE OF APPROXIMATELY
00:59:08 10.2 MILLION AND A TOTAL INTEREST COST OF 69 MILLION.
00:59:11 AND AGAIN THIS IS CONSISTENT WITH THE CITY'S DEBT CAPACITY
00:59:15 AND THAT CITY'S CAPITAL PLANNING TAX RATE POLICY TO
00:59:20 MAINTAIN THE FIXED FISCAL YEAR 26 TAX RATE.
00:59:22 AND WITH THAT I CAN MOVE ON. THIS IS THE SAME FINANCING
00:59:26 SCHEDULE WE. OH YEAH.
00:59:29 SHOOT. APOLOGIES.
00:59:50 THERE WE GO. THE PRESENTATIONS UP AGAIN.
00:59:55 >> THANK YOU. AGAIN TO JUST REVIEW THE
00:59:58 AMENDMENTS WE'RE ASKING FOR WE WOULD ASK TO AMEND THE SALE
01:00:02 RESOLUTION FILE TO 60883 TO CHANGE THE NOT TO EXCEED AMOUNT
01:00:05 TO 138 MILLION AND REPLACING EVERY REFERENCE WITHIN THE
01:00:09 RESOLUTION THAT IT CURRENTLY SAYS TO 15 MILLION TO THE NEW
01:00:11 AMOUNT OF 138 MILLION. AND THEN WE HAVE A FEW MORE
01:00:14 AMENDMENTS TO THE APPROPRIATION WHICH SHOULD MATCH THE NOT TO
01:00:18 EXCEED AMOUNT IN THE RESOLUTION AMENDING THE TOTAL TO TWO FROM
01:00:23 215 DOWN TO 138. AND THEN THERE ARE SOME
01:00:24 ADDITIONAL MINOR CHANGES AS WELL WITH THE LINE ITEMS
01:00:28 DELETING THE SPECIAL LINE ITEMS .
01:00:31 AND THEN THERE'S A SLIGHT REJIGGERING OF THE OF THAT COST
01:00:34 OF ISSUANCE REFLECTING THE CHANGE TO PARAMOUNT.
01:00:38 SO THERE ARE MULTIPLE THERE. I'M NOT GOING TO DETAIL EVERY
01:00:42 SINGLE LINE ITEM BUT THEY'RE THERE IN THE THE PACKET THAT I
01:00:45 HAVE GIVEN YOU. SO IF YOU HAVE ANY QUESTIONS
01:00:46 ABOUT THAT WE'RE HAPPY TO ADDRESS THOSE.
01:00:49 WITH THAT WE CAN MOVE TO THE NEXT PRESENTATION AND THAT
01:00:53 WOULD BE WITH MAYOR'S OFFICE OF PUBLIC.
01:00:57 MAYOR'S OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT.
01:00:58 HOW DO PULL UP THAT PRESENTATION WITH THAT?
01:01:07 LYDIA HEALEY FROM MAYOR'S OFFICE OF HOUSING COMMITTEE
01:01:09 CHAIRMAN. >> GOOD MORNING SUPERVISORS.
01:01:14 LYDIA ELY DEPUTY DIRECTOR FOR MOSEY ON THE HOUSING SIDE.
01:01:18 REALLY PLEASED TO BE HERE TODAY.
01:01:19 YOUR ITEMS ON THE ITEMS ON THE AGENDA NUMBER SEVEN 1213 AND 14
01:01:26 . THIS IS THREE DIFFERENT BOND
01:01:26 ISSUANCES FOR AFFORDABLE HOUSING THAT TOGETHER WILL
01:01:30 SUPPORT OVER 1100 UNITS OF HOUSING AND PROBABLY 15 NEW
01:01:35 HOMEOWNERS. WE'LL BE TALKING ABOUT THE 2016
01:01:38 PASS. WE'LL BE DOING OUR FOURTH
01:01:41 AND FINAL ISSUANCE 2019 G.O. BONDS.
01:01:45 ALSO THE FOURTH AND FINAL ISSUANCE.
01:01:48 AND THEN WE'LL BE TALKING ABOUT OUR SECOND ISSUANCE OF THE 2024
01:01:52 BONDS. I'D LIKE TO INVITE MY COLLEAGUE
01:01:53 WILLIAM WILCOX TO TALK ABOUT THE PAST BONDS.
01:02:02 >> THANK YOU, SUPERVISORS. AS LYDIA MENTIONED, MY NAME IS
01:02:04 WILLIAM WILCOX. I'M THE HOUSING FINANCE MANAGER
01:02:06 AT MOST CD AND I MANAGE OUR PASS PRESERVATION AND SEISMIC
01:02:10 SAFETY LOAN PROGRAM. >> THIS CAME OUT OF REPURPOSE
01:02:14 SELLING A BOND THAT ORIGINALLY PASSED IN 1992 FOLLOWING LOMA
01:02:16 PRIETA TWO THAT WAS MEANT TO SORT OF BE USED BY THE GENERAL
01:02:19 PUBLIC TO DO EARTHQUAKE RETROFITS THAT DIDN'T REALLY
01:02:22 GET USED IN 2016 WE CAME BACK TO THE VOTERS.
01:02:26 >> WE REPURPOSED IT SO IT COULD GO TOWARDS AFFORDABLE HOUSING
01:02:29 AND NOW WE ARE OR WE HAD ABOUT $200 MILLION WHEN WE STARTED
01:02:32 AND NOW WE'RE DOING OUR LAST $47 MILLION ISSUANCE.
01:02:35 THIS CAN BE USED FOR REHABILITATION OR I HAVE
01:02:39 EXISTING AFFORDABLE HOUSING OR THE ACQUISITION OF NON DEED
01:02:43 RESTRICTED HOUSING TO MAKE IT AFFORDABLE HOUSING.
01:02:45 WE'VE DONE THREE ISSUANCES THUS FAR AND SPENT DOWN THE VAST
01:02:47 MAJORITY OF THAT MONEY AND WE'RE JUST GETTING INTO OUR
01:02:50 PIPELINE TO PUT THIS INTO PROJECTS IN THE COMING YEAR OR
01:02:54 SO. SO WE PLAN ON ISSUING $47
01:02:57 MILLION BECAUSE OF THE STRUCTURE OF THE ORIGINAL 1992
01:03:02 BONDS. IT HAS TO BE IN THESE THREE
01:03:05 TRANCHES A MARKET RATE, A BELOW MARKET RATE AND A DEFERRED.
01:03:08 WE BLEND THEM ALL TOGETHER TO OFFER A COMPETITIVE RATE THAT
01:03:10 IS BELOW MARKET THAT WE USED TO PUT INTO OUR REHABILITATION
01:03:13 PROJECTS. THIS PLANS TO FUND ABOUT FIVE
01:03:16 PROJECTS FOR 390 RESIDENTIAL UNITS AND 14 COMMERCIAL UNITS.
01:03:20 WE PLAN TO FULLY EXPAND THIS BY THE END OF MARCH 2028 AND WE
01:03:24 NEED TO GET THIS MONEY NOW AS WE START TO GO IN FOR OTHER
01:03:27 FUNDING SOURCES LIKE TAX CREDITS TO FINISH OUT THE
01:03:31 PROJECTS. THE PROJECTS MUST BE AN AVERAGE
01:03:34 OF 80 AM-I WITH A MAX OF 120% OF AREA MEDIAN INCOME.
01:03:38 HOWEVER, MOST OF THEM ARE MUCH MORE AFFORDABLE THAN THAT.
01:03:39 >> FOUR OF OUR WE HAVE CURRENTLY FOUR PLAN PROJECTS
01:03:42 THAT ARE PORTFOLIO REHABILITATIONS OR EXISTING
01:03:44 AFFORDABLE HOUSING THAT WILL MAKE SIZABLE IMPROVEMENTS TO.
01:03:47 AND ONE ACQUISITION OF AN EXISTING PROPERTY THAT WAS NOT
01:03:51 PREVIOUSLY AFFORDABLE HOUSING. I HAVE TWO EXAMPLE PROPERTIES.
01:03:54 I TALK ABOUT TODAY. ONE IS THE DEREK SILVA
01:03:55 COMMUNITY. IT'S ACTUALLY RIGHT DOWN THE
01:03:56 STREET ON MARKET. YOU MAY RECOGNIZE THIS BUILDING
01:03:59 AND IT DOES NOT LOOK AS NICE AS THIS PHOTO DOES.
01:04:03 AND WE WANT TO MAKE IT EVEN BETTER.
01:04:04 SO WE ARE GOING TO ADDRESS A LOT OF WATERPROOFING,
01:04:07 ELECTRICAL AND PLUMBING ISSUES THERE AS PART OF A MAJOR
01:04:10 SEISMIC RETROFIT. AS YOU CAN SEE IT IS BRICK THAT
01:04:14 IS NOT IDEAL. SO WE WILL BE DOING UNIT
01:04:17 IMPROVEMENTS AS WELL. AND THEN ANOTHER IS OUR 2059
01:04:18 MISSION STREET PROPERTY WHICH IS 35 UNITS AND FOUR COMMERCIAL
01:04:22 UNITS THAT ARE CURRENTLY NOT DEED RESTRICTED.
01:04:26 >> AND THROUGH THIS ACQUISITION BY THE MISSION ECONOMIC
01:04:29 DEVELOPMENT AGENCY WILL CONVERT IT TO AFFORDABLE HOUSING.
01:04:33 AS I MENTIONED, WE PLAN TO EXPEND ALL OF THIS BY FEBRUARY
01:04:36 2028. WE HAVE GOT THE PROJECTS LINED
01:04:37 UP AND WE ARE JUST SEEKING ABOUT OTHER REMAINING FINANCING
01:04:40 BUT WE HAVE TO ISSUE IT NOW SO THAT IT'S AVAILABLE AND WE KNOW
01:04:44 THE INTEREST RATE BEFORE WE CAN GET THAT OTHER MONEY WE HAVE.
01:04:47 I WILL END UP DOING ABOUT 2000 UNITS OF RESIDENTIAL AND 78
01:04:53 COMMERCIAL UNITS ACROSS 75 PROJECTS OVER THE COURSE OF
01:04:57 THIS PROGRAM WHICH IS $260 MILLION.
01:04:58 AND THESE UNLIKE A LOT OF OUR OTHER OUR LOANS ARE ACTUAL
01:05:02 MORTGAGES PEOPLE PAY REAL LIKE MORTGAGE AND DEBT SERVICE ON
01:05:06 THIS AS OPPOSED TO OUR OTHER PROJECTS WHICH ARE RESIDUAL
01:05:10 RECEIPTS WE PAY WITH YOUR EXTRA MONEY.
01:05:12 >> SO WE WE'RE UNDERWRITING A LIKE PERFORMING MORTGAGE
01:05:14 PROGRAM. >> WE CURRENTLY HAVE REPAYMENTS
01:05:16 ARE ALL ACROSS OUR WHOLE BOOK ARE DOING FINE AND WE'RE
01:05:20 GETTING FULL REPAYMENT I AND THAT THOSE REPAYMENTS GO TO
01:05:24 REDUCE THE COST TO THE TAXPAYERS.
01:05:27 SO ONLY A SMALL PORTION TO SUBSIDIZE THE INTEREST RATE IS
01:05:29 ACTUALLY PAID WITH PROPERTY TAX.
01:05:32 >> AND I WILL PASS IT BACK TO LYDIA FOR THE 2019 JOBS.
01:05:38 >> I AGAIN I JUST DO WANT TO POINT OUT WILLIAM'S PROGRAM
01:05:42 THAT HE WAS TALKING ABOUT THE PAST PROGRAM WITH THIS FOURTH
01:05:47 ISSUANCE WE ARE DONE WITH OUR ONLY AMORTIZING DEBT PRODUCT.
01:05:53 IT WORKS FOR PROJECTS THAT HAVE HIGHER RISK AND TIGHTER
01:05:57 FINANCES THAN A TYPICAL BANK LOAN COULD SUPPORT.
01:05:58 SO WE'LL BE TRYING TO COME UP WITH NEW IDEAS AND NEW
01:06:01 RESOURCES WHICH KIND OF REPLICATE THE SUCCESS OF THAT
01:06:05 PROGRAM. BUT MOVING ON TO THE 2019 BONDS
01:06:08 SO AS I MENTIONED BEFORE, THIS IS GOING TO BE OUR FOURTH
01:06:12 ISSUANCE OR FINAL ISSUANCE. REALLY EXCITED TO CLOSE THIS
01:06:18 ONE UP. A TINY PORTION OF 107 MILLION
01:06:22 IS FOR MIDDLE INCOME HOUSING DOWN PAYMENT ASSISTANCE.
01:06:25 THIS WAS JUST A SMALL PART OF THE ORIGINAL USES THAT THE
01:06:29 VOTERS APPROVED IN 2019 AND WE'RE JUST PULLING THIS
01:06:33 DOWN AND WE WILL BE GETTING IT OUT THE DOOR TO ABOUT I THINK
01:06:38 15 HOMEOWNERS. YOU SEE 425,000 IS A LOT OF
01:06:41 DOWNPAYMENT ASSISTANCE. THAT'S A SAN FRANCISCO KIND OF
01:06:45 DOWNPAYMENT ASSISTANCE. THAT'S THE REALITY OF THE
01:06:46 MARKET WE'RE IN. >> BUT MOSTLY $100 MILLION FOR
01:06:52 FOUR SENIOR HOUSING PROJECTS. SO THESE ARE IN DISTRICTS SIX,
01:06:55 FIVE, EIGHT AND THREE. AND THE GOOD NEWS IS WE JUST
01:06:59 YESTERDAY GOT APPROVAL FOR ALL OF THESE PROJECTS FOR BONDS
01:07:02 AND TAX CREDITS MEANING THEY'RE ALL GOING TO START CONSTRUCTION
01:07:06 IN FEBRUARY OR BY FEBRUARY. SO THESE PROJECTS ARE TOGETHER
01:07:10 OVER 550 UNITS. REALLY EXCITING TO SEE THEM
01:07:15 IN SO MANY DIFFERENT DISTRICTS AND ALSO EACH OF THESE PROJECTS
01:07:18 IS HEAVILY HEAVILY LEVERAGING OTHER FUNDING SOURCES SO THAT
01:07:22 WE CAN STRETCH THESE JOE BONDS AS FAR AS WE POSSIBLY CAN.
01:07:26 THEY'RE BRINGING IN FEDERAL SOURCES.
01:07:27 THEY'RE BRINGING IN STATE CLIMATE MITIGATION SOURCES.
01:07:33 THEY'RE BRINGING IN SECTION 800% SECTION EIGHT.
01:07:36 SO FOR BEAUTIFUL SENIOR PROJECTS ACROSS THE CITY.
01:07:40 >> SO YEAH, BECAUSE LIKE I SAID, BECAUSE OF THE CERTAINTY
01:07:44 OF THE SCHEDULE WE LOOK FORWARD TO SPENDING THOSE DOLLARS DOWN
01:07:45 PRETTY PROMPTLY. >> AND HERE AGAIN IS A SUMMARY
01:07:51 OF THE WHOLE 600 MILLION WILL BE SPOKEN FOR AS OF THIS FINAL
01:07:55 ISSUANCE. AND LAST BUT NOT LEAST OUR 2024
01:07:59 BONDS PASSED IN MARCH 2020 BEFORE BY THE VOTERS $300
01:08:04 MILLION. WE DID ONE ISSUANCE LAST YEAR
01:08:05 AND WE'RE MOVING ALONG WITH THAT.
01:08:09 THAT NOTABLY INCLUDED $30 MILLION FOR HOUSING FOR
01:08:12 SURVIVORS OF SEX, SEXUAL VIOLENCE, DOMESTIC VIOLENCE
01:08:16 AND TRAFFICKING. AND WE HAVE TWO PROJECTS LINED
01:08:20 UP TO MOVE FORWARD WITH THAT FUNDING.
01:08:22 BUT THIS ISSUANCE IS GOING TO SUPPORT ANOTHER PROJECT AT
01:08:27 TREASURE ISLAND. THIS IS DIFFERENT FROM THE 2019
01:08:30 BONDS. THIS IS A FAMILY PROJECT
01:08:31 AND THE 1939 MARKET WHICH YOU SAW ON THE LIST FOR THE 2019
01:08:36 BONDS IS HERE AS WELL. IT IS A VERY LARGE PROJECT 187
01:08:40 UNITS SO WE'RE USING BOTH BOND SOURCES FOR THIS ONE.
01:08:44 >> AGAIN WITH THE CERTAINTY WE'RE SUPER EXCITED TO GET THAT
01:08:51 MONEY OUT THE DOOR PROMPTLY AND HERE AGAIN WE HAVE ONE MORE
01:08:55 ISSUANCE ON THIS BOND. HOPEFULLY PROBABLY NEXT YEAR WE
01:08:59 HAVE A COUPLE OF PROJECTS IN THE PIPELINE THAT LOOK GOOD
01:09:03 BUT WE DON'T LIKE TO ISSUE UNTIL WE HAVE MORE CERTAINTY.
01:09:07 >> SO WE WILL WAIT FOR THAT CERTAINTY AND THEN I'LL LET
01:09:10 RICHELLE TALK NUMBERS. >> THANK YOU.
01:09:14 >> ALL RIGHT. THESE THREE HOUSING ISSUANCES
01:09:15 ARE ALL GOING TO BE TAXABLE BONDS BECAUSE OF THE THE USE OF
01:09:18 THE PROCEEDS FOR FOR FOR PRIVATE ACTIVITY.
01:09:21 SO THE ESTIMATES HERE ARE GOING TO BE SLIGHTLY DIFFERENT.
01:09:26 ALSO THE THE PAST BONDS IN PARTICULAR THEY'RE GOING TO
01:09:32 BE STRUCTURED WITH A 40 YEAR TERM AS WAS REFERENCED EARLIER.
01:09:36 THOSE ARE SORT OF RISKIER MORE MARGINAL PROJECTS THAT NEED A
01:09:43 LITTLE MORE ASSISTANCE. AND SO THE LOANS TO THOSE
01:09:44 PROJECTS IN ORDER TO MAKE THEM PENCIL FOR THE DEVELOPERS ARE
01:09:48 STRUCTURED WITH THE LONGER AMORTIZATION AND SO THE TERM OF
01:09:51 THE BONDS BECAUSE THE LOAN REPAYMENTS GO TO OFFSET THE
01:09:55 BOND REPAYMENTS. SO THOSE WILL BE STRUCTURED
01:09:58 WITH A CORRESPONDING 40 YEAR TERM.
01:09:59 >> SO AGAIN THE THE THE SOURCES AND USES ARE HERE HAPPY TO
01:10:03 ANSWER ANY QUESTIONS ABOUT THAT .
01:10:06 >> THE PROJECTED TOTAL POWER FOR ALL THREE OF THESE
01:10:08 ISSUANCES JUST OVER $200 MILLION.
01:10:11 THE EXPECTED TERM AGAIN FOR THE TWO TRADITIONAL AFFORDABLE
01:10:16 HOUSING BONDS 2019 AND 2020 FOR AUTHORIZATIONS IS 20 YEARS
01:10:21 AND THEN 40 YEARS FOR THE 26 F PASS BONDS.
01:10:24 THE ESTIMATED TRUE INTEREST COST FOR THESE BONDS RANGE
01:10:26 AGAIN BECAUSE OF THIS VARYING TERM FROM 6.56 TO 7% FROM OUR
01:10:32 LATEST ESTIMATE FROM OUR MUNICIPAL ADVISORS.
01:10:35 THAT TRANSLATES TO AVERAGE ANNUAL DEBT SERVICE OF 13.6
01:10:38 MILLION FOR THE 220 YEAR BONDS AND 3.5 MILLION FOR THE SMALLER
01:10:42 LONGER 26 F 40 YEAR BOND. THE ESTIMATED TOTAL INTEREST
01:10:45 COST FOR ALL THESE BONDS IS APPROXIMATELY $211.5 MILLION.
01:10:52 AND AGAIN CONSISTENT WITH THE CITY'S DEBT CAPACITY UNDER THE
01:10:56 CHARTER AND ITS FISCAL YEAR 2006 PROPERTY TAX RATE POLICY
01:10:59 SAME CALENDAR THAT WE'VE PRESENTED BEFORE.
01:11:03 AND WITH THAT WE ARE HAPPY TO TAKE QUESTIONS ON ANY OR ALL OF
01:11:07 THE PROJECTS OR ISSUANCES. THANK YOU.
01:11:10 >> THANK YOU. I'D LIKE TO THANK ALL OF OUR
01:11:12 PRESENTERS AND NOW TURN TO THE BUDGET AND LEGISLATIVE ANALYST
01:11:16 MR. MAYNARD. THE FLOOR IS YOURS.
01:11:18 >> GOOD MORNING NICK BERNARD FROM THE BUDGET LEGISLATIVE
01:11:22 ANALYST'S OFFICE. ITEM SEVEN THROUGH 14 ARE
01:11:23 RESOLUTIONS AND ORDINANCES THAT AUTHORIZE THE SALE OF GENERAL
01:11:28 OBLIGATION BONDS TOTALING $423.5 MILLION AND THEN
01:11:32 APPROPRIATION ORDINANCES FOR THE PROCEEDS.
01:11:34 WE SHOWED THE USES ON PAGE 26 OF OUR REPORT WITH MUCH MORE
01:11:36 DETAIL ABOUT THE PROJECT STARTING ON PAGE 30.
01:11:39 ON PAGE 28 YOU'LL FIND THE FISCAL IMPACT OF THE ENTIRE
01:11:45 TRANSACTION. FOR THE FIRST 20 YEARS THERE'S
01:11:48 ABOUT $37.1 MILLION IN DEBT SERVICE FOR ALL OF THESE BONDS.
01:11:52 THE TRANSACTIONS ARE CONSISTENT WITH THE CITY'S DEBT POLICIES
01:11:56 LIMITING THE USE OF GENERAL OBLIGATION BONDS AND ALSO JUST
01:11:59 NOTING THAT SOME OF THE PROJECTS DO REQUIRE ONGOING
01:12:03 COMMITMENTS BEYOND THESE BOND SALES.
01:12:07 THE TREASURE ISLAND BEHAVIORAL HEALTH FACILITY WILL COST ABOUT
01:12:11 $8.6 MILLION A YEAR TO OPERATE ONCE IT'S BUILT.
01:12:15 THE INDIA BASIN PARK IS $350,000 A YEAR.
01:12:18 ONCE THE PARK IS OPEN STARTING IN 2028 AND THEN THE HOUSING
01:12:22 PROJECTS MAY REQUIRE RENTAL SUBSIDIES DEPENDING ON THE
01:12:26 POPULATION SERVES WE DO RECOMMEND APPROVAL OF ITEMS 7
01:12:30 TO 14. >> THANK YOU, MR. MAYNARD.
01:12:37 >> I WAS WONDERING IF I KNOW THAT THAT THERE IS A RESERVE
01:12:41 FOR MARKET UNCERTAINTY BUT IT'S NOT LOST ON ME THAT THERE'S
01:12:46 BEEN IN JUST INCREASING MARTIN MARKET UNCERTAINTY IN THE BOND
01:12:50 MARKETS. I THINK TOO OF THE WALL STREET
01:12:51 JOURNAL STORIES TODAY ARE ABOUT THE GLOBAL SELL OFF
01:12:54 AND EVERYTHING. >> IS THERE ANYBODY WHO I DON'T
01:12:57 KNOW IF THIS IS A QUESTION FOR YOU OR THE CONTROLLERS OFFICE,
01:13:03 HOW UNCERTAIN ARE WE RIGHT NOW WITH WHAT'S GOING ON IN THE
01:13:07 BOND MARKETS GLOBALLY AND HOW WILL THIS AFFECT.
01:13:10 >> LET ME LET ME PHRASE IT THIS WAY.
01:13:12 ARE WE CONFIDENT RIGHT NOW THAT THE RESERVE WE HAVE FOR MARCH
01:13:15 MARKET UNCERTAINTY IS SUFFICIENT FOR THE UNCERTAINTY
01:13:19 THAT WE ACTUALLY MAY BE FACING ?
01:13:22 >> YES. REALLY THAT'S IT'S MORE OF A
01:13:26 STRUCTURING MECHANISM THAN A REFLECTION OF INTEREST RATE
01:13:30 COST. >> THE SO THAT THERE'S ONLY A
01:13:37 MARKET RESERVE FOR THE THE THE THE ISSUANCES THAT ARE NOT
01:13:41 FIXED. SO FOR EXAMPLE THE THE 2019
01:13:47 HOUSING BOND AND THE 26 PASS BOND THOSE ARE THE FINAL
01:13:51 ISSUANCES UNDER THAT AUTHORIZATION.
01:13:55 SO FOR B BECAUSE IT'S CAPPED BY THE BALLOT MEASURE THAT'S THE
01:13:59 THAT'S THE AMOUNT REMAINING THAT WE HAVE LEFT TO ISSUE.
01:14:03 SO WE KNOW THAT THE PAR AMOUNT FOR THOSE BONDS IS GOING TO BE
01:14:06 THAT EXACT NUMBER. SO THAT'S WHY IT'S 175 540
01:14:12 AND 47. YOU KNOW THE VERY SPECIFIC
01:14:13 NUMBER WE KNOW THAT THAT'S THE AMOUNT WE HAVE LEFT TO ISSUE
01:14:17 AND WE'RE GOING TO ISSUE EXACTLY THAT AMOUNT WITH THE
01:14:20 OTHER BONDS WE'RE TRYING TO THERE'S THERE'S IT'S NOT GOING
01:14:21 TO BE THE FINAL ISSUANCE NECESSARILY.
01:14:24 AND SO WE WE BUILD IN A LITTLE BIT OF WIGGLE ROOM BECAUSE
01:14:27 WE'RE TRYING TO FUND THE PROJECTS TO THE AMOUNT THAT'S
01:14:31 BEING REQUESTED TO BE BY THE DEPARTMENTS TO FUND THE
01:14:32 PROJECTS. >> AND SO WE INCLUDE A LINE
01:14:35 ITEM FOR FOR MARKET RESERVE IN CASE WE NEED TO STRUCTURE
01:14:39 THE BONDS. WE DON'T KNOW IF WE'RE GOING TO
01:14:42 BE PRICING INTO A PREMIUM MARKET OR A DISCOUNT MARKET.
01:14:45 >> WE WANT TO MAKE SURE WE CAN FUND THE PROJECTS THAT WE'RE
01:14:47 EXPECTING TO FUND. >> THAT'S DIFFERENT THAN THE
01:14:50 INTEREST COSTS. SO IF INTEREST RATES FLUCTUATE
01:14:53 CONTINUE TO RISE, THEN THE REPAYMENT ON THAT PRINCIPAL
01:14:57 THAT WE ISSUE WILL REFLECT THE HIGHER COSTS OF THE BORROWING
01:15:01 BASED ON A HIGHER INTEREST RATE.
01:15:02 BUT IT NECESSARY WE SHOULDN'T NECESSARILY AFFECT THE PAR.
01:15:06 THE PAR IS A FUNCTION AGAIN EITHER OF WE CAN SET THE PAR
01:15:12 AND THE THE PRICING WILL FOLLOW OR SOMETIMES IF WE'RE TRYING TO
01:15:16 SET THE PROJECT AMOUNT THEN THE PAR MIGHT FLUCTUATE DEPENDING
01:15:20 ON THE TYPE OF MARKET WE IN WE'RE IN BUT THAT'S JUST
01:15:22 STRUCTURING DECISION RATHER THAN AN INTEREST COST ISSUE.
01:15:25 SO THE HIGHER INTEREST COST REFLECTS THE REPAYMENT NOT NOT
01:15:29 THE PAR SIZE. >> OKAY.
01:15:31 WOULD THAT AFFECT OUR YOU KNOW WE HAVE WE HAVE SET A LINE
01:15:35 AND MADE A COMMITMENT TO TAXPAYERS THAT WE'RE NOT GOING
01:15:36 ABOVE A CERTAIN AMOUNT. WOULD IT WOULD THE BOND MARKETS
01:15:40 AND THE INTEREST RATES AND ALL OF THAT AFFECT GETTING CLOSE TO
01:15:43 THAT? >> NO, WE AGAIN THAT'S MORE
01:15:47 ESPECIALLY IN THE SHORT TERM NOT TO GET INTO TOO MUCH DETAIL
01:15:51 BUT WE CAN STRUCTURE THE BONDS CERTAINLY SO THAT THE TAX RATE
01:15:55 FOR THE COMING YEAR IS WE CAN SET IT SO THAT IT WILL NOT
01:15:59 EXCEED THE TAX RATE. WE KNOW IT BASED ON THE CURRENT
01:16:03 ASSESSED VALUATION AND THE TAX RATES THAT HAVE BEEN SET.
01:16:06 THERE'S A CERTAIN AMOUNT OF DEBT SERVICE THAT WE'VE THAT
01:16:09 WE'VE BAKED INTO THE LEVY THAT WE'RE GOING TO APPLY TO THESE
01:16:13 ISSUANCES. AND SO WE KNOW NOT TO EXCEED
01:16:14 THAT AND YOU KNOW HIGHER HIGHER INTEREST COST IN FUTURE YEARS
01:16:19 COULD MEAN WE HAVE LESS ROOM TO ISSUE FUTURE BONDS UNDER THE
01:16:24 TAX RATE CONSTRAINT THAT WE'VE APPLIED.
01:16:27 >> BUT IT SHOULDN'T PREVENT US FROM ISSUING THESE BONDS.
01:16:29 OKAY. THERE'S ALSO A REFERENCE
01:16:32 IN THIS IN THE BIELA REPORT THAT MARKET CONDITIONS MAY
01:16:36 REQUIRE THAT WE DO A NEGOTIATED SALE INSTEAD OF A COMPETITIVE
01:16:43 SALE FOR SOME OF THE BONDS. >> CAN YOU HELP ME UNDERSTAND
01:16:48 WHAT THAT MEANS AND YEAH, WHAT WHY IT'S CONSEQUENTIAL OF
01:16:51 COURSE. >> SO WE'RE EXPECTING FOR THESE
01:16:55 BONDS TO HAVE A COMPETITIVE SALE.
01:16:58 SO WITHIN OUR DEBT POLICY THE CITY HAS ADOPTED THAT POLICY
01:17:02 WHERE THERE ARE CERTAIN CONDITIONS OR PARAMETERS
01:17:03 IN WHICH WE MIGHT ACTIVELY SEEK A NEGOTIATED SALE.
01:17:06 >> IN FACT THE NEXT TRANSACTION YOU'RE GOING TO BE REVIEWING
01:17:13 FOR THE CERTIFICATES OF PARTICIPATION I THINK THAT'S
01:17:14 ANTICIPATED BE A NEGOTIATED SALE.
01:17:17 >> AND IF THERE ARE CERTAIN UNUSUAL THINGS ABOUT THE
01:17:21 TRANSACTIONS STRUCTURING WISE OR IF IT'S LIKE A COMPLICATED
01:17:26 REFUNDING, THAT TYPE OF THING THAT MAY BE A REASON TO SEEK A
01:17:30 NEGOTIATED SALE OR IF THERE IS SOME SORT OF, YOU KNOW,
01:17:34 BREAKDOWN IN THE MARKET WE MAY SEEK TO TO PLACE THE BONDS
01:17:37 DIRECTLY WITH AN UNDERWRITER. >> BUT WE'RE NOT ANTICIPATING
01:17:41 THAT INTO FOR THE ON LEGISLATION.
01:17:42 IT'S REALLY JUST LANGUAGE THAT ALLOWS US FLEXIBILITY IF IF
01:17:46 SOMETHING HAPPENS IN THE WORLD AND THINGS CHANGE AND WE STILL
01:17:49 NEED TO PLACE THE BONDS, THEN WE CAN DO SO.
01:17:52 >> BUT WE'RE NOT ANTICIPATING TO THESE THESE ARE PRETTY
01:17:56 STRAIGHTFORWARD NEW MONEY ISSUANCES.
01:17:57 THE STRUCTURE IS NOT PARTICULARLY COMPLICATED.
01:18:01 IT'S A WELL KNOWN OUR GO GO CREDIT IN PARTICULAR IS A VERY
01:18:04 WELL KNOWN CREDIT THAT THE MARKET IS FAMILIAR WITH
01:18:08 AND THEY'RE FAMILIAR WITH OUR RGA ISSUANCES.
01:18:09 WE'VE DONE A LOT OF COMPETITIVE ISSUANCES OVER THE LAST SEVERAL
01:18:12 YEARS. AND SO AT THE MOMENT WE'RE NOT
01:18:16 EXPECTING TO MOVE FORWARD WITH A NEGOTIATED SALE.
01:18:19 SO THE LANGUAGE IS JUST IN THE LEGISLATION TO PERMIT US TO
01:18:23 SEEK ONE IF SOME SOMETHING CHANGES AND THEN WE NEED TO
01:18:26 SEEK A NEGOTIATED SELL. BUT THE WAY THE WAY COMPETITIVE
01:18:30 VERSUS NEGOTIATED SALE WORKS COMPETITIVE SALE WE PUBLISH A
01:18:34 NOTICE THAT WE'RE PLANNING TO PUT THE BONDS UP FOR SALE ON A
01:18:38 PARTICULAR DATE AND THEN WE WILL RECEIVE BIDS AT A AT THE
01:18:42 STATED TIME FROM VARIOUS UNDERWRITERS THAT ANY ANY
01:18:46 UNDERWRITERS CAN PARTICIPATE. THEY SUBMIT THEIR BIDS AND WE
01:18:49 GO WITH THE LOWEST INTEREST COST THAT WE RECEIVE AT THAT
01:18:50 TIME. IT'S LIKE AN AUCTION.
01:18:52 AND ONCE THAT THE TIME CLOSES WE AWARD THE BONDS.
01:18:57 IF AS LONG AS IT'S A VALID BID WE WE AWARD THE BONDS TO THE
01:19:01 LOWEST INTEREST COST BIDDER A NEGOTIATED SALE, WE WILL WE
01:19:05 HAVE A THE CITY ALSO MAINTAINS A QUALIFIED POOL OF
01:19:08 UNDERWRITERS AND WE WOULD TYPICALLY THEN SUBMIT A REQUEST
01:19:12 FOR PROPOSALS TO THAT POOL AND WE'LL GET VARIOUS RESPONSES
01:19:16 AND THOSE WILL BE SCORED IN IN A LIKE A SOLICITATION PROCESS
01:19:20 WITH PANELISTS AND THEN WE WOULD SELECT UNDERWRITING TEAM
01:19:25 BASED ON THE SCORING. SO THERE'S A SLIGHTLY DIFFERENT
01:19:29 PROCESS IN THAT WE WORK DIRECTLY WITH THE UNDERWRITERS
01:19:32 TO BE ABLE TO PLACE THE BONDS ON A ON A GIVEN DAY THEY WOULD
01:19:34 THEY WOULD HAVE THEIR THEIR CLIENTS AND THAT WOULD BE KIND
01:19:37 OF MORE OF A NEGOTIATED PROCESS .
01:19:40 THEY'D PROPOSE A FINAL SCALE AND WE WOULD WORK WITH OUR
01:19:43 MUNICIPAL ADVISORS TO DECIDE WHETHER THAT'S APPROPRIATE
01:19:44 AND WHETHER WE NEED TO MOVE A FEW BASIS POINTS HERE OR THERE
01:19:47 OR WHETHER THE CITY FINDS THE FINAL PRODUCT ACCEPTABLE.
01:19:51 SO THAT'S THAT'S A SLIGHTLY DIFFERENT PROCESS BUT IT'S
01:19:55 AGAIN SUBJECT TO COMPETITIVE CITY CITY SOLICITATION
01:19:58 PROCESSES. >> OKAY, GREAT.
01:20:01 >> THANK YOU SO MUCH. I APPRECIATE THE THE
01:20:05 EXPLANATION AND THE QUOTE THE ANSWER TO THE QUESTIONS.
01:20:07 I APPRECIATE EVERYBODY'S PRESENTATIONS ON THIS AND ALL
01:20:10 THE WORK. THERE'S A LOT TO BE EXCITED
01:20:14 ABOUT ON THE INVESTMENTS THAT WE'RE MAKING INCLUDING SOME
01:20:15 IN MY OWN DISTRICT. I WON'T BELABOR IT BY LISTING
01:20:18 THEM. OBVIOUSLY I'M GRATEFUL.
01:20:21 I THINK WE'RE ALL GRATEFUL FOR THE WORK THAT YOU'RE DOING
01:20:25 AND WHENEVER WE TALK ABOUT OUR GENERAL OBLIGATION BONDS OR ANY
01:20:28 BONDS WE OWE A DEBT OF GRATITUDE TO SAN FRANCISCO
01:20:32 VOTERS FOR THEIR CONFIDENCE IN US AND WE TAKE SERIOUSLY THE
01:20:36 THE OBLIGATIONS THAT WE HAVE AS THEIR BOARD OF SUPERVISORS TO
01:20:37 MAKE SURE THAT IT'S INVESTMENTS THAT ARE WELL OVERSEEN
01:20:40 AND MONEY WELL SPENT. >> SEEING NO ONE ON THE ROSTER
01:20:44 WITH QUESTIONS OR COMMENTS. MR. CLERK, MAY WE OPEN THIS
01:20:48 ITEM UP NOW TO PUBLIC COMMENT? YES.
01:20:52 WE ARE NOW OPENING PUBLIC COMMENT FOR THESE ITEMS SEVEN
01:20:54 THROUGH 14 IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH
01:20:56 TO ADDRESS THIS COMMITTEE. >> MR. CHAIR, WE HAVE NO
01:20:59 SPEAKERS. THANK YOU.
01:21:00 MR. CLERK. >> PUBLIC COMMENT ON THESE
01:21:03 ITEMS IS NOW CLOSED AND SEEING NO FURTHER QUESTIONS OR
01:21:06 COMMENTS I WOULD MOVE TO AMEND ITEMS NINE AND 11 AS DESCRIBED
01:21:11 BY THE DEPARTMENT AND TO FORWARD ITEM SEVEN THROUGH 14
01:21:14 TO THE FULL BOARD WITH OUR POSITIVE RECOMMENDATION.
01:21:18 >> MR. CLERK, MAY WE HAVE A ROLL CALL ON THAT MOTION?
01:21:20 YES. AND ON THAT MOTION TO AMEND THE
01:21:22 ORDINANCE AND ITEM NUMBER NINE AND THE RESOLUTION AND ITEM 11
01:21:29 ALSO OFFERED BY THE DEPARTMENTS AND TO REFER THESE ITEMS TO THE
01:21:34 FULL BOARD WITH THE RECOMMENDATION ITEMS NINE
01:21:35 AND 11 AS AMENDED. >> VICE CHAIR CHEN CHEN I
01:21:41 REMEMBER SAUTER SAUTER I HEARD DORSEY DORSEY I WE HAVE THREE
01:21:45 EYES. >> THANK YOU MR. CLERK THE
01:21:46 MOTION PASSES. MR. CLERK CAN YOU PLEASE PLEASE
01:21:51 CALL ITEMS NUMBER 15 AND 16 TOGETHER?
01:21:54 YES. ITEM NUMBERS 15 AND 16 ITEM
01:21:59 NUMBER 15 AS AN ORDINANCE APPROVING THE ISSUANCE AND SALE
01:22:00 OF CERTIFICATES OF PARTICIPATION IN ONE OR MORE
01:22:04 SERIES ANY TAX EXEMPT AND OR A TAXABLE BASIS BY THE CITY
01:22:08 AND COUNTY PAYABLE FROM THE BASE RENTAL SECURED BY NET OPEN
01:22:12 SPACE FUND PROPERTY TAX REVENUES TO FINANCE AND OR
01:22:15 REFINANCE CERTAIN PROJECTS AS SET FORTH IN A NOT TO EXCEED
01:22:20 THE PRINCIPAL SORRY THE AGGREGATE PRINCIPAL AMOUNT OF
01:22:25 43 MILLION. >> APPROVING THE PHARMACEUTICAL
01:22:27 PROPERTY LEASE AND LEASE TRUST AND ESCROW AGREEMENTS
01:22:30 AUTHORIZING THE SALE OF THE CERTIFICATES APPROVING THE
01:22:34 FORMS OF AN OFFICIAL NOTICE OF SALE AND NOTICE OF INTENTION TO
01:22:37 SELL THE CERTIFICATES AND DIRECTING THEIR PUBLICATION
01:22:41 APPROVING THE FORM OF A PURCHASE CONTRACT AND OR
01:22:42 INITIAL PURCHASERS OF THE CERTIFICATES AND APPROVING THE
01:22:46 FORM OF AN OFFICIAL STATEMENT IN PRELIMINARY AND FINAL FORM
01:22:49 APPROVING THE FORM OF A CONTINUING DISCLOSURE
01:22:52 CERTIFICATE AUTHORIZING THE PAYMENT OF COSTS OF ISSUANCE
01:22:56 DECLARING THE CITY'S OFFICIAL INTENT TO REIMBURSE ITSELF FOR
01:23:00 CERTAIN COSTS FROM THE PROCEEDS OF THE CERTIFICATES GRANTING
01:23:03 GENERAL AUTHORITY TO CITY OFFICIALS TO TAKE CERTAIN
01:23:05 ACTIONS IN CONNECTION WITH THE CERTIFICATES AS DEFINED.
01:23:08 >> APPROVING MODIFICATIONS TO DOCUMENTS AND RATIFYING
01:23:11 PREVIOUS ACTIONS TAKEN IN CONNECTION THEREWITH
01:23:15 AND ITEM NUMBER 16 AS AN ORDINANCE APPROPRIATING SAID 43
01:23:18 MILLION OF PROCEEDS TO THE RECREATION AND PARKS DEPARTMENT
01:23:22 AND FISCAL YEAR 2026 TO 2027 AND PLACING THESE FUNDS ON
01:23:26 CONTROLLERS RESERVE PENDING THE RECEIPT OF CERTIFICATES OF
01:23:27 PARTICIPATION PROCEEDS. >> MR. CHAIR THANK YOU MR.
01:23:30 CLERK. WE ARE JOINED AGAIN BY STACEY
01:23:34 BRADLEY, DIRECTOR OF CAPITAL AND PLANNING FOR THE SAN
01:23:35 FRANCISCO RECREATION AND PARKS PARKS DEPARTMENT AND GRANT
01:23:38 CARSON, CAPITAL MARKETS SPECIALIST FROM THE
01:23:42 COMPTROLLER'S OFFICE OF PUBLIC FINANCE.
01:23:43 >> MR. CARSON MR. BRADLEY, WELCOME THE FLOOR AS FAR AS
01:23:48 YOURS. >> THANK YOU VERY MUCH.
01:23:51 AGAIN, I'M STACEY BRADLEY WITH THE RECREATION AND PARKS
01:23:53 DEPARTMENT. GOOD MORNING.
01:23:55 >> I'M FOR THE CERTIFICATE OF PARTICIPATIONS BEFORE YOU TODAY
01:24:00 IS FINANCING. I'M MECHANISM THAT YOU
01:24:04 TYPICALLY SEE IN A THAT IS FUNDED IN A SLIGHTLY DIFFERENT
01:24:08 WAY. FOR US THIS VERSION IS FUNDED
01:24:11 THROUGH THE OPEN SPACE FUND AND AS A QUICK OVERVIEW OF THE
01:24:16 OPEN SPACE FUND IT WAS AUTHORIZED BY THE VOTERS
01:24:18 IN MARCH OF 2000. IT WAS RE AUTHORIZE RAISED
01:24:23 IN 2016 IN PROP B THE OPEN SPACE SPACE FUND SUNSETS
01:24:27 IN FISCAL YEAR 4546. WE BROUGHT THIS FORWARD TO THE
01:24:30 REC AND PARK COMMISSION EARLIER THIS YEAR.
01:24:33 THEY RECOMMENDED THAT THE BOARD APPROVE THIS ORDINANCE
01:24:37 AND APPROPRIATION AND AS TO THE CAPITAL PLANNING COMMITTEE
01:24:42 IN AUGUST WE ARE LOOKING TO FUND 26 MILLION TO UP TO $26
01:24:48 MILLION WORTH OF PROJECT FUNDING THROUGH THIS EFFORT.
01:24:49 THESE PROJECTS ARE LISTED HERE JACKSON PLAYGROUND INDIA BASIN
01:24:53 WATERFRONT PARK, CROCKER AMAZON EMBARCADERO PLAZA AND MCLAREN
01:24:57 PARK. >> MOST OF THESE WORTH MOSTLY
01:25:03 WERE ALSO FINANCED THROUGH THE 2020 HEALTH AND RECOVERY BONDS
01:25:07 AND HIT A NUMBER OF ISSUES. WE HAD A NUMBER OF ISSUES AS WE
01:25:12 WERE DELIVERING THAT BOND. I'M MOSTLY BECAUSE IT HIT THE
01:25:16 IT WAS RELEASED RIGHT IN THE MIDDLE OF THE PANDEMIC AND WE
01:25:20 HAD TO ADJUST ALL OF OUR PRICING AND COST TO
01:25:23 CONSTRUCTION ESCALATION, FEDERAL UNCERTAINTY AND WE ALSO
01:25:27 HAD REDUCED IMPACT FEES THAT AFFECTED THESE A NUMBER OF
01:25:31 THESE PROJECTS AS WELL AS OTHER PROJECTS IN OUR PORTFOLIO.
01:25:35 SO WE ARE LOOKING FOR THE $26 MILLION TO ALLOW US TO DELIVER
01:25:36 ALL OF THESE PROJECTS AS ANTICIPATED WHEN WE BROUGHT IT
01:25:39 FORWARD TO THE BOARD, TO THE VOTERS, TO THE BOARD AND THE
01:25:43 VOTERS IN 2020. I'M GOING TO HAND IT OVER TO
01:25:47 GRANT TO DISCUSS THE FINANCING COMPONENTS.
01:25:54 >> GOOD MORNING SUPERVISORS. PLEASURE SPEAKING WITH YOU HERE
01:25:57 WE TRY TO COVER FINANCING TERMS FOR THE COPIES.
01:26:01 ON THE RIGHT WE HAVE THE NOT TO EXCEED AMOUNTS FOR THE
01:26:02 TRANSACTION AS SHOWN IN THE SUPPLEMENTAL APPROPRIATION
01:26:06 ORDINANCE. TOTAL SOURCES OF 43 MILLION
01:26:10 SPLIT 33 MILLION FOR THE NEW MONEY COPY AND 10 MILLION FOR A
01:26:14 REFUNDING COPY PROCEEDS ALSO 43 MILLION AND USES INCLUDING A
01:26:17 REFUNDING ESCROW 26 MILLION PROJECT PROCEEDS AS DISCUSSED
01:26:22 BY STACY AS WELL AS RESERVES AND ISSUANCE COSTS.
01:26:25 ON THE TOP LEFT WE HAVE GOOD FAITH ESTIMATES PROVIDED BY OUR
01:26:29 MUNICIPAL ADVISOR BACKSTROM, MCCARLEY AND BERRY.
01:26:33 WE ASSUME A FINAL MATURITY IN 2045 ALIGNING WITH THE
01:26:36 SUNSET DATE OF THE OPEN SPACE FUND SET ASIDE AN ESTIMATED
01:26:40 TRUE INTEREST COST OR TO SEE A 4.59% AVERAGE ANNUAL DEBT
01:26:46 SERVICE OF 2.6 MILLION OVER THE LIFE OF THE TRANSACTION FOR THE
01:26:48 NEW MONEY COMPONENT INCLUDING THE REFUNDING COMPONENT AVERAGE
01:26:52 DEBT SERVICE WOULD BE 3 MILLION OVER THE LIFE OF THE
01:26:55 TRANSACTION AND THEN ADDITIONALLY I'LL NOTE THE THE
01:26:58 PROPOSED COPIES ALSO ALSO AUTHORIZE THE REFUNDING OF AN
01:27:01 OUTSTANDING SERIES THE 2018 A LEASE REVENUE BONDS WHICH ARE
01:27:05 ALSO HAVE THE SAME SECURITY BEING REPAID BY THE OPEN SPACE
01:27:09 FUND SET ASIDE WHICH STACY MATT STACY MENTIONED IS DIFFERENT
01:27:13 THAN THE VAST MAJORITY OF OUR PORTFOLIO WHICH IS REPAID BY
01:27:16 THE GENERAL FUND. THE PROPOSAL ON ITS AUTHORIZED
01:27:20 FUNDING BRIEFING THE COPIES AND THEY WOULD ONLY BE ISSUED
01:27:24 AT THE TIME OF PRICING THEY GENERATED NET PRESENT VALUE OR
01:27:27 NPV SAVINGS TO THE CITY AS CHAIR DORSEY MENTIONED THERE'S
01:27:31 BEEN A LOT OF MARKET VOLATILITY USING MARKET SCALES AS OF TODAY
01:27:35 WE STILL ESTIMATE POSITIVE SAVINGS FOR THE CITY IF WE
01:27:39 INCLUDE POTENTIAL ISSUANCE COSTS COMING FROM THE LEASED
01:27:40 ASSET PORTFOLIO. NPV SAVINGS ARE ESTIMATED TO BE
01:27:43 JUST ABOVE 3% OF REFUNDED PRINCIPLE AND THEN LASTLY I'LL
01:27:49 NOTE LIKE THE CITY'S OTHER PREVIOUSLY ISSUED COPIES STILL
01:27:53 FUNDAMENTALLY STRUCTURED AS A LEASE LEASEBACK STRUCTURE
01:27:54 WHEREIN SPECIFIC CITY PROPERTY IS LEASED TO A THIRD PARTY
01:27:58 TRUSTEE IN THIS CASE U.S. BANK WAS SELECTED THROUGH A
01:28:02 COMPETITIVE PROCUREMENT PROCESS TO FILL THAT ROLE AND THEN THAT
01:28:04 TRUSTEE WOULD LEASE THE PROPERTY BACK TO THE CITY.
01:28:06 >> AND LASTLY, BEFORE WE LEAVE THIS PAGE, I'LL NOTE WE HAVE A
01:28:09 MINOR PROPOSED AMENDMENT WHICH WAS SENT TO THE COMMITTEE
01:28:12 YESTERDAY AND I CAN HAVE PROVIDE HARD COPIES AS WELL BUT
01:28:14 ESSENTIALLY STRIKES ONE CLAUSE FOUND ON PAGE THREE WHICH
01:28:18 REFERENCES THE RETIREMENT OF COMMERCIAL PAPER NOTES AND THE
01:28:21 CITY'S COPY OR EXCUSE ME COMMERCIAL PAPER PROGRAM IS
01:28:26 SECURED BY THE CITY'S GENERAL FUND AND IS REPAID BY GENERAL
01:28:30 FUND KIND OF A LONG TERM SWAP TRANSACTIONS WHEN ISSUED.
01:28:36 THIS IS A DIFFERENT CREDITS, DIFFERENT SECURITY AND THUS WE
01:28:38 DON'T INTEND TO AUTHORIZE THE USE OF CP FOR THIS
01:28:41 AUTHORIZATION. >> AND THEN ON PAGE FIVE WE
01:28:48 HAVE THE LIST OF POTENTIAL ASSETS WHICH COULD BE USED TO
01:28:50 SECURE THE TRANSACTION. >> WE'RE STILL EVALUATING THE
01:28:53 MOST EFFICIENT AND ATTRACTIVE FROM A PRICING PERSPECTIVE
01:28:56 GROUP OF ASSETS TO USE. >> WE'RE EVALUATING SEVEN
01:29:00 DIFFERENT REC PARK ASSETS AND THREE FIRE STATIONS AS
01:29:02 SHOWN HERE THE TOP FOUR STARRED ITEMS ARE THE CURRENT LEASE
01:29:09 ASSETS FOR THE 2018 A LEASE REVENUE BONDS.
01:29:12 >> IF REFUNDED WE COULD POTENTIALLY USE ONE OR MORE OF
01:29:14 THOSE ASSETS. >> AND THEN LASTLY WE HAVE THE
01:29:17 ANTICIPATED FINANCING TIMELINE HERE.
01:29:19 ORDINANCES WERE INTRODUCED ON JULY 28TH.
01:29:23 >> WE'RE HERE BEFORE YOU TODAY ON SEPTEMBER 2ND ASSUMING IF
01:29:27 THE COMMITTEE PROVIDES A POSITIVE RECOMMENDATION WE
01:29:31 WOULD LOOK TO FINAL BOARD APPROVAL ON SEPTEMBER 22ND
01:29:33 WHICH WOULD ALLOW FOR ISSUANCE OF THE COPIES BY THE END OF THE
01:29:37 FISCAL YEAR. >> AND THANK YOU FOR YOUR TIME.
01:29:38 HOW CAN I ANSWER ANY QUESTIONS YOU MAY HAVE?
01:29:40 >> GREAT. THANK YOU SO MUCH, MR. CARSON
01:29:41 AND MISS BRADLEY. AND NEXT UP BUDGET LEGISLATIVE
01:29:45 ANALYST MR. BERNARD. >> FLOOR IS YOURS.
01:29:48 THANK YOU. ITEMS 15 AND 16 ARE ORDINANCES
01:29:51 THAT WOULD AUTHORIZE THE SALE OF $443 MILLION
01:29:54 AND CERTIFICATES OF PARTICIPATION INCLUDING THEIR
01:29:57 TRANSACTION DOCUMENTS AUTHORIZE REFUNDING OF OUTSTANDING LEASE
01:30:00 REVENUE BONDS AND APPROPRIATE THE PROCEEDS WE SHOW THE USES
01:30:04 ON PAGE 31 OF OUR REPORT WITH MORE DETAIL ABOUT THE PROJECTS
01:30:07 ON PAGE 41 AND ALSO NOTING THAT THESE COPIES ARE NOT SECURED BY
01:30:12 THE GENERAL FUND. THEY'RE SECURED BY THE OPEN
01:30:15 SPACE FUND. WE DISCUSSED THE FISCAL IMPACT
01:30:19 ON PAGE 39 OF OUR REPORT THE AVERAGE ANNUAL DEBT SERVICE IS
01:30:23 ABOUT $3 MILLION A YEAR PAID FOR BY THE OPEN SPACE FUND.
01:30:26 THAT'S ABOUT 4% OF THE PROJECTED REVENUES OVER THE
01:30:30 NEXT FIVE YEARS FROM THE OPEN SPACE FUND.
01:30:31 SO I THINK THAT THAT PLUS THE FACT THAT THE FUND HAS A
01:30:34 BALANCE OF ABOUT $29 MILLION LEADS ME TO CONCLUDE THAT THE
01:30:38 DEBT IS AFFORDABLE EVEN THOUGH THERE'S NO DEBT POLICY
01:30:41 CONSTRAINT ON THE USE OF PAYS FOR THE OPEN SPACE FUND, WE
01:30:47 RECOMMEND APPROVAL OF BOTH ITEMS.
01:30:51 THANK YOU, MR. MAYNARD. SEEING NO ONE ON THE ROSTER
01:30:54 WITH QUESTIONS OR COMMENTS, I APPRECIATE EVERYBODY'S WORK ON
01:30:58 THIS MR. CLERK MAY WE INVITE A PUBLIC COMMENT ON THESE ITEMS?
01:31:02 YES. WE ARE OPENING PUBLIC COMMENT
01:31:03 FOR BOTH THESE ITEMS 15 AND 16 IF WE HAVE ANY MEMBERS OF THE
01:31:07 PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
01:31:10 >> MR. CHAIR, WE HAVE NO SPEAKERS.
01:31:14 >> THANK YOU, MR. CLERK. PUBLIC COMMENT ON THESE ITEMS
01:31:16 IS NOW CLOSED AND I WOULD MOVE NOW TO AMEND ITEM 16 AS READ
01:31:21 INTO THE PUBLIC RECORD BY MR. CARSON AND THEN FORWARD THESE
01:31:24 ITEMS TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE
01:31:26 RECOMMENDATION. MR. CLERK, MAY WE HAVE A ROLL
01:31:29 CALL ON THAT MOTION AND ON THAT MOTION WE ACCEPT THE AMENDMENTS
01:31:32 TO ITEM 16 AND SO OFFERED BY THE DEPARTMENT AND TO REFER
01:31:38 BOTH ORDINANCES TO THE FULL BOARD WITH THE RECOMMENDATION
01:31:39 OF ITEM 16 AS AMENDED. >> VICE CHAIR CHEN CHEN I AM
01:31:45 MEMBER SADR SADR I CHAIR DORSEY I DORSEY I WE HAVE THREE EYES
01:31:50 THANK YOU MR. CLERK THE MOTIONS PASSED BY THE MOTION PASSES
01:31:53 AND MR. CLERK CLAIM PLEASE CALL ITEMS 17 THROUGH 21 TOGETHER
01:32:00 ITEM 17 THROUGH 21 OR RESOLUTION OUR RESOLUTIONS
01:32:04 RETROACTIVELY APPROVING AND AUTHORIZING THE MAYOR AND
01:32:05 THE DIRECTOR OF THE MAYOR'S OFFICE OF HOUSING AND COMMUNITY
01:32:09 DEVELOPMENT TO EXECUTE GRANT AGREEMENT TO PROVIDE PROJECT
01:32:13 BASED RENTAL SUBSIDIES FOR 100% AFFORDABLE HOUSING PROJECT FOR
01:32:20 EXTREMELY LOW INCOME HOUSEHOLDS AS PART OF THE AFFORDABLE
01:32:21 HOUSING OPPORTUNITY FUND AND PROGRAM APPROVING THE FORM
01:32:24 OF AN AUTHORIZING THE EXECUTION OF THE RESPECTIVE GRANT
01:32:28 AGREEMENTS AND GRANTING GENERAL AUTHORITY TO CITY OFFICIALS TO
01:32:32 TAKE ACTIONS NECESSARY TO IMPLEMENT THE RESOLUTION AS
01:32:36 DEFINED ITEMS 17 AND 18 ARE FOR TERMS OF 15 YEARS AND SIX
01:32:39 MONTHS COMMENCING ON JULY FIRST 2026 THROUGH DECEMBER 31ST,
01:32:45 2042 AND ITEMS 19 THROUGH 21 ARE FOR TERMS OF SIX YEARS
01:32:49 AND SIX MONTHS FROM JULY 1ST 2026 THROUGH JANUARY 1ST 2043
01:32:54 ITEM NUMBER 17 EXECUTES A GRANT AGREEMENT WITH 163 LAND HOUSING
01:32:59 PARTNERS L.P. AND THEN THE AMOUNT NOT TO EXCEED
01:33:02 APPROXIMATELY 2.5 MILLION. ITEM NUMBER 18 IS WITH 33 IDAHO
01:33:05 MISSION PARTNERS L.P. AND AN AMOUNT NOT TO EXCEED
01:33:09 APPROXIMATELY 4.4 MILLION ITEM 19 AS WITH AMBASSADOR 9% L.P.
01:33:15 AND AN AMOUNT NOT TO EXCEED APPROXIMATELY 4.5 MILLION.
01:33:18 >> ITEM NUMBER 20 IS WITH 1160 SIX HOWARD STREET ASSOCIATES
01:33:21 L.P. AND AN AMOUNT NOT TO EXCEED APPROXIMATELY 3.2
01:33:25 MILLION. ITEM NUMBER 21 IS WITH M H D C
01:33:30 SOUTH PARK PROPERTIES L.P. AND AN AMOUNT NOT TO EXCEED
01:33:33 APPROXIMATELY 3.8 MILLION. MR. CHAIR THANK YOU, MR. CLERK.
01:33:36 >> WE ARE JOINED BY MARIO BLITZER FROM THE MAYOR'S OFFICE
01:33:40 OF HOUSING AND COMMUNITY DEVELOPMENT DEVELOPMENT WHICH
01:33:43 HE IS THE DIRECTOR OF PRESERVATION IS.
01:33:45 BLITZER WE WELCOME YOU TO THE BUDGET AND FINANCE COMMITTEE.
01:33:48 >> THE FLOOR IS YOURS. THANK YOU SO MUCH.
01:33:49 IT'S BEEN MANY YEARS SINCE I HAVE I'VE BEEN HERE SO I'M
01:33:52 HAPPY TO BE BACK AND A WEE BIT A WEE BIT NERVOUS.
01:33:56 >> AND GOOD MORNING. YOU'RE AMONG FRIENDS HERE.
01:33:59 I AM HERE TO PRESENT MOSSAD'S REQUEST FOR APPROVAL FOR THESE
01:34:03 FIVE ITEMS ON TODAY'S AGENDA. THESE ARE LONG FILED NUMBERS.
01:34:06 NUMBER 2608 39 2608 42 608 41 2608 42 AND 2608 42 I'M GOING
01:34:13 TO REFER TO THE PROJECTS BY THEIR COMMONLY KNOWN NAMES
01:34:16 WHICH IS GOING TO BE A LITTLE BIT DIFFERENT THAN THE NAME OF
01:34:18 THE GRANTEES IN THE PRESENTATION BUT I'LL DRAW A
01:34:20 CONNECTION BETWEEN WHERE THEY'RE WHERE THEY'RE DIFFERENT
01:34:23 AND SO WE'RE HERE TO TALK ABOUT WHEN 60 FREELON 3300 MISSION
01:34:27 THE AMBASSADOR HOTEL SUMMER STUDIOS AND THE SOUTH PARK SET
01:34:30 SCATTERED SITES WHICH ARE ITEM NUMBER 17 TO 21 ON THE AGENDA.
01:34:38 >> THIS IS AN EXCITING DAY FOR MOST BECAUSE THIS IS THE FIRST
01:34:42 TIME THAT WE ARE BRINGING FOR APPROVAL A GROUP OF GRANT
01:34:46 AGREEMENTS UNDER THE AFFORDABLE HOUSING OPPORTUNITY FUND OR A
01:34:50 HALF FOR SHORT TO A HALF AS APPROVED BY VOTERS IN NOVEMBER
01:34:54 OF 2024 AS PROPOSITION G WHICH AUTHORIZED FUNDING FOR BUILDING
01:35:00 BASED RENTAL SUBSIDIES FOR PERMANENTLY AFFORDABLE HOUSING.
01:35:05 THE INITIAL YEAR OF APPROPRIATIONS IS THIS FISCAL
01:35:08 YEAR 2627 WITH $8.25 MILLION APPROPRIATED IN THE ANNUALLY
01:35:12 APPROPRIATIONS MAY BE NO LESS THAN 8.25 MILLION WITH NO MORE
01:35:15 THAN 3% INCREASE PER YEAR. >> I'M HAVING A LITTLE TROUBLE
01:35:23 WITH MY SLIDES. HERE WE GO.
01:35:30 OKAY. >> SUBSIDIES ARE INTENDED TO
01:35:34 SUPPORT EXTREMELY LOW INCOME FAMILIES, SENIORS AND PEOPLE
01:35:37 WITH DISABILITIES. UP TO 20% OF THE SUBSIDIES MAY
01:35:41 BE SPENT ON PRESERVATION PROJECTS.
01:35:43 RENTS FOR EIGHT HALF RECIPIENTS ARE SET AT 15% 25% OR 35% OF
01:35:49 AREA MEDIAN INCOME DEPENDING ON THE UNIT TYPE AS DIRECTED BY
01:35:53 THE ORDINANCE, MOHSENI ISSUED A NOTICE OF FUNDING AVAILABILITY
01:36:00 IN JANUARY OF THIS YEAR AND WE SELECTED TEN APPLICANTS FOR
01:36:04 GRANTS WITH ONE AWARD BEING DECLINED BY THE APPLICANT.
01:36:07 SO WE ENDED UP AWARDING NINE UNDER THE NO FOR.
01:36:11 >> IT WAS DESIGNED TO ENSURE RESPONSIBLE STEWARDSHIP OF THE
01:36:15 FUNDS BUT FOCUS ON THE ABILITY OF THE SPONSORS TO DEPLOY THE
01:36:19 FUNDS QUICKLY AS WELL AS TO SUPPORT THE TARGET POPULATIONS
01:36:22 INCLUDING MAKING SURE THAT THE UNITS THAT ARE DESIGNATED WITH
01:36:25 AMERICANS WITH DISABILITIES ACT FEATURES ARE OFFERED AT THE
01:36:29 LOWEST POSSIBLE RENTS FOR THE NEW PROJECT POOL.
01:36:36 >> MOST HIGHLY SOUGHT TO STABILIZE THE DEVELOPMENT
01:36:38 PLANNING FOR SENIOR PROJECTS THAT HAD ALSO ANTICIPATED STATE
01:36:40 FUNDING FOR THE SENIOR OPERATING SUBSIDY PROGRAM
01:36:44 S.O.S. THAT FUNDING WAS AT RISK DURING THE SELECTION PROCESS
01:36:48 FOR PRESERVATION PROJECTS WITH THE ORDINANCE WHICH THE
01:36:49 ORDINANCE CAPS AT 2,520% OF AVAILABLE FUNDS, OUR GOALS
01:36:55 INCLUDED STABILIZING THE FINANCIAL STANDING OF PROJECTS
01:36:56 ALREADY SERVING EXTREMELY LOW INCOME HOUSEHOLDS AND TO
01:37:00 ADDRESS EXTREME RENT BURDEN WHERE POSSIBLE.
01:37:06 >> SUBMITTED FOR YOUR APPROVAL TODAY ARE FIVE GRANT AGREEMENTS
01:37:08 WHICH TOTAL 145 A HALF UNITS AND 163 LINE 3300 MISSION
01:37:15 AMBASSADOR HOTEL SOMA STUDIOS AND SOUTH PARK SCATTERED SITES
01:37:19 AS YOU CAN SEE FROM THIS SLIDE THE HALF UNITS REPRESENT A
01:37:23 PORTION OF THE TOTAL UNITS IN EACH OF THE BUILDINGS.
01:37:30 >> GOT SOME SLIDES TO SHARE WITH YOU WHERE THE MONEY IS
01:37:31 GOING. SORRY THAT THEY DON'T INCLUDE
01:37:34 ANY ANY PEOPLE BUT YOU CAN SEE THE BUILDINGS THAT THE MONEY IS
01:37:37 GOING TO GO TO AND 160 FREE LAND IS UNDER CONSTRUCTION
01:37:44 RIGHT NOW. THE SPONSORS ARE RELATED
01:37:45 CALIFORNIA AND THE SAN FRANCISCO HOUSING DEVELOPMENT
01:37:48 CORPORATION AND HAS A TOTAL OF 85 UNITS AND FOR HOUSEHOLDS
01:37:52 THAT WILL BE EARNING BETWEEN 30% AND 80% AMI WITH 22 OF THE
01:37:58 UNITS PREFERRED AND SET ASIDE FOR REFERRALS FOR HOUSEHOLDS
01:38:02 HAVING PREVIOUSLY EXPERIENCED HOMELESSNESS, THE IMHOFF GRANT
01:38:06 HERE WOULD SUBSIDIZE RENTS FOR 15 UNITS INCLUDING TEN FOR
01:38:09 DISABLED HOUSEHOLDS AND THIS INCLUDES MULTI BEDROOM UNITS SO
01:38:13 IT SHOULD REACH THE TARGET FAMILY AUDIENCE THAT WE WERE
01:38:17 HOPING FOR AND THIS PROPERTY IS GOING TO BE LEASING UP IN THE
01:38:22 SPRING OF 27 AND COMING TO US WITHIN THE WITHIN THE YEAR
01:38:29 THREE 3300 MISSION. THIS IS A RENDERING BUT IF
01:38:33 ANYONE'S BEEN OUT TO BERNAL RECENTLY YOU'LL NOTICE THAT
01:38:36 THEY TOOK OFF THERE AND THE WRAPPING AND YOU CAN ACTUALLY
01:38:40 SEE THE BUILDING IN THE WAY IT'S GOING TO LOOK IN THE
01:38:43 FUTURE. IT IS LOVELY AND 3300 MISSION
01:38:47 IS SPONSORED BY BERNAL HEIGHTS NEIGHBORHOOD CENTER TABERNACLE
01:38:51 COMMUNITY DEVELOPMENT CORPORATION AND MITCHELL VAIL
01:38:52 REAL ESTATE GROUP. IT HAS 35 UNITS FOR HOUSEHOLDS
01:38:57 EARNING 30% TO 80% OF AMI AND THE HALF ALLOWS US TO BUY
01:39:02 DOWN THE RENT SO THAT MOST FOLKS WILL BE EARNING BETWEEN
01:39:09 30 AND 35%. AM I ACROSS THE BUILDING WHICH
01:39:10 I THINK IS A REAL WIN THE GRANTS GOING TO SUBSIDIZE 23
01:39:14 UNITS INCLUDING 11 FOR DISABLED HOUSEHOLDS AND AND THE LEASE UP
01:39:20 IS HAPPENING IMMINENTLY IT'S GOING TO POST VERY VERY SOON
01:39:24 AND OUR DIRE WEBSITE THE SOMA STUDIOS ARE SPONSORED BY
01:39:31 TENDERLOIN NEIGHBORHOOD DEVELOPMENT CORPORATION OR TDC
01:39:34 THAT'S 1166 HOWARD IN YOUR PACKETS AND HERE AT SOMA
01:39:38 STUDIOS THIS IS A PRESERVATION SITE AND THERE ARE 20 OF THE
01:39:46 TOTAL UNITS THAT ARE CURRENTLY SET ASIDE FOR FORMERLY HOMELESS
01:39:50 HOUSEHOLDS AND THERE WILL BE 27 ADDITIONAL UNITS RECEIVING A
01:39:53 HALF SUBSIDY ALLOWING INCLUDE THAT INCLUDE TEN HOUSEHOLDS FOR
01:39:58 HOPPER WHEN THE HOPPER UNITS WERE DEVELOPED BACK IN THE DAY
01:40:01 THEY DIDN'T COME WITH ANY RENTAL SUBSIDY BUT THEY DID
01:40:04 COME WITH VERY DEEP RENTAL RESTRICTIONS.
01:40:06 SO WE'RE REALLY HAPPY TO BE ABLE TO OFFER THOSE UNITS
01:40:08 SUBSIDY AS WELL AND THAT BUILDING'S BEEN IN SERVICE FOR
01:40:12 20 YEARS AND THE AMBASSADOR HOTEL ALSO SPONSORED BY TDC IS
01:40:18 188 SINGLE ROOM OCCUPANCY UNITS FOR HOUSEHOLDS EARNING UP TO
01:40:22 50% OF AREA MEDIAN INCOME AND 100 ABOUT 120 OF THOSE
01:40:26 UNITS ARE RESERVED FOR HOUSEHOLDS WHO ARE FORMERLY
01:40:30 HOMELESS AND THE REST ARE NOT AND NOT SUBSIDIZED.
01:40:34 HERE WE'LL BE PUTTING 31 SUBSIDIES ON THE PROPERTY
01:40:38 INCLUDING THREE FOR DISABLED HOUSEHOLDS AND THAT BUILDING'S
01:40:42 BEEN IN SERVICE FOR MORE THAN 20 YEARS.
01:40:49 >> SOUTH PARK SCATTERED SITES. THE SPONSOR IS MISSION HOUSING
01:40:53 DEVELOPMENT CORPORATION THAT'S THAT'S THE COMBINED THREE
01:40:55 DIFFERENT SINGLE ROOM OCCUPANCY HOTELS ON SOUTH PARK THE HOTELS
01:40:59 MADRID AND PARKVIEW AND THEN ALSO THE GRAND ORIENT.
01:41:01 SO SOME OF YOU MAY BE FAMILIAR WITH GRAND ORIENT WAS
01:41:04 RECAPITALIZED FIVE SIX YEARS AGO AND THEY'RE IN TOTAL WE
01:41:10 HAVE 106 UNITS FOR HOUSEHOLDS EARNING BETWEEN 40 AND 60% AM I
01:41:17 AND 60% OF THEM ARE REFERRALS FROM THE HOMELESSNESS
01:41:18 DEPARTMENT FOR PREVIOUSLY UNHOUSED FOLKS AND THE REST OF
01:41:22 THEM ARE NOT. >> SO IN THIS CASE WE'RE ABLE
01:41:26 TO PUT A HALF SUBSIDY ON THE UNITS THAT DON'T HAVE SUBSIDIES
01:41:30 RIGHT NOW INCLUDING FIVE FOR DISABLED HOUSEHOLDS AND IT'S
01:41:34 REALLY GOING TO ALLOW THE SPONSOR TO OFFER THE RENTS AT A
01:41:37 MORE AFFORDABLE PRICE AND TO REDUCE RENT BURDEN.
01:41:41 AND THAT'S TRUE FOR THE ADULTS AS WELL.
01:41:47 THERE ARE THREE ADDITIONAL SITES THAT WERE AWARDED UNDER
01:41:51 THE KNOW FOR THAT WILL BE BROUGHT TO THIS COMMITTEE FOR
01:41:54 GRANT APPROVALS AS THOSE PROJECTS GET CLOSER TO STARTING
01:41:58 CONSTRUCTION IN THE NEXT YEAR WE HAVE SUBMITTED CORRECTIONS
01:42:01 TO THE CLERK ON ONE ITEM WHICH IS FOR ITEM NUMBER 19 FOR THE
01:42:05 AMBASSADOR RITZ. THE CORRECT NAME OF THE FUND
01:42:08 RECIPIENT IS AMBASSADOR FOR PERCENT LP AB AND THAT
01:42:12 AMENDMENT HAS ALREADY BEEN SUBMITTED I THINK IT
01:42:16 ERRONEOUSLY SAYS 9% IT WAS FUNDED BY BOTH BUT THE CORRECT
01:42:21 THE CONTRACT IS THE 4% LP I'M HERE WITH COLLEAGUES AS WELL AS
01:42:27 REPRESENTATIVES OF THE GRANTEES TO ANSWER ANY QUESTIONS AND I
01:42:31 WANT TO THANK YOU FOR THIS OPPORTUNITY TO SHARE ABOUT THIS
01:42:35 HISTORIC ALLOCATION OF FUNDS TO EXTREMELY LOW INCOME SAN
01:42:37 FRANCISCANS. >> I APPRECIATE YOUR WORK.
01:42:41 JUST A QUICK QUESTION BEFORE WE GO TO THE BILL.
01:42:45 >> DID YOU MAKE AN AMENDMENT TO IT WAS IT 19 OR 17 OR BOTH OR
01:42:48 SOMETHING? >> JUST JUST 1917 WAS HANDLED
01:42:52 BY THE CLERK. OKAY.
01:42:53 SO IT WAS ALREADY IN YOUR PACKET?
01:42:56 >> OKAY, GREAT. LET'S HEAR FROM THE BUDGET
01:42:57 AND LEGISLATIVE ANALYST AT THIS MOMENT THE FLOOR IS YOURS.
01:43:00 >> ITEM 17 THROUGH 21 ARE PROPOSED RESOLUTIONS TO APPROVE
01:43:04 NEW GRANT AGREEMENTS FOR RENTAL SUBSIDIES FROM THE AFFORDABLE
01:43:07 HOUSING OPPORTUNITY FUND TO FIVE AFFORDABLE HOUSING
01:43:10 PROJECTS. THESE AGREEMENTS HAVE TERMS OF
01:43:14 BETWEEN 15.5 AND 16.5 YEARS AND A TOTAL NOT TO EXCEED
01:43:18 AMOUNT ACROSS THE FIVE AGREEMENTS OF 18.5 MILLION.
01:43:22 THE AFFORDABLE HOUSING OPPORTUNITY FUND IS A NEW SET
01:43:25 ASIDE FROM THE GENERAL FUND FOR RENTAL SUBSIDIES FOR EXTREMELY
01:43:27 LOW INCOME SENIORS, FAMILIES AND PEOPLE WITH DISABILITIES.
01:43:30 AS THE DEPARTMENT MENTIONED, THIS YEAR IS THE FIRST YEAR
01:43:34 THAT THE FUND IS FUNDED WITH 8.25 MILLION MOST IDENTIFIED
01:43:40 THE FIRST BATCH OF PROJECTS TO RECEIVE FUNDING THROUGH A
01:43:44 NOTICE OF FUNDING A NOTICE OF A FUNDING AVAILABILITY PROCESS
01:43:47 AND THESE FIVE AGREEMENTS BEFORE YOU REFLECT FIVE OF THE
01:43:51 EIGHT PROJECTS THAT ACCEPTED AWARDS THROUGH THAT PROCESS.
01:43:55 >> AND THEN IN ADDITION ALL THREE GRANTS WILL BE ENTERED
01:43:58 INTO IN THE FUTURE FOR THE REMAINING PROJECTS.
01:44:02 >> I JUST WANT TO NOTE THAT THERE IS ADDITIONAL CAPACITY
01:44:04 FOR MORE RENTAL SUBSIDIES WITHIN THE FUND IN PARTICULAR
01:44:06 FOR NEW CONSTRUCTION PROJECTS. THERE WILL BE ABOUT 12 MILLION
01:44:10 AVAILABLE IN FISCAL YEAR 2728 AND MOST CITIES PLANNING TO
01:44:14 RELEASE ANOTHER NO FOR PHONE 2027 TO AWARD THOSE FUNDS.
01:44:21 THE FIVE PROPOSED AGREEMENTS TOTAL 18.5 MILLION OVER THE
01:44:24 TERMS OF UP TO 16.5 YEARS. WE RECOMMEND APPROVAL OF ITEM
01:44:28 17 THROUGH 21 GREAT. THANK YOU.
01:44:32 MISS MELLMAN. I DON'T SEE ANY QUESTIONS OR
01:44:36 COMMENTS FROM COLLEAGUES. SO MR. CLERK, WHY DON'T WE
01:44:37 INVITE PUBLIC COMMENT ON THESE ITEMS?
01:44:40 >> YES. WE'RE NOW OPENING PUBLIC
01:44:41 COMMENT FOR THESE ITEMS 1717 THROUGH 21 IF YOU HAVE ANY
01:44:47 MEMBERS OF THE PUBLIC GOING TO ADDRESS THIS COMMITTEE I AM
01:44:54 TODD CLIFFORD'S DIRECTOR OF STRATEGIC PROJECTS ASSET
01:44:57 MANAGEMENT FOR T IN DC. >> GOOD MORNING.
01:45:01 >> TENNESSEE OWNS 5000 APARTMENTS OVER 5000 APARTMENTS
01:45:06 IN SEVEN SAN FRANCISCO NEIGHBORHOODS SERVING VERY LOW
01:45:08 INCOME PEOPLE. WE HAVE BEEN OFFERED TO PAY OFF
01:45:14 GRANTS FOR TWO PROPERTIES. A HALF IS A GREAT PROGRAM.
01:45:18 CERTAIN RESIDENTS WILL RECEIVE LOWER RATES TO 35% OF AREA
01:45:24 MEDIAN INCOME RENT BURDENS WILL NOT BE MORE THAN 50% OF INCOME
01:45:28 AT SOME THE STUDIO 27 UNITS WILL RECEIVE AN ADDITIONAL RENT
01:45:35 RESTRICTION. 12 RESIDENTS WILL IMMEDIATELY
01:45:36 RECEIVE RENT REDUCTIONS AT AMBASSADOR HOTEL 31 UNITS WILL
01:45:43 BE ADDITIONALLY RENT RESTRICTED .
01:45:46 11 RESIDENTS WILL IMMEDIATELY RECEIVE RENT REDUCTIONS.
01:45:50 LOWERING TENANT RENTS WILL SUPPORT RESIDENT RETENTION FOR
01:45:57 TEN. >> YOU SEE WE HAVE A FINANCIAL
01:45:58 PROBLEM IN THAT VERY LOW INCOME PEOPLE OFTEN CAN'T AFFORD TO
01:46:02 PAY RENT WHICH COVERS THEIR OPERATING COSTS OF THEIR
01:46:05 APARTMENTS. THREE A HALF WE WILL RECEIVE AN
01:46:08 OPERATING SUBSIDY FOR THE CONTRACTED UNITS.
01:46:11 A HALF IS BEING APPLIED TO APARTMENTS WHICH DO NOT HAVE AN
01:46:16 OPERATING SUBSIDY TO SEE LOSES MONEY ON THOSE APARTMENTS.
01:46:23 >> THIS CONTRIBUTES MEANINGFULLY TO THE FINANCIALLY
01:46:26 STABILITY OF THESE TWO PROPERTIES.
01:46:27 >> I THINK IF YOU CAN SUPPORT THE GRANTS THANK YOU MUCH TO
01:46:34 THE NEXT SPEAKER PLEASE. >> GOOD MORNING SUPERVISORS.
01:46:42 MY NAME IS CAITLIN ROTH AND THE PROJECT MANAGER FOR 163 LAWN AT
01:46:46 THE 85 UNIT 100% AFFORDABLE HOUSING PROJECT CURRENTLY UNDER
01:46:50 CONSTRUCTION IN D SIX. I'M HERE ON BEHALF OF ONE OF
01:46:56 THE SPONSORS REALLY TO CALIFORNIA.
01:46:57 WE'D LIKE TO EXPRESS FIRST OF ALL OUR GRATITUDE AND THANKS TO
01:47:00 THE BOARD AND CD FOR YOUR CONTINUED SUPPORT THIS
01:47:03 AFFORDABLE HOUSING PROJECT. WHEN WE LEARNED OF THE
01:47:07 OPPORTUNITY FOR ENOUGH FUNDS TO PROVIDE EVEN MORE DEEPLY
01:47:11 SUBSIDIZED IF WE AFFORDABLE UNITS TO EXTREMELY LOW INCOME
01:47:15 RESIDENTS IN SAN FRANCISCO, WE WERE THRILLED AT THE
01:47:20 OPPORTUNITY TO APPLY WITHOUT RENTAL SUBSIDY.
01:47:23 THESE PROJECTS BECOME MORE DIFFICULT TO MAKE DEEPLY
01:47:27 AFFORDABLE SO THIS IS AN OPPORTUNITY THAT WE THINK IS
01:47:30 TIMELY GIVEN THAT THE PROJECT IS READY TO BEGIN LEASE UP
01:47:34 IN THE COMING MONTHS AND WE'D LIKE TO EXPRESS OUR THANKS
01:47:38 AND THANK YOU FOR YOUR HELPFUL SUPPORT.
01:47:41 THANK YOU MUCH CAITLIN ROTH. NEXT SPEAKER GOOD MORNING BOARD
01:47:52 OF SUPERVISORS. MY NAME'S SARA DAVEY DILLON.
01:47:53 I'M A SENIOR ASSET MANAGER AT MISSION HOUSING DEVELOPMENT
01:47:56 CORPORATION OVERSEEING SOUTH PARK SCATTERED SITES AS MANY OF
01:48:00 YOU KNOW RUNNING PERMANENT SUPPORTIVE HOUSING IS EXTREMELY
01:48:05 CHALLENGING. SOUTH PARK PROPERTIES CONSIST
01:48:07 OF THREE SEPARATE BUILDINGS ALL OVER 100 YEARS OLD.
01:48:14 >> WE HAVE RECENTLY REHABILITATED SHARED KITCHENS
01:48:16 AND BATHROOM FACILITIES WITH 108 SINGLE ROOM OCCUPANCY UNITS
01:48:22 IN THE SOMA DISTRICT. >> IF YOU'VE NOT BEEN TO THE
01:48:24 SOUTH PARK NEIGHBORHOOD I WOULD HIGHLY RECOMMEND IT.
01:48:27 IT'S A VIBRANT NEIGHBORHOOD SURROUNDED BY A WELCOMING PARK
01:48:31 SO EMOTIONAL JUST PUT SO MUCH WORK IN THIS AND OUR RESIDENTS
01:48:37 ARE PART OF THIS NEIGHBORHOOD FABRIC.
01:48:38 >> OUR RESIDENTS ARE EXTREMELY LOW INCOME INDIVIDUALS WITH
01:48:42 OVER 75% OF THEM COMING OUT OF RECENT HOMELESSNESS AND OR
01:48:49 DISABILITIES. >> PREVIOUSLY OVER 40% OF THE
01:48:53 UNITS WERE UNSUBSIDIZED AND WITH THE AMOUNT OF RENT OUR
01:48:56 RESIDENTS ARE A RESIDENTS ARE ABLE TO AFFORD THEY'RE ON THEIR
01:49:00 OWN MADE IT CHALLENGING TO FINANCIALLY OPERATE THE
01:49:02 PROPERTY. OUR TEAM HAS BEEN WORKING
01:49:05 TIRELESSLY TO STRENGTHEN AND STABILIZE THIS PROJECT
01:49:08 AND THE AFFORDABLE HOUSING OPPORTUNITY FUND HAS BEEN AN
01:49:12 INTEGRAL PIECE OF OUR STABILIZATION PLAN PRESERVING
01:49:13 DEEPLY AFFORDABLE HOUSING OF THIS COMMUNITY ASSET ALLOWING
01:49:21 OUR RESIDENTS TO THRIVE IN THE HEART OF THE CITY IN A SAFE
01:49:22 AND VIBRANT COMMUNITY. >> THANK YOU.
01:49:25 MAYOR'S OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT BOARD
01:49:29 OF SUPERVISORS IN THE CITY OF SAN FRANCISCO FOR THIS
01:49:30 COMMUNITY INVESTMENT. >> THANKS.
01:49:34 THANK YOU, SIR DILLON. AND SEEING NO OTHER SPEAKERS,
01:49:37 MR. CHAIR, THAT COMPLETES OUR Q THANK YOU, MR. CLERK.
01:49:42 >> PUBLIC COMMENT ON THIS ITEM IS NOW THESE ITEMS IS NOW
01:49:45 CLOSED AND I WANT TO EXPRESS MY APPRECIATION TO EVERYBODY FOR
01:49:49 THEIR WORK ON THIS AND TO THOSE WHO WHO COMMENTED AND I SHARE
01:49:55 THE ENTHUSIASM FOR SO MUCH OF WHAT HAPPENS THAT WE'RE DOING
01:49:59 CITYWIDE BUT ESPECIALLY IN MY DISTRICT AND I SHARE THE LOVE
01:50:03 OF SOUTH PARK WHICH USED TO BE A STOMPING GROUND FOR ME BACK
01:50:06 IN THE.COM ERA. NOW I AM PROUD TO REPRESENT IT
01:50:10 ON THE BOARD OF SUPERVISORS. I DON'T SEE ANY FURTHER
01:50:12 QUESTIONS OR COMMENTS FROM COLLEAGUES SO AT THIS TIME I
01:50:15 WOULD MOVE TO ADOPT THE AMENDMENT AS DESCRIBED BY MS.
01:50:20 BLITZER AND THEN FORWARD TO THE FULL BOARD.
01:50:23 THIS THESE ITEMS TO THE FULL BOARD WITH OUR POSITIVE
01:50:25 RECOMMENDATION. >> MR. CLERK, MAY WE HAVE A
01:50:27 ROLL CALL ON THAT MOTION? >> YES.
01:50:30 AND ON THAT MOTION THAT WE AMEND ITEM 719.
01:50:33 ITEM YES. THE RESOLUTION IN ITEM NUMBER
01:50:36 19 AS SO DESCRIBED BY THE DEPARTMENT TO FOR 17 THROUGH 21
01:50:43 TO THE FULL BOARD WITH THE RECOMMENDATION ITEM NUMBER 19
01:50:47 AS AMENDED VICE CHAIR CHEN CHEN I AM MEMBER SADR SADR I CHAIR
01:50:54 DORSEY I DORSEY I WE HAVE THREE EYES.
01:50:57 >> THANK YOU MR. CLERK THE MOTION PASSES MR. CLERK CAN YOU
01:51:01 PLEASE CALL ITEMS 22 THROUGH 24 TOGETHER?
01:51:04 >> YES. ITEMS 22 THROUGH 24.
01:51:07 ITEM 22 IS A RESOLUTION AUTHORIZING THE PLANNING
01:51:11 DEPARTMENT TO ENTER INTO THE FIRST AMENDMENT TO THE
01:51:13 AGREEMENT BETWEEN THE CITY AND COUNTY AND OPEN GOV INC FOR
01:51:16 PERMITTING SOFTWARE PRODUCTS AND SERVICES TO INCREASE THE
01:51:19 AGREEMENT BY APPROXIMATELY 33 MILLION FOR A TOTAL AMOUNT NOT
01:51:24 TO EXCEED APPROXIMATELY 39 MILLION CAME TO EXTEND THE TERM
01:51:27 FOR 60 MONTHS FROM SEPTEMBER 30TH 2026 FOR A TOTAL TERM OF
01:51:33 OCTOBER 1ST 2025 THROUGH SEPTEMBER 30TH 2031 ITEMS 23
01:51:36 AND 24 ARE HEARINGS TO DISCUSS THE OPEN GOV CONTRACT AWARDED
01:51:41 BY THE MAYOR'S OFFICE AND THE PROCUREMENT PROCESS FOLLOWED BY
01:51:44 THE MAYOR'S OFFICE AND TO CONSIDER THE RELEASE OF
01:51:48 RESERVED FUNDS TO THE PLANNING DEPARTMENT AND DEPARTMENT OF
01:51:51 BUILDING INSPECTION PLACE ON BUDGET AND FINANCE COMMITTEE
01:51:55 RESERVED BY THIS YEAR'S ANNUAL APPROPRIATION ORDINANCE IN THE
01:51:58 AMOUNT OF APPROXIMATELY 5 MILLION IN FISCAL YEAR 2026 TO
01:52:02 2027 AND APPROXIMATELY 7.6 MILLION IN FISCAL YEAR 20 27 TO
01:52:07 2028 FOR THE PLANNING DEPARTMENT TO FUND THE CITY'S
01:52:11 PERMIT S.F. LICENSE AND PROFESSIONAL SERVICES
01:52:14 AND APPROXIMATELY 272.5 THOUSAND IN FISCAL YEAR 2026 TO
01:52:18 2027 AND APPROXIMATELY 294,000 IN FISCAL YEAR 2027 TO 2028 FOR
01:52:24 DBA TO FUND TEMPORARY CITY PROJECT IMPLEMENTATION STAFF
01:52:28 FOR PERMIT S.F.. >> MR. CHAIR THANK YOU MR.
01:52:32 CLERK. THIS IS A LITTLE UNUSUAL
01:52:35 AND THAT WE HAVE THREE RELATED ITEMS BEFORE US TODAY A HEARING
01:52:38 CONCERNING THE PROCUREMENT FOR THIS CONTRACT CONTRACT
01:52:42 SPONSORED BY SUPERVISOR FIELDER WHOM WE WELCOME WHO'S JOINING
01:52:43 US THIS MORNING. THE CONTRACT APPROVAL ITSELF IS
01:52:47 SPONSORED BY SUPERVISOR CHERYL AND WE ALSO WELCOME AS WELL WE
01:52:54 HAVE A HEARING TO RELEASE THE FUNDS THAT WERE PLACED ON
01:52:55 RESERVE THIS PAST JUNE. TO KEEP THE DISCUSSION ORDERLY
01:53:01 AND MAKE SURE WE HAVE TIME TO FULLY ADDRESS BOTH MATTERS, WE
01:53:02 WILL TAKE UP THE HEARING DISCUSSION FIRST WILL RECEIVE
01:53:05 PRESENTATIONS ON THE PROCUREMENT PROCESS
01:53:09 AND SUBSEQUENT BE A REPORT FOLLOWED BY QUESTIONS FROM
01:53:10 COMMITTEE MEMBERS. ONCE WE HAVE CONCLUDED THAT
01:53:13 PORTION OF THE DISCUSSION WE WILL THEN TURN TO THE CONTRACT
01:53:17 ITSELF HERE THE PRESENTATION ON THE PROPOSED AGREEMENT AND THEN
01:53:21 TAKE QUESTIONS FROM THE COMMITTEE.
01:53:22 THIS WILL BE FOLLOWED UP BY PUBLIC COMMENT AND WE'LL CLOSE
01:53:25 OUT WITH ANY LAST POINTS FOR FINAL DISCUSSION AND WITH THAT
01:53:28 . >> SUPERVISOR FIELDER.
01:53:29 WELCOME TO THE BUDGET AND FINANCE COMMITTEE.
01:53:31 THANK YOU SO MUCH. >> THANK YOU SO MUCH CHAIR
01:53:33 DORSEY FOR HAVING ME AND FOR HEARING THIS.
01:53:36 THESE ITEMS TOGETHER A YEAR AGO WHEN THE MAYOR'S OFFICE
01:53:40 AND PERMANENT STAFF BROUGHT FORWARD A $6.7 MILLION CONTRACT
01:53:43 WITH OPEN GOV TO PRODUCE A SINGLE PLATFORM PERMITTING
01:53:44 SYSTEM, LOTS OF RED FLAGS WERE RAISED ABOUT HOW THIS CONTRACT
01:53:49 WAS PROCURED. >> TYPICALLY CITY DEPARTMENTS
01:53:52 COMPETITIVELY BID LARGE CONTRACTS TO ENSURE THE CITY
01:53:56 AND THE PEOPLE OF SAN FRANCISCO WHO ENTRUST US WITH THEIR
01:53:59 PUBLIC DOLLARS ARE GETTING THE BEST DEAL.
01:54:03 THE PERMANENCE OF CONTRACT, HOWEVER, WAS NOT COMPETITIVE.
01:54:07 EVERY BID IN ADDITION TO THE LACK OF COMPETITION CONCERNS
01:54:11 AROSE ABOUT POTENTIAL IMPROPRIETY.
01:54:12 GIVEN THAT ONE OF THE MAYOR'S POLICY CHIEFS HELPED MAKE THE
01:54:15 FINAL DECISION TO AWARD THE CONTRACT TO OPEN GOV A COMPANY
01:54:18 WHOSE FOUNDERS HAVE COLLECTIVELY DONATED TENS OF
01:54:22 THOUSANDS OF DOLLARS TO THE NONPROFIT FOUNDATION THAT
01:54:25 MAYOR LARY RAN BEFORE BECOMING MAYOR.
01:54:26 >> TO BETTER UNDERSTAND HOW THE CONTRACT WAS PROCURED
01:54:29 AND WHETHER BEST PRACTICES IN CONTRACTING WERE FOLLOWED, I
01:54:33 ASKED THE BUDGET AND LEGISLATIVE ANALYSTS TO
01:54:34 ASSESS THE CONTRACTS PROCUREMENT.
01:54:37 >> THE BILA ISSUED A REPORT IN JUNE WITH KEY FINDINGS
01:54:41 AND RECOMMENDATIONS INCLUDING THAT THE OPEN GOV SELECTION
01:54:45 PROCESS DID NOT VIOLATE CITY REQUIREMENTS.
01:54:49 HOWEVER, IT DID NOT CONFORM TO BEST PRACTICES OR TYPICAL CITY
01:54:53 PRACTICE IN PROCUREMENT. THEY WILL DISCUSS THOSE TODAY.
01:54:57 I'VE ALSO ASKED THE PERMIT SFR TEAM WHICH ALONG WITH THE
01:55:01 MAYOR'S OFFICE MADE KEY DECISIONS ABOUT THIS
01:55:02 PROCUREMENT TO WALK US THROUGH THEIR DECISION MAKING PROCESS.
01:55:06 FINALLY THE CITY PURCHASER WILL EXPLAIN THE CITY'S TECHNOLOGY
01:55:10 WAIVER WHICH WAS USED IN THIS CASE INSTEAD OF COMPETITIVELY
01:55:13 BIDDING OUT THE CONTRACT. >> I WANT TO MAKE ONE THING
01:55:17 CLEAR. >> I AM NOT QUESTIONING WHETHER
01:55:20 SAN FRANCISCO SHOULD HAVE AN INTEGRATED AND BEST IN CLASS
01:55:23 PERMITTING SYSTEM IMPROVING THE PUBLIC EXPERIENCE WITH CITY
01:55:27 PERMITTING IS ABSOLUTELY VALUABLE.
01:55:28 I AM HOWEVER QUESTIONING WHETHER WE GOT THE BEST DEAL
01:55:33 FOR THIS CONTRACT AND FOR THE PEOPLE OF SAN FRANCISCO.
01:55:37 AS THIS COMMITTEE CONSIDERS INCREASING THIS CONTRACT BY $33
01:55:42 MILLION AND EXTENDING IT BY FIVE YEARS, I WANT TO THINK
01:55:46 BUDGET CHAIR DORSEY FOR HEARING THIS REPORT CONCURRENTLY WITH
01:55:48 THE OPEN GO CONTRACT EXTENSION .
01:55:51 AND I WANT TO THANK THE PERMIT S.F. LEADERSHIP OFFICE OF
01:55:52 CONTRACT ADMINISTRATION AND THE PLANNING DEPARTMENT FOR BEING
01:55:55 HERE TO ANSWER YOUR QUESTIONS. >> AND WITH THAT I INVITE FRED
01:55:59 BROUSSEAU AND CHRISTINA MALAMUTE WITH THE BUDGET
01:56:02 AND LEGISLATIVE ANALYSTS TO PRESENT ON THE REPORT ISSUED BY
01:56:05 THE BOE. >> THANK YOU.
01:56:09 GOOD MORNING CHAIR DORSEY MEMBERS OF THE COMMITTEE
01:56:10 SUPERVISORS CHERYL AND FIELDER. I'M FRED RUSSO FROM THE BUDGET
01:56:14 LEGISLATIVE ANALYST'S OFFICE. >> AND WITH ME THIS MORNING IS
01:56:18 CHRISTINA ELEMENT, A SENIOR MANAGER WHO STAFFED THE REVIEW.
01:56:22 >> AND WE'RE GOING TO REPORT TODAY ON OUR REPORT ISSUED
01:56:26 IN JUNE REQUESTED BY SUPERVISOR FIELDER ON THE PROCUREMENT
01:56:31 PROCESS THAT LED TO THE CONTRACT BEING ISSUED TO OPEN
01:56:34 GOV FOR A NEW PERMITTING SYSTEM.
01:56:38 >> SO START JUST QUICKLY WITH A LITTLE BACKGROUND.
01:56:42 THE PROCUREMENT WAS INITIATED IN FEBRUARY 2025 AND THE
01:56:48 MAYOR ISSUED AN EXECUTIVE DIRECTIVE WHICH SET A ONE YEAR
01:56:51 TIMELINE TO LAUNCH THE FIRST PHASE OF A CITYWIDE PERMITTING
01:56:55 SOLUTION AND OCTOBER OF LAST YEAR THE CITY ENTERED A ONE
01:57:01 YEAR $5.9 MILLION CONTRACT WITH TECHNOLOGY COMPANY OPEN GOV FOR
01:57:05 THE FIRST OF AN ANTICIPATED MULTI-YEAR ENGAGEMENT TO
01:57:09 DEVELOP THE NEW PERMITTING SOFTWARE FOR THE CITY.
01:57:13 >> THE CONTRACT WAS NOT COMPETITIVELY BID BUT THE
01:57:17 MAYOR'S OFFICE RECEIVED THE WAIVER FROM COMPETITIVE BIDDING
01:57:18 REQUIREMENTS PURSUANT TO SECTION 2130 OF THE CITY'S
01:57:22 ADMINISTRATIVE CODE. >> ON THE NEXT SLIDE THE AS
01:57:29 MENTIONED THE CONTRACT WAS NOT COMPETITIVELY BID.
01:57:32 >> WE ALSO FOUND THE SELECTION PROCESS DID NOT VIOLATE CITY
01:57:36 REQUIREMENTS. >> HOWEVER, IT DID NOT CONFORM
01:57:37 TO BEST PRACTICES IS OR TYPICAL CITY PRACTICE IN PROCUREMENT
01:57:41 BECAUSE IT WAS NOT COMPETITIVELY PROCURED FORMAL
01:57:47 COMPETITIVE BIDDING FOR THE PERMITTING SYSTEM WOULD HAVE AT
01:57:49 THE TIME TO THE VENDOR SELECTION PROCESS BUT WOULD
01:57:52 HAVE INCORPORATED CONTROLS AND SAFEGUARDS TO AVOID
01:57:56 POTENTIAL VENDOR FAVORITISM AND TO PROVIDE ASSURANCE THAT
01:58:00 THE CONTRACT PRICE WAS THE BEST VALUE FOR THE CITY.
01:58:06 >> THE SUM OF THE ASPECTS OF COMPETITIVE BIDDING THAT WAS
01:58:10 LACKING IN THIS PROCUREMENT ARE WERE STANDARDIZED PREDETERMINED
01:58:18 EVALUATION CRITERIA. >> THEY WERE NOT PROVIDED TO
01:58:22 THE VENDORS IN ADVANCE OF SUBMITTING THEIR PROPOSALS NOR
01:58:25 WERE THEY DISTRIBUTED TO ALL THE STAFF EVALUATED PTAS WHO
01:58:30 REVIEWED THE PROPOSALS AND THE THE APPLICATIONS THAT WERE
01:58:34 BEING PROPOSED. >> PROHIBITIONS WERE NOT
01:58:37 ESTABLISHED ON CITY STAFF COMMUNICATING WITH OR PROVIDING
01:58:41 INFORMATION OR OTHER FORMS OF ADVANTAGE TO VENDORS.
01:58:45 THIS IS A PRACTICE THAT IS EMBEDDED IN CITY REGULATIONS
01:58:49 FOR COMPETITIVE BIDDING. >> COST COULD NOT BE FAIRLY
01:58:53 COMPARED ACROSS FINALISTS BECAUSE VENDORS WERE NOT ASKED
01:58:57 TO SUBMIT COST PROPOSALS BASED ON THE SAME SET OF ASSUMPTIONS
01:59:00 AND DELIVERABLES AND VENDORS WERE NOT ASKED TO REPORT
01:59:04 CONFLICTS OF INTEREST OR COLLUSION TO THE CITY.
01:59:08 >> THE COLLUSION DISCLOSURES ARE NOT A TYPICAL REQUIREMENT
01:59:12 IN SAN FRANCISCO IN TERMS OF BEST PRACTICES FOR PROCUREMENT.
01:59:16 A FEW KEY POINTS HERE PUBLIC PROCUREMENT PROCESS SHOULD HAVE
01:59:22 TWO OBJECTIVES ONE IS LEVERAGING FREE MARKET
01:59:24 COMPETITION TO GENERATE THE BEST PRICE OR THAT IS THE POINT
01:59:28 OF COMPETITIVE BIDDING ONE OF THE POINTS.
01:59:31 >> AND SECOND, ENSURING THE PROCESS IS IMPARTIAL AND FAIR
01:59:35 THROUGH SOME OF THE GUIDELINES AND SAFEGUARDS SUCH AS THE ONES
01:59:39 I JUST MENTIONED SELECT PRACTICES THAT HINDER
01:59:42 COMPETITION SHOWN ON THIS BOTTOM CHART ON THE LEFT USE OF
01:59:46 EVALUATION CRITERIA INCLUDED IN THE SOLICITATION AND AS I
01:59:50 MENTIONED THAT WAS NOT THE CASE FOR THE REQUEST FOR INFORMATION
01:59:58 AND THE PROCESSES THAT FOLLOWED IT SO THAT VENDORS WOULD KNOW
02:00:02 HOW THEY WERE BEING EVALUATED AND THAT EVERYONE WAS BEING
02:00:04 EVALUATED AGAINST THE SAME CRITERIA.
02:00:07 IMPROPER COMMUNICATION AND LACK OF CONFIDENTIALITY DURING THE
02:00:10 PROCUREMENT PROCESS THERE WERE NO RESTRICTIONS IMPOSED ON ALL
02:00:14 STAFF INVOLVED IN THE EVALUATION PROCESS AND VENDORS
02:00:21 AND THEN SOLE SOURCE PROCUREMENTS THAT ARE NOT
02:00:25 JUSTIFIED. AND THIS THIS PROCUREMENT MET
02:00:26 THE LETTER OF THE LAW FOR SAN FRANCISCO SOLE SOURCE AWARDS
02:00:32 BUT THE VENDOR COULD HAVE BEEN SELECTED THROUGH COMPETITIVE
02:00:37 BIDDING. THERE WAS NOTHING ABOUT THAT
02:00:38 THAT PRECLUDED THAT. >> IN TERMS OF I.T I.T
02:00:44 PROCUREMENT AND MANY PEOPLE WHO ARE INVOLVED IN THIS FIELD WILL
02:00:48 SAY WELL IT IS DIFFERENT. >> SOME OF THE BEST PRACTICES
02:00:53 ISSUED BY THE NATIONAL ASSOCIATION OF STATE
02:00:56 PROCUREMENT OFFICIALS FOR INFORMATION TECHNOLOGY
02:01:00 PROCUREMENT ARE THAT SOLICITATION SHOULD ENCOURAGE
02:01:04 VENDORS TO PROPOSE IDEAS TO SOLVE A DEFINED PROBLEM
02:01:05 AND SHOULD NOT INCLUDE OVERLY PRESCRIPTIVE SPECIFICATIONS.
02:01:11 >> AND IT'S COMMON FOR I.T TO EMPLOY MULTIPLE ROUNDS
02:01:15 SOLICITATION SO IT'S A DIFFERENT KIND OF PROCESS THAN
02:01:19 A MORE RIGID COMPETITIVE BIDDING WHERE ALL THE
02:01:20 SPECIFICATIONS ARE LAID OUT BY THE CITY AND THEN VENDORS
02:01:27 RESPOND TO THAT AND ARE EVALUATED AGAINST THAT.
02:01:30 >> AND THESE WERE SOME OF THE CHARACTERISTICS OF THE PROCESS
02:01:32 THAT WAS USED. BUT THE BEST PRACTICES ALSO
02:01:38 STATE THAT I.T PROCUREMENT MUST BALANCE TRANSPARENCY
02:01:42 AND FAIRNESS IN THE PROCUREMENT PROCESS WITH FLEXIBILITY.
02:01:46 >> AND THAT'S THE TRANSPARENCY AND FAIRNESS ASPECTS THAT WE
02:01:50 FOUND LACKING IN IN THIS PROCESS.
02:01:53 >> THE CITY'S DEPARTMENT OF TECHNOLOGY PRACTICE TYPICALLY
02:01:57 IS TO ISSUE A COMPETITIVE SOLICITATION FOLLOWING A
02:02:01 REQUEST FOR INFORMATION. AGAIN THERE WAS A REQUEST FOR
02:02:02 INFORMATION FOR THIS SOLICITATION BUT IT WAS NOT
02:02:06 FOLLOWED BY A COMPETITIVE REQUEST FOR PROPOSALS.
02:02:09 >> AND TYPICALLY DTI USES REQUESTS FOR QUALIFICATIONS OR
02:02:16 REQUEST FOR PROPOSALS AFTER THEY HAVE COMPLETED THEIR
02:02:21 REQUESTS FOR INFORMATION IN TERMS OF WAIVERS
02:02:28 AND ADMINISTRATIVE CODE SECTION 21 POINT 30 WAIVERS WHICH
02:02:31 ALLOWS COMPETITIVE BIDDING TO BE WAIVED AND UNDER CERTAIN
02:02:38 CONDITIONS. AND THIS IS TRUE FOR SOFTWARE
02:02:42 AS I'LL DESCRIBE MORE IN A MOMENT.
02:02:43 >> BUT THIS CONTRACT WAS DIFFERENT THAN OTHER WAIVERS
02:02:47 THAT HAVE BEEN GRANTED FOR SOFTWARE PURCHASES IN FISCAL
02:02:53 YEAR 2425 AND THEY'RE SUMMARIZED ON THIS SLIDE.
02:02:56 FIRST OF ALL, IT WAS LARGER THAN THE TYPICAL WAIVER ISSUED
02:03:00 FOR NEW SOFTWARE. AS YOU CAN SEE ON THE CHART
02:03:04 HERE, THE AVERAGE AMOUNT FOR NEW SOFTWARE IN FISCAL YEAR 25
02:03:08 WAS 740,006 41 FOR CONTRACTS THAT RECEIVED A WAIVER FOR NEW
02:03:12 SOFTWARE AND THE OPEN GOV CONTRACT WAS 5.9 MILLION.
02:03:18 SO ABOUT EIGHT TIMES LARGER THAN THE AVERAGE.
02:03:22 IT WAS ALSO MORE TYPICALLY THE WAIVERS ARE GRANTED FOR
02:03:25 EXISTING SOFTWARE. AS YOU CAN SEE THERE WERE 37
02:03:28 SUCH WAIVERS GRANTED IN FISCAL YEAR 25 COMPARED TO 14 FOR NEW
02:03:32 SOFTWARE AND FOR THE EXISTING SOFTWARE.
02:03:36 WHAT THAT MEANS IS TYPICALLY A DEPARTMENT HAS AN EXISTING
02:03:40 RELATIONSHIP WITH A VENDOR FOR A SOFTWARE PRODUCT THAT THEY'RE
02:03:43 USING. THEY'RE SATISFIED WITH IT
02:03:44 AND GOING THROUGH A COMPETITIVE BID PROCESS WHILE THEY'RE
02:03:48 ALREADY USING SOMETHING WOULD BE DISRUPTIVE AND THEY ASK FOR
02:03:55 A WAIVER SO THEY CAN CONTINUE WITH THEIR EXISTING
02:03:57 RELATIONSHIP WITH THE VENDOR. SO THE OPEN GOV AWARD AND USE
02:04:03 OF THE WAIVER WAS NOT TYPICAL BY CITY STANDARDS.
02:04:07 >> SO A QUICK SUMMARY OF THE OPEN GOV PROCUREMENT PROCESS
02:04:10 AND TIMELINE IS SHOWN ON THIS CHART.
02:04:11 THE REQUESTS FOR INFORMATION WAS ISSUED IN MAY 2025 AND IT
02:04:18 WAS PROPOSALS DUE JUNE 13TH 5050 VENDOR EXCUSE ME 50
02:04:24 VENDORS SUBMITTED PROPOSALS IN JUNE.
02:04:27 >> AND OF THOSE 15 WERE SELECTED TO MAKE PRESENTATIONS
02:04:36 AT ONE OF TWO VENDOR DAYS IN JULY.
02:04:39 >> AND THEN OF THAT GROUP THREE WERE ULTIMATELY SELECTED TO
02:04:43 PROVIDE ACCESS TO THEIR APPLICATIONS FOR USER TESTING.
02:04:47 >> THEY WERE CONSIDERED THE FINALISTS AND THEY WENT THROUGH
02:04:52 A MORE EXTENSIVE REVIEW INCLUDING REFERENCE CHECKS
02:04:58 AND INTERVIEWS WITH THEIR COMPANY EXECUTIVES AND THAT
02:05:02 ENDED UP IN SEPTEMBER WITH THE CONTRACT BEING AWARDED AFTER A
02:05:09 WAIVER WAS GRANTED BY THE OFFICE OF CONTRACT
02:05:10 ADMINISTRATION. >> SO A POINT ABOUT THIS THE
02:05:15 LATTER PART OF THE PROCESS INCLUDED ELEMENTS OF
02:05:18 COMPETITION AS YOU CAN SEE WITH THIS WHITTLING DOWN OF THE
02:05:21 NUMBER OF VENDORS THAT WERE BEING CONSIDERED.
02:05:25 >> THERE WERE MULTIPLE TESTS TO DETERMINE WHICH WAS THE BEST
02:05:29 AND WHICH WOULD BEST MEET THE CITY'S NEEDS AND THAT GOT DOWN
02:05:33 FROM THE INITIAL 50 TO THE THREE THAT WERE CONSIDERED AT
02:05:36 THE END. AND THEN FINALLY THE ONE OPEN
02:05:39 GOV THAT WAS SELECTED IN THE END THE COMPETITION WAS DROPPED
02:05:43 AND THE WAIVER WAS OBTAINED TO ALLOW THE SOLE SOURCE SELECTION
02:05:47 BUT A COMPETITIVE PROCESS COULD HAVE DONE MANY OF THE SAME
02:05:52 THINGS AND ENDED UP WITH THE SAME RESULT.
02:05:58 >> A FEW POINTS FOR COMPARING REQUESTS FOR INFORMATION
02:05:59 REQUESTS FOR PROPOSAL. >> AGAIN THE PROCESS HERE WAS A
02:06:03 REQUEST FOR INFORMATION ONLY THEIR REQUESTS FOR INFORMATION
02:06:07 ARE NOT SOLICITATION METHODS. >> THERE ARE FORMAL PROCESS TO
02:06:11 RESEARCH AND GATHER INFORMATION ABOUT THE CAPABILITIES
02:06:14 AND SERVICES OF VENDORS. >> THEY MAY BE CONDUCTED BY
02:06:18 CITY DEPARTMENTS IN ADVANCE OF FORMAL SOLICITATION.
02:06:21 THEY'RE NOT UNUSUAL IN THE CITY.
02:06:22 MANY DEPARTMENTS DO CONDUCT REQUESTS FOR INFORMATION AND AS
02:06:26 I MENTIONED AT LEAST WITH THE DEPARTMENT OF TECHNOLOGY THEY
02:06:30 GENERALLY FOLLOW IT THEN WITH A REQUEST FOR INFORMATION AFTER
02:06:34 THEY'VE IDENTIFIED VENDORS THAT SEEM TO MEET THEIR NEEDS
02:06:39 AND HOW THEY WANT TO DEFINE THEIR REQUEST.
02:06:42 >> A REQUEST FOR INFORMATION ARE NOT GOVERNED BY CHAPTER 21
02:06:45 OF THE CITY'S ADMINISTRATIVE CODE WHICH COVERS GOVERNS
02:06:48 PROFESSIONAL SERVICES CONTRACTS INCLUDING SOFTWARE.
02:06:52 THERE ARE NO REGULATIONS ABOUT IT AS THERE ARE FOR COMPETITIVE
02:06:56 BIDDING AND THERE'S NO OTHER CITY CODE THAT DICTATES WHAT
02:07:00 HAS TO OCCUR AND REQUESTS FOR INFORMATION.
02:07:02 >> SO THIS IS DIFFERENT THAN REQUESTS FOR PROPOSALS WHERE
02:07:05 THERE ARE VERY SPECIFIC REQUIREMENTS IN THE
02:07:09 ADMINISTRATIVE CODE AND REGULATIONS PROMULGATED BY
02:07:12 THE OFFICE OF CONTRACT ADMINISTRATOR AND IN THIS
02:07:16 SITUATION THAT INCLUDES SAFEGUARDS AND CONTROLS SUCH AS
02:07:20 THE ONE I HAVE MENTIONED THIS REQUEST FOR INFORMATION THAT
02:07:27 WAS ISSUED THAT ENDED UP IN THE OPEN GOV PROCUREMENT WAS
02:07:31 BECAUSE THE CITY WAS SEEKING INFORMATION ON TECHNOLOGY TO
02:07:35 SUPPORT STREAMLINING THE CITY'S PERMIT SYSTEM.
02:07:38 >> AGAIN IT WAS DESIGNED TO HAVE A NEW SYSTEM IN PLACE OR A
02:07:43 VENDOR IN PLACE TO DEVELOP A NEW SYSTEM.
02:07:46 ONE YEAR LATER IN FEBRUARY 2026 AND THE RFI SPECIFIED THAT IT
02:07:50 WANTED TO IMPLEMENT A SINGLE FRONT DOOR FOR CUSTOMERS TO USE
02:07:57 THE SYSTEM NO MATTER WHAT TYPE OF PERMIT THEY'RE SEEKING
02:08:01 AND THAT IT WOULD ALLOW FOR STATUS TRACKING FOR CUSTOMERS
02:08:05 AND STAFF AS PART OF A CENTRALIZED PERMITTING SYSTEM.
02:08:08 >> THE RFP PURPOSE AS STATED IN THE DOCUMENT ITSELF WAS TO
02:08:12 GATHER DATA AND INSIGHTS TO INFORM PLANNING AND PROCUREMENT
02:08:16 EFFORTS. AND IT EXPLICITLY SAID IT WAS
02:08:17 NOT A SOLICITATION BUT THAT RESPONSES TO THE RFP MIGHT BE
02:08:21 USED IN FUTURE SOLICITATIONS. >> IT OUTLINED TWO SUBSEQUENT
02:08:27 PHASES THE VENDOR DAY WHERE A NUMBER OF VENDORS WERE ASKED TO
02:08:31 COME IN AND MAKE PRESENTATIONS AND THEN USER TESTING WHERE A
02:08:35 SUBSET OF THOSE WERE ASKED TO PROVIDE ACCESS TO THEIR
02:08:40 APPLICATIONS FOR STAFF TO TEST THEM.
02:08:43 >> BUT NO EVALUATION CRITERIA WAS PROVIDED TO THE VENDORS SO
02:08:47 THAT THEY WOULD KNOW HOW VENDORS ARE BEING SELECTED FOR
02:08:51 PARTICIPATION IN THOSE EVENTS. >> IN TERMS OF THE EVALUATION
02:08:55 CRITERIA. >> THIS AGAIN SHOWS THE FLOW OF
02:08:58 THE PROCESS BUT KEY TO BEST PRACTICES IS STANDARDIZE THE
02:09:07 EVALUATION CRITERIA AND THAT DID NOT EXIST FOR THESE
02:09:10 DIFFERENT STEPS IN THE PROCESS THERE WERE DIFFERENT METHOD
02:09:14 USED AS REQUESTED BY THE LEADERSHIP TEAM FROM THE
02:09:18 MAYOR'S OFFICE OF INNOVATION AND PERMIT S.F. TO TO DIRECT
02:09:22 THE STAFF WHAT THEY NEEDED TO BE LOOKING FOR IN THEIR
02:09:26 EVALUATIONS. >> BUT THERE WAS NO
02:09:27 STANDARDIZED RUBRIC. >> SO THROUGHOUT THIS PROCESS
02:09:30 STAFF USED DIFFERENT METHODS AND EVALUATED THE VENDORS
02:09:37 IN DIFFERENT WAYS USING DIFFERENT SCORING TECHNIQUES
02:09:40 AND SOMETIMES SIMPLY PROVIDED QUALITATIVE RESPONSES MAKING IT
02:09:45 VERY DIFFICULT TO GO BACK AND SEE HOW THE FINALISTS WERE
02:09:49 SELECTED AND ULTIMATELY HOW THE WINNING VENDOR WAS SELECTED
02:09:52 BECAUSE THERE WASN'T A SET OF DATA OR SCORES THAT COULD BE
02:09:56 COMPILED TO SEE WHICH VENDOR RANKED MOST HIGHLY WITH THE
02:10:00 STAFF EVALUATOR AND WHICH DID NOT COST PROPOSALS.
02:10:14 >> SO IN A COMPETITIVE BID TYPICALLY A COST WOULD BE
02:10:18 REQUIRED AND THERE WOULD BE SOME DETAILS ABOUT WHAT THE
02:10:22 CITY IS EXPECTING THAT WOULD GUIDE THE VENDORS IN PREPARING
02:10:27 THEIR COST ESTIMATES. >> IN THIS CASE VENDORS WERE
02:10:30 ASKED TO PROVIDE A COST PROPOSAL WITH THE REQUEST FOR
02:10:33 INFORMATION SUBMITTAL. >> HOWEVER, THAT WAS NOT A
02:10:37 DETAILED SET OF SPECIFICATIONS FOR WHAT THE FINAL PRODUCT
02:10:42 SHOULD BE AND THEN THERE WERE NO FURTHER REQUIREMENTS TO
02:10:46 PROVIDE COST INFORMATION IN THE SUBSEQUENT STEPS UNTIL THE VERY
02:10:49 END WHEN OPEN GOV AND CLARITY WERE THE SEMIFINALISTS THEY HAD
02:10:56 BEEN SELECTED. >> AS THE PROCESS WHITTLED DOWN
02:11:01 THE NUMBER OF VENDORS AND THE FINAL COMPETITION WAS BETWEEN
02:11:04 THE TWO OF THEM AND AT THAT STAGE OPEN GOV WAS ASKED TO
02:11:08 PREPARE A COST PROPOSAL BUT NO OTHER VENDORS WERE IN THE
02:11:12 INCLUDING CLARITY ALTHOUGH THEY WERE THE FINAL COMPETITOR
02:11:20 AGAINST OPEN GOV IN THAT CASE THE CITY STAFF ACTUALLY
02:11:24 ESTIMATED WHAT THEY THOUGHT THE COST WOULD BE FOR CLARITY BUT
02:11:28 CLARITY WAS NOT ASKED TO PREPARE THEIR PREPARE THEIR OWN
02:11:29 COST PROPOSAL AS A AS A FINAL BID FOR THE FINAL STEP OF THE
02:11:36 PROCESS IN TERMS OF COMMUNICATION AND AND CONFLICT
02:11:40 OF INTEREST DISCLOSURES EVEN THOUGH THE LEADERSHIP TEAM
02:11:45 MANAGING THIS PROCESS DID NOT SET SPECIFIC PROHIBITIONS ON
02:11:49 COMMUNICATIONS FOR THE STAFF EVALUATORS, THERE IS THERE ARE
02:11:56 LAWS ON THE BOOKS IN TERMS OF THE ETHICS CODE THAT PROHIBIT
02:12:01 STAFF FROM PROVIDING SELECTIVE ASSISTANCE TO ANYONE SEEKING TO
02:12:05 DO BUSINESS. BUT THE CITY'S COMPETITIVE
02:12:08 SOLICITATION REGULATIONS GO BEYOND THAT AND HAVE VERY
02:12:12 SPECIFIC REQUIREMENTS THAT CITY STAFF SHOULD BE INFORMED.
02:12:19 >> THERE'S NO DIRECT COMMUNICATION IN WITH ANY
02:12:23 PROPOSERS. THERE SHOULD BE NO DISCLOSURE
02:12:24 OF CONFIDENTIAL INFORMATION BY CITY STAFF EVALUATORS.
02:12:27 AND BY THE WAY, THERE WERE MANY CITY STAFF EVALUATORS FOR I
02:12:34 THINK VENDOR DAY 70 STAFF WERE REVIEWING OR ATTENDED THE
02:12:38 PRESENTATIONS AND WERE PROVIDING COMMENTS ON THEIR
02:12:42 RESPONSES TO THEM. >> THERE WERE ABOUT 40 INVOLVED
02:12:46 IN THE USER TESTING SO THERE WERE A LOT OF STAFF BUT NO
02:12:53 RULES HANDED TO THEM TO PREVENT THEIR COMMUNICATIONS WITH
02:12:57 VENDORS OR OTHER CITY EMPLOYEES OR OTHERS THAT MIGHT HAVE AN
02:13:01 INTEREST IN THE PROCESS AND CITY EMPLOYEES INVOLVED
02:13:05 IN THE PROCESS ARE REQUIRED TO DISCLOSE ANY CONFLICTS OF
02:13:06 INTEREST DURING THE SOLICITATION PROCESS IN THE
02:13:09 CITY'S COMPETITIVE BIDDING REQUIREMENTS.
02:13:13 BUT THERE WASN'T A SIMILAR REQUIREMENT FOR THIS PROCESS
02:13:17 FOR OPEN GOV FIVE CITY STAFF FROM THE MAYOR'S OFFICE
02:13:24 AND PERMANENT STAFF DID SIGN STATEMENTS OF IMPARTIALITY
02:13:28 AND CONFIDENTIALITY REGARDING THE TOP THREE BIDDERS BUT THEY
02:13:35 DID NOT SIGN STATEMENTS FOR THE OTHER 47 BIDDERS NOR DID ANY OF
02:13:39 THE OTHER STAFF INVOLVED IN THE PROCESS AS I IMAGINE A NUMBER
02:13:43 OF PROBABLY CLOSE TO 100 WHO WOULD BE REQUIRED TO DO SO IN A
02:13:46 COMPETITIVE BIDDING PROCESS UNDER CITY REGULATIONS.
02:13:52 >> SO SUMMARY POINTS THE SYSTEM WAS LAUNCHED ON FEBRUARY 13TH,
02:13:59 2026. >> THAT WAS THE GOAL OF THE
02:14:00 EXECUTIVE DIRECTOR OF ISSUED IN FEBRUARY 2025.
02:14:05 IT WAS FOR A LIMITED NUMBER OF SIMPLER PERMIT TYPES SUCH AS
02:14:09 WINDOW AND DOOR REPLACEMENTS AND I BELIEVE SINCE THEN THERE
02:14:13 HAVE BEEN ADDITIONAL PERMIT TYPES ADDED TO THE CAPABILITIES
02:14:17 OF THE SYSTEM. >> AS I MENTIONED THE OPEN GOV
02:14:21 SELECTION PROCESS DID NOT VIOLATE CITY REQUIREMENT
02:14:25 S HOWEVER BEST PRACTICE SUGGEST THE CITY SHOULD HAVE ISSUED A
02:14:26 REQUEST FOR PROPOSALS FOR PERMITTING SOFTWARE FOLLOWING
02:14:30 THE REQUESTS FOR INFORMATION PROCESS USING A FORMAL
02:14:34 COMPETITIVE SOLICITING COMPETITIVE SOLICITATION
02:14:37 PROCESS WOULD HAVE MADE THE PROCESS MORE TRANSPARENT
02:14:40 AND WOULD HAVE PROVIDED GREATER ASSURANCE THAT IT WAS FAIR
02:14:44 AND THAT THE CITY WAS GETTING THE BEST PRICE POSSIBLE.
02:14:48 A COMPETITIVE SOLICITATION PROCESS COULD HAVE ADDED AT
02:14:51 LEAST SIX MONTHS TO THE PROCUREMENT PROCESS AND WOULD
02:14:52 NOT HAVE BEEN COMPATIBLE WITH THE MAYOR'S DEADLINE TO
02:14:55 IMPLEMENT THE PROCESS BY FEBRUARY 2020 SIX.
02:14:59 >> BUT THE LENGTH OF THE COMPETITIVE BIDDING PROCESS WAS
02:15:03 WELL KNOWN AT THE TIME THE EXECUTIVE DIRECTIVE WAS ISSUED
02:15:06 BUT IT WAS NOT ACCOUNTED FOR IN THE PROPOSED TIMELINE.
02:15:13 >> TIMING WAS A KEY REASON THAT THE MAYOR'S OFFICE AND PERMIT
02:15:18 S.F. HAVE REPORTED FOR BYPASSING THE COMPETITIVE
02:15:21 PROCESS AND GOING WITH THE SOLICITATION THE WAIVER PROCESS
02:15:30 SO THAT THEY COULD MEET THE FEBRUARY 2026 DEADLINE.
02:15:37 WE HAVE A FEW RECOMMENDATIONS. THE BOARD OF SUPERVISORS SHOULD
02:15:41 CONSIDER REQUESTING THAT THE CITY ADMINISTRATOR'S OFFICE
02:15:42 PREPARE GUIDELINES FOR THE REQUESTS FOR INFORMATION
02:15:45 PROCESS. AS I MENTIONED EARLIER, THERE
02:15:48 ARE NO GUIDELINES COMPARABLE TO WHAT ARE IN PLACE FOR REQUESTS
02:15:52 FOR PROPOSALS. SO GUIDELINES FOR THE REQUEST
02:15:56 FOR INFORMATION PROCESS WOULD BE USEFUL TO ENSURE IT'S NOT
02:16:00 USED AS A SUBSTITUTE FOR THE CITY'S COMPETITIVE FORMAL
02:16:04 SOLICITATION PROCESS AND REGULATIONS.
02:16:07 >> WE ALSO RECOMMEND AN UPDATE TO THE CHAPTER 21 RULES
02:16:11 AND REGULATIONS FOR SECTION 21.30 SOLICITATIONS.
02:16:14 >> THIS SHOULD CONSIDER FACTORS SUCH AS WHETHER THE WAIVERS
02:16:21 SHOULD BE APPLIED CONSIDERING WHETHER THE SOFTWARE IS NEW OR
02:16:25 EXISTING AND CONSIDERING THE CONTRACT DOLLAR VALUE AND THE
02:16:30 PRESENCE OF COMPETITORS PROVIDING A SIMILAR PRODUCT.
02:16:33 ONE OF THE ASPECTS OF THE 2130 REQUIREMENTS IS THAT IT CAN BE
02:16:37 ALLOWED IF THE VENDOR HAS PROPRIETARY RIGHTS TO THE
02:16:43 SOFTWARE BEING PROPOSED WHICH WAS THE CASE FOR THE OPEN GOV
02:16:47 BID. >> HOWEVER THAT IS WOULD BE
02:16:51 PRETTY MUCH TRUE FOR ANY OF THE VENDORS THAT PROVIDED A
02:16:55 PROPOSAL OR WERE BEING CONSIDERED BECAUSE ALL OF THEM
02:16:59 ARE OFFERING SOMETHING UNIQUE AND UNLESS THEY WERE OFFERING A
02:17:03 SIMPLE OFF THE SHELF PACKAGE THEY WOULD HAVE SOME
02:17:06 PROPRIETARY RIGHTS TO THE TO THE SERVICES AND PRODUCTS THEY
02:17:10 WERE OFFERING. >> SO THAT WOULD MEAN 2130
02:17:16 COULD BE USED IN ANY CASE AND THE REGULATIONS SHOULD
02:17:18 PROBABLY BE ADJUSTED TO ACCOUNT FOR THAT IN OUR OPINION
02:17:24 AND THEN FINALLY PROVIDE RECOMMENDATIONS ON STRATEGIES
02:17:28 TO IMPROVE THE PROCUREMENT PROCESS FOR TECHNOLOGY TO
02:17:31 REDUCE THE TIMELINE TO PROCURE. >> WE DID HEAR A LOT OF
02:17:35 FEEDBACK ABOUT THAT THAT THE PROCESS IS SLOW.
02:17:37 >> YOU CAN MISS OPPORTUNITIES WITH I.T PRODUCTS AND SERVICES
02:17:40 WHEN YOU HAVE TO TAKE A LONG TIME.
02:17:44 >> I WOULD ADD THOUGH THAT IN THIS CASE SOME OF THE
02:17:47 SAFEGUARDS AND CONTROLS COULD HAVE BEEN INCLUDED IN THE
02:17:52 PROCESS AS IT WAS IMPLEMENTED PUTTING PROHIBITIONS ON
02:17:59 COMMUNICATIONS FOR THE CITY STAFF FOR EXAMPLE COULD HAVE
02:18:02 BEEN DONE WITHOUT ADDING A LOT OF TIME TO THE PROCESS.
02:18:06 I THINK WE'RE TIME IS CONSUMED IN THE TYPICAL PROCESS IS ALL
02:18:11 THE HANDOFFS BETWEEN DEPARTMENTS WHEN THE CITY
02:18:14 ATTORNEY HAS TO REVIEW DOCUMENTS THE OFFICE OF
02:18:15 CONTRACT ADMINISTRATION HAS TO REVIEW DOCUMENTS, THE
02:18:18 DEPARTMENT ITSELF HAS TO AGREE ON EVERYTHING GOING INTO A
02:18:22 REQUEST FOR PROPOSAL. >> SO THERE'S DEFINITELY A LOT
02:18:25 OF TIME INVOLVED IN THE PROCESS BUT THAT WOULDN'T HAVE
02:18:29 PRECLUDED SOME OF THE STANDARD SAFEGUARDS AND CONTROLS THAT
02:18:33 THAT THE CITY HAS FOR COMPETITIVE BIDDING THAT COULD
02:18:37 HAVE BEEN OVERLAID ONTO THE PROCESS THAT WAS USED.
02:18:44 >> SO THAT IS THE SUMMARY OF OUR REPORT.
02:18:45 WE ARE HAPPY TO RESPOND TO ANY QUESTIONS NOW OR AS THE HEARING
02:18:49 CONTINUES. SUPERVISOR FIELDER THANK YOU.
02:18:59 >> THANK YOU SO MUCH. MR. RIZZO FOR PRESENTING
02:19:03 AND FOR ALL YOUR WORK ON THIS REPORT.
02:19:05 MY FIRST QUESTION IS WHO ARE YOUR KEY CONTACTS IN THE
02:19:07 MAYOR'S OFFICE AND PERMITTED STAFF FOR THIS REPORT AND ARE
02:19:11 THEY WITH US IN THE CHAMBERS TODAY?
02:19:13 >> SUPERVISOR FIELDER I SEE OUR KEY CONTACTS WERE LIZ WADDY
02:19:17 FROM HERMAN S.F. AND FLORENCE SIMON FROM THE MAYOR'S OFFICES
02:19:24 OF INNOVATION IN FLORENCE. >> SIMON IS NOT HERE TODAY.
02:19:25 SHE'S NOT HERE SHE'S NOT WITH THE MAYOR'S OFFICE OF
02:19:29 INNOVATION ANY LONGER. >> OKAY.
02:19:32 THANK YOU. WHAT ARE THE PITFALLS OF USING
02:19:36 A REQUEST FOR INFORMATION AS A DE FACTO VENDOR SELECTION TOOL
02:19:42 ? I THINK THAT THE MAIN THING I
02:19:43 WOULD SAY IS THAT IT THERE ARE NO REQUIREMENTS THAT GO ALONG
02:19:47 WITH IT TO ENSURE THE FAIRNESS AND TRANSPARENCY.
02:19:51 SO SOME OF THE CHARACTERISTICS I MENTIONED OF COMPETITIVE
02:19:55 BIDDING SUCH AS CONTROLLING COMMUNICATIONS BETWEEN STAFF
02:19:59 AND VENDORS IS NOT REQUIRED. >> THERE ARE NO REQUIREMENTS
02:20:06 FOR REQUESTS FOR INFORMATION. THAT DOESN'T PRECLUDE THE STAFF
02:20:10 FROM MAKING SUCH REQUIREMENTS BUT THERE'S NOTHING THAT
02:20:14 AUTOMATICALLY KICKS IN WITH A REQUEST FOR INFORMATION.
02:20:18 >> FURTHER, IT'S NOT REALLY A SOLICITATION TOOL AND THE
02:20:21 MAYOR'S OFFICE OF INNOVATION AND PERMIT ITSELF WAS CLEAR
02:20:26 ABOUT THAT WHEN THEY ISSUED IT. IT WAS NOT A SOLICITATION TOOL
02:20:29 SO IT DOESN'T PROVIDE EVALUATION CRITERIA.
02:20:30 IT DOESN'T PROVIDE SPECIFICATIONS FOR WHAT IS
02:20:34 BEING LOOKED FOR FOR A CONTRACT AS WOULD BE THE CASE IN A
02:20:40 FORMAL COMPETITIVE BIDDING DOCUMENT.
02:20:41 >> IN YOUR VIEW, WHEN DID IT BECOME A SOLICITATION TOOL?
02:20:45 >> YOU KNOW IT'S A GOOD QUESTION SUPERVISOR I DON'T
02:20:49 THINK THERE IS A SPECIFIC DATE BUT THE PROCESS AS IT UNFOLDED
02:20:55 TOOK THE POOL OF VENDORS WHO SOLICIT WHO SUBMITTED PROPOSALS
02:20:59 FOR INFORMATION GATHERING PURPOSES AND THEN STARTED
02:21:03 REQUESTING FURTHER INFORMATION FROM THEM AFTER THEY HAD
02:21:10 PRESENTED AT VENDOR DAY. SO IT BECAME MORE LIKE A
02:21:14 COMPETITIVE BIDDING PROCESS I'D SAY AFTER THE PRESENTATIONS
02:21:18 AND WHEN SIX AND THEN THREE FINALISTS WERE SELECTED FOR
02:21:26 FINAL CONSIDERATION. >> THANK YOU.
02:21:29 YOUR REPORT FOUND THAT ONE OF THE REASONS THE MAYOR'S OFFICE
02:21:31 AND PERMITTED STAFF WENT WITH A WAIVER INSTEAD OF A COMPETITIVE
02:21:34 BIDDING PROCESS AND WHY IT CHOSE OPEN GOV OR OVER OTHER
02:21:38 VENDORS WAS THE DESIRE TO MEET THE MAYOR'S FEBRUARY 2025
02:21:42 EXECUTIVE DIRECTIVE FOR LAUNCHING A NEW PERMITTING
02:21:46 SYSTEM WITHIN A YEAR? >> FROM YOUR ANALYSIS WAS THIS
02:21:49 DATA DRIVEN BY SOMETHING OUTSIDE OF LOCAL GOVERNMENT
02:21:53 CONTROL SOME EXTERNAL REQUIREMENT OR WAS THIS A
02:21:58 SELF-IMPOSED DEADLINE? >> I'M NOT SURE I CAN ANSWER
02:22:02 THAT SUPERVISOR BECAUSE I DON'T KNOW WHAT WENT ON BEHIND THE
02:22:06 SCENES BEFORE THE EXECUTIVE DIRECTOR WAS ISSUED.
02:22:09 >> BUT THERE'S NOTHING I KNOW OF THAT REQUIRED THE SYSTEM TO
02:22:13 BE IN PLACE IN ONE YEAR LEGALLY OR POLICY WISE.
02:22:20 BUT THERE THERE MAY HAVE BEEN OTHER CONSIDERATIONS BEFORE IT
02:22:24 WAS ISSUED. >> THANK YOU.
02:22:28 AND ALTHOUGH YOU DIDN'T FIND IMPROPRIETY, DID YOU GAIN
02:22:29 ACCESS AND REVIEW COMMUNICATIONS AND MEETING
02:22:33 RECORDS BETWEEN CITY LEADERS AND ALL VENDORS OR THEIR
02:22:37 LOBBYISTS? WE RECEIVED AN EXTENSIVE NUMBER
02:22:44 OF COMMUNICATIONS BETWEEN THE OFFICES AND VENDORS.
02:22:48 I DON'T KNOW IF WE SAW EVERY SINGLE COMMUNICATION LINE BUT
02:22:53 WE DID SEE EMAILS THAT HAD GONE BACK AND FORTH.
02:22:57 >> THANK YOU. DID YOU INVESTIGATE POTENTIAL
02:23:00 CONFLICTS OF INTEREST BETWEEN CITY DECISION MAKERS VENDORS OR
02:23:05 THEIR LOBBYISTS? >> WE DID NOT.
02:23:06 WE AS I MENTIONED WE DID REVIEW AND REQUESTED AND THEN REVIEWED
02:23:09 IMPARTIALITY STATEMENTS THAT WERE SIGNED BY FIVE CITY STAFF
02:23:16 PERTAINING TO THE THREE FINALISTS VENDORS.
02:23:20 >> BUT IN TERMS OF GOING BEYOND THAT AND FILINGS WITH THE
02:23:28 ETHICS COMMISSION OR OTHER YOU KNOW, POSSIBLE RELATIONSHIPS
02:23:32 BETWEEN CITY STAFF AND THE VENDORS, WE DID NOT INVESTIGATE
02:23:36 THAT. >> ALL RIGHT.
02:23:37 THANK YOU SO MUCH, MR. BRAZEAU. >> THESE ARE MY QUESTIONS FOR
02:23:40 THE L.A. JUSTICE. THANK YOU.
02:23:46 >> SUPERVISOR FIELDER SUPERVISOR CHERYL.
02:23:47 THANK YOU, CHAIR DORSEY. I'VE SET A COUPLE OF QUESTIONS
02:23:52 FOR THE BLR AND I WILL ADMIT THAT I DON'T KNOW IF THESE
02:23:54 SHOULD BE QUESTIONS FOR YOU BECAUSE I'M NOT SURE THE
02:23:56 ANALYSIS HAS BEEN DONE BUT I'M GOING TO ASK THEM ANYWAY SO
02:23:59 FEEL FREE TO BE LIKE I HAVEN'T DONE THAT.
02:24:00 THAT'S NOT ON US. >> SO SORRY.
02:24:02 IS GOVERNMENT BY AND LARGE KNOWN FOR HAVING BEST IN CLASS
02:24:06 SOFTWARE SYSTEMS? YOU TALKING ABOUT NATIONAL
02:24:07 AND STATE STANDARDS SUPERVISOR? SURE.
02:24:10 I'D SAY IT VARIES AND YOU WILL FIND JURISDICTIONS THAT ARE
02:24:14 IMPRESSIVE WITH THEIR SOFTWARE AND SOME THAT ARE NOT
02:24:18 IMPRESSIVE. SO I DON'T THINK I COULD MAKE A
02:24:22 BLANKET STATE. >> OH THAT'S FAIR.
02:24:23 YEAH AND AGAIN THIS MIGHT NOT BE ANOTHER FAIR QUESTION BUT IS
02:24:27 SAN FRANCISCO KNOWN FOR HAVING BEST IN CLASS SOFTWARE BY
02:24:30 AND LARGE? >> I'M NOT SURE I COULD ANSWER
02:24:33 THAT QUESTION. >> I KNOW I WILL SAY THIS
02:24:36 COMPLAINTS ABOUT THE PERMITTING SYSTEM I HAVE HEARD FOR YEARS
02:24:40 IS PROBABLY EVERYONE IN THIS ROOM HAS.
02:24:41 >> SO THE FACT THAT THERE WAS AN INTEREST IN THE NEW
02:24:44 PERMITTING SYSTEM WAS NOT SURPRISING.
02:24:47 >> GOT IT. AND WERE YOU ALL ASKED TO DO AN
02:24:49 ANALYSIS OF WHETHER THIS PROCESS UNDER DISCUSSION
02:24:52 PRODUCED A GOOD SOLUTION FOR SAN FRANCISCANS?
02:24:56 LIKE IS THE SYSTEM ANY GOOD? WERE YOU ASKED TO DO THAT
02:24:57 UNLESS WE WERE NOT OUR SCOPE WAS THE PROCUREMENT UP TO THE
02:25:00 TIME OF CONTRACT EXECUTION? >> FREE GENERALLY DOES THE CITY
02:25:07 TEND TO DO RETROACTIVE ANALYZES OF INDIVIDUAL CONTRACTS OR
02:25:11 GROUPS OF CONTRACTS TO SEE IF OUR STANDARD PROCESSES RESULT
02:25:15 IN THE BEST PRODUCT? >> IT'S NOT AN ACROSS THE BOARD
02:25:18 ASSIGNMENT FOR OUR OFFICE AND IT'S NOT THIS ISN'T THE
02:25:22 FIRST TIME WE'VE DONE IT EITHER AND WE CERTAINLY LOOK AT THE
02:25:26 PROCUREMENT PROCESS AS CONTRACTS ARE BEING APPROVED.
02:25:30 PROBABLY AS PROBABLY MORE. >> OKAY.
02:25:34 THANKS. DO YOU KNOW IF THE CITY HAS
02:25:35 EVER DONE AN ANALYSIS TO KNOW IF OUR CURRENT BEST PRACTICES
02:25:40 ARE MORE LIKELY TO RESULT IN THE BEST PRODUCT SOLUTION OR
02:25:42 RESULT IN THE LOWEST PRICE? >> I'M NOT SURE.
02:25:47 I THINK THAT PROBABLY THE OFFICER CONTRACTED IN THE
02:25:51 SITUATION COULD BETTER ANSWER THAT QUESTION.
02:25:53 AND DO YOU KNOW BY CHANCE IF WE'VE EVER DONE AN ANALYSIS ON
02:25:55 HOW OFTEN SOFTWARE PROCUREMENTS RESULT IN COST OVERRUNS?
02:25:59 >> NOT TO MY KNOWLEDGE BUT I KNOW AS A CASUAL OBSERVER IT IS
02:26:03 NOT UNUSUAL AND I DON'T MEAN JUST IN SAN FRANCISCO BUT YEAH
02:26:07 IN THE PUBLIC SECTOR IN GENERAL.
02:26:08 OKAY, GREAT. THANK YOU.
02:26:08 I APPRECIATE IT. >> THAT'S ALL.
02:26:11 THANK YOU. THANK YOU.
02:26:12 SUPERVISOR CHERYL AND SUPERVISOR CHEN.
02:26:14 >> THANK YOU, CHAIR DORSEY. THIS IS ALSO A QUESTION TO THE
02:26:19 B A. SORRY THAT'S THE AMOUNT IN THE
02:26:22 CONTRACT AMOUNT FOR THE TOTAL PHYSICAL IMPACT OF THIS
02:26:26 PROGRAM. DOES THAT ACCOUNT IN THE
02:26:29 CONTRACT ACCOUNT FOR THE TOTAL PHYSICAL IMPACT OF THIS PROGRAM
02:26:34 SO INCREASE THE STAFFING TO OVERSEE DEVELOPMENT TRAINING
02:26:38 FOR DEVELOPMENTS FOR DEPARTMENT STAFF COMMUNICATION DATA
02:26:42 MIGRATION AND SARS. >> THE SUPERVISOR CHEN THE $5.9
02:26:49 MILLION IS FOR THE VENDOR AND TO MEET THEIR COSTS SO ALL
02:26:54 THE STAFF TIME ASSOCIATED WITH IT IS NOT INCORPORATED IN THE
02:27:00 $5.9 MILLION OH GOT IT. >> SO IF THERE'S NO MONEY
02:27:04 ALLOCATED FOR STAFF TRAINING AND COMMUNICATION AND DATA
02:27:09 MIGRATION THEN DO YOU HAVE A SENSE OF HOW MUCH ALL OF THAT
02:27:16 COULD POSSIBLY COST? >> I DON'T HAVE A NUMBER FOR
02:27:20 YOU. I'M SORRY BUT I THINK WITH ANY
02:27:23 NEW SOFTWARE THAT GETS LAUNCHED THERE'S DEFINITELY A STAFF TIME
02:27:27 REQUIREMENT AND IT COULD BE EXTENSIVE.
02:27:31 THIS IS A FAIRLY MAJOR SYSTEM BUT I DON'T HAVE A NUMBER TO
02:27:35 SAY LIKE HOW MANY HOURS AND WHICH STAFF THAT WILL
02:27:39 AFFECT. >> GOT IT.
02:27:40 THANK YOU. >> GREAT.
02:27:43 THANK YOU. SUPERVISOR CHEN SUPERVISOR
02:27:46 FIELDER. >> THANK YOU.
02:27:47 AND MY NEXT QUESTIONS ARE WELL, WE'RE GOING TO HAVE A
02:27:50 PRESENTATION BY PERMIT S.F. SO I WOULD INVITE ELIZABETH LODHI
02:27:55 TO COME UP. THANK YOU SO MUCH FRED RESERVE
02:27:57 THE VLA FOR COMING. >> OKAY.
02:28:05 ALL RIGHT. >> GOOD MORNING, CHAIR DORSEY.
02:28:09 MEMBERS OF THE BUDGET AND FINANCE COMMITTEE.
02:28:10 SUPERVISOR FIELDER THANK YOU FOR THE OPPORTUNITY TO PRESENT
02:28:13 ON PERIMETER STUFF TODAY. OUR FIRST PRESENTATION RIGHT
02:28:16 NOW WILL FOCUS ON THE PHASE ONE PROCUREMENT AND THEN OUR SECOND
02:28:19 WILL BE LATER ON FOR PHASE TWO .
02:28:22 FOR OUR FIRST ITEM I THINK IT'S IMPORTANT TO START AT THE
02:28:24 BEGINNING AND TO GROUND THE CONVERSATION HOW WE APPROACHED
02:28:27 THE PROCUREMENT PROCESS IN WHY PERMITTING MODERNIZATION
02:28:31 MATTERS FOR HOUSING PRODUCTION FASTER PERMITTING TIMELINES,
02:28:34 SMALL BUSINESS SUPPORT AND ACCESSIBILITY FOR EQUITY
02:28:38 COMMUNITIES. >> ALL OF OUR DECISIONS WERE
02:28:39 DRIVEN BY US. THEN I'LL RECAP OUR PHASE ONE
02:28:42 CONTRACTING PROCESS. >> PERMIT US F IS FUNDAMENTALLY
02:28:46 ABOUT PEOPLE HOMEOWNERS TRYING TO IMPROVE THEIR HOUSING.
02:28:49 ENTREPRENEURS OPENING NEIGHBORHOODS SMALL BUSINESSES
02:28:50 AND COMMUNITIES THAT HAVE HISTORICALLY FACED BARRIERS
02:28:53 AND NAVIGATING PERMITTING. MODERNIZATION ENSURES THE FRONT
02:28:56 DOOR TO SITTING PERMITTING IS CLEAR FAST AND FAIR.
02:29:02 >> IN 2023 THE CALIFORNIA DEPARTMENT OF HOUSING
02:29:03 AND COMMUNITY DEVELOPMENT FOUND SAN FRANCISCO HAD THE LONGEST
02:29:07 TIMELINES AND HIGHEST PROCEDURAL HURDLES STATEWIDE
02:29:10 FOR ADVANCING HOUSING TO CONSTRUCTION.
02:29:14 THAT'S UNACCEPTABLE AND WE CAN'T IGNORE OUR ROLE THAT OUR
02:29:18 ANTIQUATED PERMITTING SYSTEM OF PLAYS IN OUR HOUSING CRISIS
02:29:21 AND OUR INABILITY TO SPEED ECONOMIC RECOVERY ACTIVATE
02:29:22 VACANT COMMERCIAL SPACES AND MEET OUR HOUSING
02:29:26 OBLIGATIONS. >> OUR BUSINESSES, COMMUNITY,
02:29:29 HOMEOWNERS AND HOUSING PRODUCERS DESERVE BETTER FROM
02:29:32 OUR CITY. >> WE ARE AT THE HEART OF
02:29:34 TECHNOLOGY INNOVATION. WE SHOULD BE THE GOLD STANDARD
02:29:37 NOT IN LAST PLACE. IT'S A LOFTY ONE BUT THIS WAS
02:29:40 OUR VISION FOR PERMUT S.F. MODERNIZATION PROJECT.
02:29:43 >> BUT HERE'S WHERE WE STARTED AND STILL ARE FOR MANY
02:29:47 CONSTRUCTION PROJECTS. COLOR CODED CARBON LOSS PAPER
02:29:51 PERMITS AN OUTDATED CONFUSING BACK END INTERFACE THAT IS
02:29:52 DIFFICULT AND TIME CONSUMING TO EDIT MANUAL ROUTING BETWEEN
02:29:56 DEPARTMENTS THAT IS SUSCEPTIBLE TO ERROR.
02:29:59 IN-PERSON PAYMENTS LIMITED ACCOUNT FEATURES FOR APPLICANTS
02:30:03 WORKING WITH CONTRACTORS STAFF FACE MANUAL PROCESSES NO BUILT
02:30:07 IN COMMUNICATION TOOLS, LIMITED VISIBILITY ACROSS DIVISIONS
02:30:11 AND DEPARTMENTS AND LIMITED DATA ON LEGACY SYSTEMS SOME OF
02:30:14 WHICH ARE NO LONGER SUPPORTED. THE RESULT TIME LOST.
02:30:18 ERRORS COMPOUNDED. INEFFICIENT USE OF STAFF
02:30:22 AND INEQUITABLE ACCESS TO PERMITTING.
02:30:26 >> OUR GOAL FOR THIS MODERNIZATION PROCESS IS TO
02:30:30 DELIVER A RATIONALIZED PERMITTING PROCESS ACROSS
02:30:31 AGENCIES A CUSTOMER CENTERED EXPERIENCE THAT'S FAST,
02:30:34 TRANSPARENT AND GROWTH ORIENTED.
02:30:37 WE DESIGN AROUND CONSTRUCTION ACTIVITIES NOT DEPARTMENT SILOS
02:30:41 AND BACK END NEEDS SO APPLICANTS KNOW WHAT TO DO WHEN
02:30:44 AND HOW LONG IT WILL TAKE. >> A CRITICAL DECISION WE MADE
02:30:49 BEFORE INITIATING THE RFI WAS THAT WE DID NOT WANT TO DO A
02:30:52 LIFT AND SHIFT MODERNIZATION PROJECT THAT WOULD HAVE BEEN
02:30:56 MUCH SIMPLER BUT WOULDN'T SOLVE OUR PERMITTING PROBLEMS.
02:30:58 COMPREHENDS TIVELY AND WOULD LIKELY RESULT IN A LOT OF
02:31:01 REWORK LATER ON. >> WE NEED TO THINK ABOUT
02:31:05 PERMITTING AS NOT JUST TECHNOLOGY BUT ALSO REEVALUATE
02:31:08 OUR POLICIES, THE MECHANICS OF HOW WE OPERATE AND ENGAGE WITH
02:31:09 CUSTOMERS AND INVOLVE OUR STAFFING MODEL.
02:31:12 WE'RE DOING THAT WORK AS PART OF EACH PERMIT WE LAUNCH
02:31:15 AND THE DEGREE TO WHICH THAT'S NEEDED REALLY VARIES FROM
02:31:19 PERMIT TO PERMIT. >> WITH THAT CONTEXT I'LL NOW
02:31:20 TURN TO AN OVERVIEW OF HOW WE APPROACH THE PHASE ONE
02:31:23 PROCUREMENT PROCESS AND WHAT WE LEARNED ALONG THE WAY.
02:31:26 >> WE STARTED WITH THE PROBLEM VERSUS PRESCRIBING OUR NEEDS.
02:31:30 WE WANTED TO SEE WHAT THE MARKET HAD TO OFFER IN THE
02:31:32 SPACE OF PERMITTING SOFTWARE. WE DIDN'T KNOW WHAT WE DIDN'T
02:31:36 KNOW AND WE WERE EAGER TO LEARN.
02:31:37 WE INVITED A RANGE OF SOLUTIONS FROM SINGULAR PLUG IN TOOLS TO
02:31:40 FULL SYSTEMS OF RECORD AND REMAINED OPEN TO LEARN FROM
02:31:43 POTENTIAL PARTNERS. WE HAD PARTICIPATION FROM OVER
02:31:46 TEN DEPARTMENTS AND MORE THAN 70 CITY STAFF THROUGHOUT THE
02:31:49 PROCESS BRINGING DIVERSE PERSPECTIVES INTO THE ROOM TO
02:31:53 ENSURE A TRANSPARENT, CONSENSUS DRIVEN PROCESS.
02:31:54 WE STARTED WITH AN RFI TO LEARN FROM THE MARKET AND INVITE
02:31:58 BROAD PARTICIPATION FROM CITY STAFF.
02:32:01 >> WE RECEIVED 50 SUBMISSIONS SIGNIFICANTLY MORE THAN WE
02:32:04 TYPICALLY SEE WITH RFP PIECE. >> FROM THERE WE INVITED 15
02:32:08 VENDORS TO AN IN-PERSON VENDOR DAY WHERE WE EACH WERE EACH
02:32:09 PRESENTED IN FRONT OF A GROUP OF CROSS-DEPARTMENTAL STAFF
02:32:13 WITH STRONG CONSENSUS AMONG STAFF ACROSS MORE THAN TEN
02:32:16 DEPARTMENTS. WE NARROWED DOWN TO THREE
02:32:17 FINALISTS AND THEN AGAIN WITH BROAD CONSENSUS DOWN TO TWO.
02:32:20 WITH THOSE FINAL TWO WE RAN IN-DEPTH REFERENCE CHECKS
02:32:24 AND HELD CONVERSATIONS WITH THEIR EXECUTIVE TEAMS TO
02:32:27 VALIDATE DELIVERY TRACK RECORD GOVERNANCE AND THE FIT FOR
02:32:30 PERMIT S.F.. >> OUR EVALUATION BALANCE
02:32:34 VENDOR TRACK RECORD AND TECHNICAL FEASIBILITY WITH
02:32:38 PRODUCT FUNCTIONALITY. WE LOOKED FOR PARTNERS WHO
02:32:39 COULD DELIVER AT THE PACE WE SET.
02:32:42 WHETHER WE NEEDED TO SPEED UP OR SPEND MORE TIME AND SUPPORT
02:32:46 ON THINGS LIKE TRAINING WHETHER THEY HAVE A TRACK RECORD FOR
02:32:47 STAYING ON BUDGET COULD SUPPORT A SINGLE FRONT DOOR, PROVIDE A
02:32:50 STATUS TRACKER, INTEGRATE COMPLEX INTERNAL WORKFLOWS
02:32:54 AND HELP US REDUCE INCOMPLETE APPLICATIONS.
02:32:58 WE WERE ALSO LOOKING FOR A VENDOR WHO WASN'T STATIC, WHO
02:32:59 WAS IN A CONSTANT STATE OF IMPROVEMENT AND OPEN TO
02:33:03 PARTNERSHIP AND COLLABORATION ON HOW THE PRODUCT GROWS.
02:33:06 >> OUR RFI UNFOLDED OVER FOUR MONTHS LAST SUMMER.
02:33:09 IT INCLUDED A PRE SUBMITTAL WEBINAR, A PUBLIC Q&A SESSION,
02:33:12 A VENDOR DAY WITH IN-PERSON PRESENTATIONS, USER TESTING
02:33:17 AND REFERENCE CHECKS FOR THE FINALISTS AND CONFIRMATORY
02:33:18 DILIGENCE INCLUDING EXECUTIVE AND CEO INTERVIEWS.
02:33:20 THE STRUCTURED PROCESS ENSURED BREADTH OF INPUT AND DEPTH OF
02:33:24 VERIFICATION. >> WE PRIORITIZED LOCAL
02:33:28 STAFFING AND ON AND AN ONSITE TEAM.
02:33:31 >> EASE OF USE VALIDATED ACROSS DEPARTMENTS.
02:33:35 A COMPANY FOCUS ON PRODUCT EVOLUTION PRODUCT NIMBLENESS
02:33:36 AND A DELIVERY TRACK RECORD WITH STRONG REFERENCES
02:33:39 INCLUDING EXAMPLES OF DELIVERING IN COMPRESSED
02:33:43 TIMEFRAMES WITHOUT COSTLY CHANGE ORDERS.
02:33:44 >> WE REQUIRED CONTRACTUAL COMMITMENTS TO THE ROADMAP
02:33:48 AND SERVICES DEDICATED PROFESSIONAL SERVICES TO OUR
02:33:51 PROJECT. AND A TRUE PARTNERSHIP ON
02:33:52 FUTURE DEVELOPMENT NEEDS. >> WE WERE CLEAR WITH CITY
02:33:56 STAFF FROM THE OUTSET THAT THE FINAL DECISION FOR SELECTING A
02:33:59 PRODUCT WOULD BE A PARTNERSHIP DECISION BETWEEN ME AS THE
02:34:02 DIRECTOR OF PERMATA STAFF AND NED SEGAL, THE MAYOR'S
02:34:04 CHIEF OF HOUSING AND ECONOMIC DEVELOPMENT.
02:34:09 SORRY. >> IT WAS CLEAR TO ME AFTER
02:34:13 THIS ROBUST PROCESS AND GIVEN MY BACKGROUND WHICH INCLUDES
02:34:17 ALL OF THE LESSONS LEARNED FROM BEING A PART OF THE SLA
02:34:20 SOFTWARE IMPLEMENTATION IN THE PLANNING DEPARTMENT IN 2014
02:34:23 AND BEING ON THE FRONT LINES OF PERMITTING HERE IN SAN
02:34:25 FRANCISCO FOR 21 YEARS THAT OPEN GUARD WAS GOING TO BE THE
02:34:27 BEST PARTNER FOR US ON DECISION DAY.
02:34:30 NATE ASKED ME TO SHARE MY OPINION FIRST SO HIS THOUGHTS
02:34:33 WOULD NOT INFLUENCE MINE. ONLY AFTER I PROVIDED MY
02:34:37 RATIONALE FOR WHY I THOUGHT OPEN GOV WAS THE RIGHT CHOICE
02:34:40 FOR US. DID HE SHARE HIS PERSPECTIVE?
02:34:41 SIMILARLY AGREEING AGREEING THAT OPEN GOV WOULD BE THE BEST
02:34:45 PARTNER FOR OUR CITY ONCE WE KNEW THE SOFTWARE WE WANTED TO
02:34:48 USE WE TURNED TO OUR PARTNERS WITHIN THE CITY FAMILY FOR
02:34:52 GUIDANCE ON HOW TO GET IT DONE UNDER CHAPTER 2130 OF THE
02:34:55 CITY'S CONTRACTING REGULATIONS WE OBTAINED A SOLE SOURCE OF
02:34:59 SOURCE WAIVER FOR A ONE YEAR $5.9 MILLION AGREEMENT
02:35:02 AUTHORIZED FOR SOFTWARE LICENSING AND SUPPORT UNDER THE
02:35:05 CODE'S PROVISIONS. THE PATH ALIGNED WITH CITY LAW
02:35:09 ENABLING US TO MOVE DECISIVELY WHILE MAINTAINING
02:35:10 ACCOUNTABILITY. SAN FRANCISCO'S STANDARD
02:35:17 SOFTWARE CONTRACTING FRAMEWORK SHOWN HERE ON THE SCREEN HAS
02:35:21 THREE PATHWAYS AN RFP, RFQ OR A SOLE SOURCE WAIVER OF THE
02:35:25 COMPETITIVE SOLICITATION REQUIREMENTS.
02:35:26 >> THE WAIVER IS A LEGALLY PERMISSIBLE OPTION UNDER
02:35:31 SECTION 2130 OF THE CITY'S ADMINISTRATIVE CODE.
02:35:32 GIVEN OUR BIAS FOR SPEED GROUNDED IN THE WAY THAT I
02:35:36 OUTLINED EARLIER IN THIS PRESENTATION, WE WENT WITH THE
02:35:40 WAIVER PROCUREMENT PATHWAY. AS I'M SURE YOU ALL KNOW
02:35:44 SUPERVISORS BUT FOR THE FOLKS TUNING IN IT'S IMPORTANT TO
02:35:47 NOTE THAT THE RFP ISN'T A PROCUREMENT INSTRUMENT.
02:35:49 IT'S A PRE PROCUREMENT LEARNING AND SOURCING STEP.
02:35:51 WE LEARNED A TON AND ARE AS A RESULT RUNNING AN RFI WE WERE
02:35:59 ABLE TO BE MORE TRANSPARENT AND GAIN BROADER PARTICIPATION
02:36:03 FROM CITY STAKEHOLDERS THAN WOULD HAVE BEEN LEGALLY ALLOWED
02:36:04 HAD WE JUST DONE AN RFP FROM THE OUTSET.
02:36:07 >> FURTHERMORE, HAD WE DONE AN RFP FOLLOWING THE RFI IT WOULD
02:36:11 HAVE LIKELY ADDED UPWARDS OF SIX MONTHS TO A YEAR OF
02:36:15 ADDITIONAL PROCESS DELAYING MODERNIZATION AND PROGRESS THAT
02:36:19 OUR SMALL BUSINESSES, HOMEOWNERS AND HOMEBUILDERS
02:36:20 DESERVE. WITH THAT, THAT CONCLUDES MY
02:36:23 PRESENTATION ON THE PHASE ONE PROCUREMENT PROCESS.
02:36:26 >> THANK YOU. >> SUPERVISOR FILTER.
02:36:31 THANK YOU. THANK YOU SO MUCH TO SWATI FOR
02:36:32 BEING HERE AND PRESENTING. THANK YOU FOR YOUR WORK GOING
02:36:35 INTO THIS PERMITTING SYSTEM. YOU KNOW FIRST I JUST WANT TO
02:36:38 REITERATE THIS ISN'T ABOUT NOT HAVING A BEST IN CLASS
02:36:42 PERMITTING SYSTEM. THAT'S EXACTLY WHAT A
02:36:45 COMPETITIVE BIDDING PROCESS IS ALL ABOUT.
02:36:48 EVALUATING VENDORS ACCORDING TO STANDARDIZED CRITERIA COMPARING
02:36:53 PRICES BASED ON TRANSPARENT SPECIFICATIONS.
02:36:54 >> AND ON THAT NOTE, I JUST WANT TO PUSH BACK ON THE
02:36:58 FRAMING OF THE REQUEST FOR INFORMATION AS A MORE
02:37:00 INCLUSIVE, OPEN AND SOLUTIONS ORIENTED ALTERNATIVE FOR
02:37:04 PROCUREMENT TO RFP. AS YOU SAID RFI IS NOT A
02:37:09 SOLICITATION TOOL AND THE RFI AND DOCUMENTS INDICATED AS MUCH
02:37:13 WHICH I HAVE HERE READ THIS IS NOT A RFP OR A SOLICITATION.
02:37:20 >> AND THAT FRAMING GETS THE RELATIONSHIP BACKWARDS.
02:37:24 IT IMPLIES THAT AN RFP IS A MORE CLOSED OFF OR RIGID
02:37:26 PROCESS WHEN IN FACT AN RFP IS SIMPLY THE NEXT MORE PRECISE
02:37:32 STAGE OF THE SAME PROCESS IN RFI BEGINS.
02:37:33 >> SO TREATING THEM AS COMPETING OPTIONS PICK ONE
02:37:37 AND THE OTHER MISREPRESENTS HOW PROCUREMENT ACTUALLY WORKS
02:37:41 AND IT'S NOT AN EITHER OR CHOICE.
02:37:45 IT'S A PROGRESSION THAT SHARPENS OUR PROCUREMENT OF
02:37:48 COST EFFICIENT HIGH QUALITY PRODUCTS AND SERVICES FOR
02:37:52 PROCUREMENTS WHERE DEPARTMENT ALREADY KNOWS EXACTLY WHAT IT
02:37:53 NEEDS. ABSOLUTELY IT CAN SKIP STRAIGHT
02:37:57 TO AN RFP SO CALLING AN RFI THE MORE OPEN SOLUTIONS ORIENTED
02:38:00 OPTION ISN'T JUST IMPRECISE. IT SETS UP A FALSE CHOICE
02:38:07 BETWEEN TWO STEPS THAT ARE MEANT TO WORK TOGETHER, NOT
02:38:08 COMPETE. MY FIRST QUESTION IS WHEN YOU
02:38:11 SEE AN RFI WOULD BE MORE TRANSPARENT.
02:38:12 >> WHAT DO YOU MEAN BY THAT? >> SURE.
02:38:14 ABSOLUTELY. WITH WITH AN RFI WE WERE ABLE
02:38:18 TO HAVE 70 STAFF GIVE DIVERSE PERSPECTIVES.
02:38:21 >> THAT'S SOMETHING THAT WE WOULDN'T HAVE BEEN ABLE TO DO
02:38:23 UNDER AN RFP WHERE THERE CAN ONLY BE FIVE PEOPLE SCORING AN
02:38:26 RFP SUBMISSION. >> SO THAT WAS SORT OF THE
02:38:30 POINT I WAS MAKING IS THAT BY ENABLING US TO TO TAP INTO
02:38:34 STAFF THAT MANY STAFF IT ALSO LET US TAP STAFF WHO HAVE A
02:38:40 MORE SINGULAR FOCUS WITHIN THE PERMITTING EXPERIENCE.
02:38:44 SO MAYBE THEY REALLY ARE AN EXPERT ON BACK END TECHNOLOGY
02:38:49 OR MAYBE THEY ARE FRONT END LINES STAFF WHO PROCESS
02:38:53 APPLICATIONS OR MAYBE THEY'RE CUSTOMER SERVICE FOLKS.
02:38:56 AND SO IT ENABLED US TO NOT HAVE TO FIGURE OUT WHO ARE THE
02:39:00 FIVE MOST COMPREHENSIVE REPRESENTATIVES OF PERMITTING.
02:39:01 BUT LET US HEAR DIFFERENT PERSPECTIVES FROM DIFFERENT
02:39:04 LEVELS OF STAFF ACROSS DIFFERENT AGENCIES AND REALLY
02:39:07 BROADEN THE FEEDBACK THAT WE RECEIVED AT A MANAGEMENT LEVEL.
02:39:12 >> 70 STAFF IS A LOT OF PEOPLE PROVIDING INPUT ON THE SOFTWARE
02:39:16 PLATFORMS. WAS THERE A STANDARDIZED
02:39:20 SCORING RUBRIC WITH CLEAR CRITERIA THAT EVERY CITY
02:39:21 STAFFER USED TO EVALUATE VENDORS?
02:39:24 >> NO, THERE WASN'T. THERE WERE AS I WENT OVER IN MY
02:39:29 SLIDE DECK THERE WERE GUIDING PRINCIPLES THAT WE SET OUT AT
02:39:32 THE BEGINNING BUT THERE WAS NO STANDARD SCORING RUBRIC
02:39:33 AND IT'S ABSOLUTELY ONE OF THOSE THINGS THAT IS A LESSONS
02:39:36 LEARNED FOR ALL OF US AND THAT IF WE WERE TO DO THIS AGAIN
02:39:39 WOULD BE ONE OF THE THINGS WE PROVIDED AT THE OUTSET.
02:39:43 >> THANK YOU. I WANT TO GO BACK TO BEFORE THE
02:39:47 RFI WAS EVEN ISSUED SO THE RFI WAS SENT OUT ON MAY 20TH.
02:39:53 ON APRIL 2ND AND A WHOLE SEVEN WEEKS BEFORE THAT RFI WENT
02:39:57 LIVE, MARYLAND POLICY CHIEF NED SEGAL INTRODUCED THE CEO OF
02:40:01 OPEN GOV ZACK BOOKMAN TO THE MAYOR'S INNOVATION DIRECTOR
02:40:05 FLORENT SIMON WHO'S NOT HERE TODAY.
02:40:05 >> BOOKMAN AND OTHER OPEN GOV LEADERS HAVE GIVEN MORE THAN
02:40:11 $31,000 A TIPPING POINT OVER THE YEARS.
02:40:12 AND ACCORDING TO PUBLIC RECORDS REVIEWED BY THE STANDARD NED
02:40:16 SIEGEL'S MESSAGE BETWEEN FLORENT, SIMON AND ZACK BERKMAN
02:40:19 READ QUOTE ZACK CAN HELP US THINK THROUGH PERMITTING
02:40:21 TECHNOLOGY QUOTE ADDING A SMILEY FACE TO A LINE THAT
02:40:24 NOTED THE OPEN GOV CEO HAD BEEN QUOTE PATIENTLY WAITING FOR THE
02:40:28 RIGHT PARTNER. AND THIS WAS A WHOLE SEVEN
02:40:31 WEEKS BEFORE THE RFI WENT LIVE. >> DID ANY OTHER VENDORS GET AN
02:40:34 EMAIL INTRODUCTION BY A FIRST NAME BASIS TO FLORENCE SIMON?
02:40:38 A WARM EMAIL. >> I CAN'T SPEAK SPECIFICALLY
02:40:42 TO THAT. I WASN'T ON ANY OF THOSE BUT IT
02:40:45 IS MY UNDERSTANDING THAT THERE WERE A HANDFUL OF DIFFERENT
02:40:46 VENDORS WHO WERE INTERESTED IN THIS PROCESS BUT AGAIN I
02:40:50 WASN'T INVOLVED IN THAT PROCESS.
02:40:51 JUST TO DATE THINGS A LITTLE BIT.
02:40:53 I BECAME DIRECTOR OF PERMIT S.F. IN JUNE OF 25 WHICH IS
02:40:58 WHEN I REALLY STEPPED INTO A GREATER LEADERSHIP ROLE IN THIS
02:41:01 PROCESS. DIRECTOR HILLIS, WHO'S THE
02:41:05 FORMER PLANNING DIRECTOR WAS THE DIRECTOR OF PERMIT S.F. UP
02:41:08 UNTIL HIS RETIREMENT IN JUNE OF 25.
02:41:09 THANK YOU. >> IS THERE A REASON FOR
02:41:13 AND SIMON IS NOT WITH THE CITY ANYMORE IS THAT I CAN'T SPEAK
02:41:20 TO PERSONNEL ISSUES IN A DIFFERENT CITY AGENCY.
02:41:21 >> OKAY. THANK YOU.
02:41:24 WE INVITED NED SEGAL, THE MAYOR'S DEPUTY SORRY NOT DEPUTY
02:41:27 POLICY CHIEF WHO PLAYED A SIGNIFICANT ROLE IN SELECTING
02:41:31 OPEN GOV TO ATTEND TODAY'S HEARING BUT HE CHOSE NOT TO
02:41:35 COME. >> PERHAPS YOU KNOW THE ANSWER
02:41:36 TO THIS GIVEN NED SIEGEL'S ROLE AS THE MAYOR'S POLICY CHIEF
02:41:40 AND THE FACT THAT THE FOUNDERS OF OPEN GOV WERE DONORS TO THE
02:41:43 MAYOR'S FOUNDATION TIPPING POINT.
02:41:44 DID MR. SIEGEL CONSIDER RECUSING HIMSELF FROM THE
02:41:47 SELECTION PROCESS TO AVOID THE APPEARANCE OF IMPROPRIETY?
02:41:51 I CAN'T SPEAK TO NED'S INTENTIONS.
02:41:55 OKAY. THANK YOU.
02:41:56 ON THE RFI, ALL OF THE RFI DOCUMENTS THAT VENDORS SAW
02:42:02 EXPLICITLY SAID IN MULTIPLE PLACES THAT THE RFI WAS NOT A
02:42:06 SOLICITATION BUT IT WAS BEING USED TO GATHER INFORMATION
02:42:10 AND MAY BE USED TO DEVELOP A FUTURE SOLICITATION.
02:42:13 A VENDOR ULTIMATELY WAS CHOSEN THROUGH THIS RFI PROCESS.
02:42:17 >> SO IT SEEMS RFI DOCUMENTS WERE EITHER A LITTLE MISLEADING
02:42:21 OR THERE WAS SOME POINT AT WHICH YOU CHANGE YOUR MINDS
02:42:23 ABOUT WHAT THIS RFI PROCESS WOULD BE.
02:42:26 >> WERE VENDORS AWARE THAT THEIR RESPONSES TO THE RFI
02:42:30 WOULD DETERMINE WHETHER THEY WOULD ULTIMATELY BE IN THE
02:42:33 RUNNING FOR THE CONTRACT? I AM NOT AWARE SPECIFICALLY
02:42:38 AGAIN OF WHAT THOSE INITIAL CONVERSATIONS WERE IN IN MAY OF
02:42:41 THAT TIME AS THE RFI LED OFF ALTHOUGH WE WERE KEEPING ALL
02:42:45 VENDORS VERY WELL APPRIZED OF THE PROCESS AS IT PROGRESSED
02:42:49 PARTICULARLY THROUGH VENDOR DAY WHICH I WAS HEAVILY INVOLVED
02:42:52 WITH. >> I WOULD ALSO JUST NOTE YOU
02:42:56 KNOW THIS IS ABSOLUTELY ONE OF THOSE OTHER POINTS THAT
02:42:57 IN RETROSPECT AND LOOKING BACK OF IF WE WERE TO DO IT ALL OVER
02:43:02 AGAIN WHAT WOULD WE CHANGE? PUTTING THAT TYPE OF LANGUAGE
02:43:05 IN THE RFI IS ABSOLUTELY SOMETHING THAT WE WOULD NOT DO
02:43:08 MOVING FORWARD. >> THANK YOU.
02:43:12 ON THE VENDOR DAY EVALUATION RFI WENT LIVE MAY 28TH
02:43:19 PROPOSALS WERE DUE JUNE 13TH. AGAIN AT THIS POINT VENDORS
02:43:23 WERE SUBMITTING INFORMATION TO HELP THE CITY GATHER
02:43:26 INFORMATION NOT TO SUBMIT FOR A SOLICITATION.
02:43:30 >> CITY STAFF SELECTED 15 VENDORS TO PRESENT IN PERSON.
02:43:34 >> WAS THIS THE POINT AT WHICH YOU DECIDED THAT THIS RFI
02:43:36 PROCESS WOULD IN FACT SERVE AS A SOLICITATION PROCESS?
02:43:39 NO. WE WERE TRULY REVIEWING EVERY
02:43:43 APPLICATION AS IT CAME. WE WERE HANDLING VENDOR DAY.
02:43:46 THERE WAS NO SINGULAR MOMENT IN TIME I THINK WHERE THAT
02:43:50 DECISION WAS MADE. IF I RECALL CORRECTLY IT WAS
02:43:53 REALLY CLOSER TO THE CONVERSATION WHEN WE GOT DOWN
02:43:58 TO THE LAST THREE VENDORS AND WE WERE GETTING A LOT OF
02:44:01 DETAILED INFORMATION FROM THOSE FINAL THREE VENDORS THAT WE
02:44:04 FEEL LIKE WE HAD REALLY LEARNED WE HAD LEARNED ENOUGH TO
02:44:05 UNDERSTAND WHAT WE NEEDED AND WHAT WE WANTED TO MOVE
02:44:08 FORWARD WITH. >> THANK YOU.
02:44:12 >> SO STAFF EVALUATORS WERE ASKED TO SIMPLY VOTE ON WHETHER
02:44:16 THEY THOUGHT EACH OF THE 50 VENDORS SHOULD BE INVITED TO
02:44:20 MAKE A PRESENTATION TO CITY STAFF.
02:44:22 >> THROUGH THIS PROCESS 15 VENDORS WERE INVITED TO ONE OF
02:44:27 TWO VENDOR DAY EVENTS ON JULY 7TH AND EIGHTH.
02:44:28 YOU BROUGHT TOGETHER NEARLY 70 CITY STAFF TO PARTICIPATE
02:44:31 IN VENDOR DAY TO HELP NARROW DOWN THE VENDOR LIST FROM 15 AN
02:44:37 RFP PROCESS THERE WOULD BE A COMMON EVALUATION OR RUBRIC TO
02:44:42 COMPARE VENDOR CANDIDATES. >> HOW MANY OF THE 70 CITY
02:44:46 STAFF MEMBERS THAT WERE ASKED PARTICIPATE IN VENDOR DAY
02:44:49 SUBMIT WRITTEN FEEDBACK AND WHAT DID THEIR FEEDBACK
02:44:54 SAY? >> SURE.
02:44:54 AND I DON'T HAVE THE EXACT NUMBER IN FRONT OF ME BUT IT
02:44:57 WAS A RELATIVELY SMALL PROPORTION OF THE TOTAL NUMBER
02:44:59 OF STAFF AND WE HAD MANY DIFFERENT AGAIN ONE OF OUR
02:45:04 LESSONS LEARNED THAT WE WOULD DO DIFFERENTLY.
02:45:05 >> WE WOULD HAVE A MORE STANDARDIZED SCORING RUBRIC BUT
02:45:08 WE REALLY OFFERED STAFF GIVE US YOUR FEEDBACK IN WHATEVER WAY
02:45:11 YOU'RE COMFORTABLE LIKE WHATEVER YOU WANT TO SHARE WITH
02:45:15 US, SHARE THAT INFORMATION. >> AND SO WE RECEIVED FEEDBACK
02:45:17 EARLY AND WE RECEIVED FEEDBACK THROUGH A FORM THAT WAS CREATED
02:45:23 AND THERE WERE A FEW STAFF WHO CHOSE TO CREATE THEIR OWN
02:45:24 SCORING RUBRIC AND PROVIDED FEEDBACK.
02:45:27 SO IT REALLY CAME IN THROUGH A DIVERSITY OF DIFFERENT METHODS
02:45:30 AND THERE WERE A LOT OF STAFF WHO DIDN'T PROVIDE ANY FEEDBACK
02:45:31 AS WELL. >> ACCORDING TO THE VLA IT WAS
02:45:37 10% SOMETIMES ABOUT SEVEN PEOPLE THAT PROVIDED WRITTEN
02:45:41 WELL THAT'S THE DOCUMENTED AS I AS I MENTIONED THERE WERE A
02:45:43 HANDFUL OF STAFF WHO PROVIDED VERBAL FEEDBACK OF THE 10% OF
02:45:47 CITY STAFF THAT RESPONDED WITH WRITTEN FEEDBACK.
02:45:49 DID THEIR COMMENTS SUPPORT GIVING THE CONTRACT TO OPEN
02:45:52 GOV? >> A LOT OF THE COMMENTS THAT
02:45:55 WE GOT PROVIDED VERY NARROWLY FOCUSED PERSPECTIVE.
02:46:00 >> YOU KNOW I THINK A LOT OF THOSE STAFF IS WHERE THE
02:46:04 CONSENSUS DID BEGIN TO DIVERGE AND THE PROCESS BUT YOU KNOW
02:46:08 OUR ROLE I THINK AS MANAGEMENT AGAIN ONE OF THE THE CHALLENGES
02:46:14 BUT ONE OF THE POSITIVE PARTS OF HAVING SO MANY STAFF
02:46:16 PARTICIPATE IN THIS IS THAT YOU DO DRAW FEEDBACK FROM FOLKS WHO
02:46:19 ARE IN REALLY SPECIFIC FUNCTIONS WITHIN THE PERMITTING
02:46:23 PROCESS AND SO HAVE VERY LASER FOCUSED VIEW OF CERTAIN
02:46:27 PRODUCTS AND SO A LOT OF THAT FEEDBACK WAS NOT POSITIVE ABOUT
02:46:31 OPEN GOV BUT PART OF OUR JOB AS MANAGEMENT IS TO BALANCE THAT
02:46:34 FEEDBACK WITH OTHER FACTORS AND CRITERIA AND SO WE TOOK
02:46:38 THAT FEEDBACK VERY SERIOUSLY. IT WAS PART OF THE FEEDBACK
02:46:42 THAT WE USED IN TALKING TO THE CEOS BUT IT WAS NOT THE
02:46:45 EXCLUSIVE ALL END ALL BE ALL DECISION MAKING FEEDBACK.
02:46:49 DO YOU KNOW WHY ACCORDING TO THE VLA 10% FEEDBACK THAT WAS
02:46:53 PROVIDED IN WRITTEN FORM ACTUALLY FAVORED CLARITY?
02:46:57 >> DO YOU KNOW WHY IT MIGHT HAVE BEEN THAT WAY?
02:47:00 >> YOU KNOW I DON'T WANT TO PRESUME THEM PEOPLE'S
02:47:05 PERSPECTIVES. I DO KNOW THAT THE CLARITY
02:47:09 PLATFORM HAD BEEN UNDER CONTRACT WITH PUBLIC WORKS.
02:47:13 THEY WERE DOING A SEPARATE IMPLEMENTATION AND SEVERAL OF
02:47:16 OUR STAFF THAT WERE PARTICIPATING HAD VERY INTIMATE
02:47:19 HAD BEEN WORKING ON THAT PROJECT AND SO THEY WERE VERY
02:47:21 INTIMATELY FAMILIAR WITH THAT TOOL.
02:47:24 >> I DO THINK IT'S IT'S HUMAN NATURE A BIT THAT WHEN YOU'RE
02:47:28 VERY USED TO A TOOL YOU TEND TO HAVE A BETTER UNDERSTANDING OF
02:47:32 HOW IT WORKS AND PROBABLY HAVE A SLIGHT BIAS TOWARDS THAT
02:47:33 PRODUCT. BUT OTHER THAN THAT I REALLY
02:47:36 CAN'T SPEAK FOR THE PEOPLE WHO SCORED BUT AGAIN IT WAS A SMALL
02:47:40 PROPORTION OF THE OVERALL FEEDBACK.
02:47:44 I THINK ONE THING THAT WAS ALSO MISSED IN THE EVALUATION THOUGH
02:47:47 IS IT'S NOT JUST THE STAFF FEEDBACK THAT WERE PROVIDED
02:47:51 AFTER VENDOR DAY BEFORE AND THAT AND I MADE OUR FINAL
02:47:54 DECISIONS. WE SAT DOWN IN ROOM 201 AND HAD
02:47:57 EVERY SINGLE DEPARTMENT HEAD OR DEPUTY WHO'S THE DECISION MAKER
02:48:01 AND PERMITTING FOR EVERY SINGLE PERMITTING AGENCY THAT WAS PART
02:48:04 OF THIS EFFORT AND WE WENT AROUND THE TABLE AND ASKED FOR
02:48:06 EVERY SINGLE DECISION MAKERS FEEDBACK AND WE HAD ASKED THEM
02:48:10 TO COME ARMED WITH FEEDBACK FROM THEIR STAFF.
02:48:12 WE WANTED TO KNOW WHAT WAS GOING TO WORK FOR THEIR STAFF
02:48:16 FOR THEIR PERMITTING NEEDS WITH THEIR CONCERNS WERE WHAT THEIR
02:48:20 EXCITEMENTS WERE ON ALL PRODUCTS AND THAT WAS A VERY
02:48:23 BALANCED CONVERSATION. THERE WERE SOME PEOPLE WHO WERE
02:48:24 VERY PRO CLARITY. THERE ARE SOME FOLKS WHO ARE
02:48:28 VERY PRO OPEN GOV I KNOW EVEN OUR FIRE MARSHAL TOOK IT UPON
02:48:34 HIMSELF TO CALL FIRE MARSHALS AND OTHER CITIES THAT HAD HAD
02:48:36 BOTH OPEN GOV AND CLARITY LAUNCHES TO GET VERY PRAGMATIC
02:48:40 CANDID FEEDBACK AND HE SHARED THAT FEEDBACK WITH US AND SO
02:48:43 ALL OF THOSE PERSPECTIVES WERE THE FEEDBACK THAT WENT INTO THE
02:48:47 FINAL DECISION NOT JUST THE ENUMERATED ONES THAT WERE
02:48:51 CAPTURED IN THE BILL REPORT. >> THANK YOU.
02:48:55 AND HOW WERE THE 15 VENDORS NARROWED DOWN TO THREE?
02:48:58 MAYBE YOU TOUCHED ON THAT A BIT WITH THE DEPARTMENT HEADS BEING
02:49:01 IN ROOM 2 OR 1. >> BUT IF YOU CAN WALK US
02:49:04 THROUGH THAT PROCESS. >> YEAH, ABSOLUTELY.
02:49:08 I MEAN WE WE WENT THROUGH ALL THE DIFFERENT VENDORS.
02:49:09 WE HAD FOLLOW UP MEETINGS WITH THE WITH FOLKS WHO WERE DOING
02:49:13 THE SCORING. AND AGAIN, I DON'T RECALL ALL
02:49:16 OF THE NITTY GRITTY DETAILS BUT THERE WAS GENERAL CONSENSUS
02:49:20 GOING DOWN FROM THE 15 TO 3. I WOULD SAY THAT'S NOT WHERE WE
02:49:21 HAD OUR BIGGEST DIVERGENCE OF OPINIONS.
02:49:24 THE DIVERGENCE OF OPINIONS WERE REALLY THE FINAL TWO GETTING
02:49:28 DOWN FROM 15 TO 3. THERE WAS VERY STRONG CONSENSUS
02:49:31 AMONGST PRETTY MUCH ALL STAFF AT ALL LEVELS.
02:49:37 >> OKAY. THAT'S THAT'S NEW TO ME.
02:49:38 ALL STAFF AT ALL LEVELS. I MEAN I WASN'T SAYING THEY ALL
02:49:42 AGREED BUT THERE WAS CONSENSUS LIKE A VERY STRONG CONSENSUS
02:49:45 AMONG STAFF GETTING DOWN TO THE FINAL THREE.
02:49:46 IT WAS THE REALLY THOSE FINAL TWO WHERE WE HAD DIVERGING
02:49:49 OPINIONS AMONG WHICH HALF THE STAFF FROM VENDOR DAY GOING
02:49:56 FROM THE 50 SUBMISSIONS DOWN TO THE 15 AND FROM THE 15 TO THE
02:50:00 THREE IN THOSE WHITTLING DOWN THERE WASN'T STRONG OPPOSITION
02:50:05 TO THE TO THE FOLKS WHO ARE SORT OF GOING THROUGH EACH
02:50:09 GATE. >> HMM.
02:50:09 OKAY. >> THE NEXT PHASE IN THE
02:50:16 EVALUATION AFTER VENDOR DAY I BELIEVE WAS USER TESTING WHO
02:50:19 TESTED THE PLATFORMS AND WERE THEY GIVEN A STANDARDIZED
02:50:23 SCORING SHEET WITH CLEAR CRITERIA TO EVALUATE VENDORS?
02:50:27 >> I BELIEVE IT WAS AROUND 40 STAFF THAT WE HAD DOING USER
02:50:30 TESTING AND NO THEY WEREN'T GIVING CONSISTENT SCORING
02:50:32 TESTING SHEETS TO THE BEST OF MY RECOLLECTION ALTHOUGH I
02:50:35 WOULD TRUST WITH THE BE HAS IN THE REPORT ON THAT SO I
02:50:39 DON'T HAVE THAT TOP OF MIND. >> ALL RIGHT.
02:50:42 HOW WERE THREE VENDORS NARROWED DOWN TO TWO?
02:50:46 >> SURE. THE THIRD VENDOR THAT WAS
02:50:49 SELECTED WAS A VERY INTERESTING VENDOR.
02:50:53 >> THEY HAD SOME VERY I'LL CALL IT CUTTING EDGE SOLUTION IDEAS
02:50:57 FOR PERMITTING WHEREAS MANY OF THE OTHER VENDORS THERE WERE
02:51:02 MUCH MORE SIMILAR IN HOW THEY WERE APPROACHING PERMITTING.
02:51:06 >> THIS VENDOR HAD SOME VERY UNIQUE WHAT FELT KIND OF
02:51:09 EXCITING CUTTING EDGE. >> SO WE WERE REALLY INTRIGUED
02:51:13 AFTER VENDOR DAY TO HEAR MORE WHEN THEY CAME IN AND WE WERE
02:51:20 ABLE TO HAVE MORE OF A DIALOG BACK AND FORTH WITH THEIR TEAM
02:51:24 . IT WAS EVIDENT THEY WERE THEY
02:51:25 WOULD NOT BE THE RIGHT FIT IN SAN FRANCISCO THEY HAD NEVER
02:51:28 IMPLEMENTED A FULL SYSTEM IN THE UNITED STATES.
02:51:32 THEY HAD SUBMITTED THEY HAD DONE PERMITTING SYSTEMS
02:51:36 INTERNATIONALLY AND I THINK WE WERE WORRIED ABOUT THEIR
02:51:37 ABILITY TO HANDLE THE ROBUST REGULATORY ENVIRONMENT THAT IS
02:51:43 VERY MUCH A PART OF OUR PERMITTING PROCESS.
02:51:46 THE POLITICAL ENVIRONMENT WOULD HAVE BEEN VERY NEW TO THEM.
02:51:48 THERE WERE A LOT OF THINGS THAT WE REALIZED AS WE WENT INTO
02:51:51 SORT OF THE PRAGMATISM OF THEIR SOFTWARE AND OF ACTUALLY
02:51:55 GETTING THROUGH THE IMPLEMENTATION PROCESS THAT WE
02:51:59 DIDN'T THINK THEY WERE GOING TO HAVE A HIGH LIKELIHOOD OF
02:52:03 SUCCESS. AND SO THERE WAS UNANIMOUS
02:52:06 CONSENSUS I BELIEVE ON THAT ONE THAT THEY SHOULD NOT MOVE
02:52:07 FORWARD. >> YOU KNOW, AS CONSENSUS AMONG
02:52:10 WHOM THE FOLKS WHO ARE DOING THE FINAL THREE REVIEWING
02:52:13 CRITERIA. SO THERE WERE THAT WAS
02:52:17 PRIMARILY EXECUTIVE LEVEL FOLKS BUT WE HAD REPRESENTED FROM THE
02:52:21 CITY ASSESSOR'S OFFICE PERMIT CENTER PLANNING BUILDING FIRE
02:52:25 PUBLIC WORKS I BELIEVE WE HAD A LARGE GROUP OF SORT OF SENIOR
02:52:32 LEVEL FOLKS WHO WERE IN ALL THE ACROSS THE PERMITTING AGENCIES.
02:52:34 >> OKAY. SO VARIOUS VARIOUS DEPARTMENTS
02:52:37 WERE NARROWING DOWN THREE VENDORS TO TWO.
02:52:40 >> CORRECT? OKAY.
02:52:41 COULD YOU POSSIBLY PULL UP SLIDE TEN FROM YOUR
02:52:46 PRESENTATION? >> IT SHOWS THE DIFFERENT
02:52:50 EVALUATION CONSIDERATIONS. THIS ONE?
02:52:56 YES. OKAY.
02:52:59 SO VENDOR TRACK RECORD TECHNICAL ASSESSMENT PRODUCT
02:53:00 FUNCTIONALITY, PLASTIC. >> KERMIT.
02:53:03 HOW AND WHEN DID THESE EVALUATION CONSIDERATIONS
02:53:07 MATERIALIZE? >> BECAUSE THESE ARE ALL
02:53:08 COMPONENTS OF WHAT COULD HAVE BEEN AN RFP.
02:53:11 >> I'M JUST CURIOUS HOW THESE CAME ABOUT.
02:53:14 >> ARE YOU ASKING HOW THESE INITIALLY WERE DEVELOPED?
02:53:16 YES, THAT I'M NOT ENTIRELY SURE OF.
02:53:20 >> AGAIN, AND THIS HAPPENED BEFORE I WAS DIRECTOR OF PERMIT
02:53:23 STAFF. SO THESE EVALUATION CRITERIA I
02:53:24 BELIEVE WERE DEVELOPED ALTHOUGH I'M NOT ENTIRELY SURE BUT SO I
02:53:30 DON'T HAVE AN EXACT DATE FOR YOU BUT I KNOW THESE WERE
02:53:33 PULLED TOGETHER BY THE TIME I WAS SORT OF IN IN A LEADERSHIP
02:53:37 ROLE WITH PERMANENT STAFF. OKAY.
02:53:38 SO JUST SO I'M UNDERSTANDING THESE EVALUATION CRITERIA WERE
02:53:42 CREATED OR CREATED BEFORE YOUR TIME BUT THIS RFI PROCESS WAS
02:53:49 NOT EXPLICITLY A SOLICITATION TOOL.
02:53:57 I DON'T UNDERSTAND HOW THAT COULD HOW THEY COULD BOTH BE
02:54:00 TRUE IF THESE WERE CLEAR CRITERIA THAT WERE
02:54:04 PRE-ESTABLISHED BEFORE OR KIND OF THE WHITTLING DOWN OF
02:54:09 VENDORS. >> WELL, I THINK THESE WERE THE
02:54:10 THINGS THAT WE SAID WERE OUR VALUES.
02:54:13 SO WHEN WE'RE LOOKING AT REFORMING A PERMITTING SYSTEM,
02:54:16 WHAT MATTERS TO US? >> AGAIN, I THINK DIFFERENT
02:54:20 THAN AN RFP WE DID NOT PUT WEIGHTS AGAINST ANY OF THESE.
02:54:24 WE DID NOT TELL ALL STAFF TO SCORE AGAINST ALL OF THESE.
02:54:25 AS I AS I NOTED BEFORE. BUT THESE WERE SORT OF OUR
02:54:29 GENERAL ALIGNMENT VALUES THAT WE HAD FOR EVERYONE WORKING
02:54:33 THROUGH THIS. THESE WERE THE THINGS WE TALKED
02:54:37 MORE BROADLY ABOUT WITH STAFF WITH AGAIN DEPARTMENT HEADS AS
02:54:40 WE'RE THINKING ABOUT WHAT DO WE NEED AS A CITY.
02:54:43 >> AND THESE WERE THESE WERE THOSE GENERAL POINTS AND WERE
02:54:47 THESE COMMUNICATED TO VENDORS THAT I DON'T KNOW.
02:54:52 OKAY. THE BIELA REPORT POINTS OUT
02:54:56 THAT OPEN GOV AND WE'RE I'M GOOD WITH QUESTIONS ON THIS
02:54:59 THIS SLIDE THE VLA POINTS OUT THAT OPEN GOV PROVIDED A
02:55:03 REVISED COST ESTIMATE BEFORE THE FINAL AWARD WAS MADE.
02:55:06 WERE ALL VENDORS ASKED TO PROVIDE UPDATED COST SUBMITTALS
02:55:10 BASED ON SPECIFIC NEEDS THE CITY IDENTIFIED DURING THE RFI
02:55:14 PROCESS? >> NO NOT ALL VENDORS WERE.
02:55:18 CLARITY WAS WHEN WE GOT DOWN TO THE FINAL TWO.
02:55:21 BUT THE COST ESTIMATE THAT THEY PROVIDED US WAS SO SO
02:55:29 UNREASONABLY LOW. IT WAS LOWER THAN WHAT THEIR
02:55:33 CONTRACT WAS FOR WHAT THEY HAD JUST DELIVERED WITH PUBLIC
02:55:34 WORKS SO THEY HAD DELIVERED OR THEY WERE IN CONTRACT ABOUT TO
02:55:40 DELIVER THREE PERMIT TYPES WITH PUBLIC WORKS AT A $2.2 MILLION
02:55:43 VALUE. THEY QUOTED US LOWER THAN THAT
02:55:47 TO DELIVER THIS ENTIRE PROJECT. SO WE JUST DISCOUNTED THAT
02:55:51 VALUE BECAUSE IT WAS SO ABSURDLY OFF BASE.
02:55:55 SO THAT WAS THE ONLY OTHER PRICE ESTIMATE THAT WE GOT AT
02:55:59 THAT TIME THAT BRINGS ME TO OUR NEXT QUESTION HOW DO WE KNOW
02:56:03 THAT WE GOT THE BEST PRICE FOR THIS SOFTWARE AND THESE
02:56:07 SERVICES? >> ABSOLUTELY.
02:56:08 I'M ACTUALLY REALLY GLAD YOU ASKED THAT QUESTION.
02:56:10 SO IN 2023 THE CITY PARTNERED WITH GARTNER CONSULTING GROUP
02:56:13 TO DO A PERMIT MODERNIZATION REPORT FOR US.
02:56:17 >> AS YOU KNOW, 20 23 UNDER A DIFFERENT ADMINISTRATION THIS
02:56:22 PROCESS WAS NOT EVEN A GLIMMER IN OUR EYE AT THAT TIME.
02:56:26 THE FINDINGS OF THAT EVALUATION AFTER DOING A MARKET SCAN
02:56:29 SCANNING COMPARABLE JURISDICTIONS SUCH AS OAKLAND,
02:56:33 SAN JOSE, LOS ANGELES, SAN DIEGO, LONG BEACH, WASHINGTON
02:56:36 D.C. GAVE US A LOT OF REALLY POWERFUL DATA THAT WAS A
02:56:41 GUIDING PRINCIPLE AND SORT OF A GREAT BENCHMARK WHEN WE WENT
02:56:43 INTO THIS EFFORT AND I WAS I HAVE THIS ACTUALLY IN A SLIDE
02:56:48 FOR THE NEXT PHASE OF THE CONTRACT BUT THEY GAVE US GOOD
02:56:51 BENCHMARKING OF SORT OF LOW COSTS, HIGH COSTS, AVERAGE
02:56:55 COSTS FOR BOTH PERMITTING LICENSING COSTS AS WELL AS
02:56:59 PROFESSIONAL SERVICES COST IN ADDITION TO A WHOLE BUNCH OF
02:57:02 OTHER ROBUST RECOMMENDATIONS INCLUDING THAT YOU KNOW, WE
02:57:06 SHOULD BE LOOKING FOR A LOW CODE SYSTEM THE AMOUNT OF STAFF
02:57:13 WE SHOULD IDEALLY HAVE TO MAKE THIS PROJECT SUCCESSFUL.
02:57:14 ALL SORTS OF DIFFERENT FACTORS WERE FACTORED INTO THIS.
02:57:18 SO IT WAS A REALLY GREAT BENCHMARK THAT WE HAD AND THE
02:57:21 PRICE POINT THAT OPEN GOV HAS COME IN WITH IS SOLIDLY UNDER
02:57:25 THE AVERAGE MARK ON THAT BENCHMARKING DOCUMENT.
02:57:29 >> THANK YOU AND I MEAN THAT IS TRUE AND IT COULD HAVE BEEN THE
02:57:34 CASE THAT OTHER VENDORS COULD HAVE PROVIDED A AN ALSO BELOW
02:57:38 AVERAGE COST. >> ABSOLUTELY.
02:57:41 AND YOU KNOW PRICE IS NOT THE ONLY CONSIDERATION FOR US BUT
02:57:44 BUT YES, ABSOLUTELY THAT COULD HAVE BEEN TRUE.
02:57:45 >> THANK YOU. >> ON THE FINAL DECISION MAKING
02:57:48 WHO CONDUCTED INTERVIEWS WITH CEOS NED SEGAL, MYSELF
02:57:56 AND WARREN SIMON. >> OKAY.
02:57:57 AND WHO MADE THE FINAL DECISION TO SELECT OPEN GO AS THE
02:58:00 CONTRACTOR? >> NED AND I DID JOINTLY AS I
02:58:04 NOTED IN MY PRESENTATION THAT DAY AND WE SHARED THIS BROADLY
02:58:08 WITH THE EXECUTIVE TEAM FROM ALL OF THE PERMITTING AGENCIES
02:58:11 GOING INTO THIS AND AGAIN WE KICKED OFF OUR ROUNDTABLE OF
02:58:15 EXECUTIVE FEEDBACK WITH THIS THAT THIS IS GOING TO BE A
02:58:19 JOINT DECISION BY THE TWO OF US IF WE DISAGREE WE WOULD ELEVATE
02:58:22 IT TO THE MAYOR AS SORT OF OUR TIEBREAKER.
02:58:24 >> WE HOPED WE DIDN'T HAVE TO DO THAT WHEN ALL OF THAT
02:58:26 PROCESS WAS DONE AND NED AND I SAT DOWN TO MAKE THE FINAL
02:58:31 DECISION. HE ASKED ME TO GO FIRST, SAY MY
02:58:35 THOUGHTS. I TOLD HIM I THOUGHT OPEN GOV
02:58:38 WAS THE RIGHT PRODUCT FOR US. I EXPLAINED WHY AGAIN BRINGING
02:58:41 THAT CONTRACTING IS NEW TO ME. I'M PERMITTING IS MY THING BUT
02:58:47 I'M I HAVE EXPERIENCE WITH. SO I REALLY BROUGHT SORT OF
02:58:50 MORE OF THE CUSTOMER FACING SIDE AS WELL AS SORT OF A STAFF
02:58:54 USABILITY SIDE PERSPECTIVE THAT WAS VERY MUCH MY MY HEAVY BIAS
02:58:58 OF MY PERSPECTIVE. >> I'M THINKING ABOUT VENDORS.
02:59:01 AND SO I TOLD THEM I FELT LIKE THIS WAS THE RIGHT VENDOR FOR
02:59:05 US. AND THEN HE SHARED HIS
02:59:06 PERSPECTIVE AND SAID THAT HE ALSO WAS ALIGNED IN CHOOSING
02:59:09 OPEN GOV. SO THAT'S HOW THE DECISION WAS
02:59:10 MADE. >> HE SAID THE MAYOR WOULD
02:59:13 SERVE AS A TIEBREAKER WHICH AGAIN WE DIDN'T WE DIDN'T HAVE
02:59:16 TO GO TO. >> RIGHT.
02:59:17 I'M JUST CURIOUS IS THERE ANY REASON THE MAYOR'S INNOVATION
02:59:23 DIRECTOR FLORENCE SIMON WASN'T A PART OF THAT FINAL DECISION
02:59:25 MAKING? >> OH, SHE WAS ABSOLUTELY
02:59:28 IN THE ROOM AND SHE WAS GIVING US HER FEEDBACK.
02:59:29 BUT THE FINAL DECISION WAS BETWEEN THE DIRECTOR OF PERMIT
02:59:32 S.F. AND LIKE WE MADE THAT REALLY CLEAR FROM THE
02:59:36 BEGINNING. SO I WAS RUNNING THE
02:59:39 PROCUREMENT PROCESS OR THE THE PROCUREMENT PROCESS DEALING
02:59:42 WITH SORT OF CONTRACTING AND A LOT OF THOSE LOGISTICS
02:59:43 AND HELPING TO ADVISE ON AGAIN MAYOR'S OFFICE OF INNOVATION
02:59:47 HELPING US THINK ABOUT HOW WE CAN SELECT A SOFTWARE PRODUCT
02:59:51 DIFFERENTLY TO NOT JUST GET TRAPPED IN SORT OF SOME OF THE
02:59:55 SAME SORT OF FAILED ATTEMPTS TO DO THIS IN THE PAST.
02:59:59 BUT ULTIMATELY THE FINAL DECISION WAS THE TWO OF US.
03:00:02 BUT ABSOLUTELY FLORENCE GAVE A LOT OF GREAT FEEDBACK.
03:00:03 SHE PUSHED BACK ON A LOT OF THINGS THAT LED TO FOLLOW UP
03:00:06 CONVERSATIONS WITH FOLKS. SHE WAS VERY MUCH AN INTEGRAL
03:00:10 PART OF THE DECISION AND WAS ALSO SUPPORTIVE OF THE
03:00:13 DECISION. SHE WAS NOT IN A DISSENTING
03:00:14 ROLE. SHE WAS ALIGNED WITH OUR
03:00:15 DECISION. >> UNDERSTOOD.
03:00:18 I'LL JUST SAY WITHOUT STANDARD EVALUATION CRITERIA APPLIED TO
03:00:21 ALL THE VENDORS OR AT LEAST THE FINALISTS I'M NOT SURE HOW IT
03:00:25 COULD BE DETERMINED THAT OPEN GOV WAS THE BEST CHOICE FOR THE
03:00:27 REST PRICE OF ALL THE VENDORS WHO SUBMITTED PROPOSALS.
03:00:33 I BUT I WANT TO ASK THE QUESTION NEXT ABOUT THE WAIVER.
03:00:37 ACCORDING TO PUBLIC RECORDS NED SEGAL INTERNALLY ANNOUNCED A
03:00:41 SELECTION OF OPEN GOV ON AUGUST 14TH 2025 ALMOST THREE WEEKS
03:00:44 LATER ON SEPTEMBER 2ND. FLORENCE SIMON, HEAD OF THE
03:00:48 MAYOR'S OFFICE OF INNOVATION, REQUESTED A SECTION 2130 WAIVER
03:00:52 FROM THE OFFICE OF CONTRACT ADMINISTRATION.
03:00:55 >> WHEN DID THE MAYOR'S OFFICE AND PARADISO BECOME AWARE THAT
03:00:58 YOU NEEDED TO USE SECTION 23 2130 WAIVER TO PROCURE THIS
03:01:02 TECHNOLOGY WITHOUT A COMPETITIVE BIDDING PROCESS?
03:01:06 >> I DON'T RECALL THE EXACT DATE IT WAS AFTER ANNETTE AND I
03:01:09 MADE THE DECISION TO MOVE FORWARD WITH OPEN GOV.
03:01:10 >> OKAY. >> HOW DID YOU DETERMINE THAT
03:01:13 OPEN GOV WAS THE ONLY FIRM THAT COULD MEET THE CITY'S NEEDS
03:01:19 AND THAT A WAIVER WAS NECESSARY .
03:01:24 >> WE WORKED WITH THE CITY'S CONTRACTING EXPERTS, LAID OUT
03:01:28 THE VENDOR THAT WE HAD SELECTED AND ASKED WHAT THE PATH FORWARD
03:01:32 WAS AND WE WERE GIVEN OPTIONS OF WHAT THE LEGALLY PERMISSIBLE
03:01:36 OPTIONS WERE AND MADE SURE WE UNDERSTOOD ALL THE
03:01:39 REQUIREMENTS. >> THEY ASKED ALL THE RIGHT
03:01:40 QUESTIONS AND THEY ADVISED US THAT AND THEY DID ACKNOWLEDGE
03:01:46 YOU KNOW, CONTRACTS OF THIS SIZE DON'T TYPICALLY USE A
03:01:47 WAIVER BUT IT IS LEGALLY A LEGALLY PERMISSIBLE OPTION.
03:01:50 AND AS SOMEBODY WHO RUNS A REGULATORY AGENCY LEGALLY
03:01:54 PERMISSIBLE MATTERS TO ME. BUT ALSO WE WERE TRYING TO DO
03:01:58 THINGS FAST. WE WERE TRYING TO DO THINGS
03:02:01 DIFFERENTLY. AND I THINK IT IS WORTH NOTING
03:02:02 YOU KNOW, WE'VE WE'VE HAD FAILED PERMITTING
03:02:06 IMPLEMENTATIONS IN THE PAST AND THAT VERY MUCH DOES I THINK
03:02:09 COLOR A LOT OF THIS AND SO SPEED TO SUCCESS REALLY
03:02:13 MATTERED FOR US ON THIS. SO ANYHOW, WE WERE ADVISED BY
03:02:17 OUR CITY'S CONTRACTING EXPERTS ON WHAT OUR OPTIONS WERE
03:02:20 AND THEN WE SELECTED THE ONE THAT WAS THE FASTEST WHILE
03:02:23 LEGALLY PERMISSIBLE. >> THANK YOU.
03:02:26 AND THAT BRINGS ME TO MY NEXT QUESTION.
03:02:28 >> WAS THERE ANYONE FOR EXAMPLE ,CITY ATTORNEY OFFICE OF
03:02:31 CONTRACT ADMINISTRATION ADVISING YOU DURING THIS
03:02:35 PROCESS WITH RESPECT TO BEST PRACTICES ETHICS LAWS, LAWS
03:02:39 REGARDING CONTRACTING? >> WE WERE ABSOLUTELY ADVISED
03:02:43 THE WHOLE STEP OF THIS PROCESS BY BOTH THE CITY ATTORNEY'S
03:02:47 OFFICE AS WELL AS THE OFFICE OF CONTRACT ADMINISTRATION.
03:02:48 OKAY. THANK YOU.
03:02:51 AND FINALLY SWITCHING TOPICS TO OTHER VENDORS IN JANUARY OF
03:02:57 THIS YEAR THE DEPARTMENT OF PUBLIC WORKS ROLLED OUT A NEW
03:02:58 PERMITTING SYSTEM WITH CLARITY. ANOTHER VENDOR CONSIDERED
03:03:02 IN THIS DE FACTO PROCUREMENT PROCESS THIS NEW PERMIT SYSTEM
03:03:06 WAS LAUNCHED JUST TWO WEEKS BEFORE PERMANENT STAFF
03:03:10 LAUNCHED. >> OPEN GOV COMPARING THE TWO
03:03:13 SYSTEMS SIDE BY SIDE BRINGS SOME OF THE SHORTCOMINGS OF
03:03:17 OPEN GOV INTO SHARP RELIEF WHERE 73% OF DPW PERMITS ARE
03:03:23 ISSUED IN TWO DAYS OR LESS THROUGH CLARITY.
03:03:24 OPEN GOV IS ONLY HITTING THAT BENCHMARK 38% OF THE TIME FOR
03:03:28 BUILDING PERMITS AND 4% OF THE TIME FOR FIRE PERMITS.
03:03:32 >> WHY DO YOU THINK CLARITY THE OTHER FINALIST IN A COMPANY
03:03:36 WITH A PROVEN TRACK RECORD WORKING IN OTHER CITIES AS WELL
03:03:39 AS HERE IN SAN FRANCISCO WHY DO YOU THINK CLARITY WAS NOT
03:03:43 CHOSEN ULTIMATELY? >> I THINK THERE ARE A HANDFUL
03:03:47 OF REASONS THAT CLARITY WASN'T CHOSEN BUT I WOULD SAY THAT
03:03:50 STAFF PERFORMANCE AND TURNING AROUND PERMITTING TIMES IN MY
03:03:53 OPINION KNOWING BOTH OF THOSE SYSTEMS HAS NOTHING TO DO WITH
03:03:55 THE SOFTWARE. IT'S ENTIRELY A PEOPLE STAFFING
03:03:58 ISSUE WHICH AGAIN IS SOMETHING THAT I CAN TOUCH ON UNDER THE
03:04:02 NEXT HEARING. BUT I WOULD SAY ONE OF THE
03:04:08 FACTORS THAT WE DID LOOK AT WHEN IT CAME DOWN TO THE FINAL
03:04:09 TWO CANDIDATES IS TRACK RECORD DELIVERY, TRACK RECORD.
03:04:15 YOU KNOW AND I DON'T REALLY WANT TO SPEND A TON OF TIME
03:04:16 HERE BUT I'M HAPPY TO SPEAKING NEGATIVELY ABOUT ANOTHER VENDOR
03:04:20 HERE. >> BUT THAT PROCESS WHICH THEY
03:04:23 HAVE GONE LIVE WITH THREE PERMITS STARTED IN 2022
03:04:28 AND THEY DELIVERED AT THE SAME TIME THAT WE DID.
03:04:32 WE STARTED THE PROCESS IN OCTOBER OF 2025 OR OCTOBER
03:04:35 OF 2025 AND LAUNCHED FOUR MONTHS LATER.
03:04:38 SO WE LAUNCHED IN FOUR MONTHS MORE PERMITS THAN THEY DID
03:04:42 BETWEEN 2025 ARE BETWEEN 2022 AND 2025 AND SO THE SPEED THAT
03:04:48 CLARITY MOVED OUT AS OPPOSED TO THE SPEED THAT WE WERE ABLE TO
03:04:52 MOVE WITH OPEN GULF WAS ABSOLUTELY A FACTOR.
03:04:55 ONE OF THE OTHER REALLY SIGNIFICANT FACTORS TO ME IS
03:04:57 WHEN DOING REFERENCE CHECKS WE HAD NOTHING BUT POSITIVE
03:05:00 REFERENCE CHECKS FROM FOLKS WHO HAVE IMPLEMENTED WITH OPEN GOV
03:05:04 A EVERY IMPLEMENTATION WAS ON BUDGET.
03:05:07 THERE WAS NOT ONE OPEN GOV EXAMPLE PROCUREMENT PROCESS
03:05:10 THAT WE CHECKED REFERENCES ON THAT RAN OVER BUDGET OR HAD
03:05:14 CHANGE ORDERS THAT COST MORE MONEY.
03:05:18 THEY WERE ALL MET THE TIMING EXPECTATIONS NEEDED BY THE CITY
03:05:22 BY THE CITIES THAT THEY IMPLEMENTED.
03:05:25 IN ONE CASE THE TIME WAS HALVED FROM THE TIME THAT THEY
03:05:26 PROJECTED CLARITY ON THE OTHER HAND WAS A VERY DIFFERENT STORY
03:05:32 . ALTHOUGH MANY FOLKS WERE VERY
03:05:33 HAPPY WITH THE SOFTWARE TOOL ITSELF THERE WEREN'T STRONG
03:05:36 COMPLAINTS ABOUT THE ACTUAL SOFTWARE.
03:05:37 THE FACT THAT THEY PARTNERED TYPICALLY WITH A THIRD PARTY
03:05:42 IMPLEMENTATION PARTNER CAUSED A LOT OF ISSUES FOR A LOT OF
03:05:46 OTHER CITIES. MOST OF THE OTHER PROJECTS WERE
03:05:49 OVER BUDGET AND WAY PAST THE ORIGINAL TIME FRAME THAT WERE
03:05:52 THAT WERE QUOTED. A LOT OF THE REFERENCE CHECKS
03:05:56 THAT WE HAD WITH THOSE CITIES TALKED ABOUT HOW THEY FELT THAT
03:06:00 THERE WERE LITTLE THIRD SORT OF THIRD ARM'S LENGTH FROM THE
03:06:03 PRODUCT ITSELF BECAUSE THEY WERE WORKING WITH A THIRD PARTY
03:06:07 VENDOR LIKE IMPLEMENTER AND IN A LOT OF CASES DIDN'T FEEL LIKE
03:06:11 THEY WERE GETTING LIKE ENOUGH ATTENTION IN THEIR NEEDS
03:06:14 AND STAYING ON ON TRACK. >> THAT WAS PRETTY THEMATIC
03:06:19 WITH CLARITY AND THAT WAS NOT THE MATTER WITH OPEN DOORS
03:06:22 AND THAT WAS REALLY, REALLY MEANINGFUL TO US PARTICULARLY
03:06:26 GIVEN AGAIN WE CAN'T FORGET OUR PAST.
03:06:31 WE HAD A FAILED EXCEL IMPLEMENTATION WITH THE
03:06:32 BUILDING DEPARTMENT AND THAT LEGACY LOOMS VERY LARGE ABOUT A
03:06:38 VENDOR'S ABILITY TO DELIVER. WE ARE A TOUGH CLIENT OF
03:06:42 VENDORS ABILITY TO WORK WITH US AND GET OVER THE FINISH LINE
03:06:46 AND PRODUCE IS VERY IMPORTANT. >> THANK YOU.
03:06:50 THAT IS VERY ILLUMINATING. THOSE ARE ALL MY QUESTIONS.
03:06:53 THANK YOU SO MUCH. MISSOURI SHOPPING AND MY
03:06:55 UNDERSTANDING MY UNDERSTANDING IS THAT MY COLLEAGUES HAVE
03:06:58 QUESTIONS. >> THANK YOU SUPERVISOR FIELDER
03:07:02 AND SUPERVISOR CHEN SUPERVISOR CHERYL THANK YOU CHAIR DORSEY
03:07:06 SUPERVISOR FIELD THANK YOU FOR CALLING THIS HEARING.
03:07:10 I THINK THE TIMING OF THIS OR THE ABILITY TO DO THIS KIND OF
03:07:16 ON THE SAME DAY OR AHEAD OF THE CONTRACT RENEWAL I THINK MAKES
03:07:18 A LOT OF SENSE. >> I'M REALLY GLAD WE'RE ALL
03:07:21 HERE TODAY IS WHY THANK YOU FOR BEING HERE.
03:07:27 MAYBE YOU ARE A BETTER AUDIENCE FOR THIS QUESTION.
03:07:28 IS GOVERNMENT IN GENERAL OR SAN FRANCISCO KNOWN FOR A BEST
03:07:33 IN CLASS SOFTWARE? >> I CAN AT LEAST SPEAK
03:07:36 PERMITTING NO WORK. HOW LONG DOES A STANDARD RFP
03:07:39 PROCESS TAKE OR WOULD IT HAVE TAKEN IN THIS INSTANCE?
03:07:42 >> MY UNDERSTANDING IS IT'S TYPICALLY BETWEEN SIX MONTHS TO
03:07:45 A YEAR. >> OKAY, GREAT.
03:07:46 THANKS. SO A COUPLE OF QUESTIONS ON A
03:07:50 FEW ELEMENTS THAT WERE TOUCHED ON.
03:07:53 >> IT SOUNDS LIKE THERE WAS A SCORING RUBRIC THAT WAS CREATED
03:07:54 AND SUBMITTED BY LESS THAN 10% OF THE STAFF WHO LOOKED AT
03:07:57 POSSIBLE SOLUTIONS. I THINK I HAVE THOSE NUMBERS
03:08:01 ROUGHLY RIGHT. DID THE FEEDBACK ON THAT KIND
03:08:04 OF WRITTEN I DON'T KNOW EVALUATION OR SCORING DID THAT
03:08:08 CENTER ON THE FRONT END USER FACING EXPERIENCED EXPERIENCE
03:08:13 THAT THE FIRMS AND OUR CLIENTS HAVE OR DID IT FOCUS ON THE
03:08:16 BACK END ELEMENTS OF THE SYSTEM, THE BACK END, THE BACK?
03:08:19 OKAY SO SO IT DIDN'T ADDRESS KIND OF WHICH SOLUTION WOULD BE
03:08:23 EASIER FOR RESIDENTS OR PEOPLE GOING THROUGH THE PERMIT
03:08:24 PROCESS TO USE? ALTHOUGH I'D SAY WITH WITH ONE
03:08:28 EXCEPTION THERE WAS ONE CRITERIA AROUND YOU EXERCISED
03:08:30 WITH THE SORT OF USER INTERFACE WHICH WOULD BE A CUSTOMER
03:08:31 FACING INTERACTION. THE SCORES WERE RELATIVELY LOW
03:08:34 ON THAT. HOWEVER, THE CITY'S DIGITAL
03:08:37 SERVICE TEAM WHO THAT IS THEIR SOLE PROFESSION IS TO THINK
03:08:39 ABOUT CUSTOMER FACING USER INTERFACE SCORED THE PRODUCT
03:08:42 VERY VERY HIGH IN CONVERSATIONS.
03:08:46 >> THEY FELT LIKE THIS WAS A GREAT PRODUCT FROM A USER
03:08:47 SCORED THE OPEN GOV PRODUCT. >> HI.
03:08:50 CORRECT. OH INTERESTING.
03:08:51 AGAIN NOT IN AN OFFICIAL SCORING RUBRIC BUT WHEN WE WERE
03:08:54 DOING EXECUTIVE SORT OF ROUNDTABLES.
03:08:55 YEAH. OKAY GREAT.
03:08:57 YOU TOUCHED ON THE CLARITY IMPLEMENTATION SPEED DIFFERENCE
03:09:01 WITH THE OPEN GOV IMPLEMENTATION SPEED.
03:09:02 I WON'T GET INTO THE DETAILS ON HOW RADICAL THE DIFFERENCE
03:09:05 BETWEEN THE CLARITY FOR YOUR IMPLEMENTATION AND THE OPEN GO.
03:09:09 FOUR MONTH IMPLEMENTATION HAS BEEN BUT I WANT TO TALK ABOUT
03:09:13 BUDGETS. >> YOU SAID THE CLARITY PROJECT
03:09:14 HAS BEEN OVER BUDGET IS THE OPEN GO PROJECT OVER BUDGET?
03:09:17 >> NO. OKAY.
03:09:20 INTERESTING. YOU SAID SOMETHING ELSE.
03:09:21 WHAT DOES IT MEAN? YOU SAID SOMETHING ABOUT
03:09:25 WORKING WITH A THIRD PARTY. >> IF THE CITY HAD DECIDED TO
03:09:27 GO WITH CLARITY, CAN YOU EXPLAIN WHAT THAT MEANS?
03:09:31 >> SURE. SO WITH A LOT OF SOFTWARE
03:09:34 IMPLEMENTATIONS THERE'S A THIRD PARTY COMPANY.
03:09:35 SO AN UNRELATED COMPANY THAT DOES THE SOFTWARE
03:09:39 IMPLEMENTATION. >> SO YEAH, THEY'RE UNRELATED
03:09:45 BUT THEY'RE VERY FAMILIAR WITH THAT SOFTWARE PRODUCTS AND THEY
03:09:47 WILL WORK WITH CITIES TO BUILD THAT SOFTWARE PRODUCT FOR THE
03:09:50 CITY DOING THE CONFIGURATION AND HELPING SET UP THOSE SORTS
03:09:54 OF THINGS. >> FOR THE MOST PART MOST MOST
03:09:58 PEOPLE WHO WORK WITH CLARITY IS A THIRD PARTY IMPLEMENTER.
03:10:01 CLARITY WAS JUST BEGINNING TO DO SOME IMPLEMENTATIONS
03:10:06 THEMSELVES AND WE WOULD HAVE THEY WERE OFFERING THAT TO US
03:10:12 BUT WE WOULD HAVE BEEN THEIR FIRST TEST CASE IN DOING THAT.
03:10:16 SO SO YOU'RE SAYING THAT IN THE PAST IF IF THE CITY HAD DONE
03:10:20 THE TRADITIONAL WITH CLARITY THEY WOULD HAVE SIGNED AN
03:10:22 AGREEMENT WITH CLARITY AND THEN POTENTIALLY HAD TO SIGN AN
03:10:24 AGREEMENT WITH ANOTHER COMPANY ALSO TO IMPLEMENT CLARITY THAT
03:10:28 THAT IS TYPICAL. AGAIN, I DON'T KNOW WHERE IT
03:10:32 WOULD HAVE LANDED HAD WE CHOSEN CLARITY WHETHER WE WOULD HAVE
03:10:35 HAD THEM AS THE CLARITY OFFERED TO DO THE IMPLEMENTATION FOR
03:10:36 THE CITY IN THIS CASE THEY DID. IT DIDN'T.
03:10:39 IT WOULD HAVE BEEN THE FIRST TIME THEY'D EVER DONE THAT.
03:10:43 >> THAT WAS OUR UNDERSTANDING. AND DOES OPEN GOVT TYPICALLY DO
03:10:47 WE AS A CITY HAD TO WORK WITH A THIRD PARTY WITH OPEN COVERAGE
03:10:49 DIRECTLY WITH THEM. >> NO OPEN GOVT DOES BOTH
03:10:52 IN-HOUSE. GOT IT.
03:10:52 AND THEN IS CLARITY A SYSTEM THAT IS INTEGRATED WITH A
03:10:56 DIFFERENT SOFTWARE SYSTEM LIKE SALESFORCE FOR INSTANCE?
03:10:59 YES IT RUNS ON A SALESFORCE PLATFORM SO WHEN IT RUNS ON
03:11:02 WOULD WE HAVE HAD TO HAVE ANOTHER CONTRACT WITH
03:11:03 SALESFORCE ALSO IN THIS CASE OR NO I DON'T.
03:11:06 >> THAT'S A LEVEL DEEPER THAN I KNOW OF.
03:11:08 OKAY. >> OKAY, GREAT.
03:11:10 SO IF IT RUNS ON SALESFORCE IT STRIKES ME THAT SOME OF THE
03:11:14 REVENUE GOES TO SALESFORCE SOMEHOW, RIGHT?
03:11:15 >> I DON'T KNOW THE ANSWER TO THAT QUESTION.
03:11:19 >> OKAY. INTERESTING.
03:11:19 I'D BE CURIOUS ABOUT THAT BECAUSE FROM MY KNOWLEDGE
03:11:22 SEVERAL SALESFORCE EMPLOYEES HAVE MADE DONATIONS TO CERTAIN
03:11:26 NONPROFITS ALSO. >> OKAY.
03:11:29 >> THANK YOU. APPRECIATE IT.
03:11:30 THANK YOU. SUPERVISOR SHERYL SUPERVISOR
03:11:33 CHEN. >> THANK YOU, CHAIR DORSEY.
03:11:37 HI DR. WATTY. THANK YOU FOR BEING VERY
03:11:38 PATIENT ANSWERING OUR QUESTIONS.
03:11:41 >> I KNOW THAT THERE ARE 70 TO 70% INCREASE IN PERMIT
03:11:48 SUBMISSION FOR DOORS SIDING AND WINDOW RELATED PERMITS.
03:11:52 WHAT IS YOUR PLAN TO ADDRESS SOME OF THIS DELAYS IN PERMIT
03:11:56 PROCESS? >> YEAH, ABSOLUTELY.
03:11:57 I THINK THIS IS A MULTI-PRONGED APPROACH FOR US.
03:12:04 YOU KNOW, WE DID NOT ANTICIPATE WHEN WE WENT LIVE WITH THE
03:12:05 DOORS SIDING WINDOWS. WE THOUGHT IT WOULD BE A 1 TO 1
03:12:09 KIND OF LOOK AT WHAT THE VOLUME WAS LAST YEAR OR THE YEAR
03:12:12 BEFORE AND ANTICIPATE SIMILAR VOLUME.
03:12:13 SO WE STAFFED ACCORDINGLY. >> I WILL ALSO NOTE ALTHOUGH
03:12:17 I'M SURE TO THE MAYOR'S BUDGET OFFICE CHAGRIN THE PERMITTING
03:12:20 AGENCIES HAVE NOT REALLY BEEN SEEING STAFFING BACK TO BACK
03:12:23 FILLS THIS YEAR SINCE THEIR IMPLEMENTATION WENT LIVE AND SO
03:12:27 A COMBINATION OF ATTRITION OF STAFF THAT WE'VE LOST IN A
03:12:31 COUPLE OF REALLY KEY POSITIONS I THINK PARTICULARLY THE FIRE
03:12:35 DEPARTMENT I KNOW HAS COUPLED WITH THE INCREASE IN VOLUME
03:12:39 COUPLED WITH AND I THINK THIS IS JUST A SINCERE THING FOR US
03:12:43 TO TAKE AT A MANAGEMENT LEVEL TO WORK THROUGH.
03:12:47 >> WE NEED TO ADAPT OUR STAFFING MODEL A BIT.
03:12:50 WE ARE VERY USED TO AND HAVE BEEN FOR DECADES USED TO A
03:12:52 STAFFING MODEL THAT STAFFS AGAINST OVER-THE-COUNTER
03:12:55 PERMITS IN PAPER AND IN HOUSE PERMITS THAT TAKE A MUCH LONGER
03:12:59 TIME. WE'RE NOW INTRODUCING A THIRD
03:13:02 SPACE NOT ONLY A DIFFERENT TOOL FOR PEOPLE TO LEARN THERE'S
03:13:06 LEARNING CURVES. WE'RE OBVIOUSLY HAVING STAFF
03:13:08 TAKE TIME AWAY FROM THEIR DAY, GO TO TRAINING SESSIONS, GET UP
03:13:10 TO SPEED. THOSE ARE ALL HOURS OUTSIDE OF
03:13:13 PROCESSING THE PERMITS WHICH DOES HAVE AN IMPACT BUT THERE'S
03:13:16 JUST SORT OF AN OPPORTUNITY COST OF BEING IN THREE SYSTEMS.
03:13:20 OUR GOAL A IS YOU KNOW THE FASTER WE GET THROUGH THIS
03:13:24 AND WE GET OFF OF LIKE OTHER LEGACY SYSTEMS AND WE CAN BE
03:13:27 IN LIKE ONE SOURCE OF TRUTH EFFECTIVELY I THINK THAT WILL
03:13:31 HELP SPEED THINGS. BUT WE ALSO NEED TO THINK ABOUT
03:13:32 HOW WE STAFF DIFFERENTLY IN A CITY.
03:13:35 I THINK IT'S NOT BEST PRACTICE FOR US TO HAVE TWO OPTIONS OF
03:13:39 AN EITHER A TWO DAY TURNAROUND OR MONTHS AND MONTHS AND MONTHS
03:13:43 TURNAROUND. WE PROBABLY CAN THREAD THE
03:13:47 NEEDLE A LITTLE BIT AND HAVE SOME PERMIT TYPES THAT TAKE A
03:13:50 WEEK, MAYBE TWO WEEKS TO PROCESS.
03:13:51 >> AND SO I THINK WE NEED TO DO A LITTLE DUE DILIGENCE WITH OUR
03:13:55 CUSTOMERS TO UNDERSTAND WHAT ARE WHAT ARE THE TYPES OF
03:13:58 TURNAROUND TIMES THAT ARE EITHER BEST IN CLASS WITH OTHER
03:14:02 JURISDICTIONS, WHAT ARE SORT OF THE NEEDED TURNAROUND TIMES?
03:14:05 YOU KNOW, MAYBE WITH A WINDOW REPLACEMENT YOU DON'T NEED IT
03:14:07 SAME DAY MAYBE MAYBE A WEEK IS JUST FINE BECAUSE YOU'VE CALLED
03:14:10 YOUR CONTRACTOR YOUR WINDOWS INSTALLED.
03:14:13 YOU'RE IN NO RUSH TO TO TRY TO, YOU KNOW, GET THAT TIMING
03:14:16 SORTED OUT. SO I THINK WE NEED TO A REVISIT
03:14:20 OUR PERFORMANCE METRICS WHEN WE HAVE THE ABILITY TO BE MORE
03:14:21 NUANCED AND HAVE DIFFERENT DURATIONS OF TIME.
03:14:24 BUT I THINK IN THE SHORT TERM WHILE WE HAVE THESE THREE
03:14:28 DIFFERENT SYSTEMS RUNNING AND WE HAVE STAFFING
03:14:32 CONSTRAINTS, WE PROBABLY NEED TO COME UP WITH SOME BETTER
03:14:33 SOLUTIONS FOR HOW WE CAN TACKLE THE VOLUME INCREASE IN VOLUME
03:14:36 THAT WE WEREN'T ANTICIPATING. >> GREAT.
03:14:39 THEN MY NEXT QUESTION IS IN YOUR OPINION, WERE WE
03:14:43 INSTITUTIONALLY PREPARED TO TAKE ON A PROJECT OF THIS KIND
03:14:46 OF SCALE? I THINK WE WERE READY FOR IT.
03:14:51 WE WERE NOT STAFFED FOR IT AND I THINK THERE'S A LITTLE
03:14:55 IMPORTANT NUANCE THERE. >> AND ABSOLUTELY AGAIN, GOING
03:14:58 TO LESSONS LEARNED. I THINK WE HAVE NOW MADE OUR
03:15:02 POINT AND EVERYONE UNDERSTANDS THAT THE AMOUNT OF STAFFING
03:15:06 THAT WE REALLY NEED FOR THIS. I THINK THE OTHER THING WHEN IT
03:15:09 COMES TO STAFFING IN TERMS OF STAFFING PREPAREDNESS, YOU KNOW
03:15:12 WHAT WE HAVE TO REMEMBER IS WITHIN THE PERMITTING
03:15:14 DEPARTMENTS, THE FOLKS WHO ARE MOST WELL VERSED ON ON MANY
03:15:20 SIDES OF THIS PROJECT NOT ENTIRELY ARE A LOT OF THE FOLKS
03:15:21 WHO ARE ARE DOING THE WORK OF PROCESSING PERMITS THAT ARE
03:15:25 HAPPENING. WE CAN'T STOP PROCESSING
03:15:26 PERMITS WHILE WE BUILD A SYSTEM.
03:15:29 SO LEVERAGING STAFF IN A PART TIME CAPACITY IS REALLY HARD
03:15:32 AND SO I THINK ONE OF OUR LESSONS LEARNED WOULD ALSO BE
03:15:34 TO MAKE SURE WE STAFF UP IN ALL OF THE ROLES BUT REALLY IN IN
03:15:40 MORE SORT OF STABLE STABLE QUANTITIES OF PEOPLE'S TIME SO
03:15:43 THAT THEY'RE NOT PULLED IN A LOT OF DIFFERENT DIRECTIONS.
03:15:45 BALANCING SOMEBODIES YOU KNOW APPLICATION OR YOU KNOW
03:15:48 UPDATING FEES THAT ARE GOING LIVE FOR ACTIVE PERMITS WITH
03:15:51 BUILDING OUT A NEW SYSTEM. >> THANK YOU.
03:15:54 AND I GREATLY APPRECIATE THE BRIEFING THAT YOU GAVE TO ME
03:15:55 AND MY STAFF. BUT MY UNDERSTANDING IS THERE
03:15:59 ARE SOME INSTITUTIONAL GAP IN THE IMPLEMENTATION SYSTEM SO
03:16:03 MAYBE IT'S LESSONS LEARNED IN YOUR WORDS.
03:16:06 I ALSO JUST HEARD THAT IN YOUR CONVERSATION WITH SUPERVISOR
03:16:10 FIELDER IN THE FINAL DECISION STAGE THAT YOU WOULD RECOMMEND
03:16:14 THAT WE CHOOSE OPEN GOVT. BASED ON YOUR EXPERTISE INSTEAD
03:16:18 AS A USER EXPERIENCES AND ALSO CUSTOMER EXPERIENCES AND SOME
03:16:22 OF THE CONCERNS OR LESSONS THAT YOU LEARNED WAS TRAINING
03:16:26 AND COMMUNICATION TO STAFF. DID YOU FIND THIS SURPRISING TO
03:16:30 YOU? >> YES.
03:16:30 WHY IF NO WHY? MY NEXT PART IT'S ALSO MOVING
03:16:34 FORWARD. >> HOW CAN THIS BOARD BE
03:16:38 CONFIDENT THAT THIS GAPS WERE SUFFICIENTLY ADDRESSED WHEN
03:16:42 THEY PREVENTED THE DEPARTMENT FROM MEETING ITS ORIGINAL GOAL
03:16:48 IN THE FIRST PLACE? >> ABSOLUTELY NO, AND I
03:16:49 APPRECIATE THAT QUESTION. AGAIN, I WOULD SAY IF YOU WERE
03:16:52 TO HAVE ASKED US WAS WAS TRAINING AND COMMUNICATION
03:16:55 IMPORTANT, WE WOULD HAVE SAID OF COURSE IT WAS.
03:16:59 WERE WE STAFFED PROPERLY AND DID WE EXECUTE THAT AS WELL
03:17:02 AS WE SHOULD HAVE? ABSOLUTELY NOT.
03:17:03 THAT'S ABSOLUTELY A WEAKNESS THAT WE HAD FROM THIS FIRST
03:17:06 YEAR. AND I TAKE, YOU KNOW, FULL
03:17:07 ACCOUNTABILITY FOR THAT. WE HAVE THOSE SENSE I'M HAPPY
03:17:11 TO REPORT COURSE CORRECTED ON THAT.
03:17:15 WE HAVE FOLKS HERE IN THE AUDIENCE TODAY ON OUR CORE TEAM
03:17:18 WHO PART OF THEIR PRIMARY ROLE IS MAKING SURE WE'RE THINKING
03:17:19 ABOUT OUR CUSTOMER OR I'M SORRY OUR INTERNAL CUSTOMERS OR STAFF
03:17:23 COMMUNICATIONS IN PARTICULAR AND FOCUSING ON TRAININGS SO
03:17:26 THAT WE'RE PROJECTING TRAININGS FAR ENOUGH OUT SO PEOPLE CAN
03:17:31 TAKE TIME OFF OF THEIR AGAIN THEIR DAY JOBS SO THAT WE'RE I
03:17:36 THINK ONE OF OUR BIGGEST LESSONS LEARNED IS UNDER
03:17:37 APPRECIATING HOW MUCH FOLKS WANT TO UNDERSTAND WHAT THE
03:17:41 STATUS IS EVEN IF THEY'RE NOT IN IT EVERY DAY.
03:17:44 >> AND EVEN IF WHAT WE'RE LAUNCHING IS MAYBE NOT RELEVANT
03:17:45 TO THE WORK THEY DO EVERY DAY, THEY STILL WANT TO KIND OF
03:17:49 UNDERSTAND LIKE WHERE'S THE WHERE'S THE SHIP HEADED?
03:17:52 >> AND SO WE'VE REALLY TAKEN THAT ON AS AN AREA OF
03:17:56 IMPROVEMENT FOR US MOVING FORWARD.
03:18:00 AND I THINK WE'RE ON THE RIGHT PATH AND TAKING THE STEPS
03:18:03 FORWARD THAT WE NEED TO TAKE ON THAT CERTAINLY WE CAN ALWAYS DO
03:18:05 BETTER. WE WANT PEOPLE TO SHARE WITH US
03:18:07 HOW WE CAN KEEP DOING BETTER. BUT I THINK WE'RE NOW STAFFED
03:18:11 MORE APPROPRIATELY TO BE ABLE TO RESOLVE THAT.
03:18:13 IN TERMS OF YOUR SECOND QUESTION AROUND HOW THE BOARD
03:18:15 CAN HAVE CONFIDENCE, I THINK THERE'S A VARIETY OF DIFFERENT
03:18:18 WAYS. ONE, AS YOU ALL KNOW, CIVIL
03:18:19 SERVICE COMMISSION HAS ASKED US TO COME BACK ROUTINELY.
03:18:22 WE'RE MORE THAN HAPPY TO DO THAT.
03:18:23 SO WE'LL BE GOING BACK TO THEM IN JANUARY OF THIS YEAR
03:18:26 AND ANTICIPATE A REGULAR CADENCE REPORTING BACK WITH
03:18:29 THEM. THROUGH THAT PROCESS WE'VE MADE
03:18:31 COMMITMENTS TO BE ROUTINELY MEETING WITH STAFF PARTICULARLY
03:18:37 UNION STAFF. I KNOW A LOT OF THEM ARE HERE
03:18:38 TODAY TO IMPROVE THOSE COMMUNICATIONS.
03:18:41 AGAIN, IN ADDITION TO JUST MORE BROAD COMMUNICATIONS SHAREPOINT
03:18:43 SITE WITH PROJECT STATUS UPDATES THAT EVERYONE CAN
03:18:46 ACCESS ROUTINE EMAIL BLASTS THAT COME FROM ME TO OUR STAFF
03:18:49 AROUND WHAT'S COMING NEXT AS WELL AS PUBLIC COMMS TO OUR
03:18:55 CUSTOMERS. AND SO SIMILAR TO THAT WE VERY
03:18:59 MUCH WELCOME THE RECOMMENDATION.
03:19:00 WE WOULD LOVE AS PART OF OUR BUDGET HEARINGS IF YOU GUYS
03:19:04 WANT TO LISTEN TO US TALK FOR AN EXTRA 10 OR 15 MINUTES AT
03:19:07 THE END OF THE YEAR. WE'RE MORE THAN HAPPY TO COME
03:19:10 AND TALK ABOUT OUR ACCOMPLISHMENTS.
03:19:11 I AM EXCITED TO TALK ABOUT PERMITTING AND PERMITTING
03:19:14 REFORMS AND HEAR FROM FOLKS OF WHAT WE CAN DO BETTER.
03:19:15 ANY CHANCE THAT I HAVE YOU PROBABLY WILL JUST NEED TO CUT
03:19:18 ME OFF BECAUSE I'LL PROBABLY TALK TOO LONG ABOUT IT.
03:19:21 BUT I WOULD SAY I THINK THAT'S REALLY THE ASSURANCE IS THAT
03:19:25 YOU KNOW, YOU GUYS HAVE THE POWER OF THE PURSE STRINGS.
03:19:28 WE ARE ABSOLUTELY HAPPY AND THRILLED THOUGH TO COME
03:19:30 BACK AND CONTINUE REPORTING BACK AT WHATEVER FREQUENCY YOU
03:19:33 SO CHOOSE. THANK YOU.
03:19:36 THE NEXT QUESTION I DON'T KNOW IF YOU ARE THE RIGHT PERSON TO
03:19:40 ANSWER BUT YOU ALSO MENTIONED THAT IN THE SELECTING PROCESS
03:19:43 OPEN GOV THAT DECISION THE FINAL DECISION WAS MADE BETWEEN
03:19:48 YOU AND CHIEF STEAGALL WITH THE MAYOR ACTING AS A TIEBREAKER
03:19:51 AND IS IT LEGAL FOR THE MAYOR TO SERVE AS A TIEBREAKER
03:19:54 FOR PROCUREMENT ISSUES? >> WELL I MEAN ONE THING I'LL
03:20:02 MAYBE I'LL JUST CHIME IN I KNOW THAT WAS SORT OF A LEGAL
03:20:04 QUESTION TECHNICALLY SPEAKING THIS WAS A SOLE SOURCE WAIVER
03:20:07 SO WE WERE ABLE TO MOVE FORWARD WITH A SOLE SOURCE WAIVER SO
03:20:10 THERE DOESN'T NEED TO BE LIKE, YOU KNOW, A TIEBREAKER IF YOU
03:20:14 WILL. IT'S WHAT ARE WE WHAT VENDOR
03:20:17 ARE WE MOVING FORWARD WITH ONCE WE AS A CITY FROM A POLICY
03:20:21 PERSPECTIVE DECIDE WHAT VENDOR WE'RE MOVING FORWARD WITH,
03:20:22 WHAT'S OUR PROCUREMENT PATH AND WE MOVE FORWARD WITH THE
03:20:25 WAIVER. SO AGAIN I'M GLAD WE DIDN'T
03:20:29 NEED TO GET THERE. WE WOULD HAVE I THINK BIGGER
03:20:30 ISSUES IF WE WERE THAT MISALIGNED.
03:20:32 BUT YEAH, THEN MY NEXT QUESTION IS HAS ANY MAYORS IN THE
03:20:37 PREVIOUS YEARS EVER SERVE AS A TIEBREAKER IN PROCUREMENT OF
03:20:41 ANY CONTRACT? >> DEPUTY CITY ATTORNEY SARAH
03:20:48 CROWLEY I DON'T KNOW THE ANSWER TO THAT OFFHAND BUT I'M HAPPY
03:20:55 TO LOOK INTO IT. >> THANK YOU.
03:20:57 AND THEN MY FOLLOW UP QUESTION AGAIN TO TO A DEPUTY CITY
03:20:59 ATTORNEY JUST TO MIRROR EVEN HAVE THE POWER TO CONTRACT
03:21:03 DIRECTLY. >> YES, THE MAYOR'S OFFICE CAN
03:21:06 CONTRACT DIRECTLY. >> THE MAYOR CAN CONTRACT
03:21:11 DIRECTLY. GOT IT.
03:21:13 THANK YOU. >> AND THANK YOU.
03:21:17 THANK YOU, CITY ATTORNEY. AND THEN ALSO I JUST IMAGINE SO
03:21:21 MANY OF THE PROBLEM WITH THE PROCUREMENT PROCESS FOR THIS
03:21:25 CONTRACT IS THE FACT THAT WE CHOOSE TECHNOLOGY BEFORE WE
03:21:29 UNDERSTOOD THE SCOPE OF THE PROJECT AND BEFORE OUR
03:21:32 DEPARTMENTS WERE REALLY READY TO IMPLEMENT IT.
03:21:36 I MEAN GIVEN STAFFING CONCERNS AND OTHER LESSONS THAT WE
03:21:40 LEARN, WHAT EVIDENCE DO WE HAVE THAT WE'RE READY TO CONTINUE TO
03:21:43 IMPLEMENT IT AND ALSO EXPAND IT?
03:21:48 >> ABSOLUTELY. I WOULD SAY SORT OF TWO TWO
03:21:49 THOUGHTS ON THAT QUESTION. ONE.
03:21:51 YOU KNOW, WE'VE ACTUALLY DONE A LOT OF RESEARCH OF WHAT'S SORT
03:21:56 OF BEST IN CLASS AND BEST STRATEGY FOR GOVERNMENT
03:21:59 TECHNOLOGY IMPLEMENTATIONS, PARTICULARLY AROUND PERMITTING
03:22:03 AND HAVE REALLY TAKEN A LOT OF THAT FEEDBACK TO HEART AROUND
03:22:04 ADOPTING AGILE PROCESSES. AND I THINK A REALLY IMPORTANT
03:22:08 THING ESPECIALLY WHEN YOU THINK ABOUT PERMITTING AND OUR
03:22:12 PERMITTING CHALLENGES AS A WHOLE IS THAT WE WANT TO BE
03:22:15 NIMBLE BUT THERE ARE SO MANY VARIABLES AND INTERCONNECTED
03:22:19 ASPECTS OF PERMITS ACROSS CITY AGENCIES THAT NO MATTER HOW
03:22:27 MUCH DUE DILIGENCE WE DO UPFRONT AND MAPPING OUT YOU
03:22:28 KNOW IF WE WERE TO TAKE THE TIME THE MONTHS AND MONTHS
03:22:31 BEFORE WE KICKED THIS OFF TO MAP OUT EVERY PERMIT
03:22:35 AND PROCESS, GO THROUGH THE LENGTHY PROCESS OF FIGURING OUT
03:22:38 WHICH OF THOSE PERMITS REALLY SHOULD GET ROLLED UP TOGETHER.
03:22:41 FOR EXAMPLE, YOU KNOW, SMALL BUSINESS PERMITTING DO WE
03:22:43 REALLY NEED A SEPARATE PLANNING ENTITLEMENT BUILDING PERMIT
03:22:45 SIGN PERMIT, HEALTH PERMIT, FIRE DEPARTMENT THAT ARE ALL
03:22:50 SEPARATELY ACCESSED OR SHOULD WE KIND OF SMUSH THEM TOGETHER
03:22:54 FOR CUSTOMER EXPERIENCE TO HAVE SORT OF FLUIDITY OF EXPERIENCE,
03:22:58 RIGHT. MAPPING THAT OUT WITH EVERY
03:23:01 VARIABLE AND EVERY WE COULD GET INTO A SERIOUS ANALYSIS
03:23:05 PARALYSIS SITUATION PRETTY QUICKLY.
03:23:06 AND I GUARANTEE YOU WE WOULD MISS SOMETHING.
03:23:09 AND SO PART OF THE STRATEGY THAT WE'RE UNDERTAKING IS
03:23:11 TAKING THESE AT SORT OF BITE SIZES AT A TIME.
03:23:14 SO THAT'S THE WAY THAT AND WE'LL TALK WE CAN TALK
03:23:18 ABOUT THIS A LITTLE BIT MORE IN THE NEXT PRESENTATION BUT
03:23:19 THE WAY OUR CONTRACT IS STRUCTURED MOVING FORWARD A
03:23:22 VERY MUCH LESSON LEARNED FROM FIRST PHASE WHERE WE DID NOT
03:23:24 HAVE THE STRUCTURE. SO I WANT TO SORT OF RECOGNIZE
03:23:27 THAT. BUT THE WAY WE'RE LOOKING AT IT
03:23:28 MOVING FORWARD IS MAKING SURE THAT WE CAN BASICALLY PACKAGE
03:23:31 THESE BITE SIZED CHUNKS OF PERMITS THAT WE WANT TO MIGRATE
03:23:35 AND THEN WE CAN REALLY GO SORT OF VERTICALLY DEEP WITHIN EACH
03:23:39 OF THOSE BUCKETS OF WORK SO WE CAN THINK ABOUT WHAT THINGS
03:23:44 NEED TO BE SMUSHED TOGETHER FOR LACK OF A BETTER TERM, WHAT
03:23:47 INTEGRATIONS DO WE NEED FOR THOSE?
03:23:51 >> WHAT ARE THE REALLY CLEAR DATA DEPENDENCIES?
03:23:52 WHAT DATA DID WE USE TO COLLECT?
03:23:54 DO WE STILL WANT TO COLLECT THAT DATA?
03:23:55 DO WE NEED TO ALIGN OUR DATA TERMINOLOGY RIGHT.
03:23:59 >> THESE ARE ALL THE KINDS OF CONVERSATIONS THAT WE NEED TO
03:24:00 HAVE WHEN WE THINK ABOUT IT. >> BUT IT'S WE WILL NOT YET SEE
03:24:02 PROGRESS IF WE TRY TO MAP THAT OUT ALL AT THE BEGINNING.
03:24:07 SO BEING ABLE TO IDENTIFY OKAY WE'RE DOING X NOW LET'S FIGURE
03:24:10 OUT ALL THOSE ANSWERS TO X THEN LET'S START BUILDING.
03:24:14 >> AND SO THAT'S THE APPROACH THAT WE'RE GOING TO TAKE MOVING
03:24:17 FORWARD BUT WE ALSO WANT TO MAKE SURE WE'RE NOT HAMSTRUNG.
03:24:18 MAYBE WE ONLY WANT TO TACKLE ONE BIG THING AT A TIME.
03:24:22 MAYBE WE WANT TO DO FIVE LITTLE THINGS AT A TIME, RIGHT?
03:24:24 WE WANT TO HAVE THAT NIMBLENESS TO DECIDE FROM A POLICY
03:24:27 PERSPECTIVE TO WHAT GOES FIRST. YOU KNOW, ARE YOU KNOW, DO WE
03:24:31 REALLY WANT TO TACKLE 80 USE SOONER RATHER THAN LATER?
03:24:34 DO WE REALLY WANT TO FOCUS ON SMALL BUSINESS YOU KNOW, SMALL
03:24:36 BUSINESS TENANT IMPROVEMENTS LIKE WHAT ARE OUR POLICY
03:24:39 VALUES? REALLY SET THAT FIRST AGAIN ARE
03:24:42 POLICY VALUES SHOULD BE DRIVING THE TECHNOLOGY NOT THE OTHER
03:24:45 WAY AROUND. AND I THINK THAT'S A REALLY
03:24:46 IMPORTANT PART OF HOW WE'VE STRUCTURED THIS MOVING FORWARD.
03:24:49 >> GREAT. THANK YOU.
03:24:52 >> THAT'S ALL MY QUESTIONS. THANK YOU.
03:24:53 SUPERVISOR CHEN SUPERVISOR FIELDER THANK YOU MS. Y FOR
03:24:57 YOUR PRESENTATION. THANK YOU FOR ANSWERING ALL OF
03:24:59 OUR QUESTIONS. NOW WE WILL HEAR FROM SHAILAJA
03:25:04 KERALA THE CITY PURCHASER FROM THE OFFICE OF CONTRACT
03:25:08 ADMINISTRATION. >> WELCOME MS. KERALA.
03:25:12 >> THANK YOU. HELLO, SUPERVISORS.
03:25:13 THANK YOU FOR THE OPPORTUNITY FOR ME TO SPEAK TODAY.
03:25:16 >> I AM GOING TO VERY BRIEFLY PROVIDE YOU JUST A LITTLE BIT
03:25:20 OF BACKGROUND ON ADMINISTRATIVE CODE SECTION 2130 WHICH GOVERNS
03:25:23 SOFTWARE PROCUREMENTS AND OSHA'S ROLE IN THESE
03:25:27 PROCUREMENTS. >> NEXT SLIDE.
03:25:31 >> YEAH. SO AS YOU KNOW CHAPTER CHAPTER
03:25:34 21 OF THE ADMINISTRATIVE CODE GOVERNS THE PROCUREMENT OF
03:25:35 COMMODITIES AND SERVICES. SECTION 21.30 OF THE CODE
03:25:39 SPECIFICALLY COVERS TECHNOLOGY PROCUREMENT INCLUDING SOFTWARE
03:25:42 AND HARDWARE PURCHASING. >> IT DEFINES SOFTWARE
03:25:46 LICENSING PROCUREMENTS AS BOTH THE LICENSE SOFTWARE AS WELL AS
03:25:49 SUPPORT SERVICES FOR THE PRODUCT WHERE SUPPORT IS ONLY
03:25:53 AVAILABLE FROM THE LICENSOR. >> ONE CRITICAL PROVISION OF
03:25:56 THIS CODE ALLOWS EXEMPTIONS TO MUNICIPAL CODE REQUIREMENTS FOR
03:25:59 THESE PURCHASES. THIS DOES INCLUDE THE
03:26:00 COMPETITIVE SOLICITATION REQUIREMENTS UNDER CHAPTER 21
03:26:04 AS WELL AS OTHER CONTRACTING PROVISIONS OF THE
03:26:07 ADMINISTRATIVE LABOR AND EMPLOYMENT AND ENVIRONMENT
03:26:11 CODES. >> THIS CODE SECTION WAS
03:26:12 ESTABLISHED IN 1999 AND IT IS LARGELY UNCHANGED TODAY.
03:26:18 NEXT SLIDE. SO WHY DOES THIS CODE SECTION
03:26:19 ALLOW AN EXEMPTION FROM THE COMPETITIVE SOLICITATION OR
03:26:23 REQUIREMENTS FOR SOFTWARE PURCHASES?
03:26:26 MY UNDERSTANDING IS THAT WHEN THE SECTION WAS ADDED TO THE
03:26:29 CODE IT WAS A TIME WHEN SOFTWARE WAS GENERALLY
03:26:30 PURCHASED IN THE COMMERCIAL MARKETPLACE AS IS OUT OF THE
03:26:34 BOX AND AT A TIME WHEN THERE WERE VERY FEW BIDS FOR SOFTWARE
03:26:38 . OFTEN THERE IS NO BENEFIT TO
03:26:39 COMPETITION. >> IN THE CASE OF OUT OF THE
03:26:42 BOX TECHNOLOGY PRODUCTS MANY TIMES THEY ARE INDUSTRY
03:26:46 STANDARD TOOLS AT THE TIME THEY ARE PURCHASED.
03:26:50 >> THINK OF PRODUCTS LIKE AUTOCAD AND DOCUSIGN AND ADOBE
03:26:51 PDF. >> IN THESE CASES WE ALREADY
03:26:55 KNOW WHAT WE'RE GOING TO GET THERE TYPICALLY WELL KNOWN
03:26:58 PRODUCTS WITH KNOWN FUNCTIONALITY OUT OF THE BOX
03:27:01 AND COMPETITION DOESN'T REALLY REVEAL NEW INFORMATION ABOUT
03:27:02 THE PRODUCTS VALUE FUNCTIONALITY OR OPERATIONAL
03:27:05 IMPACT TO THE CITY. >> ALSO MANY TIMES THERE IS A
03:27:09 NEED TO HAVE PRODUCTS THAT ARE UNIFORMLY USED BY EVERYONE WE
03:27:13 INTERACT WITH SUCH AS THE PUBLIC CONTRACTORS
03:27:14 AND COMPANIES DOING BUSINESS IN THE CITY SEPARATELY.
03:27:17 >> SOMETIMES CITY LEADERS MAKE DECISIONS ABOUT WHEN
03:27:21 COMPETITION IS OR IS NOT IN THE BEST INTERESTS OF THE CITY
03:27:25 AND THEN ENACT LAWS TO REFLECT THIS.
03:27:29 IN THE CASE OF THIS SECTION OF CODE THE BOARD OF SUPERVISORS
03:27:32 DETERMINED OVER 25 YEARS AGO THAT EXEMPTING SOFTWARE
03:27:34 PURCHASES FROM COMPETITIVE BIDDING WAS APPROPRIATE AND IN
03:27:37 THE CITY'S BEST INTEREST. NEXT SLIDE.
03:27:41 NOW LET ME DISCUSS HOW 2130 IS APPLIED TODAY FOR SOFTWARE
03:27:45 PURCHASES. FIRST I WOULD LIKE TO NOTE THAT
03:27:48 2130 AS YOU KNOW IS NOT THE ONLY PATHWAY TO PROCURE
03:27:49 TECHNOLOGY. >> HOWEVER, WHEN DEPARTMENTS
03:27:53 DETERMINE ONLY ONE PRODUCT WILL MEET THEIR NEEDS AND THEY WISH
03:27:57 TO PURSUE A 2130 PURCHASE, THEY SUBMIT A JUSTIFICATION TO OCA.
03:28:00 THE OCA ADMINISTRATIVE PROCESS REQUIRES THE DEPARTMENTS TO
03:28:04 DESCRIBE THE PURPOSE OF THE SOFTWARE WHY IT IS THE ONLY
03:28:07 SOFTWARE THAT MEETS THE CITY'S NEEDS AS WELL AS VERIFICATION
03:28:11 THAT THE VENDOR IS THE SOLE PROVIDER OF THE PRODUCT.
03:28:14 THE EFFORTS THE DEPARTMENT UNDERTOOK TO OBTAIN THE BEST
03:28:16 PRICE AND IF PROFESSIONAL SERVICES ARE INVOLVED A LETTER
03:28:19 FROM THE SUPPLIER ATTESTING THE PROFESSIONAL SERVICES ARE
03:28:23 PROPRIETARY. NEXT SLIDE.
03:28:26 >> AS YOU KNOW NOW I'M GETTING INTO OSHA'S ROLE HERE.
03:28:30 SO AS YOU KNOW, OUR OVERALL ROLE IS TO ENSURE CITY
03:28:31 DEPARTMENTS COMPLY WITH THE LAW.
03:28:34 >> THE BOARD HAS IMPLEMENTED IN THE CASE OF SOFTWARE
03:28:37 PURCHASING UNDER SECTION 2130 THE CODE DOES NOT ACTUALLY GIVE
03:28:41 OCA AUTHORITY TO EVALUATE WHY A DEPARTMENT HAS CHOSEN A
03:28:45 SPECIFIC TECHNOLOGY PRODUCT. >> STILL WE HAVE IMPLEMENTED
03:28:49 PRACTICES THAT HELP DETERMINE THAT CITY DEPARTMENTS ARE
03:28:53 FOLLOWING THE LAW AND PRACTICES THAT HELP ENSURE THE CITY IS
03:28:57 MAKING THOUGHTFUL, RESPONSIBLE CALCULATIONS ABOUT THE BENEFITS
03:29:00 AND RISKS OF A PARTICULAR SOFTWARE PRODUCT.
03:29:03 FOR THESE PURCHASES WE DETERMINE SOLELY WHETHER THE
03:29:07 SOFTWARE PURCHASE FALLS WITHIN THE PURVIEW OF 2130 AND WHETHER
03:29:10 THE DEPARTMENT HAS CONDUCTED DUE DILIGENCE TO DECIDE WHICH
03:29:14 PRODUCT BEST MEETS ITS BUSINESS NEEDS.
03:29:17 >> SO IN CLOSING I WOULD LIKE TO NOTE THAT WITH RESPECT TO
03:29:18 THE OPEN PROCUREMENT OCA DID DETERMINE THAT PERMIT US HAVE
03:29:21 MET THESE CRITERIA AND COMPLIED WITH THE LAW.
03:29:25 >> PERMIT US HAVE PERFORMED DUE DILIGENCE AND MADE THIS
03:29:28 PURCHASE UNDER 2130 CORRECTLY. THANK YOU.
03:29:32 >> I'M HAPPY TO TAKE QUESTIONS. THANK YOU SO MUCH.
03:29:36 MY FIRST QUESTION IS THANK YOU FOR THE PRESENTATION.
03:29:40 >> THE MAYOR'S OFFICE RECEIVED A WAIVER FROM THE COMPETITIVE
03:29:44 BIDDING REQUIREMENTS PURSUANT TO SECTION 2130 OF THE CITY'S
03:29:47 ADMINISTRATIVE CODE WHICH ALLOWS WAIVERS FROM COMPETITIVE
03:29:51 BIDDING FOR SOFTWARE LICENSING PROCUREMENTS WHEN THE
03:29:55 DELIVERABLES ARE AVAILABLE FROM ONLY ONE LICENSOR.
03:29:58 >> ACCORDING TO PUBLIC RECORDS NED SEGAL THE POLICY CHIEF,
03:30:02 INTERNALLY ANNOUNCED THE SELECTION OF OPEN GOV ON AUGUST
03:30:06 14TH, 2025 ALMOST THREE WEEKS LATER ON SEPTEMBER 2ND FOUR
03:30:10 AND SIMON HEAD OF THE MAYOR'S OFFICE OF INNOVATION, REQUESTED
03:30:14 A SECTION 2130 WAIVER FROM THE OFFICE OF CONTRACT
03:30:17 ADMINISTRATION. >> IS IT TYPICAL FOR A
03:30:20 DEPARTMENT TO SELECT A VENDOR THROUGH AN REQUEST FOR
03:30:23 INFORMATION BUT NO COMPETITIVE BIDDING PROCESS AND THEN BE
03:30:27 GRANTED A SECTION 2130 WAIVER? >> 21 30 AS YOU KNOW, DOES NOT
03:30:33 REQUIRE A COMPETITIVE SOLICITATION AND DEPARTMENTS
03:30:37 OFTEN DO DO THEIR DUE DILIGENCE AS I'VE MENTIONED WHETHER IT'S
03:30:41 THROUGH AN RFP PROCESS OR SOME OTHER MARKET RESEARCH AND THEY
03:30:44 CAN COME TO US AGAIN FOR A 2130 A PROCUREMENT.
03:30:51 YOU KNOW ONCE THEY'VE DETERMINED WHAT THE PRODUCT IS
03:30:52 THAT THEY THAT MEETS THEIR NEEDS.
03:30:55 >> THANK YOU. HOW DID OCA DETERMINE THAT THE
03:30:59 AHMED CODE 2130 WAIVER SHOULD BE APPROVED FOR OPEN GOV AND ON
03:31:03 WHAT BASIS? >> AS I MENTIONED WE ARE
03:31:04 LOOKING AT A FEW KEY THINGS MAINLY THAT THE THAT THE
03:31:08 PURCHASE FALLS WITHIN THE WITHIN THE LAW WITHIN 2130
03:31:14 REQUIREMENTS BUT IT IS A PIECE OF SOFTWARE THAT IT'S
03:31:18 PROPRIETARY AND IF THERE ARE SERVICES AND ITS PROPRIETARY.
03:31:21 >> ADDITIONALLY WE ARE LOOKING AGAIN WE'VE IMPLEMENTED SOME
03:31:23 ADDITIONAL PRACTICES TO JUST ENSURE THAT DEPARTMENTS ARE
03:31:27 DOING DUE DILIGENCE. SO WE LOOKED AT THOSE THINGS
03:31:30 FOR THE OPENED UP PROCUREMENT AND DETERMINED THAT IT MET
03:31:33 THOSE CRITERIA. >> THANK YOU.
03:31:34 ON SEPTEMBER 2ND FOREIGN SIMON REQUESTED A SECTION 2130 WAIVER
03:31:40 FROM THE OFFICE OF CONTRACT ADMINISTRATION.
03:31:43 ON THE MORNING OF SEPTEMBER 5TH SIMON EMAILED OCR ASKING FOR AN
03:31:48 UPDATE ON THE STATUS OF THE OPEN GO WAIVER.
03:31:49 OKAY. DEPUTY DIRECTOR LORNA WALKER
03:31:52 RESPONDED A FEW HOURS LATER APPROVING THE WAIVER.
03:31:55 IS IT TYPICAL FOR A 2130 WAIVER TO BE REVIEWED IN THREE
03:31:59 BUSINESS DAYS? >> YES, I WOULD SAY IT'S FAIRLY
03:32:00 TYPICAL. WE GET A LARGE VOLUME OF WAIVER
03:32:03 REQUESTS AND SO WE TRY TO REVIEW THEM PROMPTLY.
03:32:07 WE KNOW WHAT THE DEPARTMENTS ARE TRYING TO RUN THEIR
03:32:10 OPERATIONS. >> THANK YOU.
03:32:11 SO DID OCR FEEL UNDER ANY PRESSURE TO APPROVE THIS WAIVER
03:32:18 ? >> NO.
03:32:19 OKAY. HIS JOB IS TO UPHOLD THE LAW.
03:32:22 WE TREAT EVERY DEPARTMENT EQUIVALENTLY AND SET THE SAME
03:32:26 STANDARDS WHEN WE ARE REVIEWING AND APPROVING PROCUREMENTS.
03:32:27 >> OKAY. >> WHAT WOULD HAVE HAPPENED IF
03:32:31 OCA DIDN'T APPROVE THE WAIVER? THE DEPARTMENT WOULD HAVE
03:32:34 EITHER HAD TO FIND SOME OTHER SECTION OF THE CODE THAT
03:32:38 AUTHORIZED THEM TO BYPASS SOLICITATION THROUGH OCR WITH
03:32:42 AN OCR APPROVAL OR THEY WOULD HAVE HAD TO COMPETITIVELY BID
03:32:45 FOR THIS SOLUTION. >> GOT IT.
03:32:46 THANK YOU. >> YOU MENTIONED THAT THE
03:32:50 SOFTWARE PURCHASING PROVISIONS WERE ESTABLISHED IN 19 99.
03:32:54 >> OBVIOUSLY TIMES AND TECHNOLOGY HAVE CHANGED.
03:32:57 ARE THESE PROPRIETARY TECHNOLOGY WAIVERS STILL USEFUL
03:33:01 AND NECESSARY TODAY? >> YES, I WOULD SAY SO.
03:33:04 I THINK I MENTIONED TO YOU THERE ARE SOME INSTANCES WHERE
03:33:07 COMPETITION ACTUALLY MAY NOT MAKE SENSE.
03:33:08 I MAY NOT BE IN THE BEST INTEREST OF THE CITY
03:33:12 PARTICULARLY WHEN THERE ARE KNOWN PRODUCTS OR INDUSTRY
03:33:16 STANDARDS TOWARD SOME PROJECT PRODUCTS.
03:33:17 >> SO I WILL SAY WE DID TAKE A LOOK AT BEST PRACTICES IN TERMS
03:33:20 OF TECHNOLOGY PROCUREMENT. IN PARTICULAR WE LOOKED AT.
03:33:25 WE ALSO LOOKED AT WHAT THE STATE AND FEDERAL GOVERNMENTS
03:33:28 DO AND I DO THINK THEY AND SORRY THEY DO ACTUALLY
03:33:29 IDENTIFY A PARTICULAR TYPE OF SOFTWARE PRODUCT.
03:33:32 IT'S CALLED A COMMERCIAL OFF OFF THE SHELF PRODUCT SOFTWARE
03:33:36 WHERE ESSENTIALLY IT IS USED OUT OF THE BOX AS IS IT'S
03:33:40 DELIVERED AND USED AS ANY OTHER CUSTOMER RECEIVES IT WITHOUT
03:33:44 MODIFICATION OR CUSTOMIZATION AND I THINK IN THOSE CASES IT
03:33:48 WOULD BE HELPFUL PERHAPS TO FURTHER REFINE AND CLARIFY THAT
03:33:54 THE 2130 PURCHASES COULD BE LIMITED TO THOSE TYPES OF
03:33:58 PURCHASES. >> THANK YOU.
03:33:58 BASED ON YOUR EXPERIENCE AND EXPERTISE, WHAT WOULD YOU
03:34:02 CHANGE ABOUT 20 130 TECHNOLOGY WAIVERS TO ENSURE THAT THEY'RE
03:34:05 NOT BEING USED TO SKIRT BEST PRACTICES WHEN IT COMES TO
03:34:09 COMPETITIVE BIDDING FOR WHEN THOSE MAKE WHEN THOSE PROCESSES
03:34:12 MAKE SENSE? AS I MENTIONED, OCR ACTUALLY
03:34:16 CURRENTLY DOES NOT HAVE ANY FORMAL ROLE IN THE 2130
03:34:20 PURCHASING PROCESS. WE HAVE IMPLEMENTED SOME
03:34:23 PRACTICES THAT THAT ALLOW US TO TAKE A LOOK AT THEM AND ENSURE
03:34:27 DEPARTMENTS ARE YOU KNOW, DOING DUE DILIGENCE.
03:34:29 >> I WOULD RECOMMEND THAT WE ACTUALLY THAT OCR ACTUALLY
03:34:34 OBTAINS A FORMAL ROLE THROUGH THE CODE IN REVIEWING THESE
03:34:38 PROCUREMENTS. >> THANK YOU.
03:34:42 THANK YOU TO THE OFFICE OF CONTRACTING MINISTRATION
03:34:45 AND THE CITY ADMINISTRATOR'S OFFICE FOR WORKING WITH MY
03:34:47 OFFICE TO CONSIDER POLICY AMENDMENTS THAT COULD
03:34:52 STRENGTHEN THE 2130 TECHNOLOGY WAIVERS.
03:34:53 I LOOK FORWARD TO BRINGING AMENDMENTS TO THE BOARD OF
03:34:57 SUPERVISORS LATER THIS MONTH. >> COLLEAGUES, ANY QUESTIONS
03:35:00 FOR THE CITY PURCHASER? >> I THINK I MIGHT WRAP UP IF
03:35:04 IT'S OKAY ON THE PROCUREMENT PORTION OF THESE ITEMS I WANT
03:35:08 TO THANK SUPERVISOR FIELDER FOR HER LEADERSHIP IN BRINGING
03:35:10 SCRUTINY TO THIS CONTRACT AND HOW IT WAS AWARDED.
03:35:13 I ALSO WANT TO ACKNOWLEDGE THAT THERE SEEMS TO BE BROAD
03:35:17 AGREEMENT ON THE UNDERLYING GOALS OF PERMIT S.F. SAN
03:35:21 FRANCISCO'S PERMITTING SYSTEM HAS NEEDED FUNDAMENTAL REFORM
03:35:25 FOR A LONG TIME. IT'S TOO SLOW, TOO COMPLICATED
03:35:28 AND TOO DIFFICULT FOR RESIDENTS AND BUSINESSES TO NAVIGATE
03:35:30 AND I THINK WE ALL HEAR THESE FRUSTRATIONS FROM OUR
03:35:32 CONSTITUENTS. >> THE GOAL OF PERMIT S.F. IS
03:35:36 TO MODERNIZE THAT SYSTEM AND I THINK WE AGREE THAT IT'S
03:35:40 IMPORTANT AND WIDELY SUPPORTED. I ALSO THINK WE NEED TO
03:35:43 ACKNOWLEDGE THAT OUR CONTRACTING AND PROCUREMENT
03:35:44 RULES THEMSELVES ARE OVERDUE FOR REFORM.
03:35:46 MANY OF THESE REQUIREMENTS WERE WRITTEN FOR A DIFFERENT ERA
03:35:50 AND OUR CODE IS RIDDLED WITH OUT OUTDATED AND UNNECESSARILY
03:35:55 BURDENSOME REQUIREMENTS THAT CAN ADD SIGNIFICANT TIME
03:35:58 AND COST WITHOUT ALWAYS PRODUCING BETTER OUTCOMES.
03:35:59 AS SOMEBODY WHO'S BEEN IN THIS BUILDING FOR A LONG TIME, I
03:36:03 HAVE A LOT OF AXES TO GRIND ABOUT THINGS THAT ARE
03:36:04 INEFFICIENT AND OUTDATED. >> AS WE HEARD SECTION 21.30
03:36:09 HAS REMAINED LARGELY UNCHANGED SINCE THE SOFTWARE PURCHASING
03:36:13 PROVISIONS WERE FIRST ESTABLISHED IN 1999.
03:36:17 BUT UNTIL WE REFORM THE RULES, WE HAVE A PROCESS THAT WE HAVE
03:36:21 TO END WHEN THE CITY CHOOSES TO DEPART FROM THE NORMAL PROCESS
03:36:25 PARTICULARLY FOR A NEW MULTIMILLION DOLLAR CONTRACT.
03:36:29 WE NEED TO HAVE FULL CONFIDENCE THAT THE ALTERNATIVE PROCESS IS
03:36:32 TRANSPARENT AND FAIR AND THAT IT PROTECTS TAXPAYERS.
03:36:36 >> THE BLA FOUND NO EVIDENCE OF IMPROPRIETY OR NO VIOLATION OF
03:36:40 CITY REQUIREMENTS AND I THINK IT'S IMPORTANT TO STATE THAT
03:36:42 CLEARLY. BUT IT ALSO FOUND THAT THE
03:36:45 PROCUREMENT DID NOT FOLLOW TYPICAL CITY PRACTICES OR
03:36:48 PROCUREMENT BEST PRACTICES INCLUDING STANDARDIZED
03:36:52 EVALUATION CRITERIA CRITERIA AND COMPARABLE COST PROPOSALS
03:36:55 FROM FINALISTS. SO I AGAIN WANT TO THANK
03:36:56 SUPERVISOR FIELDER FOR BRINGING SCRUTINY TO THIS CONTRACT
03:37:00 GENERALLY AND ITS PROCUREMENT SPECIFICALLY WHICH I THINK
03:37:03 BEGINS AN OVERSIGHT PROCESS WE WILL HOPEFULLY CONTINUE TO
03:37:04 REVISIT IN MONTHS AND YEARS TO COME.
03:37:07 ULTIMATELY IF THE RULES ARE OUTDATED WE SHOULD MODERNIZE
03:37:11 THEM. BUT UNTIL WE DO WE NEED TO MAKE
03:37:12 SURE THAT ANY DEVIATION FROM OUR STANDARD COMPETITIVE
03:37:15 PROCESS IS UNDERTAKEN WITH A HIGH DEGREE OF CONFIDENCE WITH
03:37:18 BOARD SCRUTINY AND THAT IT DELIVERS REAL VALUE FOR THE
03:37:20 CITY AND ITS TAXPAYERS. AND WITH THAT I THINK WE MOVE
03:37:23 ON TO THE NEXT PORTION OF THIS .
03:37:29 >> SUPERVISOR SURE. THANK YOU.
03:37:32 >> SUPERVISOR DORSEY BY THE NEXT PORTION I'M ASSUMING YOU
03:37:36 WERE TALKING ABOUT THE THE RENEWED CONTRACT ITSELF CORRECT
03:37:39 ? AND I WANT TO MAKE A COUPLE
03:37:40 REMARKS AND THEN I'LL OPEN IT UP TO PLANNING TO PRESENT ON
03:37:44 THAT. >> YOU KNOW THIS RENEWED
03:37:48 CONTRACT HAS RECEIVED QUITE A BIT OF ATTENTION.
03:37:52 SOMETIMES CONTRACTS RECEIVE ATTENTION WHEN THE CONTRACTOR
03:37:55 DELIVERS A SERVICE POORLY. IN THIS CASE THE OPPOSITE IS
03:37:59 TRUE. CUSTOMERS OF THE PERMIT CENTER
03:38:00 WHO'VE USED THE OPEN GOV SYSTEM REPORT SIGNIFICANT TIME SAVINGS
03:38:04 ACCESSIBILITY IMPROVEMENTS, EQUITY ACCESS IMPROVEMENTS
03:38:07 AND MORE. >> SOMETIMES CONTRACTS RECEIVE
03:38:10 ATTENTION WHEN THE CITY IS PAYING ABOVE THE FAIR MARKET
03:38:13 RATE. AS WE JUST HEARD A 2023
03:38:14 INDEPENDENT MARKET STUDY BY GARTNER PUTS OUR COSTS DIRECTLY
03:38:18 IN LINE OR SLIGHTLY BELOW THE AVERAGE OF SIMILAR SOFTWARE.
03:38:22 >> THE REASON THIS CONTRACT IS RECEIVING ATTENTION IS BECAUSE
03:38:26 IT'S DIFFERENT. THE PROCUREMENT WAS DIFFERENT,
03:38:29 THE CONTRACT IS DIFFERENT. THE SPEED OF PROCUREMENT
03:38:32 AND IMPLEMENTATION IS DIFFERENT AND BY DIFFERENT I MEAN FASTER
03:38:34 DIFFERENT IS HARD BUT SOMETIMES DIFFERENT IS NECESSARY CHANGE
03:38:40 IS NECESSARY. HAVE WE HAD A PERMITTING SYSTEM
03:38:41 THAT IS GOOD AND FACILITATES THE CONSTRUCTION OF HOUSING?
03:38:45 >> NO. WE HAVE PERMITTING TIMELINES
03:38:48 THAT ARE WAY TOO LONG AND BLOCK THE CONSTRUCTION OF HOUSING.
03:38:51 >> DO WE HAVE CONTRACTING RULES THAT RESULT IN BEST IN CLASS
03:38:53 SOFTWARE DELIVERED QUICKLY AND ON BUDGET?
03:38:56 NO. WE HAVE CONTRACTING RULES THAT
03:39:00 ARE SO BAD THAT PROCUREMENT REFORM IS ON THE BALLOT
03:39:01 IN NOVEMBER. OUR CURRENT PROCESSES GOT US
03:39:05 SOFTWARE LIKE JUSTICE WHICH WAS OVER TWO DECADES DELAYED
03:39:08 AND TENS IF NOT HUNDREDS OF MILLIONS OF DOLLARS OVER
03:39:11 BUDGET. YOU SIMPLY CANNOT SAY THAT THE
03:39:12 CITY IS GREAT AT PROCURING SOFTWARE.
03:39:15 THE INITIATIVE AND THE INITIAL VENDOR SELECTION PROCESS AS YOU
03:39:19 ALL JUST HEARD WAS FOCUSED AROUND GETTING THE BEST
03:39:23 SOLUTIONS TO SERVE SAN FRANCISCANS.
03:39:24 50 DIFFERENT COMPANIES RESPONDED TO AN RFP.
03:39:27 OVER 70 CITY EMPLOYEES WERE ABLE TO WEIGH IN AND THE ENTIRE
03:39:30 PROCESS WENT FASTER THAN OUR NORMAL PROCESSES GO.
03:39:33 HAVING RUN A SOFTWARE COMPANY I HAVE FIRSTHAND EXPERIENCE
03:39:38 IN THIS. THE PERMIT S.F. TEAM SHARED A
03:39:41 VISION OF SUCCESS WITH THE INDUSTRY AND FOUND THE BEST
03:39:43 SOLUTION TO ACHIEVE THAT. >> IN MY EXPERIENCE WHEN
03:39:45 CUSTOMERS CAME FORWARD WITH EXTENSIVE DETAILED ONEROUS
03:39:49 REQUIREMENTS UP FRONT THEY ALWAYS GOT THE WORST OUTCOMES.
03:39:53 >> WHEN CUSTOMERS CAME WITH A VISION OF SUCCESS AND WERE
03:39:57 WILLING TO DO THE CHANGE MANAGEMENT NECESSARY TO GET
03:40:01 THERE, THOSE CUSTOMERS GOT THE BEST OUTCOMES.
03:40:02 >> NOW FOR THIS UPDATED CONTRACT WE'RE DISCUSSING TODAY
03:40:05 THE BUDGET AND LEGISLATIVE ANALYST HIGHLIGHTED VERY WELL
03:40:08 SOME CHALLENGING ITEMS THE MAYOR'S OFFICE AND PLANNING
03:40:12 STAFF HAVE ADDRESSED DIRECTLY. SPECIFICALLY THE NEW INCLUSION
03:40:16 OF AN ANNUAL TERMINATION FOR CONVENIENCE CLAUSE THAT ENSURES
03:40:20 THAT THE CITY CAN CANCEL THIS CONTRACT AFTER EVEN JUST A
03:40:21 SINGLE YEAR OF ITS FIVE YEAR TERM.
03:40:24 BY ADDRESSING THESE CORE ITEMS WE ARE LEFT WITH A RELATIVELY
03:40:28 SIMPLE QUESTION ARE WE OKAY WITH DIFFERENT?
03:40:32 OR WILL WE CONTINUE TO ACCEPT SUBSIDY STANDARD RESULTS?
03:40:36 THERE'S A DIRECT COROLLARY BETWEEN PERMITTING TIMELINES
03:40:39 AND ECONOMIC GROWTH THE BUILDING OF NEW HOUSING
03:40:41 AND ESPECIALLY THE FEASIBILITY OF AFFORDABLE HOUSING TO
03:40:44 ADDRESS OUR AFFORDABILITY CRISIS.
03:40:45 WE NEED SOLUTIONS ON ALL FRONTS AND SPEEDING UP PERMITTING THE
03:40:48 STATE OF THE ART SOFTWARE IS ONE OF THEM.
03:40:51 AND THIS SOFTWARE SYSTEM IS WORKING.
03:40:54 THE PERMIT S.F. TEAM WILL GO INTO DETAILS ABOUT CURRENT
03:40:59 SUCCESS CONTRACT ELEMENTS IN THE PROCESS GOING FORWARD.
03:41:00 BUT AT ITS HEART THIS DISCUSSION IS ABOUT WHETHER WE
03:41:03 THINK IT IS MORE IMPORTANT TO BE COMFORTABLE IN THE STATUS
03:41:06 QUO OR TO CHALLENGE OURSELVES TO DO BETTER.
03:41:09 SAN FRANCISCO IS UNIQUELY GOOD AT FINDING REASONS WHY A GOOD
03:41:13 SOLUTION ISN'T PERFECT AND WE ARE PERHAPS UNIQUELY BAD AT
03:41:17 IMPLEMENTING ANY SOLUTION AT ALL.
03:41:18 >> TODAY I HOPE WE CHOOSE SOLUTIONS.
03:41:21 COLLEAGUES I LOOK FORWARD TO THIS DISCUSSION AND HOPE YOU
03:41:24 HAVE YOUR SUPPORT IN MOVING THIS CONTRACT FORWARD.
03:41:26 THAT I'LL TURN IT OVER TO THE PLANNING DEPARTMENT.
03:41:42 >> ALL RIGHT. THANKS AGAIN, SUPERVISORS CHAIR
03:41:46 DORSEY LET'S STEP BACK IN WHERE I LEFT OFF.
03:41:47 >> I'M GOING TO GIVE A QUICK OVERVIEW OF HOW THE FIRST YEAR
03:41:53 HOW THE FIRST YEAR HAS GONE AND DETAILS FOR THE PHASE TWO
03:41:54 CONTRACT THAT'S BEFORE YOU TODAY.
03:41:56 >> PHASE ONE DELIVERED MEANINGFUL CHANGE QUICKLY
03:42:00 SETTING THE FOUNDATION FOR FASTER SIMPLER AND MORE
03:42:03 TRANSPARENT PERMITTING. OUR DECISION TO IMPLEMENT THIS
03:42:05 NEW PERMITTING SOFTWARE IN PHASES WHILE MAINTAINING OUR
03:42:07 LEGACY SYSTEMS FOR UNCHANGED PERMIT TYPES THAT AREN'T YET
03:42:10 LIVE WAS A DELIBERATE AND RESPONSIBLE BEST PRACTICE
03:42:14 APPROACH. THIS METHOD PRIORITIZES
03:42:15 CONTINUITY OF SERVICE OPERATIONAL STABILITY
03:42:19 AND ALLOWS US TO INCORPORATE CONTINUOUS LEARNING
03:42:22 AND ITERATION WHILE AVOIDING THE SYSTEMIC FAILURES SEEN
03:42:25 IN BIG BANG TECHNOLOGY IMPLEMENTATIONS.
03:42:26 >> WE'VE LAUNCHED ONLINE PERMITS FOR DOORS AND WINDOWS
03:42:30 CITING REROOFING FIRE ALARMS, FIRE SPRINKLERS, SIGNS,
03:42:37 AWNINGS, WATER FLOW AND ARE IN BETA LAUNCH FOR ELECTRICAL
03:42:41 AND PLUMBING PURPOSE WHICH IS ALSO BETA PART IS A PART OF IS
03:42:45 AN EXAMPLE OF OUR LEARNINGS FROM THIS PAST YEAR DOING A
03:42:47 PHASED ALPHA BETA AND GENERAL LAUNCH WHICH WAS NOT HOW WE
03:42:50 INITIALLY KICKED OFF THE PROJECT ON THE 14TH IN LESS
03:42:55 THAN TWO WEEKS. WE WILL FULLY LAUNCH ELECTRICAL
03:42:56 AND PLUMBING PERMITS TO ALL CUSTOMERS ALONG WITH KITCHEN
03:43:00 AND BATHROOM REMODELS AND SOLAR PERMITS.
03:43:03 WITH THAT IT WILL WRAP OUR FIRST YEAR CONTRACT AND COVERS
03:43:08 89% OF ALL BUILDING PERMITS. BEING AN OPEN GOLF ALTHOUGH THE
03:43:12 CODE REVIEWS FOR THOSE 89% ARE FAIRLY SIMPLE THEY ARE
03:43:15 TECHNICALLY FAIRLY SIMPLE PLAN REVIEWS.
03:43:18 >> TACKLING THE VOLUME IS THE BEST WAY TO PRESSURE TEST THE
03:43:22 SYSTEM WE'RE BUILDING AND QUICKLY IMPACT PERMITS THAT
03:43:26 RESIDENTS MOST FREQUENTLY TOUCH.
03:43:27 WE'VE LEARNED A LOT OVER THIS FIRST YEAR AND HAVE BUILT
03:43:31 INTERNAL COMPETENCY TO BUILD SOME SIMPLE PERMITS OURSELVES
03:43:34 AS EVIDENCED IN OUR PLAN TO LAUNCH FIRE OPERATIONAL PERMITS
03:43:38 ,TEMPORARY USES, REC PARK AND PORT SPECIAL EVENT PERMITS
03:43:42 AND POLICE SPECIAL EVENT PERMITS LATER THIS YEAR.
03:43:49 >> WHAT'S CRITICAL TO NOTE ABOUT THIS FIRST YEAR IS THAT
03:43:50 IN ADDITION TO MIGRATING A LARGE VOLUME OF THE CITY'S
03:43:53 PERMITS INTO THE NEW SYSTEM, WE'VE ALSO TACKLED SOME OF THE
03:43:56 CRITICAL BACKEND INTEGRATIONS DATA SOLUTIONS AND WORKFLOW
03:44:00 AUTOMATIONS. >> THESE WERE SOME OF OUR
03:44:01 BIGGEST CHALLENGES FROM THE FIRST YEAR AS THEY REQUIRED
03:44:04 GAINING STANDARDIZATION AND POLICY ALIGNMENT ACROSS
03:44:07 AGENCIES. ON THINGS THAT HAVE
03:44:08 HISTORICALLY BEEN DONE DIFFERENTLY WITH DECISIONS MADE
03:44:11 IN DEPARTMENTAL SILOS WE'RE STILL WORKING ON THEM BUT A LOT
03:44:14 HAS BEEN ACCOMPLISHED IN THIS FIRST YEAR.
03:44:16 WE WILL BENEFIT FROM THESE DECISIONS BEING DONE AS WE
03:44:19 SCALE INTO MORE COMPLEX PERMITS AND FEES TO.
03:44:22 >> SIMILARLY WE'RE INVESTING IN PERMITTING SOFTWARE THAT
03:44:26 ENABLES CUSTOMERS TO SEEK AS MANY PERMITS AS THEY NEED
03:44:29 IN ONE SITTING. ANY TIME OF DAY AND FROM
03:44:30 ANYWHERE WE'RE BUILDING IN LOGIC THAT CAN BE
03:44:33 CONSISTENTLY AND EQUITABLY APPLIED TO ALL CUSTOMERS NOT
03:44:36 JUST THOSE WHO HAVE RELATIONSHIPS OR WHO HAVE SPENT
03:44:39 YEARS FIGURING OUT HOW TO NAVIGATE THE SYSTEM.
03:44:41 >> WE'RE BUILDING IN CLEAR GATING REQUIREMENTS
03:44:44 AND DEPENDENCIES TO ENSURE ALL RULES ARE FOLLOWED.
03:44:47 THE NEW SYSTEM WILL HOLD A COMPLETE PICTURE OF A
03:44:51 CUSTOMER'S PERMITTING JOURNEY DOCUMENTING EVERY CHANGE,
03:44:53 CAPTURING EVERY DOCUMENT, TRACKING ALL COMMUNICATIONS
03:44:56 WITH STAFF AND MEMORIALIZING ALL DECISIONS WITH A ROBUST
03:45:00 AUDIT TRAIL. SOMETHING I KNOW THAT OFTEN
03:45:01 COMES UP AT THE BIG COMMISSION. >> IT PROVIDES CONTEMPORARY
03:45:06 AND SIMPLE USER INTERFACE FOR BOTH CUSTOMERS AND STAFF ALLOWS
03:45:08 FOR RAPID UPDATES TO ENSURE THAT CHANGING POLICIES ARE
03:45:11 REFLECTED WHEN THEY BECOME LAW AND PROVIDES BETTER ANALYTICS
03:45:15 TO DRIVE PERFORMANCE MANAGEMENT AND ADVISE ON FUTURE REFORMS.
03:45:18 ALL OF THIS LEADS TO FASTER AND EASIER PERMITTING WHICH
03:45:23 TRANSLATES TO MORE HOUSING, MORE BUSINESS OPENINGS
03:45:26 AND IMPROVED ECONOMIC ACTIVITY FOR THE CITY.
03:45:30 >> SINCE OUR FEBRUARY LAUNCH WE'VE ISSUED OVER 300 PERMITS
03:45:37 AND COMPLETED OVER 2600 INSPECTIONS SHOWING MOST SIMPLY
03:45:40 THAT THE SYSTEM WORKS BY THE END OF SEPTEMBER 80TH 9% OF
03:45:44 DEVICE PERMIT VOLUME WILL BE ON THE NEW SYSTEM 27% OF PORTAL
03:45:48 APPLICATIONS NOW ARRIVE OUTSIDE OF BUSINESS HOURS.
03:45:52 THAT MEANS CUSTOMERS NO LONGER NEED TO TAKE TIME OUT OF THEIR
03:45:55 DAY TO COME DOWN TO THE TO THE PERMITS ON OUR BETWEEN 9 AND 5.
03:45:59 >> WE'VE SEEN 70 2% YEAR OVER YEAR GROWTH IN DOOR SIDING
03:46:02 AND WINDOW PERMITS AND 42% YEAR OVER YEAR GROWTH IN FIRE ALARM
03:46:05 AND SPRINKLER PERMITS. >> ALTHOUGH IT'S TOO EARLY TO
03:46:09 ENTIRELY KNOW WHY WE'RE SEEING SUCH AN INCREASE IN PERMIT
03:46:12 VOLUME BUT IN ADDITION TO THE ADDED CONVENIENCE FACTOR, WE
03:46:16 HAVE HEARD ANECDOTALLY FROM OUR EQUITY COMMUNITIES THAT THE NEW
03:46:20 PLATFORM HAS REMOVED THE INTIMIDATION BARRIERS AND THE
03:46:21 LANGUAGE BARRIERS THAT PREVIOUSLY PREVENTED FOLKS FROM
03:46:25 SEEKING PERMITS. >> WE LAUNCHED INITIAL PERMITS
03:46:28 IN THE NEW PORTAL IN ABOUT FOUR MONTHS REFLECTING AN INTENSE
03:46:31 YEAR OF WORK AND RAPID ITERATION.
03:46:34 FOUR MONTHS WAS A VERY AMBITIOUS TIMELINE THAT MANY
03:46:35 PEOPLE TOLD US WAS IMPOSSIBLE TO DO.
03:46:39 I HEARD THAT WORD MANY TIMES IMPOSSIBLE.
03:46:42 WE DID THE IMPOSSIBLE. NOT WITHOUT ANY HICCUPS, NOT
03:46:43 WITHOUT MANY, MANY LESSONS LEARNED, MANY OF WHICH I'VE
03:46:47 SHARED WITH YOU TODAY. >> BUT WE DID SOMETHING THAT
03:46:51 HAD NEVER BEEN SUCCESSFULLY DONE BEFORE AND THAT LEGACY OF
03:46:55 PREVIOUS FAILED IMPLEMENTATIONS IS NOT AN INSIGNIFICANT PART OF
03:46:58 OUR CHALLENGES WITH CHANGE MANAGEMENT THAT WE'VE HAD TO
03:47:00 NAVIGATE OVER THIS PAST YEAR. >> WE FIND IT GENERALLY TAKES 6
03:47:03 TO 9 MONTHS TO ADOPT A CHANGED SYSTEM WHETHER THAT'S A NEW WAY
03:47:07 OF PERMITTING OR A NEW LAND USE PROCESS.
03:47:10 SO WHILE WE ARE CONFIDENT THAT WE WILL HAVE EVEN BETTER
03:47:12 RESULTS OVER THE LONG TERM HAVING THESE SHORT TERM
03:47:14 SUCCESSES INSIDE THAT CHANGE WINDOW IS A REAL ACCOMPLISHMENT
03:47:18 FOR THE CITY. >> THESE TWO SKILLS PERMIT S.F.
03:47:22 ACROSS MORE DEPARTMENTS TO COVER ALL PERMITTING
03:47:25 DEPARTMENTS WITH A CONTRACT STRUCTURE THAT TIES PAYMENTS TO
03:47:26 DEFINED DELIVERABLES. A RECENT CHANGE FROM THE
03:47:30 ORIGINAL ORIGINAL VERSION OF THE CONTRACT.
03:47:36 IT'S IMPORTANT TO NOTE THAT WE HAVE A GREAT BENCHMARK FOR WHAT
03:47:39 IS REASONABLE TO EXPECT WHEN UNDERTAKING THIS MODERNIZATION
03:47:42 PROJECT AND AS I MENTIONED IN THE LAST ITEM IN 2023 THE
03:47:46 CITY WORKED WITH GARTNER TO UNDERTAKE AN INDEPENDENT MARKET
03:47:49 SCAN AND THE CONTRACT AMOUNT THAT WE ARE SEEKING IN PHASE
03:47:53 TWO IS VERY MUCH IN LINE WITH THAT.
03:47:54 THE GARTNER REPORT OFFERS A ROBUST INDEPENDENT BENCHMARK
03:47:57 FOR BOTH LICENSE AND PROFESSIONAL SERVICE COSTS
03:47:59 SUPPORTING THE VALIDITY AND VALUE OF OUR PROPOSED
03:48:03 CONTRACT AMENDMENT. >> IN THIS FIRST YEAR OUR
03:48:06 LICENSE COSTS COVERED FEWER AGENCIES AT $4 MILLION
03:48:10 AND PROFESSIONAL SERVICES CAME IN AT 1.9.
03:48:14 THE PROPOSED FIVE YEAR LICENSE SCALED TO COVER 12 DEPARTMENTS
03:48:19 AT 24 MILLION WITH 6.5 AND PROFESSIONAL SERVICES.
03:48:22 >> THERE'S A 1.85 MILLION FOR AN OPTIONAL MODULE THAT WE
03:48:26 ANTICIPATE WILL BE CRITICAL FOR PUBLIC WORKS AND OTHER AGENCIES
03:48:29 THAT PERMIT AGAINST CITY ASSETS WHICH IS SOMETHING I'M HAPPY TO
03:48:33 COME BACK TO AND TALK ABOUT WHY WE THINK THAT'S INCREDIBLY
03:48:36 IMPORTANT AND SORT OF A GAME CHANGER FOR PERMITTING IN THAT
03:48:39 SPACE AS WELL AS THE STANDARD $600,000 CONTINGENCY.
03:48:43 ALL IN TOTAL FOR 38 MILLION ACROSS ALL YEARS INCLUSIVE OF
03:48:44 THIS PAST YEAR THAT WE'RE WRAPPING UP.
03:48:48 >> WE'VE UPDATED THE AMENDMENT TO TIE PAYMENTS TO PREDEFINED
03:48:52 DELIVERABLES AND AT THE RECOMMENDATION OF THE COMMITTEE
03:48:56 CHAIR WE WERE ALSO ABLE TO NEGOTIATE IN THE BLR IS
03:49:00 NEGOTIATE FROM THE BILAS RECOMMENDATION TO ADD IN A
03:49:03 TERMINATION FOR CONVENIENCE PROVISION INTO THE CONTRACT.
03:49:07 THE YEAR ONE CONTRACT EXPIRES SEPTEMBER 30TH ALTHOUGH OUR
03:49:10 CURRENT CONTRACT ALLOWS US TO EXTEND THE LICENSES TO KEEP THE
03:49:14 LIGHTS ON FOR THOSE PERMITS THAT ARE ALREADY LIVE.
03:49:18 RELYING ON THAT EXTENSION OPTION EXCLUSIVELY WOULD BLOCK
03:49:21 ANY NEW PERMIT FOR COMING ONLINE.
03:49:23 PROGRESS STOPS. IT WOULD STOP PROGRESS
03:49:27 AND UNDERMINE THE MOMENTUM WE HAVE RIGHT NOW.
03:49:30 >> WE HAVE REPRESENTATIVES FROM THE PUC, DPW AND PUBLIC HEALTH
03:49:34 HERE WHO ARE WHO ARE FIRST UP AS SOON AS THIS CONTRACT IS
03:49:38 APPROVED AND THEY'RE HAPPY TO EXPLAIN IF YOU NEED IT WHY THEY
03:49:41 HAVE URGENCY TO PROCEED. >> PHASE TWO TARGETS A BROAD
03:49:49 SLATE OF PERMITS ACROSS PUBLIC WORKS.
03:49:50 YOU SEE DEBRIS, FIRE PLANNING, DISPATCH REC PARK, POOR
03:49:53 ENTERTAINMENT COMMISSION, OFFICE OF CANNABIS FILM
03:49:56 AND MORE. THIS COVERS EVERYTHING FROM
03:49:58 RIGHT OF WAY PERMITS AND SPECIAL EVENTS TO
03:50:01 ENTITLEMENTS BUILDING OPERATIONAL AND SAFETY PERMITS
03:50:04 . >> THE SNAPSHOT HERE IS BY NO
03:50:05 MEANS COMPLETE EVEN THOUGH THAT THAT SEEMS CRAZY THAT IT'S NOT
03:50:09 COMPLETE HERE. BUT IT SHOWS THE SCALE
03:50:12 AND DIVERSITY OF WHAT WE'RE PLANNING TO MODERNIZE SEQUENCE
03:50:15 STRATEGICALLY AND INTENTIONALLY TO DELIVER VALUE EARLY
03:50:19 AND OFTEN. OUR CONTRACT IS STRUCTURED WITH
03:50:24 THE FIRST TWO SETS OF DELIVERABLES ALREADY BEING
03:50:25 DEFINED EMBEDDED IN THE PUC AND PUBLIC WORKS CHARTERS WHICH
03:50:28 ARE EFFECTIVELY MINI SCOPES OF WORK EACH CHARTER'S DELIVERABLE
03:50:31 OR PREDEFINED THEN INCORPORATED INTO THE MASTER CONTRACT MAKING
03:50:35 THEM ENFORCEABLE, ENFORCEABLE AND MEASURABLE.
03:50:38 PAYMENT WILL BE TIED TO THE SUCCESSFUL DELIVERY OF THOSE
03:50:40 CHARTERS. CONCURRENTLY WITH BUILDING
03:50:43 THOSE CHARTERS. OUR TEAM WILL BE ON TRACKING A
03:50:46 PERMIT RATIONALIZATION PROCESS WHICH MEANS WE WILL BE DECIDING
03:50:50 WHAT WE WANT PERMITS TO LOOK LIKE WITH A CUSTOMER CENTRIC
03:50:53 LENS. THIS GOES BACK TO THE COMMENT I
03:50:54 SAID IN THE LAST ITEM AROUND YOU KNOW HOW DO WE WANT TO
03:50:57 THINK ABOUT SMALL BUSINESS PERMITTING?
03:50:59 HOW DO WE WANT TO THINK ABOUT RESIDENTIAL REMODELS ETC.?
03:51:04 >> THIS IS CRITICAL WORK TO DO AT THE OUTSET OF PHASE TWO SO
03:51:07 THAT WE KNOW WHAT WE WANT TO BUILD INTO THE NEW SYSTEM
03:51:09 AND WE DON'T REPLICATE BAD PROCESSES INTO THE NEW SYSTEM.
03:51:11 >> WE ALSO WILL DO A RETRO SPECTRUM FROM THE FIRST YEAR
03:51:16 AND MAKE SURE WE HAVE CAPACITY TO SUPPORT STAFF ON WHAT WE'VE
03:51:17 LAUNCHED, MAKING SURE IT STAYS FUNCTIONING AND CONTINUING TO
03:51:20 IMPROVE AND ITERATE ON IT AS WE MOVE FORWARD.
03:51:26 THANK YOU. THANKS FOR LISTENING TO US
03:51:30 TODAY. WE ARE ALREADY DELIVERING
03:51:34 FASTER, SIMPLER AND MORE ACCESSIBLE PERMITTING
03:51:35 SUPPORTING HOUSING SMALL BUSINESSES AND EQUITY
03:51:37 COMMUNITIES. AND WITH THAT WE RESPECTFULLY
03:51:38 REQUEST THAT THE BUDGET AND FINANCE COMMITTEE RECOMMEND
03:51:42 APPROVAL OF THE PHASE TWO CONTRACT AMENDMENT ITEM 23
03:51:45 AND RELEASE OF FUNDS ITEM 24 SO WE CAN CONTINUE MOVING FORWARD.
03:51:49 MORE AND MORE PERMIT TYPES ONLINE SUSTAIN MOMENTUM
03:51:52 AND DEEPEN BENEFITS CITYWIDE. >> THANK YOU.
03:51:53 GREAT. THANK YOU.
03:51:57 MISSOURI. SUPERVISOR FIELDER THANK YOU
03:52:00 MISSOURI FOR THIS PRESENTATION. >> I HAVE SEVERAL QUESTIONS I
03:52:04 THINK IN ADVANCE FOR BEARING WITH ME.
03:52:05 >> FIRST OFF, DOES OPEN GOV HAVE ADEQUATE CONTROLS TO
03:52:08 DETECT AND PREVENT CORRUPTION IN PERMITTING?
03:52:11 I CAN'T SPEAK TO EVERY TECHNICAL BACK END REQUIREMENT
03:52:15 OF THE SYSTEM BUT AS IS STANDARD WITH ANY SOFTWARE
03:52:18 CONTRACT OUR EXPERTS AT DE T HAVE REVIEWED THE CONTRACT TO
03:52:22 ENSURE ALL OF OUR SECURITY CYBERSECURITY ETC. MEASURES ARE
03:52:26 IN THEIR PRODUCT. OKAY.
03:52:29 SO WE DON'T WE DON'T KNOW IF THEY HAVE WE DO WE DO KNOW THAT
03:52:34 THEY MEET THE CITY'S STANDARDS TO DETECT AND PREVENT
03:52:37 CORRUPTION. >> YES.
03:52:41 OKAY. THANKS.
03:52:42 SORRY ARE YOU TALKING ABOUT CYBERSECURITY ISSUES OR LIKE
03:52:45 FRAUDULENT PERMITTING BEHAVIORS?
03:52:46 >> I JUST WASN'T FRAUDULENT. >> PERMIT IT.
03:52:50 GOT IT. GOT IT.
03:52:51 GOT IT. GOT IT.
03:52:52 YES, WE FEEL VERY. THAT IS SOMETHING I CAN ANSWER.
03:52:53 WE VERY MUCH DO FEEL LIKE THEY HAVE ALL OF THESE CONTROLS.
03:52:57 THIS IS A DIFFERENT TYPE OF SYSTEM THAN OUR ANTIQUATED
03:52:58 LEGACY SYSTEM. >> THIS HAS ROBUST AUDIT BASED
03:53:04 CLICK BASED SECOND BY SECOND TRACKING OF EVERY BEHAVIOR THAT
03:53:09 IS HANDLED IN THE IN THE SYSTEM.
03:53:10 WITH THAT INFORMATION, THERE'S A LOT OF THINGS THAT WE CAN DO
03:53:16 THINKING ABOUT FRAUDULENT BEHAVIOR THAT WE ARE UNABLE TO
03:53:17 DO TODAY. WE'RE EXCITED AS PART OF PHASE
03:53:21 TWO TO BE KICKING THAT OFF INCLUDING LEVERAGING THE USE OF
03:53:24 APIS. ONE OF THE THINGS I'M MOST
03:53:25 EXCITED ABOUT THAT WE ARE UNABLE TO DO RIGHT NOW BY
03:53:29 LEVERAGING AND HAVING OUR STAFF BUILD OUT APIS AGAINST THIS
03:53:32 DATA IS TO BE ABLE TO YOU KNOW HAVE LEVERAGE TECHNOLOGY TO
03:53:36 ALERT US TO UNUSUAL BEHAVIOR MAYBE THAT UNUSUAL BEHAVIOR IS
03:53:43 WARRANTED, MAYBE THAT UNUSUAL BEHAVIOR IS NOT WARRANTED.
03:53:47 BUT THAT'S THE TYPE OF FUNCTIONALITY THAT BY USING THE
03:53:48 DATA THAT THE SYSTEM HAS AND THE THE IMPROVEMENTS THAT
03:53:52 WE KNOW ARE FORTHCOMING IN THE PRODUCT AS WELL THAT WE'LL BE
03:53:56 ABLE TO LAUNCH AS WE LAUNCH MORE PERMITS IN THE SYSTEM.
03:54:00 >> SO YES, WE'RE VERY CONFIDENT ABOUT THE CAPABILITIES THAT THE
03:54:03 SYSTEM HAS. WE'VE GOT SNAPSHOT INTO THE
03:54:07 ROADMAP FOR THE PRODUCT OVER THE NEXT SIX PLUS MONTHS
03:54:11 AND REALLY DO FEEL THAT THIS SYSTEM WILL HAVE THOSE ADEQUATE
03:54:15 CONTROLS. IN ADDITION WHICH I THINK IS
03:54:18 IMPORTANT TO NOTE SORT OF AS IT RELATES TO THE COMPLIANCE PIECE
03:54:20 AND SORT OF FRAUDULENT BEHAVIOR PIECE.
03:54:21 WE REACHED OUT TO THE CITY'S COMPTROLLER'S OFFICE AND THE
03:54:25 INSPECTOR GENERAL'S OFFICE SEVERAL MONTHS AGO AND ASKED
03:54:30 THEM PROACTIVELY TO ACTUALLY COME IN AND DO AN AUDIT OF THE
03:54:31 PART OF THE PRODUCT BASICALLY A PART TWO OF THEIR INITIAL LOOK
03:54:35 INTO THE CITY'S CURRENT LEGACY SYSTEM TO MAKE SURE THAT IT
03:54:42 STILL MEETS THOSE STANDARDS COMPLIANCE AND MAKING SURE THAT
03:54:45 THIS IS A TRANSPARENT SYSTEM THAT EVERYONE HAS TRUST IN AND
03:54:50 THAT CANNOT JUST BE A SYSTEM WE HAVE TRUST IN BUT ONE WE CAN
03:54:54 ACTUALLY USE TO ENSURE GREATER TRANSPARENCY IS ONE OF THE
03:54:59 NUMBER ONE DRIVERS IN MY OPINION OF THIS PROJECT.
03:55:00 LIKE YES IT'S VERY MUCH TO PRODUCE PERMITTING FASTER.
03:55:03 BUT A BIG PART OF I THINK OUR FRAUDULENT BEHAVIOR FROM THE
03:55:07 PAST HAS BEEN THE OPACITY OF OUR EXISTING SYSTEM.
03:55:10 AND SO I WANTED TO MAKE SURE THAT IF THERE WERE ANY
03:55:11 SHORTCOMINGS IN THE SYSTEM THAT THEY WERE IDENTIFIED BY THE
03:55:15 INSPECTOR GENERAL'S OFFICE AND THE OPEN GOV EXECUTIVE TEAM
03:55:18 CEO HIMSELF HAS GUARANTEED THAT IF THERE IS SOMETHING THAT WE
03:55:23 NEED TO AUGMENT AS PART OF THIS TOOL THAT IS IDENTIFIED AS A
03:55:25 DEFICIENCY WE WILL MAKE IT HAPPEN AND WE WILL BUILD IT
03:55:27 IN AND THAT'S THE KIND OF PARTNERSHIP THAT WE'RE SEEING
03:55:30 WITH OPEN GOV IN TERMS OF HEARING WHAT ARE THE IMPORTANT
03:55:32 CONCERNS FOR THE CITY? AGAIN, NO PRODUCT IS GOING TO
03:55:36 BE 100% BESPOKE TO SAN FRANCISCO BUT WE'VE INITIATED
03:55:39 THOSE THOSE PROCESSES BECAUSE THAT IS OF UTMOST CONCERN TO
03:55:42 US. THANK YOU SO MUCH.
03:55:43 I'M GLAD TO HEAR THAT PERMANENCE HAVE PLANS TO CHANGE
03:55:46 THE PAYMENT STRUCTURE TO TIE THE RELEASE OF PROFESSIONAL
03:55:48 SERVICE FEES TO DELIVERABLES AND MILESTONES.
03:55:52 >> DO YOU HAVE A FULL SCHEDULE OF DELIVERABLES TIED TO
03:55:55 PAYMENTS SO WE CAN SEE WE HAVE THEM THROUGH I BELIEVE IT IS
03:55:59 MARCH 31ST OF 2027. >> WE BASICALLY HAVE OUR FIRST
03:56:02 TWO PHASES FULLY SCOPED OUT. WE KNOW WHAT WE'RE GOING TO BE
03:56:09 TACKLING BETWEEN NOW AND THEN. >> BUT A REALLY INTENTIONAL
03:56:11 PART OF THIS PROJECT IS TO GIVE US NIMBLENESS TO DECIDE AGAIN,
03:56:14 AS I MENTIONED IN THE LAST HEARING TO DECIDE FROM A POLICY
03:56:17 PERSPECTIVE WHAT WE THINK IS MOST IMPORTANT TO LAUNCH
03:56:20 THEREAFTER. BUT IT WILL FOLLOW THE SAME
03:56:23 SORT OF RINSE AND REPEAT METHODOLOGY WHICH I THINK IS
03:56:25 THE MOST IMPORTANT THING WHEN WE'RE LOOKING AT THIS CONTRACT.
03:56:28 SO BEFORE WE KICK OFF ANY WORK WE WILL DO A PROJECT CHARTER.
03:56:32 THAT PROJECT CHARTER IS BASICALLY A SCOPE OF WORK.
03:56:35 WE WILL DECIDE WHAT AGAINST DRIVING WITH POLICY WHAT
03:56:39 PERMITS DO WE WANT TO BRING ON NEXT?
03:56:42 REALLY EXCITED TO START USING SOME DATA TO HELP US MAKE SOME
03:56:44 OF THOSE DECISIONS. ONCE WE DECIDE FROM A POLICY
03:56:47 PERSPECTIVE WHAT WE LAUNCH NEXT ,WE WILL THEN MAP NOT ONLY
03:56:51 TIMELINE AND THAT WILL BE IN COLLABORATION WITH OPEN
03:56:55 GOVT. HOW LONG DOES THIS TYPE OF
03:56:56 IMPLEMENTATION TAKE BASED ON WHAT TYPE OF INTEGRATIONS ARE
03:56:59 REQUIRED? WHAT TYPE OF DATA IS REQUIRED,
03:57:02 HOW MUCH TRAINING WE THINK WE NEED TO ACCOUNT FOR GIVEN OUR
03:57:06 STAFFING AND I THINK THIS IS ONE OF OUR BIGGEST LESSONS
03:57:07 LEARNED. NOT ALL LAUNCHES NEED THE SAME
03:57:10 AMOUNT OF TRAINING. SOME NEED DRAMATICALLY MORE
03:57:11 FROM OUR STAFF. >> SOME NEED LESS.
03:57:14 SO WE'LL FACTOR ALL OF THOSE THINGS INTO EACH OF EACH
03:57:18 SUBSEQUENT PROJECT CHARTER EACH LITTLE MINI PHASE IF YOU WILL.
03:57:21 AND THEN THOSE WILL BE VERY DETAILED ENUMERATED
03:57:25 DELIVERABLES WILL ALIGN ON THAT.
03:57:26 >> THAT PACKAGE BASICALLY GETS RETRO UPLOADED BACK INTO THE
03:57:30 CONTRACT SO IT BECOMES PART OF THE CONTRACT AND THAT IS WHAT
03:57:36 OPENCV GETS PAID ON AND HAS TO DELIVER.
03:57:39 OKAY. THANK YOU.
03:57:40 WHAT CAN WE EXPECT FROM NOW UNTIL WELL FROM THE TIME THE
03:57:44 CONTRACT IS AWARDED TO MARCH 31ST?
03:57:47 >> ABSOLUTELY. AND I PROBABLY WILL MISS THEM
03:57:51 OFF THE TOP OF MY HEAD HERE. BUT WE CAN GO THROUGH THE
03:57:52 ENUMERATED LIST. IT'S IN THE CONTRACT.
03:57:55 THE BIG TOPICAL ITEMS THOUGH ARE PUBLIC WORKS AND P C.
03:57:59 THEY HAVE BEEN WAITING VERY PATIENTLY FOR THIS PROCESS TO
03:58:00 CONCLUDE AND THEY HAVE TEAMS READY TO GET GOING WITH THEIR
03:58:06 IMPLEMENTATION. SO THOSE ARE GOING TO BE TOP OF
03:58:08 THE LIST. WE SO THOSE ARE THE TOP TWO
03:58:10 THAT ARE GOING TO KICK OFF RIGHT AWAY.
03:58:14 IN ADDITION TO THAT WE ARE KICKING OFF THE IMPORTANT WORK
03:58:18 OF THE PERMIT STANDARDIZATION THAT I MENTIONED BEFORE A
03:58:22 RATIONALIZATION I SHOULD SAY WHICH BASICALLY MEANS AGAIN
03:58:23 TAKING THAT VERY EXTENSIVE LIST OF ALL OF THE CITY'S DISPARATE
03:58:29 DIFFERENT PERMITS ACROSS ALL OF THE AGENCIES AND BASICALLY
03:58:32 BUCKETING THEM AND WHICH OF THESE SHOULD LIVE TOGETHER
03:58:36 AND BE ONE EXPERIENCE FOR A CUSTOMER.
03:58:37 AND SO WE'RE GOING TO GO THROUGH THAT PROCESS SO THAT
03:58:40 THAT CAN BE DONE AND THEN WE KNOW MOVING FORWARD IT'S NOT,
03:58:45 YOU KNOW, 570 DISPARATE THINGS THAT WE'RE TRANSITIONING IN A
03:58:48 LIFT AND SHIFT INTO THE NEW SYSTEM THAT FIVE 70TH MAY
03:58:54 COLLAPSE DOWN TO 100. IT MAY COLLAPSE DOWN TO LESS
03:58:57 THAN THAT. THAT THEN WILL BE WHAT WE PUT
03:59:01 INTO EACH SUBSEQUENT CHARTER AND DRIVE TIMELINES AGAINST
03:59:05 THAT. >> THANK YOU.
03:59:06 IN YOUR PRESENTATION ON THE PROCUREMENT PROCESS YOU NOTED
03:59:10 THAT WE HAD A BIAS FOR SPEED BUT HOW MANY OF THE 15 PERMITS
03:59:14 THAT WERE PART OF THE ORIGINAL AGREEMENT HAVE FULLY DEPLOYED
03:59:17 ON TIME AND HOW MANY ARE SET TO LAUNCH AFTER THE ORIGINAL
03:59:21 CONTRACT PERIOD? >> SURE.
03:59:21 SO WE LAUNCHED AND I'M I'M PROBABLY TO GET THIS WRONG OFF
03:59:26 THE TOP OF MY HEAD BUT WE LOCKED DOORS SIDING WINDOWS,
03:59:29 FIRE ALARM FIRE SPRINKLERS ALL IN FEBRUARY WHICH WAS SORT OF
03:59:33 THE INITIAL TARGET. >> AS I NOTED THOUGH, FOUR
03:59:36 MONTHS WAS INSANELY AMBITIOUS FOR US TO TURN IT AROUND.
03:59:40 >> WE MADE A DECISION I MADE A DECISION AS WE WERE IN JANUARY,
03:59:44 DECEMBER, JANUARY WORKING THROUGH THIS THAT WE AS STAFF
03:59:48 NOT OPEN GOV OPEN GOV WAS READY TO GO.
03:59:51 THEY WERE READY TO BUILD ALL OF IT AND COULD HAVE LAUNCHED ALL
03:59:54 OF IT. I MADE THE DECISION GIVEN YOU
03:59:55 KNOW THE PACE OF CHANGE GIVEN THAT THE FOLKS THAT WE NEEDED
03:59:59 TO TRAIN ON THIS ALSO HAD DAY JOBS AND WE DIDN'T WANT TO WE
04:00:06 NEEDED TO BALANCE THEIR ABILITY TO DO THEIR DAY TO DAY WORK, I
04:00:08 DIDN'T WANT TO CLEAR EVERYONE'S CALENDARS FOR TWO WEEKS
04:00:11 AND SHUT DOWN THE PERMIT CENTER TO TRAIN EVERYONE.
04:00:14 >> WE HAD TO MAKE SOME OF THOSE TRADEOFFS OF SORT OF WHAT IS
04:00:19 THE PIECE OF CHANGE THAT PEOPLE CAN ABSORB.
04:00:20 >> AND SO WE STARTED MODERATING OUR LAUNCHES THEREAFTER.
04:00:23 >> WE ALSO HAD SOME LESSONS LEARNED IN OUR FIRST LAUNCHES.
04:00:27 WE JUST FLIPPED THE SWITCH AND WE WENT LIVE WITH PERMITS.
04:00:30 ONE OF THE THINGS WE LEARNED IS THAT IT WOULD HAVE REALLY
04:00:31 BEHOOVED US TO DO A SOFT LAUNCH MAYBE A LITTLE ALPHA WITH A
04:00:35 COUPLE REALLY LIKE REAL RECORDS READY TO GO BUT WITH A COUPLE
04:00:38 CUSTOMERS WHERE WE CAN LEARN WE CAN TRAIN A COUPLE OF STAFF AT
04:00:42 A TIME THEN GROW THAT LAUNCHED EVEN MORE CUSTOMERS WITH REAL
04:00:45 PERMITS MAYBE TAKE THOSE ALL THE WAY THROUGH THE INSPECTION
04:00:47 EXPERIENCE SO THAT WE CAN MAKE SURE NOT ONLY DO YOU FILE THE
04:00:51 PERMIT DO YOU PAY FOR THE PERMIT?
04:00:52 DOES IT GET ISSUED BUT HOW DOES IT HOW DO YOU REQUEST AN
04:00:55 INSPECTION? HOW DOES AN INSPECTOR RESULTED
04:00:57 IN THE FIELD RIGHT? LIKE NAVIGATING THAT WHOLE
04:01:01 JOURNEY WAS REALLY IMPORTANT TO US AND THAT WAS SOMETHING
04:01:02 CANDIDLY WE HADN'T FULLY FLESHED OUT IN OCTOBER WHEN WE
04:01:05 WENT LIVE. AND SO AS WE WERE GETTING
04:01:06 CLOSER TO FEBRUARY WE REALLY DECIDED THAT IT WOULD IT WOULD
04:01:09 BE A GREATER BENEFIT TO THE CITY TO USE THE FULL DURATION
04:01:13 OF OUR ONE YEAR CONTRACT WE WERE GIVEN A ONE YEAR CONTRACT.
04:01:16 THERE WAS NOTHING IN THE ONE YEAR CONTRACT THAT MADE US
04:01:19 DELIVER IN FOUR MONTHS. SO I MADE THE DECISION TO SORT
04:01:23 OF DO A SLOWER ROLL SO THAT OUR TEAMS COULD BE MORE FOCUSED.
04:01:27 ALSO WE HAD VERY LIMITED STAFFING.
04:01:30 I MEAN EACH AGENCIES WERE DEALING YOU KNOW WE KICKED IT
04:01:31 OFF IN FEBRUARY PRIME BUDGET SEASON.
04:01:34 LOT OF OTHER FACTORS THAT WERE GOING INTO CONSTRAINING OUR
04:01:37 TIME. AND SO ANYHOW, THIS WAS I THINK
04:01:38 IT'S REALLY IMPORTANT THOUGH TO NOTE THE DECISION OF FOR
04:01:42 DEPLOYMENT OF OF PERMITS AND AGAIN EVERYTHING WILL BE
04:01:46 DEPLOYED WITHIN OUR ONE YEAR CONTRACT WAS A BUSINESS
04:01:49 DECISION NOT A SOFTWARE OR A OPENCV COMPETENCY.
04:01:56 >> OKAY. THANK YOU.
04:01:56 IN YOUR PRESENTATION SORRY CONTINUING WITH THE THEME OF
04:02:01 SPEED. WHEN WE LOOK AT THE MEDIAN
04:02:04 NUMBER OF DAYS IT'S TAKING TO ISSUE PERMITS COMPARED WITH THE
04:02:08 TARGET TIMELINES FOR ISSUING THEM SPEED DOESN'T SEEM TO BE
04:02:12 THE OPERATIVE WORD AND THESE ARE THOSE SIMPLE PERMITS
04:02:15 ACCORDING TO PERMITS OF PERMITTING DATA ON DATA AS HAVE
04:02:19 THE TARGET FOR ISSUING FIRE ALARM PERMITS IS TWO DAYS BUT
04:02:21 THE MEDIAN IS ACTUALLY EIGHT DAYS AND THE TARGET FOR ISSUING
04:02:24 A SIGN OR OWNING PERMITS IS TWO DAYS BUT THE MEDIAN IS 12.5
04:02:30 DAYS. >> WE DO KNOW THE NUMBER OF
04:02:31 REQUESTS ARE UP WHICH I IMAGINE YOU ANTICIPATE DURING THE
04:02:34 PLANNING PHASE. >> BUT WHY ARE WE SO FAR OFF ON
04:02:38 DELIVERING THESE BASIC PERMITS ON TARGET?
04:02:39 >> SURE. AND I WOULD JUST REFER BACK I
04:02:41 THINK SUPERVISOR CHEN ASKED ME THIS THE SAME QUESTION UNDER
04:02:45 THE FIRST ITEM. SO I WOULD JUST SAY SAME
04:02:48 RESPONSE THERE. >> THE ONE THING I WILL JUST
04:02:49 CORRECT IS WE ACTUALLY DID NOT ANTICIPATE THE INCREASE
04:02:53 IN VOLUME SO THAT WAS NOT AN ANTICIPATION WE ANTICIPATED THE
04:02:57 SAME STATIC VOLUME THAT WE SEE OVER THE COUNTER.
04:02:58 BUT AGAIN JUST FOR THE SAKE OF BREVITY HERE, I WON'T GO INTO
04:03:02 ALL THE DETAIL THAT I PROVIDED UNDER THE PREVIOUS ANSWER BUT I
04:03:04 THINK IT IS REALLY A COMBINATION.
04:03:06 >> AGAIN, NOT A SOFTWARE LIMITATION WHICH IS WHAT WE'RE
04:03:09 HERE BEFORE BUT REALLY ONE SORT OF A BUSINESS DECISIONS.
04:03:11 NUMBER ONE WE'RE IN THREE DIFFERENT SYSTEMS STAFFING
04:03:14 AGAINST THREE DIFFERENT SYSTEMS IS DIFFICULT.
04:03:17 IT IS SOMETHING THAT I DON'T THINK WE HAVE EXECUTED AS WELL
04:03:20 AS WE SHOULD AND WE NEED TO SPEND SOME TIME THINKING ABOUT
04:03:23 HOW TO STOP AGAINST THREE DIFFERENT SYSTEMS BUT ALSO THE
04:03:24 FASTER WE GET TO THE FINISH LINE THE FASTER WE WILL NO
04:03:30 LONGER HAVE THREE DIFFERENT MODES OF STAFFING AND IT WILL
04:03:32 BE EASIER FOR US TO STAFF TWO. WE HAVE HAD A LOT OF ATTRITION
04:03:36 AND WE HAVE NOT HAD BACKFILL AS THE CITY HAS GENERALLY BEEN ON
04:03:40 A HIRING FREEZE SINCE WE INITIATED THIS IN FEBRUARY.
04:03:42 >> AND LASTLY, YOU KNOW THE VOLUME INCREASE.
04:03:46 SO COLLECTIVELY THOSE ARE THE PRIMARY FACTORS FOR IT.
04:03:49 I WOULD ALSO SAY THOUGH AND AGAIN THIS THAT IS WHY I
04:03:53 FEEL LIKE WE HAVE NOT MET THE PERFORMANCE METRICS ALSO WE
04:03:57 NEED TO REEVALUATE OUR PERFORMANCE METRICS.
04:03:58 WE'RE COMING OFF OF AN ANALOG SYSTEM WHERE IT'S AN EITHER OR.
04:04:02 IT'S EITHER REALLY REALLY FAST OR IT'S REALLY, REALLY SLOW.
04:04:06 >> I DON'T THINK THAT'S APPROPRIATE.
04:04:09 I DON'T THINK THAT'S BEST IN CLASS AND WORK BEST IN CLASS
04:04:12 AND OTHER JURISDICTIONS ARE DOING IT.
04:04:13 SO I DO THINK WE REALLY NEED TO ALSO REEVALUATE WHAT SUCCESS
04:04:17 SHOULD LOOK LIKE FOR VARIOUS PERMIT TYPOLOGIES BECAUSE AGAIN
04:04:20 THESE ARE ALL TRADE OFFS WHEN YOU THROW A TON OF STAFF TO
04:04:24 STAFF FOR A TWO DAY KPI THAT MEANS THOSE STAFF ARE NOT
04:04:28 WORKING ON LARGE HOUSING PROJECTS AND SO SHOULD WE BE
04:04:32 SACRIFICING TIMELINES FOR PROCESSING HOUSING PROJECTS
04:04:36 AND TO USE WHICH ARE TAKING LONGER THAN THEY SHOULD AT THE
04:04:39 SACRIFICE YOU KNOW IN EXCHANGE FOR A REALLY, REALLY SPEEDY
04:04:43 REVIEW OF A WINDOW PERMIT? SO I THINK AGAIN POLICY
04:04:47 DECISION FOR US TO MAKE OF WHAT OUR KPIS SHOULD BE.
04:04:51 >> THANK YOU. WHEN THE OFFICE OF THE ASSESSOR
04:04:55 ARE ISSUED SORRY I'M ACTUALLY GOING TO SKIP THE THE BEGINNING
04:04:59 OF THIS BUT DID I HEAR YOU SAY THAT YOU'RE GOING TO INCLUDE A
04:05:03 CLAUSE ON TERMINATION FOR CONVENIENCE RIGHTS?
04:05:04 YES. THAT HAS ALREADY BEEN
04:05:07 DISTRIBUTED. >> OKAY.
04:05:07 THANK YOU SO MUCH. I'M VERY HAPPY TO HEAR THAT.
04:05:10 AND THEN THE BULLET POINTS OUT IN ITS BUDGET AND FINANCE
04:05:11 COMMITTEE REPORT THAT THE PROPOSED AMENDED CONTRACT
04:05:14 ANTICIPATES A PHASED APPROACH TO IMPLEMENTATION BUT DOES NOT
04:05:17 DEFINE THE PERMITS OR LICENSES IN SCOPE.
04:05:21 >> THE PHASING OF RECORDS OR THE DELIVERY TIMELINE.
04:05:24 WHY ARE THESE CRITICAL ELEMENTS NOT INCLUDED IN THE AMENDED
04:05:26 CONTRACT? DO YOU TOUCH ON THIS BEFORE?
04:05:28 >> YES, I THINK I ALREADY ANSWERED THAT QUESTION.
04:05:32 THE NIMBLENESS, THE NIMBLENESS, THE FACT THAT WE HAVE NOT DONE
04:05:36 THE PERMIT RATIONALIZATION PROCESS AND SO I DON'T WANT TO
04:05:39 RIGHT NOW SAY WHAT'S GOING TO HAPPEN IN Q3 OF 2028 AND SAY
04:05:43 WE'RE GOING TO DO, YOU KNOW, A PUBLIC HEALTH, YOU KNOW, PERMIT
04:05:47 FOR A RESTAURANT IF WE INSTEAD DECIDE IN Q4 OF 27 WE'RE GOING
04:05:51 TO DO RESTAURANT PERMITTING AND ROLL THAT UP INTO IT,
04:05:54 RIGHT? SO WE WANT TO BE ABLE TO FIRST
04:05:56 THINK THROUGH WHAT IS MOVING FORWARD FROM A POLICY
04:05:57 PERSPECTIVE, WHAT PERMITS SHOULD SORT OF BE ROLLED UP
04:06:01 TOGETHER AND TREAT IT AS ONE AND THEN THAT NEEDS TO BE OUR
04:06:04 ROADMAP. >> WE NEED TO HAVE THAT
04:06:05 NIMBLENESS BUT WE ALSO NEED TO BE ABLE TO SEE INTO THE FUTURE.
04:06:09 SO RIGHT NOW WE DO HAVE FORECASTING FAR ENOUGH
04:06:12 IN ADVANCE THAT WE KNOW WHAT WE'RE DOING AND THEN WE KNOW
04:06:13 WHAT WE'RE DOING NEXT. AND MY GOAL AS PART OF THIS
04:06:17 PROJECT IS THAT WE ALWAYS HAVE A MINIMUM OF SIX MONTHS IDEALLY
04:06:20 AND NINE MONTHS ROADMAP AHEAD OF US SO THAT WE KIND OF WE
04:06:23 KNOW WHO'S UP NEXT. WE KNOW WHAT WE CAN TELL
04:06:25 CUSTOMERS IS COMING UP NEXT. >> THAT KIND OF BRINGS ME TO MY
04:06:29 QUESTION AND I'M MORE EAGLE EYE PERSPECTIVE IN STEPPING BACK IF
04:06:35 WE DON'T KNOW THE CONCRETE DELIVERABLES WE HAVE AN IDEA OF
04:06:36 WHAT WE WANT OVER THE NEXT SIX YEARS BUT NOT WELL AND WE ALSO
04:06:39 KNOW WHAT WE WANT FOR THE NEXT FIVE MONTHS UNTIL MARCH.
04:06:48 >> WHY WOULD WE NOT WHY DO WE NEED THIS CONTRACT EXTENSION
04:06:52 FOR FIVE YEARS? WHY CAN'T WE REVISIT THIS EVERY
04:06:56 YEAR TO SEE WHAT WE'RE ACTUALLY GETTING FOR OUR PUBLIC DOLLARS
04:07:04 ACCORDING TO CONCRETE DELIVERABLES?
04:07:08 >> SO I THINK THERE'S A VARIETY OF REASONS FOR THAT NUMBER ONE,
04:07:12 ONE OF THE BIGGEST PIECES OF FEEDBACK THAT WE'VE HEARD FROM
04:07:14 EVERYONE ON THIS PROJECT IS THAT PEOPLE WANT TO HAVE
04:07:17 VISIBILITY IN WHAT'S HAPPENING NEXT AND THAT HAVING A ROADMAP
04:07:24 AND BEING ABLE TO KNOW WHAT WE HAVE BANDWIDTH TO DO AND WHAT
04:07:27 TRADEOFFS WE HAVE CAPACITY TO MAKE IS REALLY IMPORTANT.
04:07:30 SO FOR EXAMPLE IF WE KNOW WE ONLY HAVE ONE YEAR WHO WHO GETS
04:07:34 IN THIS YEAR, RIGHT? LIKE THE INFIGHTING OVER WHO'S
04:07:38 GOING TO COME NEXT, WHAT PERMITS ARE GOING TO GET NEXT
04:07:42 LOBBIED FOR THIS PERMIT OVER THAT PERMIT BECAUSE THERE MAY
04:07:46 BE NO CERTAINTY THAT THE OTHER THING EVER WILL HAVE A CHANCE
04:07:51 AND NOT HAVING THAT CERTAINTY THAT WE'LL BE ABLE TO COMPLETE
04:07:54 THIS PROJECT I THINK IS TERRIFYING TO EVERYONE.
04:07:58 I THINK IT'S ALSO IMPORTANT TO NOTE THERE ARE ABSOLUTELY
04:08:01 PEOPLE WHO DON'T HAVE A VESTED INTEREST IN THIS BEING
04:08:03 SUCCESSFUL WHO REALLY BENEFIT FROM THE STATUS QUO AND FROM
04:08:06 OPACITY AND WHO HAVE BEEN ABLE TO BE LOUD IN THE PAST AND YOU
04:08:09 KNOW, HAVE FAILED IMPLEMENTATIONS.
04:08:13 AND SO HAVING THE CONCRETE CONFIDENCE THAT THIS PROJECT IS
04:08:17 GOING TO HAPPEN ALL THE WAY THROUGH IS INCREDIBLY IMPORTANT
04:08:24 . IT'S ALSO IMPORTANT FOR EACH
04:08:25 AGENCY'S BUDGET BUDGETING CAPABILITIES.
04:08:26 YOU KNOW, WE DO TWO YEAR BUDGETING AND IT'S ONLY FAIR
04:08:28 FOR AGENCIES TO KNOW WHEN THEY SHOULD ANTICIPATE THAT THEIR
04:08:32 PERMITTING ISSUES CAN BE SOLVED BECAUSE THEY'RE STILL PAYING
04:08:35 FOR LEGACY CONTRACTS. THEY NEED TO KNOW WHEN ARE THEY
04:08:39 GOING TO BE ABLE TO DEPRECATE THOSE LEGACY SYSTEMS AND OR FOR
04:08:42 HOW LONG THEY NEED TO BUDGET TO KEEP THEM ON.
04:08:43 THERE ARE A LOT OF DIFFERENT FACTORS BUT I ALSO THINK ONE
04:08:46 THAT'S A LITTLE LESS TECHNICAL AND A LITTLE MORE EMOTIONAL IS
04:08:49 JUST MOMENTUM. WE HAVE INCREDIBLE MOMENTUM
04:08:51 RIGHT NOW. WE'VE GOT A LOT OF GOODWILL.
04:08:53 WE'VE GOT A LOT OF WE'VE GOT A WAYS TO GO BUT WE REALLY HAVE
04:08:57 PUT IN A LOT OF EFFORT WITH STAFF AND WITH CUSTOMERS
04:09:00 AND BUILT A GOODWILL THAT THINGS ARE COMING AND THAT
04:09:02 WE'RE DOING THE RIGHT THING AND THAT WE'RE LISTENING AGAIN.
04:09:05 WE'VE HAD A LOT OF LESSONS LEARNED.
04:09:06 I THINK EVERY LAUNCH IS HAPPENING BETTER THAN THE LAST
04:09:09 AND HAVING THIS ARBITRARY CUTOFF LIKE WHAT HAPPENS IF
04:09:13 THAT YEAR ENDS AND WE'RE IN THE MIDDLE OF A CHARTER?
04:09:16 >> WHAT DO WE DO? YOU KNOW, THERE'S JUST SO MANY
04:09:20 HANDCUFFS THAT THAT PUTS US INTO.
04:09:23 I WOULD ALSO SAY THAT THINGS TYPICALLY ARE MUCH MORE
04:09:25 EXPENSIVE WHEN YOU BUY THEM. YOU KNOW WHEN YOU BUY IN BULK
04:09:28 YOU USUALLY GET A BETTER PRICE. SO I ALSO DON'T THINK IT'S THE
04:09:31 MOST FISCALLY PRUDENT DECISION FOR THE CITY.
04:09:32 THANK YOU FOR THAT. >> YOU INCLUDED A LIST OF 12
04:09:36 DEPARTMENTS WHOSE PERMITS WOULD BE ISSUED BY OPEN GOV THROUGH
04:09:39 THE SUBMITTED CONTRACT. >> CAN YOU I'M JUST CURIOUS WHY
04:09:43 DPW IS INCLUDED IF THEY ALREADY LAUNCH A SUCCESSFUL PERMITTING
04:09:47 SYSTEM USING CLARITY THIS YEAR ?
04:09:50 >> SURE. SO I THINK IT'S IMPORTANT TO
04:09:51 NOTE THE THREE PERMITS THAT HAVE BEEN LAUNCHED AREN'T
04:09:52 CONSTRUCTION PERMITS. THEY'RE THINGS LIKE A LIKE A
04:09:58 OCCUPYING A STREET SPACE DURING A CONSTRUCTION PROJECT.
04:10:01 WHAT THEIR BIGGEST CONCERNS ARE ARE THERE CONSTRUCTION PERMITS,
04:10:06 ARE THERE SIDEWALK IMPROVEMENT PERMITS ARE SORT OF THEIR
04:10:09 NUMBER ONE FOCUS RIGHT NOW. THOSE ARE THE PERMITS THAT ARE
04:10:13 ASSOCIATED WITH HOUSING PROJECTS AND BIG VERTICAL NEW
04:10:16 CONSTRUCTION PROJECTS, SIDEWALK WIDENING, THINGS OF THAT NATURE
04:10:20 . >> THAT IS THE PROJECTS THAT
04:10:21 THEY HAVE A MOST THE MOST ACUTE NEED FOR AND SO THEY ARE REALLY
04:10:25 CHOMPING AT THE BIT FOR US TO BE ABLE TO GET GOING AND MOVE
04:10:28 FORWARD WITH THAT. I WOULD ALSO SAY I THINK WHAT'S
04:10:33 REALLY IMPORTANT GOING BACK TO THE CHANGE MANAGEMENT WE HAVE
04:10:36 INCREDIBLE CUSTOMER SERVICE STAFF AT OUR PERMIT CENTER.
04:10:39 THEY HAVE TO KNOW EVERY SINGLE SYSTEM WE USE THAT IS A BIG
04:10:43 BURDEN ON THEM. THE MORE SYSTEMS THAT WE'RE
04:10:44 IN THE MORE THEY NEED TO KNOW AND THE MORE VARIABLES THEY
04:10:48 HAVE TO PRESENT TO CUSTOMERS. IF WE CAN SIMPLIFY THE NUMBER
04:10:52 OF TOOLS THAT WE'RE USING, IT MAKES ALSO THEIR JOB A LOT
04:10:56 EASIER AND MUCH EASIER TO COMMUNICATE TO THE CUSTOMER
04:10:57 BECAUSE IT'S ONE PLACE IT'S NOT IF YOU'RE DOING THIS YOU GO DO
04:11:01 YOU WORK HERE? IF YOU'RE DOING THIS YOU GO
04:11:04 WORK IN THIS SYSTEM IT MAKES FOR A BETTER CUSTOMER
04:11:07 EXPERIENCE BUT THEY'RE AT THE FRONT LINE OF THAT AND SO I
04:11:09 THINK WE'RE ALSO VERY, VERY SYMPATHETIC TO THE CHALLENGES
04:11:11 THEY FACE HAVING TO EXPLAIN ALL OF THESE DIFFERENT SYSTEMS TO
04:11:15 OUR CUSTOMERS. >> THANK YOU SO MUCH.
04:11:16 THOSE ARE ALL MY QUESTIONS. THANK YOU.
04:11:19 SUPERVISOR FIELDER OR SUPERVISOR SLAUGHTER THANK YOU
04:11:23 CHAIR TO SEE WANT TO LOOK AT SLIDE 11 IT'S QUITE A LONG LIST
04:11:27 OF PERMITS THAT YOU HAVE PLANNED AND IT'S NOT COMPLETE
04:11:30 AND IT'S NOT COMPLETE SO WELL OVER 200 ONCE IT IS COMPLETE.
04:11:36 >> CAN YOU GIVE US A SENSE OF TIMING FROM FOR ALL OF THESE
04:11:41 THAT ARE LISTED? >> HOW LONG WILL IT TAKE?
04:11:44 SURE. AND THIS WAS JUST FOR GRAPHIC
04:11:48 IMPRESSION SO THERE WAS NO REASON WE CUT IT OFF HERE.
04:11:52 >> SO I DON'T WANT TO I DON'T KNOW EXACTLY WHICH 200 AND SOME
04:11:54 ORDER ON HERE. THE CITY DOES NOT ACTUALLY HAVE
04:11:56 ONE MASTER LIST OF ALL PERMITS. IF YOU ASK DIFFERENT PEOPLE YOU
04:12:00 GOT A DIFFERENT NUMBER. I THINK MY BEST ESTIMATE RIGHT
04:12:04 NOW AND WE'RE DIGITAL SERVICES WE HAVE THEIR DEPUTY DIRECTOR
04:12:05 LEADING OUR PERMIT RATIONALIZATION PROCESS RIGHT
04:12:08 NOW. I THINK HER MOST ACCURATE GUESS
04:12:11 IS THAT IT'S AROUND 571 IS THE TOTAL NUMBER THAT WE'RE WORKING
04:12:14 WITH IS SORT OF OUR DENOMINATOR THAT WE'RE STARTING WITH THE
04:12:21 GOAL WILL CERTAINLY BE IT'S ALL OF THOSE OVER THE FULL TERM OF
04:12:26 THE CONTRACT. THAT'S WHY WE STRUCTURE THE
04:12:27 CONTRACT IN THIS WAY IS WE FEEL LIKE THAT IS THE TERM THAT WE
04:12:29 NEED TO ACCOMPLISH EVERY SINGLE PERMIT THAT WE WANT TO MOVE
04:12:32 FORWARD. AS I MENTIONED, WE HAVEN'T
04:12:33 FIGURED OUT EXACTLY WHO'S GOING WHEN THIS IS VERY MUCH A POLICY
04:12:37 DECISION. CERTAINLY IF YOU GUYS HAVE
04:12:41 STRONG THOUGHTS ON THIS WE WOULD BE OPEN TO THAT.
04:12:44 BUT AGAIN, THE DEPUTY DIRECTOR OF DIGITAL SERVICES WHO ARE
04:12:46 HELPING US ON THIS ARE HELPING TO GUIDE THE CONVERSATION
04:12:49 AND OUR POLICY TRADEOFFS AND THINKING THROUGH
04:12:52 DEPENDENCIES AND INTERRELATIONSHIPS BETWEEN
04:12:53 DIFFERENT TYPES OF PERMITS. I THINK WHAT'S IMPORTANT WITH
04:12:57 WHAT WE STARTED WITH THE 89% I THINK OF THOSE VERY MUCH LIKE
04:13:03 CONSTRUCTION IN TERMS OF LIKE THE FOUNDATION OF PERMITTING
04:13:07 THERE ARE THINGS THAT ALMOST EVERY BIGGER PROJECT NEEDS
04:13:10 AND SO WE WANT TO BE THINKING THAT WAY MOVING FORWARD THOUGH
04:13:12 TO ANY NEW PERMIT THAT WE LAUNCH, WE WANT TO MAKE SURE
04:13:15 THAT IF THERE ARE DEPENDENT TYPE PERMITS THAT THOSE ARE
04:13:19 LAUNCHED AT THE SAME TIME AS WELL SO THAT THE CUSTOMERS
04:13:22 EXPERIENCE IS BEST. >> BUT I DO THINK SOME OF THESE
04:13:25 THINGS ARE GOING TO BE TRADEOFFS.
04:13:26 >> WHEN DOES AN ENTERTAINMENT COMMISSION PERMIT GO FORWARD?
04:13:29 WHEN DOES VERTICAL CONSTRUCTION GO FORWARD?
04:13:30 WHEN DO SINGLE FAMILY HOME REMODELS GO FORWARD BALANCING
04:13:34 THOSE TRADEOFFS WE HAVE NOT YET LANDED ON AN ANSWER TO THAT.
04:13:38 SO I DON'T HAVE A SPECIFIC ANSWER TO YOUR QUESTION BUT
04:13:39 THAT'S HOW WE'RE THINKING ABOUT THIS.
04:13:42 THIS PROCESS IS WHAT ARE THE DEPENDENCIES, HOW SHOULD THINGS
04:13:46 BE CLUSTERED TOGETHER BUT ALSO WHAT IS WHAT IS SORT OF OUR
04:13:49 POLICY BANG FOR THE BUCK? WHAT ARE OUR PRIORITIES?
04:13:53 >> YOU KNOW, DO WE WANT TO DO A BUNCH OF QUICK WINS OR DO WE
04:13:56 WANT TO TACKLE SOMETHING BIG IN MEDIA UP FRONT?
04:13:58 AND SO THAT IS THE WORK THAT I WOULD SAY BY THE END OF THE
04:14:01 CALENDAR YEAR WE SHOULD HAVE THAT A ROUGH GAME PLAN OF OF
04:14:04 WHAT OUR VISION IS MOVING FORWARD AND OF THESE MORE THAN
04:14:08 500 PERMITS CITYWIDE, WHAT'S YOUR BEST ESTIMATE FOR HOW MANY
04:14:13 OF THEM ARE CURRENTLY SERVICED BY A LEGACY ONLINE SYSTEM
04:14:17 VERSUS MAYBE HOW MANY ARE STILL DONE BY HAND?
04:14:20 >> WHAT'S YOUR BEST ESTIMATE OF THAT?
04:14:22 I TRULY HAVE NO IDEA FOR YOU. >> WHAT MAKES IT DIFFICULT IS
04:14:25 SOME OF OUR PERMITS ARE SPLIT DEPENDING ON SCOPE NOT
04:14:28 DEPENDING ON PERMIT. SO FOR EXAMPLE AN ALTERATION
04:14:32 PERMIT AT THE BUILDING TO PERMIT DOOR SITING AND WINDOWS
04:14:35 WERE ACTUALLY A SCOPE THAT WAS SOUGHT FROM AN ALTERATION
04:14:39 PERMIT. AN ALTERATION PERMIT CAN BE
04:14:43 SOMETHING MASSIVE I BELIEVE THE HOLE IN THE GROUND UP MARKET
04:14:47 AND VNS IS AN ALTERATION PERMIT BUT ALSO A SINGLE FAMILY HOME
04:14:52 REMODELS AND ALTERATION PERMIT SO THAT PERMIT AS A PERMIT
04:14:56 VEHICLE SO IT'S NOT THE BEST. AGAIN, THIS IS WHY WE'RE NOT
04:15:00 DOING A LIFT AND SHIFT. IT'S NOT A GREAT 1 TO 1 PROXY
04:15:04 FOR WHAT'S COMING NEXT, WHAT'S IN PAPER FOR EXAMPLE, THERE ARE
04:15:07 MANY THINGS WHERE AN ALTERATION PERMIT CAN BE PROCESSED OVER
04:15:11 THE COUNTER A VERY MINOR TENANT IMPROVEMENT FOR YOU KNOW A
04:15:15 COFFEE SHOP OR SOMETHING OF THAT NATURE BUT THAT SAME
04:15:20 PERMIT FOR A LARGER STRUCTURAL PROJECT WOULD BE AN IN-HOUSE
04:15:23 REVIEW THAT WE HAVE A THAT TAKES MONTHS AND MONTHS TO DO
04:15:30 SO IT REALLY I'M SORRY I DON'T HAVE A GREAT ANSWER FOR YOU BUT
04:15:35 WELL I GUESS I'M WONDERING HOW ARE YOU THINKING ABOUT WINDING
04:15:36 DOWN THOSE LEGACY SYSTEMS LIKE HOW DOES THAT TIMING LOOK LIKE
04:15:39 AND THEN WHAT SORT OF COSTS ARE WE RECOVERING BY ONE DAY NOT
04:15:45 USING THOSE OTHER SYSTEMS? >> ABSOLUTELY.
04:15:47 ONE OF OUR ONE OF OUR GUIDING PRINCIPLES AND I SHOULD SAY AS
04:15:49 PART OF THIS PERMIT RATIONALIZATION PROCESS, ONE OF
04:15:55 THE THINGS ONE OF OUR VERY FIRST DELIVERABLES IS GOING TO
04:15:56 BE ARE WHAT ARE OUR POLICY PRINCIPLES THAT ARE GUIDING
04:15:59 DECISION MAKING BECAUSE I THINK TO THIS QUESTION IT'S VERY
04:16:03 IMPORTANT DEEPER CREATING A LEGACY SYSTEM WHOLESALE FOR AN
04:16:07 AGENCY IS AN IMPORTANT GUIDING PRINCIPLE.
04:16:10 >> SO IF MAYBE FOR SOME AGENCIES A SMALL LEVEL OF
04:16:14 EFFORT CAN MEAN WE CAN FULLY DEPRECATE AN OLD SYSTEM AND SO
04:16:18 EVEN IF THOSE PERMITS ARE SMALL OR MAYBE IF THOSE ARE PRETTY
04:16:22 LOW UTILIZATION BUT THEY GET US THE BANG FOR THE BUCK OF
04:16:23 DEPRECATING AN OLD SYSTEM THAT MAY BE A REALLY IMPORTANT THING
04:16:27 TO PRIORITIZE MORE HIGHLY THAN IF THEY WERE PART OF A LARGER
04:16:33 SYSTEM AND ALSO A SIMPLE PERMIT .
04:16:36 SO DEFINITELY LOOKING AT SYSTEM DEPRECATION IS A VALUE THAT WE
04:16:40 HAVE. WE'RE EXCITED ACTUALLY ONCE THE
04:16:41 FIRE OPERATIONAL PERMITS ARE DONE THERE IS MUCH OF THE FIRE
04:16:46 DEPARTMENT'S PERMIT PROCESSING UTILIZATION AND THEIR LEGACY
04:16:49 SYSTEM WILL BE ABLE TO BE TURNED OFF.
04:16:52 IT SERVES OTHER PURPOSES. SO FROM A PROCUREMENT PERSON OR
04:16:53 A CONTRACTING PERSPECTIVE IT WILL STILL STAY ON THE BOOKS.
04:16:56 BUT THE FIRE DEPARTMENT PLAN REVIEW STAFF WILL NO LONGER
04:16:59 HAVE TO BE IN THAT OLD LEGACY SYSTEM.
04:17:02 SO THAT IS A VERY IMPORTANT PART OF WHAT WE'RE LOOKING AT.
04:17:06 >> AND THE OTHER GUIDING PRINCIPLES I THINK ARE MORE
04:17:10 AROUND POLICY AND I THINK LAST THING I'M GLAD TO HEAR WE'LL BE
04:17:14 SEEING AN AMENDMENT TODAY TO BE ABLE TO TERMINATE A CONTRACT ON
04:17:21 AN ANNUAL BASIS. >> IS THERE A SPECIFIC
04:17:24 THRESHOLD THAT NEEDS TO BE MET OR IS THAT KIND OF AN THAT WILL
04:17:28 TERMINATION? >> I WILL MAYBE TAKE A STAB AT
04:17:32 THIS BUT IF I GET THIS WRONG I WANT OKAY TO KEEP ME ON OUR
04:17:34 CITY ATTORNEY'S OFFICE I GUESS IS THE RIGHT ONE TO KEEP ME
04:17:37 HONEST ON THIS. BUT MY UNDERSTANDING OF THE
04:17:38 TERMINATION FOR CONVENIENCE CLAUSE IS THAT IT IS WHAT IT
04:17:41 SAYS IT IS AND THAT SHOULD WE CHOOSE TO TERMINATE WE CAN
04:17:46 AND SO WE WILL BE ABLE TO REFLECT ON OUR DECISION MAKING
04:17:48 ANNUALLY AND IF WE DECIDE WE DON'T HAVE TO HAVE A GOOD
04:17:52 REASON WE CAN CHOOSE TO DO IT. YEAH.
04:17:54 THANK YOU. OKAY THANK YOU SUPERVISOR
04:17:58 SAUTER SUPER ADVISOR CHEN AND THEN WE'LL GO TO THE BLR ON
04:18:03 THIS. WHY DON'T WE GO WHY DON'T WE GO
04:18:06 TO THE BLR AND THEN HANDLE ITEM 22 IS A RESOLUTION TO APPROVE
04:18:13 AN AMENDMENT TO THE CITY'S AGREEMENT WITH OPEN GOV.
04:18:14 IT'S AN INCREASE OF ABOUT 33.1 MILLION AND A FIVE YEAR
04:18:17 EXTENSION ITEM 24 IS A HEARING TO CONSIDER RELEASE OF RESERVE
04:18:22 FUNDS FOR THE OPEN GOV CONTRACT AS WELL AS STAFF AND TEMPORARY
04:18:25 STAFF COSTS IN THE PLANNING DEPARTMENT AND IN BY THE
04:18:29 ORIGINAL SCOPE OF THE EXISTING CONTRACT IS FOR 15 PERMIT TYPES
04:18:33 MOSTLY SIMPLER OVER THE COUNTER PERMIT TYPES UNDER THE NEW
04:18:40 CONTRACT AMENDMENT OPEN GOV WOULD BE CONFIGURING AN
04:18:42 ADDITIONAL 150 PERMIT AND LICENSE TYPES BUT THE
04:18:46 AGREEMENT DOES NOT SPECIFY WHICH PERMANENT LICENSE TYPES
04:18:50 WILL BE INCLUDED OVER THE FIRST SIX MONTHS OF THE CONTRACT THEY
04:18:56 WILL BE WORKING TO DEFINE THE SCOPE OF THE THREE YEAR
04:18:57 IMPLEMENTATION PERIOD AS WELL AS THE TIMELINE AND THE
04:19:01 MILESTONES AND DELIVERABLES FOR THE SUBSEQUENT PHASES.
04:19:05 THE PROPOSED INCREASE OF 33.1 MILLION INCLUDES 6.5 MILLION
04:19:11 FOR IMPLEMENTATION OVER THE THREE YEAR PERIOD AS WELL AS
04:19:15 26.6 MILLION FOR USE OF THE SOFTWARE OVER THE FIVE YEAR
04:19:19 EXTENSION. >> THE CONTRACT IS FUNDED BY
04:19:23 DEPARTMENT OPERATING BUDGETS AND A GENERAL FUND CONTRIBUTION
04:19:25 FROM THE PLANNING DEPARTMENT. >> WE NOTE THAT WE IDENTIFIED A
04:19:30 FEW WEAKNESSES IN THE CONTRACTS OVER THE COURSE OF OUR REVIEW.
04:19:34 THE DEPARTMENT HAS AGREED TO MAKE SOME CHANGES IN ORDER TO
04:19:36 STRENGTHEN THE CONTRACT ALTHOUGH SOME RISKS REMAIN SO
04:19:39 I'LL TAKE YOU THROUGH THAT. FIRST THE DEPARTMENTS AGREED TO
04:19:43 TIE PAYMENT OF THE IMPLEMENTATION FEE TO
04:19:46 DELIVERABLES. THAT'S AN IMPORTANT
04:19:49 ACCOUNTABILITY MECHANISM TO REALLY ENSURE THAT THE
04:19:53 CONTRACTOR IS DELIVERING ON WHAT THEY'VE PROMISED TO
04:19:54 DELIVER. SECOND, THE DEPARTMENTS ALSO
04:19:57 AGREED AT OUR RECOMMENDATION TO ADD TERMINATION FOR CONVENIENCE
04:20:01 RIGHTS WHICH IS JUST AN IMPORTANT OPTION FOR THE CITY.
04:20:05 >> IT'S A QUICKER AND EASIER WAY TO GET OUT OF THE CONTRACT
04:20:07 IF THINGS AREN'T GOING WELL. >> SO THESE ARE REALLY
04:20:10 IMPORTANT. >> THESE ARE BIG IMPROVEMENTS
04:20:13 TO THE CONTRACT THOUGH SOME RISKS REMAIN.
04:20:16 >> IN PARTICULAR THE SCOPE OF THE CONTRACT IS NOT FULLY
04:20:18 DEFINED SO WE DON'T REALLY KNOW WHAT THE CITY'S GOING TO GET AT
04:20:22 THE END OF THE THREE YEAR IMPLEMENTATION PERIOD.
04:20:24 AND SECOND, ALTHOUGH WE KNOW THE ACTIVITIES OVER THE FIRST
04:20:28 KIND OF SIX MONTHS OF THE THREE YEAR IMPLEMENTATION PERIOD WE
04:20:31 DON'T HAVE THE FULL TIMELINE OF DELIVERABLES FOR THE REST OF
04:20:36 THE THREE YEAR PERIOD. SO WE DON'T KNOW KIND OF THE
04:20:39 MILESTONES AND THE DELIVERABLES AND AS I MENTIONED THAT'S KIND
04:20:45 OF THE ACCOUNTABILITY MECHANISM THAT ENSURES THAT THE
04:20:46 CONTRACTOR IS DELIVERING WHAT THEY PROMISED AND SO WE JUST
04:20:49 HAVEN'T BEEN ABLE TO LOOK AT THAT AND SAY YES, THAT'S
04:20:52 SUFFICIENT TO HOLD THEM ACCOUNTABLE.
04:20:54 >> SO FOR A 33.1 MILLION CONTRACT EXTENSION, IDEALLY
04:20:56 YOU'D WANT TO KNOW YOU KNOW WHAT THE CONTRACTORS ON THE
04:21:00 HOOK TO DELIVER AND THAT THOSE ACCOUNTABILITY MECHANISMS ARE
04:21:03 SUFFICIENT TO ENSURE THEY DELIVER.
04:21:04 >> FOR THAT REASON WE HAVE TWO POLICY OPTIONS FOR THE BOARD TO
04:21:08 CONSIDER THE FIRST IS AMENDING THE PROPOSED RESOLUTION TO
04:21:12 REDUCE THE NOT TO EXCEED AMOUNT TO APPROXIMATELY 12.1 MILLION
04:21:16 THAT GIVES SUFFICIENT FUNDING FOR THE YEAR TWO OF THE
04:21:20 CONTRACT AT WHICH POINT YOU KNOW THEY WILL KIND OF HAVE A
04:21:24 BETTER IDEA OF WHAT THE SCOPE IS FOR THE REMAINING TWO YEAR
04:21:26 PERIOD AND THEY COULD COME BACK AND REPORT TO THE BOARD OF
04:21:27 SUPERVISORS AT THAT TIME WHEN SEEKING AUTHORIZATION FOR THE
04:21:31 REMAINING CONTRACT AMOUNTS. >> THE SECOND IS TO ANOTHER
04:21:34 OPTION WOULD BE TO REQUEST THAT PERMIT S.F. REPORT BACK DURING
04:21:39 THE BUDGET PROCESS IN THE SPRING YOU KNOW ON THE SCOPE
04:21:42 AND TIMELINE AND SCHEDULE OF DELIVERABLES SO THAT YOU COULD
04:21:46 KIND OF CONSIDER THAT DURING THE BUDGET PROCESS APPROVAL OF
04:21:52 ITEM 22 THE CONTRACT IS A POLICY MATTER FOR THE BOARD OF
04:21:56 SUPERVISORS. IF APPROVING THE CONTRACT WE
04:21:57 RECOMMEND THAT THE BUDGET AND FINANCE COMMITTEE APPROVE
04:22:00 THE RELEASE OF RESERVE FUNDS. GREAT.
04:22:07 >> GREAT. THANK.
04:22:08 Q MS. BELMONT SUPERVISOR SURE. >> OKAY.
04:22:11 I DO OWE SUPERVISOR CHEN THANK YOU.
04:22:15 >> THANK YOU CHAIR DORSEY SORRY.
04:22:18 DIRECTOR WHITE THANK YOU FOR BEING VERY PATIENT WITH US
04:22:23 TODAY. >> I WOULD LIKE TO KNOW IS
04:22:26 TERMINATION FOR CONVENIENCE A STANDARD IN ALL CONTRACTS AT
04:22:30 THE CITY AND IF YES WHY DO WE NOT INCLUDE IT IN THE FIRST
04:22:34 PLACE? >> SURE I THINK PROBABLY THE
04:22:36 BEST PERSON TO ANSWER THAT IS OKAY SINCE THEY HAVE OKAY OR
04:22:38 CITY ATTORNEY WHAT DO YOU WHAT ARE YOU GUYS SAYING?
04:22:42 >> IT'S CERTAINLY NOT ME. OKAY THANKS.
04:22:45 YES. A TERMINATION FOR CONVENIENCE
04:22:46 IS A PRETTY TYPICAL TERM IN OUR CONTRACTS.
04:22:50 IT'S INCLUDED IN OUR CONTRACT TEMPLATES BUT THIS IS A
04:22:53 BUSINESS TERM THAT DEPARTMENTS, YOU KNOW, CAN NEGOTIATE IF IF
04:22:57 THEY CHOOSE IF IT'S IN THEIR INTERESTS.
04:22:58 >> SO THE DEPARTMENT CAN NEGOTIATE IF THEY THINK THIS IS
04:23:01 AT THEIR BEST INTERESTS NOT TO INCLUDE IT.
04:23:02 THAT'S RIGHT. >> GOT IT.
04:23:05 THANK YOU. SORRY DIRECTOR.
04:23:06 WHAT? I DO NEED TO COME BACK AGAIN.
04:23:09 YOU MENTIONED THAT CURRENTLY OUR STAFF IS BEING STAFFING
04:23:12 THREE DIFFERENT SYSTEMS AND I UNDERSTAND THAT CURRENTLY WE
04:23:16 DON'T HAVE PLANS TO FILL VACANCIES AND ALSO NO
04:23:18 RECRUITMENT AND ROLE RETENTION PROGRAM TO REALLY PREVENT MORE
04:23:22 LOSSES TO THE DEPARTMENT AND I'M REALLY CONCERNED
04:23:28 AND WHAT IS YOUR PLAN TO ADDRESS THE STAFFING AND ALSO
04:23:32 WHAT IS THE PHYSICAL IMPACT? >> ABSOLUTELY.
04:23:36 >> I WOULD SAY THERE THERE'S A COUPLE OF DIFFERENT WAYS WE'RE
04:23:38 GOING TO TACKLE THE PERFORMANCE.
04:23:40 >> ONE OF THE ITEMS THAT IS TOP OF MIND THAT WE'VE DONE IN SORT
04:23:45 OF SMALLER CONTEXTS IN THE PAST IS TO KIND OF BIRD DOG STAFF
04:23:49 WHO ARE NOT MEETING THEIR SALARIES IF WE'VE GOT AN SLA OF
04:23:55 TWO DAYS AND WE SEE THAT A PERMIT IS AT DAY TWO AND NO ONE
04:23:59 STARTED THEIR REVIEW EMAIL THEM EMAIL THEIR SUPERVISOR I THINK
04:24:03 THAT IS PROBABLY THE LOWEST TECH WAY FOR US TO INITIATE
04:24:07 IMPROVING OUR SLA IS AND IT'S SEEN IT'S PROVEN TO BE
04:24:11 SUCCESSFUL UNDER PREVIOUS MOMENTS FOR EXAMPLE WHEN AB
04:24:16 1114 WAS IMPLEMENTED A FEW YEARS AGO THAT HAD VERY STRICT
04:24:20 COMPLETENESS TIMELINE REVIEWS WE IMPLEMENTED A SIMILAR
04:24:21 PROTOCOL AND WE DID SEE IMPROVED COMPLIANCE AS A RESULT
04:24:25 OF THAT. SO I THINK THAT IN THE SHORT
04:24:29 TERM ESPECIALLY WHEN OUR STAFF AGAIN WE HAVE A SMALL BUT
04:24:33 MIGHTY TEAM, THE SAME TEAM THAT WILL LIKELY BE DOING THAT HAS
04:24:36 BEEN PREPARING FOR ALL OF THESE HEARINGS.
04:24:37 SO ONCE WE HAVE A LITTLE BIT MORE BANDWIDTH WE HOPE TO TURN
04:24:40 TO THAT. GREG AND MY FOLLOW UP QUESTION
04:24:43 ON THAT IS I'M NOT THE MOST TECHIE PERSON BUT IN THE
04:24:48 CURRENT OPEN GOUGH SYSTEM DOES IT CREATE A RED FLAG IN THINGS
04:24:52 THAT IT'S FUN SINCE IT'S TENDERS TWO DAYS IF IT PASSES
04:24:55 TWO DAYS DOES THE SYSTEM AUTOMATICALLY CREATE A RED FLAG
04:24:58 AND IS THERE SOME SOME KIND OF DASHBOARD THAT YOU CAN REALLY
04:25:02 SEE PROGRESS THAT YOU HAVE ACTUALLY GOOD DATA THAT TO TO
04:25:06 PRESENT? >> ABSOLUTELY.
04:25:07 SO THE SYSTEM IN MY OPINION IS NOT THE APPROPRIATE PLACE TO
04:25:11 ESTABLISH THOSE SLEIGHS BUT POWER BI DASHBOARDS ARE WE DO
04:25:14 HAVE AND THERE'S A CONNECTIVITY THAT WE ALREADY HAVE BOTH WITH
04:25:18 OPEN GOV AS WELL AS OUR LEGACY SYSTEMS WITH POWER BI
04:25:21 DASHBOARDS. >> SO VERY MUCH SO WE HAVE
04:25:25 DASHBOARDS THAT WE CAN EXTRACT THAT INFORMATION FROM.
04:25:29 SO THIS IS NOT SOMETHING THAT'S GOING TO TAKE A LOT OF WORK TO
04:25:32 BUILD OUT. THIS IS THIS IS INFORMATION
04:25:33 THAT'S AVAILABLE TRULY IT'S THE BANDWIDTH AND CAPACITY TO HAVE
04:25:36 SOMEBODY LOOK AT THOSE DASHBOARDS, IDENTIFY WHO NEEDS
04:25:40 TO BE TALKED TO AND THEN WORK ON THOSE PERMITS ACCORDINGLY.
04:25:44 I DO THINK THE HARDER WORK IS JUST AT THE END OF THE DAY WHAT
04:25:49 THE TRADE OFFS ARE AND AGAIN I THINK THIS IS WHY IT COMES BACK
04:25:51 TO SLA IS ARE POLICY DECISIONS ABSOLUTELY WE CAN WE CAN KILL
04:25:59 THE PERFORMANCE METRICS THAT ARE THERE AND HIT TWO DAYS BUT
04:26:02 THERE'S A TRADE OFF THOSE STAFF.
04:26:05 THERE'S ONLY SO MANY STAFF. SO WHAT ARE THOSE STAFF NOT
04:26:07 WORKING ON IF THEY'RE WORKING TO MEET THOSE TWO DAY AS ALWAYS
04:26:10 EVERYONE IS WORKING HARD. THIS IS AN ISSUE OF TOO MANY
04:26:14 COFFEE BREAKS THE TRADE OFF IS MAYBE SOMEBODY IS WORKING ON A
04:26:18 REALLY BIG COMPLEX HOUSING PROJECT SO DO WE WANT TO PULL
04:26:21 THEM OFF THAT PROJECT TO HIT A TWO DAY SLA OR DO WE WANT ALL
04:26:24 HANDS ON DECK ON LARGER HOUSING PROJECTS?
04:26:27 AND SO I THINK WE NEED TO UNDERSTAND TO LIKE THESE ARE
04:26:32 ALL TRADEOFFS OF STAFFING TRADEOFFS IF WE CAN'T JUST, YOU
04:26:33 KNOW, HIRE MORE BODIES AND THROW MORE BODIES AT IT, WE
04:26:36 NEED TO THINK STRATEGICALLY ABOUT HOW CAN WE WORK MORE
04:26:39 EFFICIENTLY AND THAT IS ABSOLUTELY SOMETHING THAT I'M
04:26:41 EXCITED TO DO, YOU KNOW, MOVING FORWARD IN PHASE TWO AND WE
04:26:44 HAVE A LITTLE BIT MORE BANDWIDTH IS HELPED SUPPORT
04:26:47 DEPARTMENT HEADS AND THINKING ABOUT HOW TO HAVE YOU KNOW
04:26:50 IMPROVED STAFFING MODELS AND STAFF UTILIZATION.
04:26:51 BUT AT THE END OF THE DAY THESE ARE THESE ARE STAFFING
04:26:54 TRADEOFFS. >> YEAH I REALLY APPRECIATE
04:26:58 THAT THIS A DIFFICULT DECISION TO TO TO CHOOSE LIKE THAT'S A
04:27:02 DIFFICULT DECISION TO MAKE AND THE HARD TRADEOFFS.
04:27:06 IS THERE ANOTHER PATH THAT WE DON'T HAVE TO FACE THIS KIND OF
04:27:07 DIFFICULT TRADEOFFS THAT WE CAN MOVE THIS SLOWER BUT WITH
04:27:11 EFFICIENCY THAT WE'RE NOT PREVENTING INNOVATION, THAT WE
04:27:15 ARE NOT PREVENTING PROGRESS? >> I MEAN I THINK I THINK THE
04:27:19 WAY THAT WE THREAD THE NEEDLE WHILE WE HAVE REAL BUDGETARY
04:27:22 AND STAFFING CONSTRAINTS IS THINKING ABOUT HOW WE CAN WORK
04:27:26 SMARTER. AND I DO THINK WE'VE ALREADY
04:27:29 SEEN THAT IN OPEN GOVERNANCE THIS FIRST YEAR FOR EXAMPLE,
04:27:33 THERE WERE AND I BRING SORT OF A VERY STRONG PLANNING
04:27:38 PERSPECTIVE OBVIOUSLY FROM OUR YEARS AT THE PLANNING
04:27:39 DEPARTMENT. SO OFTEN YOU KNOW I THINK
04:27:42 APPROPRIATELY SO ESPECIALLY AFTER SOME OF THE LARGER SORT
04:27:45 OF ETHICS ISSUES THERE'S A SAYING WHEN IN DOUBT OVERALL
04:27:50 WHAT THAT MEANS IS WHEN CLERICAL STAFF GET A PERMIT IF
04:27:53 THEY ARE UNSURE OF WHETHER THAT PERMIT NEEDS TO BE REVIEWED BY
04:27:57 THE PLANNING DEPARTMENT WHEN IN DOUBT, SEND IT TO THE
04:28:00 PLANNING DEPARTMENT. WELL WHAT DOES THAT DO FROM A
04:28:01 STAFFING UTILIZATION AND AN EFFICIENCY PERSPECTIVE IF WE'RE
04:28:04 GETTING A HIGH VOLUME OF PERMITS SENT TO US THAT TAKE
04:28:08 STAFF TIME TO REVIEW THAT WE DON'T ACTUALLY NEED TO REVIEW.
04:28:12 >> THE NICE THING WITH TECHNOLOGY IS WE CAN BUILD
04:28:15 IN LOGIC THAT DEFINES OUR ROUTING.
04:28:18 DOES THIS NEED PLANNING? YES.
04:28:19 NO IT'S FAIR OR IT'S CONSISTENTLY APPLIED.
04:28:23 YOU DON'T HAVE AN ETHICS ISSUE OF QUESTIONING WHY SOMEBODY
04:28:27 CHOSE TO ROUTE OR FAILED TO ROUTE BUT IT ALSO REDUCES THE
04:28:30 ERRORS OF THINGS TAKING UP SORT OF OUR PRECIOUS PLAN REVIEWERS
04:28:34 TIME WHEN THEY DON'T NEED TO TO IT DOESN'T REQUIRE THEIR
04:28:37 TECHNICAL EXPERTISE WHICH I THINK THOSE ARE OUR VALUES
04:28:42 AND POLICY CHOOSE CHOICES THAT TO MAKE SURE THAT WE CONTINUE
04:28:46 TO MAKE SURE THAT WE DON'T HAVE DISPARITY, THAT WE DON'T HAVE
04:28:50 BIASES IN IN PROCESSING PERMITS.
04:28:51 >> RIGHT? SO THANK YOU FOR THAT.
04:28:54 >> AND I ALSO NOTICED THAT YOU MENTIONED THERE OTHER
04:28:58 DEPARTMENTS IS WAS ALSO READY AND I ALSO WANT TO KNOW FROM
04:29:00 THE OTHER DEPARTMENTS OF COURSE READY TO ALSO STEP INTO THE
04:29:05 SCOPE DO THEY ACTUALLY KNOW THE SCOPE?
04:29:06 >> WHAT ARE THE DEPARTMENT IS WE'VE GOT PEW SEE HERE WE'VE
04:29:10 GOT PUBLIC WORKS AND THERE I KNOW YOU TOLD US THE OTHER DAY
04:29:13 THEY'VE GOT THEIR TEAM. THEY'RE READY TO GO.
04:29:15 THEY KNOW WHAT THEY'RE DOING. CAN WE CAN WE HEAR FROM PKM
04:29:17 DEPARTMENT PUBLIC WHY HI THANK YOU.
04:29:24 SUPERVISOR RON FLYNN DEPUTY GENERAL MANAGER OF THE PUBLIC
04:29:28 UTILITIES COMMISSION WE HAVE A VERY LIMITED SCOPE.
04:29:32 IT IS A NEW SERVICE PORTAL. IT IS ONBOARDING NEW IT IS NOT
04:29:37 A PERMIT, IT IS NOT IT IS SORT OF ADJACENT TO THE PERMITS.
04:29:40 >> IT IS A PROCESS BY WHEN PEOPLE WANT TO GET A NEW WATER
04:29:44 SERVICE PORTAL. OFTENTIMES THAT TAKES
04:29:46 CONNECTING THEIR SYSTEM TO THE PUBLIC SYSTEM AND THAT IS DONE
04:29:52 BY US SENDING OUT CONTRACTORS, OUR OWN WORKERS TO DIG THE
04:29:56 STREET AND TO CONNECT THAT THAT PROCESS HAS HAPPENED OVER OVER
04:30:00 SERIES OF YEARS OF PAPER THROUGHOUT.
04:30:03 >> TWO YEARS AGO WE WENT THROUGH WE DID AN ANALYSIS OF
04:30:05 WHAT IT WOULD TAKE TO MODERNIZE THIS AND DO THIS IN A
04:30:08 SYSTEMATIC WAY. SO WE HAVE DETERMINED THE STEPS
04:30:12 THAT WE'RE GOING TO DO AND THAT PROCESS IS WHAT WE ARE WAITING
04:30:15 TO DO. OUR PROCESS IS WE ARE EXCITED
04:30:19 ABOUT BEING ABLE TO HAVE THIS DONE.
04:30:23 >> IT'S NOT GOING TO CHANGE THE ACTUAL WORK THAT'S DONE.
04:30:26 >> SOMEONE IS STILL GOING TO GO OUT AND DIG THE STREET UP BUT
04:30:30 SOMEONE IS NOT GOING TO WRITE IT ON A PIECE OF PAPER AT ONE
04:30:34 ONE OFFICE AND THEN SEND IT OVER TO ANOTHER OFFICE AND THEN
04:30:37 SEND THAT DOWN TO A COUNTY TO ISSUE A BILL.
04:30:38 WE'RE HOPING THAT THIS SYSTEM LETS IT ALL BE THERE BUT IT'S A
04:30:42 VERY SMALL IT'S A VERY SMALL PIECE.
04:30:46 >> IT IS, YOU KNOW, LESS THAN $1 MILLION.
04:30:49 IT IS A WE ARE PREPARED TO GO WE HAVE A TEAM EXCITED ABOUT
04:30:53 GETTING THIS UP AND RUNNING. WE'VE BEEN WRITING FOR A WHILE
04:30:57 BUT WE JUST HAVEN'T HAD A CONTRACT VEHICLE.
04:30:58 >> GREAT YOU HAD THAT DISCUSSION TWO YEARS AGO
04:31:01 AND YOU CLEARLY DEMONSTRATE THAT YOU UNDERSTAND THE SCOPE
04:31:04 OF WORK AND WHAT YOU NEED AND THE OUTCOMES.
04:31:05 >> YES. THANK YOU.
04:31:08 >> CAN I HAVE DPW? GOOD AFTERNOON SUPERVISORS.
04:31:12 BRUCE ROBERTSON DEPUTY DIRECTOR OF FINANCE AND ADMINISTRATION
04:31:16 WE TWO AS MENTIONED EARLIER ARE VERY EXCITED TO GO FORWARD WITH
04:31:20 OUR CONSTRUCTION PERMITS. THOSE ARE HIGHLY COMPLICATED
04:31:24 AND HIGHLY CRITICAL FOR WORK DONE IN THE PUBLIC RIGHT AWAY
04:31:25 WHETHER IT'S A GENERAL EXCAVATION PERMIT OR SOME OF
04:31:28 THE OTHER MAJOR MINOR ENCROACHMENTS THAT ARE NEEDED
04:31:32 TO DELIVER CONSTRUCTION PROJECTS.
04:31:36 A LOT OF TECHNICAL REQUIREMENTS FOR THOSE POSITIONS BASED ON
04:31:40 SQUARE FOOTAGE AND SOME OF THE COMPLEXITIES OF THEM WHETHER
04:31:41 IT'S A TANK REMOVAL OR SOME OF THE OTHER ITEMS.
04:31:45 SO WE ARE LOOKING FORWARD TO IT.
04:31:45 AS I MENTIONED, CONSTRUCTION IS OUR HIGHEST PRIORITY THAT IS
04:31:48 CURRENTLY BEING PERFORMED BY A LEGACY INTERNALLY BUILT SYSTEM
04:31:55 THAT IS JUST AT THE END OF ITS USEFUL LIFE.
04:31:56 SO WITH THAT I'M HAPPY TO ANSWER ANY ADDITIONAL
04:32:00 QUESTIONS. WE DO HAVE STARTED SOME OF OUR
04:32:01 CHARTER DOCUMENTS AND OUR BUSINESS REQUIREMENT PROCESSES
04:32:04 REALLY TO SEE IF WE COULD TAKE ADVANTAGE OF THIS AS AN
04:32:07 OPPORTUNITY TO IMPROVE AND STREAMLINE SOME OF OUR WAYS
04:32:10 IN WHICH WE DO BUSINESS. >> GREAT.
04:32:11 SO YOU HAVEN'T REALLY FINISH YOUR PROCESS OF ANALYZING
04:32:15 AND EVALUATING WHETHER THE NEW SYSTEM IT'S ABLE TO MEET
04:32:19 AND ALSO BETTER INFORM ON THAT AS PART OF WHAT WE ANTICIPATE
04:32:23 TO HAPPEN GOING FORWARD WITH SHOULD THIS CONTRACT GET
04:32:26 APPROVED THERE, WILL THE CONTRACTOR I'M HOPING WILL
04:32:29 ASSIST US IN SOME OF THAT BUT WE HAVE BEEN DOING SOME OF OUR
04:32:31 PROCESS IMPROVEMENTS INTERNALLY AS PART OF OUR WORK THAT WE'VE
04:32:34 BEEN LOOKING TO DO IN TERMS OF IN TERMS OF OUR STRATEGIC PLAN
04:32:38 ROLL OUT AND IMPROVING OUR OVERALL BUSINESS.
04:32:41 >> SO HOW LONG HOW LONG DO YOU ANTICIPATE TO MAP OUT THIS
04:32:43 PROCESS TO HAVE SOMETHING THAT IS REALLY CLEAR LIKE THE PUC
04:32:46 HAS DEMONSTRATED? I THINK WE'RE A LITTLE BEHIND
04:32:50 THE PUC. WE HAVE MORE PERMITS.
04:32:53 WE HAVE A LITTLE BIT MORE COMPLEXITY AS MR. FLYNN
04:32:55 INDICATED, IT'S A LITTLE BIT MORE STRAIGHTFORWARD FOR THEM.
04:32:58 I DON'T HAVE A SPECIFIC TIMELINE AT MY FINGERTIPS.
04:33:01 THE STAFF THAT ARE DOING IT I CAN REACH BACK OUT TO THEM
04:33:04 AND CERTAINLY PROVIDE YOU THAT INFORMATION.
04:33:05 I'M HOPING IT'S WITHIN MONTHS, NOT YEARS.
04:33:08 WE ALSO ARE MOVING AT A TIMELY MANNER TRYING TO GET THIS DONE
04:33:12 BECAUSE IT'S OUR LEGACY SYSTEM .
04:33:15 I CANNOT EMPHASIZE THIS ENOUGH IS REALLY AT THE END OF ITS
04:33:16 USEFUL LIFE AND NEEDS TO BE REPLACED.
04:33:20 >> I MEAN I RECENTLY VISITED AIRPORT THE AIRPORT, YOU KNOW,
04:33:24 DID A SIMILAR PROCESS. THEY HAD A NEW SYSTEM THAT THEY
04:33:28 FULLY LAUNCH WHICH SPANNED IT WHICH IS CALLED THE AIRPORT
04:33:35 INTEGRATED OPERATIONS CENTER. SO THEY STARTED A CONVERSATION
04:33:39 AS A TEAM IN 2019 AND FULLY LAUNCHED THEIR AOC IN JANUARY
04:33:45 2024. THEY ACTUALLY THE PROCESS
04:33:46 PROCESSES THEY MAP IT OUT AND THEN THEY HAVE THEIR
04:33:49 INTERNAL TEAM TO BUILD IT AND AND I WAS AMAZED, YOU KNOW,
04:33:53 DURING THAT TOUR AND SEEING ALL THOSE ROAD MAPS AND HOW THEY'RE
04:33:57 ABLE TO HAVE AN INTEGRATED SYSTEM REALLY I THINK THEIR
04:34:00 GOAL DEMONSTRATED TO ME WAS TO MAKE SURE THAT THE AIRPORT IS
04:34:04 SAFE AND THEN AT THE SAME TIME PROVIDE THE BEST CUSTOMER
04:34:07 SERVICES AT THE AIRPORT THAT CONTINUE TO COME AND IMPACT SAN
04:34:11 FRANCISCO ECONOMY WITH THAT I MEAN I WOULD LOVE FOR YOU THAT
04:34:16 DEPARTMENT TO COME BACK TO TO SHARE ALL I AT LEAST EMAIL US
04:34:20 YOU KNOW HOW MUCH LONGER OR WHAT WHAT IS YOUR TIMEFRAME FOR
04:34:24 THAT PROCESS. >> THANK YOU.
04:34:27 >> SURE. SUPERVISOR IF I COULD ADD ONE
04:34:28 THING. EARLIER IN MY CAREER I WAS AT
04:34:29 THE AIRPORT AND WE IMPLEMENTED SOME SYSTEMS THERE SO I HAVE
04:34:32 EXPERIENCE IN THEIR PRACTICE AND WE'RE GOING TO EMULATE
04:34:35 THAT. JUST TRY TO DO IT IN A LITTLE
04:34:36 BIT SHORT OVER TIMELINE. >> WE'LL BE HAPPY TO GET THAT
04:34:39 INFORMATION. THANK YOU.
04:34:40 THANK YOU. >> SUPERVISOR CHEN SUPERVISOR
04:34:43 FIELD THANK YOU CHAIR DORSEY. I JUST WANTED TO PROVIDE
04:34:46 COMMENTS WRAPPING UP THE HEARING AND I WANT TO THANK
04:34:50 PARENTS JEFF AND THE OFFICE OF CONTRACT ADMINISTRATION AS WELL
04:34:55 AS THE VLA FOR ANSWERING MY QUESTIONS.
04:34:58 >> IN SUM THE BLADES DID NOT FIND EVIDENCE OF IMPROPRIETY OR
04:35:02 UNFAIR ADVANTAGE GIVEN TO ANY BIDDERS IN THE PROCUREMENT OF
04:35:06 OPEN GOV. >> HOWEVER THERE IS LESS
04:35:09 ASSURANCE THAT NONE OCCURRED AND THE BLADE DID NOT
04:35:11 INVESTIGATE POTENTIAL CONFLICTS OF INTEREST BETWEEN CITY
04:35:13 DECISION MAKERS, VENDORS AND THEIR LOBBYISTS.
04:35:17 OPEN GOV WAS SELECTED THROUGH AN UNUSUAL ALL NONCOMPETITIVE
04:35:21 PROCESS THAT ACCORDING TO THE BLADE DID NOT CONFORM TO BEST
04:35:24 PRACTICES OR TYPICAL CITY PRACTICE IN PROCUREMENT BUT WAS
04:35:28 LEGAL UNDER SECTION 2130 OF THE ADMINISTRATIVE CODE WHICH WAS
04:35:32 PUT IN OUR CODE WAY BACK IN 1999 AND HASN'T BEEN UPDATED
04:35:35 SINCE TO REFLECT CHANGES IN TECHNOLOGY AND SOME LESSONS
04:35:39 WERE LEARNED. >> WE CAN'T SAY FOR SURE
04:35:43 WHETHER WE GOT THE BEST PRICE OF THIS CONTRACT VS THE OTHER
04:35:46 VENDORS. CRITERIA WERE NOT CONVEYED TO
04:35:50 VENDORS SO WE MAY HAVE GOTTEN BETTER PROPOSALS AND OPEN GOV
04:35:54 WAS CHOSEN ACCORDING TO THIS NON STANDARDIZED CRITERIA.
04:35:55 >> SOME OF MY COLLEAGUES MAY DISAGREE WITH ME BUT I BELIEVE
04:35:58 OUTCOMES BEGIN WITH PROCESS AND I CAN'T SAY FOR SURE THIS
04:36:02 CONTRACT DESERVES MORE THAN ONE YEAR AND A SIMILAR AMOUNT
04:36:05 WITHOUT CLEAR DELIVERABLES. AGAIN I WANT TO THANK THE BLA
04:36:09 PERMANECER AND OFFICE OF CONTRACT ADMINISTRATION FOR
04:36:13 ANSWERING MY QUESTIONS. THANK YOU BY THE CHAIR DORSEY
04:36:16 FOR HEARING THIS ITEM. >> THANK YOU SUPERVISOR FIELDER
04:36:20 . >> I WOULD LIKE TO THANK ALL OF
04:36:21 OUR PARTICIPANTS AND I REALLY APPRECIATE THE PRESENTATIONS
04:36:24 AND THE RESPONSES TO OUR QUESTIONS TODAY.
04:36:25 I APPRECIATE ALSO EVERYBODY'S PATIENCE AND I KNOW THAT WE
04:36:29 HAVE PEOPLE WHO ARE WAITING FOR PUBLIC COMMENT AND WE'RE ALMOST
04:36:32 THERE. I WANT TO REITERATE THAT I AM
04:36:36 STRONGLY SUPPORTIVE OF THE GOALS OF PERMIT S F OUR
04:36:39 PERMITTING SYSTEM HAS BEEN TOO COMPLICATED, TOO FRAGMENTED
04:36:43 AND TOO SLOW FOR FAR TOO LONG. >> THERE IS BROAD AGREEMENT I
04:36:48 THINK THAT WE NEED TO MODERNIZE BOTH THE TECHNOLOGY AND THE
04:36:49 UNDERLYING PROCESSES. AT THE SAME TIME I DON'T WANT
04:36:52 US TO OVERLOOK THE CHALLENGES WE'VE SEEN IN THIS FIRST YEAR.
04:36:55 THE ORIGINAL IMPLEMENTATION WAS MONTHS BEHIND SCHEDULE AND AS
04:36:59 YOU KNOW HAS BEEN ACKNOWLEDGED FOR SOME PERMIT TYPES.
04:37:02 IN FACT PROCESSING TIMES ARE ACTUALLY LONGER TODAY THAN THEY
04:37:06 WERE EVEN UNDER LEGACY SYSTEMS. THAT'S A GROWING PAINS AND I
04:37:07 THINK WE CAN ACCEPT THAT. BUT WHAT I WANT TO TAKE AWAY
04:37:11 FROM TODAY'S DISCUSSION IS THAT NOT ALL OF THOSE CHALLENGES CAN
04:37:15 OR SHOULD BE ATTRIBUTED TO OPEN GOV.
04:37:18 THIS IS AN EXTRAORDINARILY COMPLICATED UNDERTAKING THAT
04:37:19 INVOLVES MULTIPLE DEPARTMENTS LEGACY SYSTEMS, STAFFING DATA
04:37:22 AND BUSINESS PROCESSES AND I THINK MY COLLEAGUES AND I SHARE
04:37:27 OUR CONCERNS THAT THE CITY MAY HAVE MOVED INTO IMPLEMENTATION
04:37:30 BEFORE SOME FOUNDATIONAL WORK WAS WAS DONE TO MANAGE THIS AT
04:37:34 SCALE AND TO MEET EXPECTATIONS THAT THAT THE MAYOR'S OFFICE
04:37:37 ORIGINALLY SET. >> SAN FRANCISCO HAS SOME
04:37:41 PAINFULLY EXPENSIVE EXPERIENCES WITH MAJOR TECHNOLOGY PROJECTS
04:37:44 AND I HAVE BEEN AROUND FOR MANY OF THEM.
04:37:49 SUPERVISOR CHERYL ASKED EARLIER ABOUT WHETHER GOVERNMENT WAS
04:37:52 KNOWN FOR ITS USE OF BEST IN CLASS SOFTWARE AND I HAD TO
04:37:56 RESIST THE URGE TO SHOUT OUT THAT WE WERE ON LOTUS NOTES
04:38:00 UNTIL 2016 IN THIS BUILDING. >> YOU KNOW, I THINK THOSE OF
04:38:04 US WHO HAVE BEEN AROUND CITY GOVERNMENT FOR A LONG TIME HAVE
04:38:06 LIVED THIS. >> SO IN SOME WAYS I HAVE SOME
04:38:08 EXCITEMENT ABOUT THIS TOO. BUT THE ANSWER IS NO, NO, NO.
04:38:12 GOVERNMENT HAS NOT BEEN HISTORICALLY KNOWN FOR USING
04:38:16 BEST IN CLASS SOFTWARE AND IT'S TIME WE DID SO FOR THIS CHANGE
04:38:20 MANAGEMENT ENDEAVOR BEFORE US. I DO THINK THE MOST INSTRUCTIVE
04:38:24 CAUTIONARY TALE AT LEAST THAT RECENT HISTORY OFFERS US IS
04:38:31 JUSTICE. >> JUSTICE IS AN ACRONYM FOR
04:38:32 THE JUSTICE TRACKING INFORMATION SYSTEM WHICH SHOWED
04:38:35 US WHAT CAN HAPPEN WHEN DEPARTMENTS OPERATE SEPARATE
04:38:39 SYSTEMS AND GOVERNMENT SPENDS YEARS TRYING TO INTEGRATE THEM.
04:38:43 >> FOR BACKGROUND JUSTICE YOU STARTED EVEN BEFORE MY TIME
04:38:47 IN CITY HALL. IT WAS ENVISIONED IN 1997 AS A
04:38:50 MIDDLEWARE SOLUTION TO REPLACE OUR ANTIQUATED COURT MANAGEMENT
04:38:54 SYSTEM. IT WAS SUPPOSED TO CONNECT
04:38:55 DISPARATE CASE MANAGEMENT SYSTEMS FROM THE POLICE SHERIFF
04:38:58 DISTRICT ATTORNEY, PUBLIC DEFENDER, ADULT PROBATION,
04:39:02 JUVENILE PROBATION SUPERIOR AND THE SUPERIOR COURT AMONG
04:39:05 OTHERS. >> A DECADE LATER IN $25.5
04:39:09 MILLION LATER IN 2007, OUR BUDGET AND LEGISLATIVE ANALYSTS
04:39:13 DID AN ANALYSIS UNPACKING THE MULTITUDE OF REASONS WHY
04:39:16 JUSTICE JUST WAS NOT GOING RIGHT, WHY IT WAS GOING OFF THE
04:39:21 RAILS. >> IT BEGAN AS A THREE YEAR
04:39:24 PROJECT FOR 14 TO $15 MILLION. IT BECAME AN OPEN ENDED
04:39:27 UNDERTAKING WITH NO FIRM COMPLETION DATE OR PROJECT
04:39:30 BUDGET. NOBODY REALLY IT WAS REALLY
04:39:34 ASSIGNED TO BE ACCOUNTABLE AS THE PROJECT MANAGER OVER THE
04:39:35 LIFE OF ITS OF THE PROJECT. >> ITS EXECUTIVE SPONSORSHIP
04:39:41 WAS NEVER CLEAR. BUDGET RESPONSIBILITY BOUNCED
04:39:42 AROUND AMONG MULTIPLE ENTITIES AND MORE IMPORTANTLY AGENCIES
04:39:49 DEVELOP THEIR OWN SYSTEMS WHILE THE INTEGRATION PORTION OF IT
04:39:50 WHICH WAS REALLY THE WHOLE RATIONALE FOR HAVING A JUSTICE
04:39:54 SYSTEM IN THE FIRST PLACE JUST FELL BY THE WAYSIDE.
04:39:56 IT WAS A LATER AUDIT OF JUSTICE FOUND THAT IT WAS STILL NOT
04:40:00 FULLY OPERATIONAL ALL EVEN AFTER $32 MILLION IN GENERAL
04:40:05 FUND EXPENDITURES THAT WENT IN THROUGH THE MID TEENS.
04:40:08 >> SO COUNTERINTUITIVELY ONE OF THE MAJOR ADVANTAGES I SEE FOR
04:40:12 PERMIT S.F. IS THAT IT'S ACTUALLY STARTING WITH
04:40:16 CONTROVERSY AND INTENSIVE SCRUTINY.
04:40:19 RIGHT OUT OF THE GATE. YOU KNOW, I KIND OF WONDER HAD
04:40:22 JUSTICE FACED THE KIND OF SCRUTINY FROM THE SAN FRANCISCO
04:40:24 STANDARD OR THE SAN FRANCISCO CHRONICLE?
04:40:27 BACK 30 YEARS AGO WE MIGHT HAVE HAD A BETTER SYSTEM BEFORE WE
04:40:30 SANK A LOT OF BAD MONEY INTO IT.
04:40:31 >> AS WE HEARD IN THIS PRESENTATION, ONE ASPECT OF
04:40:35 THIS CONTRACT THAT JUMPED OUT TO ME AND NOT IN A GOOD WAY WAS
04:40:42 THAT IT LACKED A TERMINATION FOR CONVENIENCE PROVISION.
04:40:45 NOW I CERTAINLY GET WHY CONTRACTORS AND VENDORS DON'T
04:40:47 LIKE THAT PROVISION. IT LENDS ITSELF TO MERCURIAL
04:40:50 DECISIONS BY A CITY OR BOARD OF SUPERVISORS.
04:40:54 BUT I ALSO FEEL VERY STRONGLY THAT THERE IS NO STRONGER, MORE
04:40:58 FLEXIBLE CONTRACT PROVISION TO PROTECT THE INTERESTS OF
04:41:02 TAXPAYERS AND THE CITY. IN MY OWN CONVERSATIONS WITH
04:41:06 THE MAYOR'S OFFICE I MADE CLEAR THAT THE ABSENCE OF THAT
04:41:10 TERMINATE FOR CONVENIENCE PROVISION WAS CAUSING ME TO
04:41:14 LOOK UNFAVORABLY ON THIS CONTRACT.
04:41:15 >> I SPENT 14 YEARS IN THE CITY ATTORNEY'S OFFICE.
04:41:19 >> I HAVE A LOT OF FAMILIARITY WITH LITIGATION RISK.
04:41:22 AND FOR THAT REASON I WAS A BIG BELIEVER IN THE LATITUDE
04:41:26 AND FLEXIBILITY AND TEETH THAT THAT PROVISION AFFORDS TO THE
04:41:30 CITY AND ITS TAXPAYERS. >> AND IN FACT, GIVEN GIVEN THE
04:41:34 CHOICE BETWEEN EFFECTIVELY TRUNCATING THE FIVE YEAR
04:41:36 CONTRACT TO A TWO YEAR CONTRACT AS THE BLR RECOMMENDED WITHOUT
04:41:40 THE LEVERAGE OF A TERMINATION FOR FOR A CONVENIENCE OR
04:41:44 RESTORING THAT PROVISION THAT WOULD GIVE US GREATER LEVERAGE
04:41:48 TO SAFEGUARD AGAINST UNSATISFACTORY PERFORMANCE NOT
04:41:52 JUST IN IN YEAR TWO BUT YEAR THREE, YEAR FOUR, YEAR FIVE I
04:41:55 CHOOSE THE LATTER. >> I THINK WE'RE GETTING A
04:41:59 BETTER, STRONGER CONTRACT WITH THAT PROVISION.
04:42:03 AND AFTER CONFERRING WITH THE CITY ATTORNEY'S OFFICE AND THE
04:42:07 CITY ADMINISTRATOR, I'M PERSUADED THAT BY ADDING BACK
04:42:08 THAT IRON CLAD TERMINATION FOR CONVENIENCE PROVISION IT'S THE
04:42:11 MOST PRUDENT POSSIBLE AMENDMENT NOT SOLELY TO PROTECT THE CITY
04:42:15 BUT ALSO TO ENSURE THAT AS A BOARD OF SUPERVISORS WE CAN
04:42:18 MAINTAIN OUR OVERSIGHT THROUGHOUT THE BUDGET
04:42:19 AND APPROPRIATION PROCESS. >> I ALSO THINK AS STRUCTURED
04:42:23 THE CONTRACT RETAINS THE BENEFITS OF A FIVE YEAR TERM
04:42:26 THAT ISN'T GETTING MORE EXPENSIVE AS OUT YEARS OR
04:42:29 UNCERTAINTY MAY MAY LEND ITSELF TO THAT TRUNCATING THIS MAY
04:42:33 MAKE IT ULTIMATELY MORE EXPENSIVE AS WE SAW WITH THE
04:42:37 JUSTICE PROJECT. I THINK THIS IS A BETTER, MORE
04:42:38 ENDURING AND MORE EASILY ENFORCEABLE WAY OF MOVING THIS
04:42:43 CONTRACT FORWARD. >> THE NEED FOR PERMITTING
04:42:45 REFORM IS GREAT. I THINK THE ANSWER IS TO
04:42:48 PROCEED WITH GREATER DISCIPLINE AROUND PROJECT MANAGEMENT,
04:42:51 MEASURABLE PERFORMANCE, CLEAR MILESTONES AND ACCOUNTABILITY
04:42:55 BOTH FOR OPEN GOV AND THE CITY. AND I WANT THAT ACCOUNTABILITY
04:42:59 TO CONTINUE BEYOND TODAY'S CONTRACT APPROVAL.
04:43:00 I WANT THE BOARD TO MAKE SURE THAT WE HAVE AN OPPORTUNITY TO
04:43:04 REVISIT THIS WORK AS IMPLEMENTATION PROCEEDS.
04:43:07 UNDERSTANDING THAT WITH WHETHER MILESTONES ARE BEING MET
04:43:11 AND IDENTIFYING PROBLEMS BEFORE THEY BECOME LARGER OR MORE MORE
04:43:12 EXPENSIVE TO SOLVE. >> SO I'M SUPPORTIVE TODAY.
04:43:17 I'M GOING TO BE WATCHING THIS CLOSELY.
04:43:20 I THINK WE ALL WILL. THIS IS A SIGNIFICANT
04:43:21 INVESTMENT AND WE NEED TO MAKE SURE THE CITY IS POSITIONED TO
04:43:24 DELIVER ON THE PROMISE WE'RE MAKING TO THE PUBLIC.
04:43:27 ONE THING WE OCCASIONALLY DO AT THIS COMMITTEE, ESPECIALLY WHEN
04:43:31 AN ITEM MERITS SCRUTINY AND A FULLER DISCUSSION BY OUR
04:43:35 COLLEAGUES AT THE BOARD IS TO SEND THINGS OUT TO THE FULL
04:43:39 BOARD OF SUPERVISORS WITHOUT RECOMMENDATION.
04:43:42 >> THAT'S NOT NECESSARILY TO TELEGRAPH A LACK OF SUPPORT OR
04:43:46 ENTHUSIASM AT LEAST FOR ME. I AM SUPPORTIVE OF THIS AND I,
04:43:50 I THINK IT'S ACTUALLY GOING TO DELIVER GREAT SERVICE TO OUR TO
04:43:54 OUR RESIDENTS AND THE PEOPLE WHO SEEK PERMITS.
04:43:55 BUT IT IS SOMETHING THAT WE DO AS A COURTESY TO OUR COLLEAGUES
04:43:59 TO ACKNOWLEDGE THAT WE WELCOME THEIR VOICES INTO A FULLER
04:44:02 DEBATE. SO AFTER PUBLIC COMMENT THE
04:44:03 MOTION I WOULD INTEND TO MAKE FOR ITEM 22 THAT'S THE CONTRACT
04:44:07 AGREEMENT IS TO FORWARD THE CONTRACT AGREEMENT AS AMENDED
04:44:11 AS AMENDED TO THE FULL BOARD OF SUPERVISORS WITHOUT
04:44:14 RECOMMENDATION. >> AND THEN I KNOW THAT
04:44:18 SUPERVISOR CHEN WANTS TO SPEAK AND BEFORE WE CALL A PUBLIC
04:44:19 COMMENT I WOULD JUST POINT OUT TO EVERYBODY WE HAVE NEW BELLS
04:44:22 SO JUST BE AWARE THAT YOU'LL THERE'S THERE'S A NEW SYSTEM
04:44:27 BUT YOU'LL GET EVERYBODY WILL GET TWO MINUTES.
04:44:29 >> SUPERVISOR CHEN THANK YOU CHAIR I DON'T SEE.
04:44:31 I ALSO WANT TO APPRECIATE SUPERVISOR THEATER FOR CALLING
04:44:35 THIS HEARING AND THANK YOU TO ALL THE BUDGET AND LEGISLATIVE
04:44:39 ANALYSIS TEAM FOR THEIR WORK. AND ALSO I WANT TO THANK
04:44:43 PERMANENT STAFF AND OTHER DEPARTMENTS TEAM FOR YOUR TIME
04:44:46 AND YOUR PRESENTATIONS. I ALSO WANT TO BE VERY CLEAR
04:44:48 THAT I AM SUPPORTIVE OF PERMIT S.F. AND I SHARE THE GOALS OF
04:44:52 OUR MAYORS INTEREST IN STREAMLINING THE PERMITTING
04:44:55 PROCESS SO OUR CONSTITUENTS ARE ABLE TO MOVE THROUGH THE
04:44:59 PIPELINE MORE EFFICIENTLY. >> THE BOARD OF SUPERVISORS HAS
04:45:03 DEMONSTRATED ITS SUPPORT BY VOTING TO REDUCE DUPLICATED
04:45:06 AND UNNECESSARY LABORERS PERMITS AND WE HAVE
04:45:10 DEMONSTRATED AN OPENNESS TO ALSO THE CREATION OF THIS
04:45:14 PROGRAM. HOWEVER, I DO STILL HAVE
04:45:15 CONCERNS ABOUT THIS CONTRACT THE WAY THAT IT WAS PROCURED
04:45:19 THE LACK OF TRANSPARENCY AROUND CLARITY DEFINED A PERFORMANCE
04:45:22 METRICS AND THE SPEED IN WHICH WE ATTEMPT TO MOVE IT.
04:45:26 BY AMPLE EVIDENCE THAT WE SHOULD SLOW DOWN MOVING THROUGH
04:45:30 THE PROCESS AT THIS PACE WITHOUT CLEAR INTENTIONAL
04:45:33 AND REALISTIC PERFORMANCE GOALS AND TIMELINE DOES NOT ACHIEVE
04:45:37 THE EFFICIENCY THAT WE ARE SAYING WE WANT TO ACHIEVE.
04:45:41 THERE'S NOT ENOUGH DATA OR EVIDENCE THAT DEMONSTRATES THE
04:45:44 SYSTEM WORKS AS INTENDED. IN FACT THERE ARE ALSO ISSUES
04:45:48 THAT ARE BEING WORKED OUT AT THE SAME TIME THE DEPARTMENT IS
04:45:52 TALKING ABOUT EXPANDING THE PROGRAM TO MORE PERMIT TIMES
04:45:55 AND MORE DEPARTMENTS AND SOME OF OUR DEPARTMENTS ALSO REQUIRE
04:45:59 TIME TO FIGURE OUT THEIR WORK OF SCOPE AND EVALUATING HOW THE
04:46:04 SYSTEM IS BEST WORK FOR THEM. SO THERE ARE ALREADY DELAYS
04:46:08 IN THE CURRENT CONTRACT AND ALSO AGAIN WILL BE FURTHER
04:46:12 DELAY IN EXPANSIONS. SO IT'S CLEAR THAT WE ARE NOT
04:46:13 SETTING OR OPERATING WITHIN A REASONABLE TIMELINE.
04:46:17 ADDITIONALLY BASED ON PRESENTATION TODAY WE HAVE BEEN
04:46:21 TOLD THAT THERE ARE NO PLANS TO STAFF UP, NO TIMELINE FOR
04:46:24 FILLING VACANCIES AND ALSO WROTE RECRUITMENT AND RETENTION
04:46:28 PROGRAM TO PREVENT MORE LOSSES .
04:46:31 >> I WAS LUCKY ENOUGH TO JOIN THE BUDGET APPROPRIATION
04:46:35 COMMITTEE TO ITS LAST BUDGET PROCESS.
04:46:37 WE WEREN'T REALLY HARD TO CLOSE A LARGE DEFICIT BUT THE WORK
04:46:40 ISN'T DONE YET. BUT WE CONTINUE TO HAVE
04:46:44 MILLIONS OF DOLLARS LEFT TO CLOSE IN UPCOMING CYCLE.
04:46:47 NOW IS THE TIME FOR US TO PRUDENT AND THOUGHTFUL ABOUT
04:46:51 MAJOR INVESTMENT THAT WE ARE MAKING.
04:46:52 >> THIS PROJECT IS A MAJOR LONG TERM INVESTMENT FOR OUR CITY.
04:46:58 THIS MORNING WE RECEIVE AN EMAIL FROM DIRECTOR WATI
04:47:02 INDICATING THAT THE OF CONVENIENT COST LANGUAGE WAS
04:47:03 ADDED TO OPEN COURT CONTRACTS. I THINK THIS IS WAS ONE OF MY
04:47:07 BIGGEST CONCERN DURING MY MEETING WOULD BE A TEAM.
04:47:13 I'M VERY GLAD THAT AN AMENDMENT IS BEING MADE TO REFER TO THE
04:47:17 RECOMMENDATIONS AND AND THIS COURSE ALSO SHOULD HAVE NEVER
04:47:22 BEEN REMOVED IN THE FIRST PLACE.
04:47:24 THIS IS ALSO A CASE OF MORE COLLECTIVE WISDOM AND MORE
04:47:28 TRANSPARENT PROCESS AND COLLECTIVE DISCUSSION CAN
04:47:31 HELP YOU A MORE FINANCIALLY ACCOUNTABLE PROCESS
04:47:33 AND CONTRACT PROCUREMENT BY APPROVING A FIVE YEAR CONTRACT
04:47:39 WHEN IT'S FOUND TO HAVE SHOWN THAT THE PROGRAM WORKS AS
04:47:42 INTENDED. IT'S PHYSICALLY IRRESPONSIBLE
04:47:43 ESPECIALLY GIVEN OUR BUDGET FORECASTS DESPITE THE IMPORTANT
04:47:47 WORK THAT WE HAVE DONE BY THE TEAM.
04:47:50 >> NONE OF THE DELIVERABLES ARE MET ON TIMELINE HENCE TO BE A
04:47:53 HAS PROVIDED US A THOUGHTFUL AND CAREFUL AMENDMENT TO REDUCE
04:47:57 THE SCOPE OF THE CONTRACT DOWN TO A YEAR AND HAVE THE
04:48:01 DEPARTMENT COME TO PROVIDE AN UPDATE ON THE PODCAST SCOPE
04:48:04 AND TIMELINE FOR FUTURE EXTENSIONS.
04:48:05 I WOULD LIKE TO URGE THE DEPARTMENT ACCEPT THIS
04:48:08 RECOMMENDATIONS. I THINK THAT THIS
04:48:09 RECOMMENDATION AND BEYOND REASONABLE IT IS TO ALLOW US
04:48:13 FOR FUNDING OF THE PROGRAM BUT WITH STRONGER OVERSIGHT
04:48:17 AND GUARDRAILS THAT ARE CLEARLY NEEDED.
04:48:20 AND ALSO LASTLY I WOULD LIKE TO SHARE THE AIRPORT VISITS AGAIN.
04:48:25 THE AIRPORT TEAM BUILT THEIR OWN ENTIRE AOC AIRPORT
04:48:28 INTEGRATED OPERATION CENTER THAT LAUNCHED IN JANUARY 2024.
04:48:32 THEY STARTED THEIR INTERNAL INITIAL INTERNAL CONVERSATION
04:48:38 IN 2019. WITHIN A FEW YEAR THEY'RE ABLE
04:48:39 TO DELIVER A MORE EFFECTIVE AND EFFICIENT SAVE WHILE
04:48:43 INTEGRATED SYSTEM TO SUPPORT THE GROWTH AT THE AIRPORT FOR
04:48:47 THE FORECASTS OF THE NEXT 50 YEARS.
04:48:50 >> SO AGAIN I THINK WITH THAT IT'S ALSO THE GOAL IS TO MAKE
04:48:54 SURE THAT THEY CAN PROVIDE ONE OF THEIR GOAL IS TO PROVIDE
04:48:58 BETTER CUSTOMER EXPERIENCE IS THAT THEY CAN CONTINUE TO
04:49:02 SUPPORT THE AIRPORT. >> AND ONE THING THAT I ALSO
04:49:06 WANT TO REALLY POINT OUT IS DURING OUR TOUR WE REALLY SEE
04:49:10 BIG WARS OF LIGHT MAPPING UP AT EVERY SCENARIO AND HOW THEY
04:49:14 TECH HOW THEY'RE ABLE TO TACKLE THE SITUATION, WHAT IS THEIR
04:49:18 PATH AND THAT INTERNAL TEAM IS REALLY ABLE TO, YOU KNOW,
04:49:21 UPGRADE THEIR SYSTEM ON TIME ON A TIMELY MANNER.
04:49:25 >> SO THIS IS A GOOD EXAMPLE AND TO ALSO LOOK INTO MORE IT'S
04:49:32 A GOOD EXAMPLE OF GOOD ACCOUNTABILITY AND PROCESS THAT
04:49:36 ARE ABLE TO PUT US INFORMATION THAT WE CAN INNOVATE FASTER,
04:49:39 MORE EFFICIENT AND ALSO CONFIDENT IN WHAT WORKS IN OUR
04:49:46 INVESTMENT FIRST. >> I WANT TO CONCLUDE IF THE
04:49:47 A'S COMPETE. COMPLETE RECOMMENDATIONS ARE
04:49:50 NOT ACCEPTED. I CANNOT VOTE IN GOOD FAITH FOR
04:49:54 THIS CONTRACT. >> THANK YOU.
04:49:55 THANK YOU VICE CHAIR CHEN. >> SEEING NO ONE ELSE ON THE
04:49:59 ROSTER. MR. CLERK, MAY WE NOW INVITE A
04:50:01 PUBLIC COMMENT? YES.
04:50:02 WE ARE NOW OPENING PUBLIC COMMENT FOR THESE ITEMS 22
04:50:08 THROUGH 24 IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH
04:50:09 TO ADDRESS THIS COMMITTEE. MY NAME IS JERRY ADLER AND I
04:50:16 SUPPORT THE IMPLEMENTATION OF ENTERPRISE SOFTWARE FOR THE
04:50:19 CITY. HOWEVER, THE OPEN GOV PROJECT
04:50:23 LACKS ORGANIZATIONAL STRUCTURE AND RESOURCES TO BE SUCCESSFUL
04:50:30 . >> DOES THE CITY CHIEF
04:50:31 INFORMATION OFFICER RECOMMEND EXTENDING THE CONTRACT FOR FIVE
04:50:36 YEARS? I SUGGEST YOU ASK HIM.
04:50:40 IT'S LONG PAST DUE FOR PROFESSIONAL OPINION.
04:50:44 >> IT IS APPARENT THE OPEN GOV IMPLEMENTATION TEAM IS
04:50:47 UNDER-RESOURCED. THE CITY CAN IMPROVE THE
04:50:48 LIKELIHOOD OF PROJECT SUCCESS BY HIRING AN IMPLEMENTATION
04:50:52 PARTNER WITH EXPERIENCE IMPLEMENTING OPEN GOV.
04:50:57 IT TOOK EIGHT MONTHS TO GET A FULL TIME PROJECT MANAGER.
04:50:59 >> THIS WOULDN'T HAVE HAPPENED WITH AN IMPLEMENTATION PARTNER.
04:51:03 >> THE FOUNDATION NO DOCUMENTS HAVE NOT BEEN COMPLETED.
04:51:07 IMPLEMENTING OPEN GOV WITHOUT FOUNDATIONAL DOCUMENTS IS
04:51:11 EQUIVALENT TO BUILDING A HOUSE WITHOUT PLANS.
04:51:15 >> DEVICE SHOULD 51,000 PERMITS A YEAR AGO AND RUNS ON A DECADE
04:51:22 OLD SYSTEM. THE OPEN UP SUITABILITY
04:51:23 ANALYSIS FOR II HAS NOT BEEN COMPLETED AND THERE IS NO
04:51:27 IMPLEMENTATION AND ROADMAP FOR DVI.
04:51:31 THAT'S 51,000 PERMITS A YEAR. THIS HAS PARTICULAR
04:51:34 SIGNIFICANCE BECAUSE IN THE FALL OF 2025 THE CITY AMENDED
04:51:42 THE BUILDING CODE AND THE CURRENT SYSTEM DOESN'T SUPPORT
04:51:46 IT. >> SO D.B. IS BEING ASKED TO
04:51:49 ENFORCE A BUILDING CODE WITH A SYSTEM THAT DOESN'T SUPPORT IT
04:51:56 AND THEY'RE BEING ASKED TO SUPPORT THE IMPLEMENTATION.
04:51:57 A RECENT MISSION LOCAL ARTICLE MENTIONED THE PROCESSING OF
04:52:01 ELECTRICAL AND PLUMBING PERMITS WITH OPEN GOV IS FIVE MONTHS
04:52:05 BEHIND. THIS WOULDN'T HAPPEN WITH AN
04:52:09 IMPLEMENTATION PARTNER. THANK YOU AND THANK YOU JERRY.
04:52:12 >> DRIVER NEXT SPEAKER PLEASE. >> GOOD AFTERNOON
04:52:20 AND SUPERVISORS MY NAME IS JESSICA NUTTY AND I'M HERE WITH
04:52:23 LOCAL 21 LOCAL 21 HAS SIGNIFICANT CONCERNS ABOUT HOW
04:52:26 THE OPEN GOV CONTRACT WAS AWARDED AND BELIEVES
04:52:30 IN STRONGER OVERSIGHT AND IS NEEDED.
04:52:33 >> THE BOE FOUND THAT THE PROCUREMENT PROCESS DID NOT
04:52:37 FOLLOW TYPICAL CITY PRACTICES AND THE CONTRACT LACKS CLARITY
04:52:41 AROUND SCOPE DELIVERABLES, PAYMENT SCHEDULES, KNOWLEDGE
04:52:45 TRANSFER AND PARTNERSHIP WITH CITY STAFF.
04:52:46 >> OPEN GOV WAS SELECTED DESPITE CONCERNS FROM THE
04:52:49 CITY'S OWN TECHNICAL EXPERTS WHO FOUND ITS PERMANENT
04:52:53 PLATFORM WAS NOT MATURE ENOUGH FOR A PROJECT LIKE PERMIT S.F.
04:52:56 WE ARE NOW SEEING THESE CONCERNS PLAY OUT.
04:52:57 >> PERMITS THAT WERE PREVIOUSLY ISSUED OVER THE COUNTER THE
04:53:01 SAME DAY CAN NOW TAKE 7 TO 10 DAYS THROUGH OPEN GOV IN EFFECT
04:53:05 CITY TAXPAYERS ARE FUNDING OPEN GOV'S ONGOING PRODUCT
04:53:09 DEVELOPMENT WHILE SERVICE DELIVERY HAS DECLINED.
04:53:13 >> WE ARE ASKING THAT THE ITEM BE CONTINUED AND AMENDED TO
04:53:16 LIMIT FUNDING TO $12 MILLION ENOUGH TO FUND THE CONTRACT
04:53:21 THROUGH YEAR TWO WITH ADDITIONAL REPORTING
04:53:23 AND OVERSIGHT REQUIRED BEFORE FURTHER FUNDING IS AUTHORIZED
04:53:26 GOING FORWARD. >> THE CITY ALSO NEEDS TO MAKE
04:53:29 CLEAR GUARDRAILS AND A FORMAL RFP PROCESS SO CONTRACTS ARE
04:53:33 EVALUATED OBJECTIVELY. >> LOCAL 21 WILL CONTINUE TO
04:53:37 MEET WITH THE DEPARTMENT ON A MONTHLY BASIS AND WORK
04:53:40 COLLABORATIVELY AS POSSIBLE. >> AND I WANT TO MAKE IT CLEAR
04:53:44 WE ARE NOT AGAINST MODERNIZATION.
04:53:45 >> WE HAVE A SHARED GOAL WITH THE DEPARTMENT FOR THE SUCCESS
04:53:49 OF PERMIT S.F. BUT WE DO NOT BELIEVE THE CITY SHOULD COMMIT
04:53:53 TO THE FULL FIVE YEAR CONTRACT WITHOUT ADDITIONAL
04:53:56 ACCOUNTABILITY AND OVERSIGHT. >> THANK YOU.
04:54:00 THANK YOU MUCH. JUST CAN YOU TAKE AND SEEING NO
04:54:06 OTHER SPEAKERS MR. CHAIR, THAT COMPLETES OUR Q THANK YOU MR.
04:54:14 CLERK. >> PUBLIC COMMENT ON THIS
04:54:15 AND THESE ITEMS IS NOW CLOSED. >> OKAY.
04:54:17 SEEING NO FURTHER QUESTIONS OR COMMENTS I'M GOING TO MAKE.
04:54:21 WE HAVE THREE ITEMS OPEN. >> I WILL JUST I THINK SIMPLY
04:54:27 JUST TO KEEP IT SIMPLE DO THREE MOTIONS FOR ITEM 22 THE
04:54:31 CONTRACT AGREEMENT I WOULD MOVE TO FORWARD THIS CONTRACT AS
04:54:35 AMENDED TO ACTUALLY I SHOULD WAIT FOR.
04:54:39 >> I THINK WE LOST ONE OF OUR VOTES YES.
04:54:46 BUT I DID WANT TO CLARIFY. OKAY MR. CHAIR, AS OF NOW THERE
04:54:54 IS NO AMENDMENT TO THE RESOLUTION.
04:54:58 >> WE WERE PROVIDED A AN UPDATED AMENDMENT NUMBER ONE TO
04:55:04 THE CONTRACT WHICH WE CAN WHICH WE CAN ACCEPT WITH NO ACTION
04:55:08 THEN. AND PUSH THAT TOWARDS THE
04:55:09 BOARD. AND SO I'M JUST CLARIFYING
04:55:11 WHETHER WE ARE AMENDING THE RESOLUTION ITSELF TO ACCEPT THE
04:55:15 TRUNCATED TERM AND AMOUNT AS RECOMMENDED BY TO BE SURE MY
04:55:20 UNDERSTANDING I WAS SPEAKING TO THE CONTRACT AS AMENDED NOT TO
04:55:23 THE RESOLUTION AS AMENDED THE CITY.
04:55:26 THROUGH THE MAYOR CAN I JUST ASK THE CITY ATTORNEY THERE'S
04:55:28 NO NEED TO AMEND THE CONTRACT I'M SORRY THERE'S NO NEED TO
04:55:31 AMEND WITH THE AMENDMENT TO THE CONTRACT WHICH ADDS THE
04:55:37 TERMINATION FOR CONVENIENCE PROVISIONS.
04:55:41 THERE'S NOT A REFERENCE IN THE ABSENCE OR PRESENCE OF THAT
04:55:46 IN THE RESOLUTION THAT WOULD REQUIRE A.
04:55:49 AN AMENDMENT TO THE RESOLUTION THAT UNDERLIES THAT IS THAT
04:55:53 CORRECT? >> I'M SORRY, DEPUTY CITY
04:55:54 ATTORNEY SARAH CROWLEY THAT IS CORRECT.
04:55:58 THE THE LANGUAGE IN THE RESOLUTION IS SUFFICIENTLY
04:56:01 GENERAL THAT IT DOESN'T NEED TO BE AMENDED IN ORDER TO
04:56:05 ENCOMPASS THE AMENDED CONTRACT. >> OKAY, GREAT.
04:56:09 SORRY FOR THE CONFUSION. I WAS THERE WHEN I WAS
04:56:10 REFERRING TO THE CONTRACT AS AMENDED.
04:56:11 IT WAS THE CONTRACT NOT THE RESOLUTION.
04:56:13 >> SO WHAT DID I MAKE THEM? I'LL START WITH THE ITEM ON
04:56:17 ITEM 22 THE THE CONTRACT AMENDMENT.
04:56:20 I WOULD MOVE TO FORWARD THIS CONTRACT TO THE FULL BOARD OF
04:56:22 SUPERVISORS WITHOUT RECOMMENDATION.
04:56:25 MR. CLERK, MAY WE HAVE A ROLL CALL AND THAT MOTION AND ON
04:56:28 THAT MOTION THAT WE REFER THE RESOLUTION AND ITEM NUMBER 22
04:56:32 TO THE FULL BOARD WITHOUT RECOMMENDATION.
04:56:36 >> VICE CHAIR CHEN I CAN I REMEMBER SENATOR SARAI CHAIR
04:56:40 DORSEY DORSEY WE HAVE THREE EYES.
04:56:44 >> THANK YOU MR. CLERK. I HAVE THE MOTION PASSES ON
04:56:47 ITEM 22 FOR ITEM 23 THIS IS SUPERVISOR FIELDER'S.
04:56:51 HEARING ON THE OPEN GOVERNMENT CONTRACT IF I UNDERSTAND
04:56:55 CORRECTLY WE WOULD LIKE TO CONTINUE THIS TO TO THE CALL OF
04:56:57 THE CHAIR SO THAT WE HAVE THE OPPORTUNITY IN MONTHS TO COME
04:57:01 TO CONTINUE TO HEAR THE CONTINUE TO HEAR THIS AND I
04:57:04 WOULD JUST EXPRESS MY APPRECIATION TO FOR THE WORK
04:57:08 YOU HAVE DONE TO BRING SCRUTINY TO THIS.
04:57:09 AND I THINK IT WILL MERIT MERIT A CONTINUATION OF THAT.
04:57:11 SO FOR ITEM 23, THE HEARING ON THE OPEN GOVERNMENT CONTRACT I
04:57:15 MOVED TO CONTINUE THIS HEARING TO THE CALL OF THE CHAIR.
04:57:19 >> MR. CLERK, MAY WE HAVE A ROLL CALL IN THAT MOTION?
04:57:21 YES. AND ON THAT MOTION THAT WE
04:57:23 CONTINUE THE HEARING AND ITEM 23 TO THE CALL OF THE CHAIR
04:57:26 VICE CHAIR CHEN. CHEN I'M AMBASSADOR SOUDER.
04:57:29 I CHAIR DORSEY I DORSEY I HAVE THREE EYES.
04:57:33 >> THANK YOU, MR. CLERK. A MOTION PASSES ON ITEM 23 FOR
04:57:37 ITEM 24. I WOULD LIKE TO ACKNOWLEDGE
04:57:39 THAT THIS HAS BEEN HEARD AND FILED AND WOULD LIKE TO
04:57:41 APPROVE THE RELEASE OF THE RESERVE FUNDS CONTINGENT UPON
04:57:45 THE PASSAGE OF THE CONTRACT AT THE FULL BOARD OF SUPERVISORS.
04:57:48 >> MR. CLERK, MAY WE HAVE A ROLL CALL ON THAT MOTION?
04:57:51 >> YES. AND ON THAT MOTION THAT THIS
04:57:52 COMMITTEE DOES APPROVE TO RELEASE APPROXIMATELY 13.2
04:57:58 MILLION TO THE PLANNING DEPARTMENT AND DEPARTMENT OF
04:58:02 BUILDING INSPECTION PENDING BOARD APPROVAL OF THE
04:58:03 RESOLUTION AND ITEM NUMBER 22. THE VICE CHAIR CHEN CHEN I
04:58:10 REMEMBER SAUTER SAUTER I CHAIRED DORSEY I DORSEY I WE
04:58:14 HAVE THREE EYES AND I WILL CLARIFY THAT THE HEARING IS
04:58:15 HEARD BEEN FILED. >> THANK YOU MR. CLERK.
04:58:18 ITEM 24 PASSES MR. CLERK DO WE HAVE ANY MORE BUSINESS BEFORE
04:58:22 US TODAY? MR. CHAIR, THAT CONCLUDES YOUR
04:58:25 BUSINESS. >> OKAY.
04:58:26 THANK YOU EVERYONE FOR THEIR PARTICIPATION.
04:58:28 >> THANK YOU. COLLEAGUES.
04:58:29 THE MEETING IS ADJOURNED. FIRST S.F. GOV TV SAN FRANCISCO
04:59:07 GOVERNMENT TELEVISION