00:00:11 . THIS MEETING WILL COME TO
00:00:14 ORDER. WELCOME TO THE SEPTEMBER 23RD,
00:00:17 2026 MEETING OF THE BUDGET AND FINANCE COMMITTEE.
00:00:19 I'M SUPERVISOR MATT DORSEY, CHAIR OF THIS COMMITTEE AND I'M
00:00:22 JOINED TODAY BY MY VICE CHAIR CHEYENNE CHEN AND BOARD MEMBER
00:00:25 DANNY SLAUGHTER WILL BE JOINING US SHORTLY.
00:00:29 OUR CLERK TODAY IS MR. BRANT HALPER WHOM WE THANK IN ADVANCE
00:00:30 FOR STAFFING AND KEEPING US ON TRACK TODAY AS WELL.
00:00:33 WE'RE APPRECIATIVE TO THE ENTIRE TEAM AT S.F. GOV TV FOR
00:00:37 FACILITATING AND BROADCASTING TODAY'S MEETING AND THAT IS
00:00:40 ESPECIALLY TRUE FOR OUR PRODUCER TODAY MR. JAIME
00:00:41 ASHBURY. MR. CLERK, DO YOU HAVE ANY
00:00:44 ANNOUNCEMENTS? THANK YOU, MR. CHAIR.
00:00:45 JUST A FRIENDLY REMINDER TO THOSE IN ATTENDANCE TO PLEASE
00:00:48 MAKE SURE TO SILENCE ALL CELL PHONES AND ELECTRONIC DEVICES
00:00:52 TO PREVENT INTERRUPTIONS, START PROCEEDINGS AND SHOULD YOU HAVE
00:00:55 ANY DOCUMENTS TO BE INCLUDED AS PART OF THE FILE THEY SHOULD BE
00:00:56 SUBMITTED TO MYSELF. THE CLERK PUBLIC COMMENT WILL
00:00:59 BE TAKEN ON EACH ITEM ON THIS AGENDA WHEN YOUR ITEM OF
00:01:02 INTEREST COMES UP AND PUBLIC COMMENT IS CALLED.
00:01:06 PLEASE LINE UP TO SPEAK ON THE WEST SIDE OF THE CHAMBER TO
00:01:08 YOUR RIGHT MY LEFT ALONG THOSE CURTAINS AND WHILE NOT REQUIRED
00:01:10 TO PROVIDE PUBLIC COMMENT. WE DO INVITE YOU TO FILL OUT A
00:01:14 COMMENT CARDS AND LEAVE THEM ON THE TRAY BY THE TELEVISION TO
00:01:16 YOUR LEFT BY THOSE DOORS IF YOU WISH TO IF YOU WISH FOR YOUR
00:01:18 NAME TO BE ACCURATELY RECORDED FOR THE MINUTES.
00:01:22 ALTERNATIVELY YOU MAY SUBMIT PUBLIC COMMENT IN WRITING
00:01:25 IN EITHER OF THE FOLLOWING WAYS EMAIL THEM TO MYSELF.
00:01:28 THE BUDGET AND FINANCE COMMITTEE CLERK AT B R E.A. I J
00:01:32 A L I P A HAD S.F. JAIL V.ORG IF YOU SUBMIT PUBLIC COMMENT
00:01:37 VIA EMAIL IT WILL BE FORWARDED TO THE SUPERVISORS AND ALSO
00:01:41 INCLUDED AS PART OF THE OFFICIAL FILE.
00:01:44 YOU MAY ALSO SEND YOUR WRITTEN COMMENTS BY A U.S. POSTAL
00:01:45 SERVICE TO OUR OFFICE IN CITY HALL AT ONE DR. CARLTON BEACH
00:01:53 OTHER PLACE ROOM 244 SAN FRANCISCO, CALIFORNIA 94102.
00:01:56 >> AND FINALLY MR. CHAIR ITEMS ACTED UPON TODAY ARE EXPECTED
00:02:00 TO APPEAR ON THE BOARD OF SUPERVISORS AGENDA OF SEPTEMBER
00:02:04 29TH UNLESS OTHERWISE STATED. THANK YOU MR. CLERK.
00:02:08 >> BEFORE YOU CALL ITEM NUMBER ONE, I JUST WANT TO REMIND OUR
00:02:11 VIEWERS AND ATTENDEES THAT WE HAVE BUDGET AND LEGISLATIVE
00:02:12 ANALYST REPORTS FOR ITEMS TWO, THREE, 12, 14 AND SIX ON
00:02:17 TODAY'S AGENDA. >> FOR THOSE ITEMS WE WILL HEAR
00:02:21 FROM THE DEPARTMENT AND THEIR PRESENTATION FIRST FOLLOWED BY
00:02:24 OUR BUDGET AND LEGISLATIVE ANALYST.
00:02:25 WE WILL THEN FACILITATE QUESTIONS FROM THOSE OF US ON
00:02:29 THE COMMITTEE AND THEN INVITE A PUBLIC COMMENT.
00:02:30 NOW MR. CLERK, WOULD YOU PLEASE CALL ITEM NUMBER ONE?
00:02:34 >> YES. ITEM NUMBER ONE IS A RESOLUTION
00:02:37 RETROACTIVELY AUTHORIZING THE HUMAN RIGHTS COMMISSION TO
00:02:38 EXECUTE A GRANT AMENDMENT BETWEEN THE CITY AND COUNTY
00:02:41 AND TRANS CAN WORK INC FISCAL SPONSOR FOR PART OF OUR BAY
00:02:45 AREA FOR THE REQUEST FOR PROPOSAL NUMBER 80 5LGBTQI PLUS
00:02:51 IN VARIOUS COMMITTEES GRANT TO INCREASE THE GRANT AMOUNT BY
00:02:57 150,000 FOR A TOTAL AMOUNT NOT TO EXCEED 400 50,000 AND TO
00:03:01 EXTEND THE GRANT TERM FROM DECEMBER 31ST 2024 FOR A TOTAL
00:03:05 TERM OF JANUARY 26 2024 THROUGH JUNE 30TH 2025.
00:03:12 >> MR. CHAIR THANK YOU, MR. CLERK.
00:03:13 COLLEAGUES THIS OR THIS ITEM WAS HEARD IN COMMITTEE LAST
00:03:16 WEEK AND YOU MAY RECALL WE ACTED ON SEVERAL CLARIFYING
00:03:20 AMENDMENTS FROM THE DEPARTMENT WHICH REQUIRED US CONTINUING IT
00:03:24 TO THIS MEETING. WE DO HAVE SAMUEL THOMAS HERE
00:03:28 FROM THE AGENCY FOR HUMAN RIGHTS.
00:03:30 IF THERE'S ANY QUESTIONS I DON'T HAVE ANY QUESTIONS BUT IF
00:03:32 THERE AREN'T WE CAN GO RIGHT INTO PUBLIC COMMENT.
00:03:36 I DON'T SEE ANYONE ON THE ROSTER OR QUESTIONS OR COMMENTS
00:03:39 SO THANK BUT THANK YOU FOR BEING HERE.
00:03:40 MR. THOMAS AT THIS TIME WHY DON'T WE INVITE A PUBLIC
00:03:44 COMMENT ON THIS ITEM? >> YES WE ARE OPENING PUBLIC
00:03:46 COMMENT FOR THIS ITEM NUMBER ONE IF WE HAVE ANY MEMBERS OF
00:03:49 THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
00:03:54 >> MR. CHAIR, WE HAVE NO SPEAKERS.
00:03:55 THANK YOU, MR. CLERK PUBLIC COMMENT ON THIS ITEM IS NOW
00:03:58 CLOSED AND AT THIS TIME I WOULD MOVE TO FORWARD THIS ITEM TO
00:04:02 THE FULL BOARD WITH OUR POSITIVE RECOMMENDATION.
00:04:05 MAY WE HAVE A ROLL CALL ON THAT MOTION?
00:04:06 YES. AND ON THAT MOTION THAT WE
00:04:07 REFER TO THE FULL BOARD WITH RECOMMENDATION VICE CHAIR CHEN
00:04:10 CHEN I'M AMBASSADOR SAGAR I CHAIR DORSEY DORSEY I HAVE
00:04:17 THREE EYES. >> THANK YOU, MR. CLERK.
00:04:18 THE MOTION PASSES. THANKS SO MUCH, MR. CLERK.
00:04:21 >> COULD YOU CALL UP ITEM NUMBER TWO?
00:04:24 YES. ITEM NUMBER TWO IS A RESOLUTION
00:04:26 APPROVING THE PROFESSIONAL SERVICES AGREEMENT FOR THE
00:04:29 CURBSIDE MANAGEMENT PROGRAM AT SAN FRANCISCO INTERNATIONAL
00:04:33 AIRPORT BETWEEN ESP PLUS LLC AND THE CITY AND COUNTY ACTING
00:04:37 BY AND THROUGH ITS AIRPORT COMMISSION FOR A TOTAL NOT TO
00:04:41 EXCEED AMOUNT OF 445 MILLION FOR A THREE YEAR TERM
00:04:46 COMMENCING ON NOVEMBER 1ST 2026 THROUGH OCTOBER 31ST 2029 WITH
00:04:51 ONE TWO YEAR OPTION TO EXTEND THE CONTRACT EXERCISABLE AT THE
00:04:55 SOLE DISCRETION OF THE COMMISSION.
00:04:56 >> MR. CHAIR. THANK YOU MR. CLERK.
00:04:58 WE ARE JOINED TODAY BY MR. DANIEL SAYING GOVERNMENT
00:05:00 AFFAIRS MANAGER I BELIEVE WITH THE AIRPORT.
00:05:03 MR. SHANE WELCOME TO THE BUDGET AND FINANCE COMMITTEE TODAY.
00:05:07 >> THE FLOOR IS YOURS. THANK YOU.
00:05:08 GOOD MORNING CHAIR DORSEY VICE CHAIR CHEN AND MEMBER SAUDER AT
00:05:12 THE AIRPORT IS SEEKING YOUR APPROVAL TO AWARD A
00:05:16 PROFESSIONAL SERVICE AGREEMENT TO OSP PLUS LLC TO STAFF
00:05:19 AND MANAGE THE AIRPORT'S CURBSIDE MANAGEMENT PROGRAM FOR
00:05:23 AN AMOUNT NOT TO EXCEED 45 MILLION FOR A TERM OF THREE
00:05:26 YEARS WITH THEN TWO YEAR WITH A TWO YEAR EXTENSION OPTION.
00:05:31 THE AIRPORT HAS A COMPLEX AND HIGHLY COMPETITIVE
00:05:34 COMMERCIAL GROUND TRANSPORTATION AND SYSTEM
00:05:37 SERVICING SERVING A MILLIONS OF PASSENGERS EACH YEAR ESPN+ WILL
00:05:41 MANAGE AND COORDINATE COMMERCIAL GROUND
00:05:42 TRANSPORTATION AND OPERATIONS AT THE TERMINAL CURBSIDE
00:05:47 AND STAGING LOTS INCLUDING TAXI DISPATCH LIMOUSINE
00:05:50 AND AUTONOMOUS VEHICLE OPERATIONS AND STAGING AREAS
00:05:53 FOR LIMOUSINES AND TRANSPORTATION NETWORK
00:05:57 COMPANIES. THE CURRENT CURBSIDE MANAGEMENT
00:05:58 CONTRACT WITH ESP PLUS EXPIRES ON OCTOBER 31ST, 2026 AND THIS
00:06:04 PAST MARCH THE AIRPORT COMMISSION AUTHORIZED STAFF TO
00:06:07 ISSUE AN RFP AND NEGOTIATE WITH THE HIGHEST RANKING PROPOSER.
00:06:11 THE AIRPORT RECEIVED THREE PROPOSALS ALL OF WHICH MET THE
00:06:14 MINIMUM QUALIFICATION AND A THREE MEMBER EVALUATION PANEL
00:06:18 COMPOSING OF THE AIRPORT PARKING OPERATIONS
00:06:21 SUPERINTENDENT FROM OAKLAND SAN FRANCISCO BAY AIRPORT.
00:06:25 THE AIRPORT OPERATIONS MANAGER AT SAN JOSE EMINENT IN THEIR
00:06:29 NATIONAL AIRPORT AND A SENIOR TRANSPORTATION PLANNER AT SFO.
00:06:33 SO FOLLOWING PROPOSAL EVALUATIONS AND ORAL INTERVIEW
00:06:37 ESPN+ RANKED THE HIGHEST THE PLAY HAS RECOMMENDED APPROVAL
00:06:41 AND I HAVE I WOULD BE HAPPY TO ANSWER ANY QUESTIONS.
00:06:45 AND ALONGSIDE WE HAVE MEMBERS FROM OUR LANDSIDE OPERATIONS
00:06:49 HERE IN CASE YOU HAVE ANY QUESTIONS.
00:06:50 >> GREAT. THANK YOU MR. SAYING AND WE
00:06:53 HAVE A REPORT ON THIS FROM THE BUDGET AND LEGISLATIVE ANALYST
00:06:56 GOOD MORNING SUPERVISORS CHRISTINA MCCLYMONT FROM THE
00:06:58 BUDGET AND LEGISLATIVE ANALYST'S OFFICE.
00:07:00 ITEM TWO IS A PROPOSED RESOLUTION THAT WOULD APPROVE A
00:07:02 NEW AGREEMENT BETWEEN SB PLUS AND THE AIRPORT TO OPERATE THE
00:07:05 CURBSIDE MANAGEMENT PROGRAM. THE AGREEMENT HAS A NOT TO
00:07:09 EXCEED AMOUNT OF 45 MILLION AN INITIAL THREE YEAR TERM
00:07:11 AND OPTION TO EXTEND FOR ANOTHER TWO YEARS.
00:07:15 >> UNDER THE AGREEMENT THE CONTRACTOR WOULD SUPPORT ALL
00:07:19 CURBSIDE COMMERCIAL GROUND TRANSPORTATION ACTIVITIES.
00:07:22 >> SB PLUS IS THE CURRENT OPERATOR OF THE PROGRAM
00:07:23 AND THEY WERE SELECTED TO CONTINUE OPERATING THE PROGRAM
00:07:26 THROUGH A COMPETITIVE PROCESS. THERE WERE NO PERFORMANCE
00:07:30 ISSUES THAT WE COULD IDENTIFY UNDER THE EXISTING CONTRACT.
00:07:33 >> EXHIBIT THREE ON PAGE FIVE OF OUR REPORT SHOWS THE BUDGET
00:07:38 WHICH IS THE BASIS OF THE NOT TO EXCEED AMOUNT.
00:07:39 >> IT INCLUDES A 25% INCREASE RELATIVE TO ACTUAL SPENDING TO
00:07:45 ALLOW FOR INCREASES IN SERVICE LEVELS.
00:07:48 THE AGREEMENT IS FUNDED BY AIRPORT OPERATING REVENUES.
00:07:49 WE RECOMMEND APPROVAL OF ITEM TWO.
00:07:53 >> GREAT. THANKS SO MUCH.
00:07:56 I JUST WANT TO KNOW IF IT'S OKAY WITH YOU JUST TO TEASE OUT
00:07:58 SOME OF THE INCREASES IN STAFFING.
00:08:00 I THINK IT'S FROM 93 TO 112 POSITIONS.
00:08:01 I THINK COSTS ARE ALSO EXPECTED TO DRIVE HIGHER THAN LAST YEAR.
00:08:05 CAN CAN YOU EXPLAIN WHAT MIGHT BE DRIVING THE INCREASES
00:08:09 AND MAYBE FOR MR. SAYING WHAT WHAT ADDITIONAL SERVICES OR
00:08:13 OPERATIONAL IMPROVEMENTS WE MIGHT EXPECT TO SEE AT THE
00:08:16 AIRPORT? >> YEAH, I'M HAPPY TO BRING UP
00:08:17 NORA CHEN FROM OUR LANDSIDE OPERATIONS TEAM TO ANSWER THAT
00:08:20 QUESTION. >> GOOD MORNING.
00:08:24 SOME OF THE INCREASES INCLUDE LABOR RATE INCREASES.
00:08:27 WE FOLLOW THE PREVAILING WAGE ORDINANCE OF THE CITY
00:08:34 AND COUNTY OF SAN FRANCISCO. >> IN ADDITION, A LOT OF THE
00:08:36 SERVICES THAT WE PROVIDE HAVE INCREASE IF NOT EXPONENTIALLY
00:08:42 EXPANDED AFTER COVID 19. >> IN FACT AIR TRAVEL HAS
00:08:50 EXPANDED ARRIVAL RATES HAS ALSO INCREASED AS WELL.
00:08:55 SO TO MEET THAT SERVICE EXPANSION WE'VE HAD TO INCREASE
00:08:59 SERVICE LEVELS AS WELL AS MEET THE NEEDS OF OUR PASSENGERS
00:09:06 AND AIR TRAVEL. >> OKAY.
00:09:07 I THINK THE BILL ALSO ESTIMATED THAT THE CONTRACT INCLUDES AN
00:09:11 APPROXIMATELY 25% CONTINGENCY FOR INCREASED SERVICE LEVELS.
00:09:17 IT'S MY UNDERSTANDING THERE'S BEEN A HISTORY OF UNDERSPENDING
00:09:21 HERE. IS THIS SOMETHING THAT YOU ARE
00:09:22 YOU CONFIDENT THAT THE ADDITIONAL CAPACITY WILL BE
00:09:25 MET? >> YES.
00:09:26 IN FACT BECAUSE OF A LOT OF OPERATIONAL CHANGES ON GROUND
00:09:32 TRANSPORTATION, WE WE DO BELIEVE THAT WE WILL CONTINUE
00:09:36 TO SPEND WHAT'S BEEN PROJECTED AND ALLOTTED.
00:09:40 >> OKAY. OKAY.
00:09:44 THANKS SO MUCH. I DON'T HAVE ANY FURTHER
00:09:45 QUESTIONS. I DON'T SEE ANYONE ON THE
00:09:46 ROSTER WITH OTHER QUESTIONS OR COMMENTS.
00:09:48 MR. CLERK, MAY WE INVITE A PUBLIC COMMENT ON THIS ITEM?
00:09:51 >> YES. WE'RE NOW OPENING PUBLIC
00:09:52 COMMENT FOR THIS ITEM NUMBER TWO.
00:09:54 IF WE HAVE ANY MEMBERS OF THE PUBLIC ADDRESS THIS COMMITTEE.
00:09:58 >> GOOD MORNING SUPERVISORS MARK GLEASON ON BEHALF OF
00:10:02 TEAMSTERS 665 TEAMSTERS 665 AS REPRESENTATIVE OF THIS RETAINED
00:10:06 WORKFORCE OUT THERE FOR WELL OVER A HALF A CENTURY.
00:10:09 >> WE ENJOYED THE WORK OUT THERE AND WE APPROVE OF THE
00:10:14 RESOLUTION AND URGE YOU TO APPROVE IT.
00:10:17 >> THANK YOU. THANK YOU MUCH.
00:10:18 MIKE GLEASON. >> AND SEEING NO OTHER SPEAKERS
00:10:21 MR. CHAIR, THAT COMPLETES OUR. Q THANK YOU MR. CLERK.
00:10:25 PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED AND SEEING NO
00:10:28 FURTHER QUESTIONS OR COMMENTS I WOULD MOVE AT THIS TIME TO
00:10:31 FORWARD THIS ITEM TO THE FULL BOARD WITH OUR POSITIVE
00:10:32 RECOMMENDATIONS. MR. CLERK MAY WE HAVE A ROLL
00:10:35 CALL ON THAT MOTION? YES.
00:10:36 ANOTHER MOTION THAT WE REFER THIS RESOLUTION TO THE FULL
00:10:39 BOARD WITH RECOMMENDATION VICE CHAIR CHEN CHEN I'M AMBASSADOR
00:10:42 SOUDER. I CHAIR DORSEY DORSEY.
00:10:46 I HAVE THREE EYES. THANK YOU, MR. KIRK, WOULD YOU
00:10:50 PLEASE CALL ITEM NUMBER THREE? YES.
00:10:51 ITEM NUMBER THREE IS A RESOLUTION APPROVING
00:10:54 AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE PORT TO EXECUTE
00:10:57 A LEASE FOR A REAL PROPERTY LOCATED AT 23.5.
00:11:00 OH, SORRY. 23.5 WITH PIER 23 CAFE FOR
00:11:03 APPROXIMATELY 20 400FT2 OF INDOOR SPACE AND FOR 20 400FT2
00:11:09 OF OUTDOOR DINING AREA AT AN ANNUAL BASE RENT OF
00:11:13 APPROXIMATELY 10,000 PER MONTH FOR AN INITIAL TERM EXPIRING ON
00:11:18 APRIL 30TH 2030 WITH ONE FIVE YEAR OPTION AND A SECOND TEN
00:11:21 YEAR OPTION TO EXTEND FOR A POTENTIAL BASE RENT REVENUE OF
00:11:27 APPROXIMATELY 5.8 MILLION. AUTHORIZING THE EXECUTIVE
00:11:28 DIRECTOR OF THE PORT TO WAIVE THE COMPETITIVE BIDDING PROCESS
00:11:32 OR THE LEASE FAILURE AND AUTHORIZING THE EXECUTIVE
00:11:35 DIRECTOR TO ENTER INTO ANY ADDITIONS, AMENDMENTS OR OTHER
00:11:39 MODIFICATIONS TO THE LEASE THAT TO NOT MATERIALLY INCREASE THE
00:11:42 OBLIGATIONS NOR LIABILITIES TO THE CITY OR THE PORT AND ARE
00:11:45 NECESSARY OR ADVISABLE TO COMPLETE THE TRANSACTIONS WHICH
00:11:49 THIS RESOLUTION THIS RESOLUTION CONTEMPLATES AND EFFECTUATE THE
00:11:53 PURPOSE AND INTENT OF THIS RESOLUTION.
00:11:54 >> MR. CHAIR OKAY. THANK YOU, MR. CLERK.
00:11:57 >> WE ARE JOINED BY SCOTT LAND, SEATTLE DIRECTOR OF REAL ESTATE
00:12:01 FROM THE PORT OF SAN FRANCISCO. BUT AS THIS IS IN SUPERVISOR
00:12:04 SLAUGHTER'S DISTRICT I THINK WE WANT TO HAVE A FEW WORDS FROM
00:12:06 SUPERVISOR SLAUGHTER. >> THANK YOU CHAIR AND I DO
00:12:09 JUST WANT TO GIVE A BIT OF CONTEXT HERE.
00:12:12 YOU KNOW THIS IS A LONG TIME BUSINESS IN MY DISTRICT AND A
00:12:16 LEGACY BUSINESS IN FACT AND HAS BEEN A STOP FOR MANY THROUGH
00:12:20 THE YEARS ALONG THE EMBARCADERO.
00:12:21 I THINK IT'S A AN IMPORTANT PART OF THE EMBARCADERO THAT
00:12:24 THERE'S A LOT OF GOOD NEW ACTIVITY COMING TOGETHER ON
00:12:28 KIND OF THIS NORTHEAST CORNER AND I APPRECIATE I KNOW WE'LL
00:12:32 HEAR THE DETAILS BUT I APPRECIATE THE WORK THAT THE
00:12:34 PORT HAS DONE TO RESTRUCTURE THIS, MAKE SURE WE KEEP THE
00:12:36 TENANT THERE, DO IT IN A RESPONSIBLE MANNER, KEEP THE
00:12:39 SPACE ACTIVE. SO LOOK FORWARD TO HEARING THE
00:12:43 DETAILS. >> THANK YOU, CHAIR THANK YOU.
00:12:47 >> SUPERVISOR SAUTER. MR. LANSDALE THANK YOU, SCOTT
00:12:51 LANCE ATOLL DEPUTY DIRECTOR OF REAL ESTATE FOR THE BOARD.
00:12:52 GREAT TO BE HERE. SUPERVISOR SOUDER THANK YOU FOR
00:12:55 THE COMMENTS AND SUPPORT ON THE ITEM AS DESCRIBED PIER 23 IS A
00:13:02 ICONIC LEGACY FAMILY OWNED BUSINESS ON THE NORTHERN
00:13:06 WATERFRONT ONE THAT'S BEEN OPERATING SINCE 1985 WHEN IT
00:13:11 WAS FOUNDED BY FLIC IMMIGRANT AND HER PARTNER.
00:13:15 TODAY IT'S OPERATED BY FLICKA AND HER FAMILY.
00:13:22 PIER 23 HAS VERY MUCH PERSEVERED A TOUGH FEW YEARS
00:13:26 POST-COVID WHERE MANY OTHER RETAILERS IN THE DISTRICT
00:13:31 AND IN THE CITY AS WE KNOW HAVE CLOSED OR CLOSED AND NEVER
00:13:35 REOPENED AS YOU CAN SEE IN THE SLIDE, THE IMPACTS POST-COVID
00:13:40 WERE SIGNIFICANT, RIGHT? SIGNIFICANT DECREASE IN SALES
00:13:46 WHICH WAS REALLY TIED TO, YOU KNOW, CHANGES IN THE DISTRICT
00:13:47 WITH OFFICE VACANCY WORK FROM HOME TRENDS WHICH TOOK A LONG
00:13:54 TIME IN THEIR RECOVERY. WE ENGAGED IN A DISCUSSION WITH
00:14:00 PIER 23 OVER TWO YEARS AGO. IT'S HARD TO BELIEVE IT'S BEEN
00:14:04 QUITE A JOURNEY WITH THEM TO REALLY THINK ABOUT AND WORK
00:14:09 THROUGH SETTING UP A LEASE RESTRUCTURE THAT ALLOWED FOR
00:14:13 SUSTAINABILITY AND VIABILITY OF THE BUSINESS.
00:14:14 WE DID NOT WANT PIER 23 TO CLOSE.
00:14:17 WE SAW THEM AS AN ANCHOR TENANT ALONG THE WATERFRONT AND A
00:14:21 CRITICAL ONE TO KEEP OPEN AND OPERATING WITHIN OUR
00:14:24 PORTFOLIO AND YOU KNOW THE PORT GENERALLY WITH OUR FACILITIES
00:14:28 HAS UNIQUE PROPERTIES THAT ARE VERY DIFFICULT TO RE TENANT
00:14:33 RIGHT AND REQUIRE KIND OF SPECIALIZATION IN THAT REGARD
00:14:38 OVER THE COURSE OF OUR NEGOTIATION PIER 23 WAS ONLY
00:14:44 ABLE TO PAY PERCENTAGE RENT WHICH ALLOWED THEM TO OPERATE
00:14:48 AND AND STAY IN BUSINESS FRANKLY AND WE ACCRUED BACK
00:14:54 RENT OVER THAT TIME UNDERSTANDING THAT WE WERE
00:14:56 IN THE NEGOTIATION AND MOVING HOPEFULLY TOWARDS A RESOLUTION
00:14:59 WHICH FINALLY MATERIALIZED AND WE TOOK TO COMMISSION
00:15:02 EARLIER THIS YEAR THE FUNDAMENTAL DRIVER OF THE
00:15:06 CHANGES TO THE LEASE REALLY STEMMED FROM A LEASE THAT IS
00:15:10 DATED AND OUTSIDE OF KIND OF TYPICAL MARKET REALM RIGHT NOW
00:15:16 PIER 23 WAS ACTUALLY PAYING A BASE RENT THAT WAS HIGHER THAN
00:15:21 ANY OTHER RETAILER ALONG THE WATERFRONT THAT WAS A DIRECT
00:15:24 PORT TENANT AND PAYING IT NOT ONLY ON THEIR INTERIOR SPACE
00:15:28 BUT ON PATIO SPACE THAT WAS VERY SEASONAL AND IMPACTED BY
00:15:32 BY SEASONALITY. >> SO OUR MOVE WAS REALLY TO
00:15:38 ADJUST AND RIGHTSIZE I'D SAY THE TERMS OF THE AGREEMENT TO
00:15:43 NOT ONLY MEET MARKET BUT ALSO APPROPRIATELY ACCOUNT FOR THE
00:15:47 INDOOR AND OUTDOOR SPACE. WE BROKE THE SPACE INTO AN
00:15:48 INDOOR SEGMENT AND AN OUTDOOR SEGMENT APPLIED PER RENT PORT
00:15:54 PARAMETER RENTS OR MARKET RENTS THAT WE FELT WERE APPROPRIATE
00:15:58 AND DEFENDED BY COUNSEL FROM MAVEN WHO DOES RETAIL LEASING
00:16:03 AND ADVISORY WORK FOR THE PORT AND THEN MOVED PERCENTAGE RENT
00:16:06 TO A MARKET LEVEL AND SUSTAINABLE LEVEL.
00:16:10 THE PORT WAS WILLING TO FORGIVE THE BACK BALANCE ON RENTS
00:16:15 SUBJECT TO INVESTMENTS INTO THE FACILITY AND SO REALLY TRADING
00:16:19 THAT BACK RENT PAYMENT FOR INVESTMENTS TO SUSTAIN THE
00:16:22 FACILITY ITSELF WHICH AS I MENTIONED YOU CAN OFTEN BE A
00:16:29 STRUGGLE. WE HAVE TENANTS THAT ARE
00:16:30 REQUIRED TO MAKE INVESTMENTS IN OUR PROPERTIES.
00:16:33 OFTEN THIS IS DIFFICULT TO FUND OR DOESN'T HAPPEN OVER TIME
00:16:37 AND WHEN WE LOSE TENANTS WE ARE LEFT WITH FACILITIES THAT ARE
00:16:41 IN NEED OF SIGNIFICANT CAPITAL MAINTENANCE AND REPAIR.
00:16:45 SO REALLY WE SAW THIS AS A FACILITATOR TO GET THE TENANT
00:16:49 TO NOT ONLY CONTINUE TO OPERATE BUT TO LOOK AT WAYS TO SHORE UP
00:16:53 THE FACILITY, IMPROVE OPERATIONS, ULTIMATELY IMPROVE
00:16:57 SALES THAT WOULD LEAD TO FURTHER RECOVERY.
00:17:04 THE INVESTMENT IS STAGGERED OVER TIME AND ITS REQUIREMENT
00:17:07 CURRENTLY THE LEASE EXPIRES IN 2030 AND WE'VE ALLOWED FOR
00:17:10 EXTENSION OPTIONS THE FIRST TEN YEARS AND THEN TWO SUBSEQUENT
00:17:17 FIVE YEAR OPTIONS THAT ARE TIED TO THIS INVESTMENT.
00:17:19 SO THE INVESTMENT IS REQUIRED TO GET THOSE EXTENSIONS UNDER
00:17:25 THE CURRENT LEASE. THE LEASE WILL END IN 2030
00:17:27 AND THEN FINALLY FOR THE FIRST FOUR YEARS OR THROUGH THE
00:17:31 BALANCE OF THE EXISTING TERM THERE IS A TRUE UP CLAUSE WHERE
00:17:34 YOU KNOW THE TENANT WILL PAY NO MORE THAN 6% OF SALES IN BASE
00:17:41 PLUS PERCENTAGE BUT IF BASE RENT EXCEEDS THAT PERCENTAGE
00:17:45 AMOUNT THEY WILL GET CREDITS TOWARDS TOWARDS BASE RENT
00:17:51 AND IN CONCLUSION RIGHT. I THINK THE BENEFITS OF THIS
00:17:55 TRANSACTION FOR THE PORT REALLY IS AS I MENTIONED, AVOIDING
00:17:59 CLOSURE, SUPPORTING A SMALL BUSINESS THAT IS REALLY KIND OF
00:18:03 YOU KNOW, THE LEGACY INSTITUTION ON THE NORTH
00:18:05 WATERFRONT AND I THINK MITIGATING OUR RISKS AS THE
00:18:11 PORT WITH THAT INVESTMENT AND ACTIVITY THERE AS WE SEE
00:18:18 CONTINUED OFFICE OCCUPANCY IN THE DISTRICT ACROSS THE
00:18:22 STREET AT WATERFRONT PLAZA, LEVI'S PLAZA AND OTHER PLACES
00:18:26 AND ANTICIPATE FURTHER TENANCY NEXT DOOR PIER 29 WITH CAST
00:18:29 IN ART AND WATER WHICH IS COMING LATER THIS YEAR SO
00:18:33 REALLY ARE EXCITED THAT WE CAN MOVE THIS FORWARD AND REALLY
00:18:37 CATCH KIND OF THE RECOVERY HERE AND SET SAID PIER 23 OFF ON A
00:18:41 GREAT COURSE THANK YOU. >> GREAT THANK YOU SO MUCH.
00:18:44 NEXT WE'LL HEAR FROM THE BUDGET AND LEGISLATIVE ANALYST ITEM
00:18:50 THREE IS A PROPOSED RESOLUTION TO APPROVE A NEW LEASE OF PIER
00:18:53 23 CAFE FOR INDOOR AND OUTDOOR DINING SPACE IT AS AN INITIAL
00:18:57 FOUR YEAR TERM AND OPTIONS TO EXTEND FOR ANOTHER 15 YEARS.
00:18:58 THE RESOLUTION ALSO WAIVES THE COMPETITIVE BIDDING PROCESS FOR
00:19:02 THE NEW LEASE UNDER AN EXISTING LEASE THE CAFE HAS ACCRUED
00:19:10 UNPAID RENT AN INTEREST OF ABOUT 729,000.
00:19:13 THE EXISTING LEASE EXPIRES IN ABOUT HAS ABOUT FOUR YEARS
00:19:16 REMAINING IN THE TERM THE TENANT WOULD PAY THE GREATER OF
00:19:20 AN ANNUAL BASE RENT OR PERCENTAGE RENTS AND BOTH OF
00:19:26 THOSE ARE GOING DOWN UNDER THE NEW LEASED TO ALIGN WITH
00:19:28 CURRENT MARKET RENTS SO BASE RENT WOULD DECLINE FROM 6444
00:19:33 PER SQUARE FOOT ANNUALLY TO 2665 PER SQUARE FOOT ANNUALLY
00:19:37 AND PERCENTAGE RENT WOULD DECREASE FROM 7% OF GROSS
00:19:40 REVENUES TO 6% OF GROSS REVENUES AND AS MENTIONED BY
00:19:43 THE PORT, THE LEASE ALSO PROVIDES FOR POTENTIAL RENT
00:19:47 CREDITS UNDER THE INITIAL TERM IF GROSS PERCENTAGE RENT IS
00:19:51 LOWER THAN BASE RENT ANNUAL BASE RENT WOULD START AT ABOUT
00:19:57 129,000 IN YEAR ONE AND OVER THE POTENTIAL 19 YEAR TERM THE
00:20:00 LEASE WOULD GENERATE AT LEAST 3.2 MILLION IN BASE RENT
00:20:04 AND THEN THE TENANT WOULD ALSO PAY ADDITIONAL PERCENTAGE RENT
00:20:07 ON TOP OF THAT IF THE FIRST OPTION TO EXTEND IS EXERCISE
00:20:11 THE PORT WOULD FORGIVE THE TENANTS APPROXIMATELY 729,000
00:20:14 IN UNPAID RENT AND INTEREST. IF BOTH OPTIONS TO EXTEND ARE
00:20:18 EXECUTED THE TENANT WOULD MAKE A TOTAL OF 500,000 AND CAPITAL
00:20:21 IMPROVEMENTS. THE PROPOSED LEASE WAS NOT
00:20:25 COMPETITIVELY PROCURED BUT IT IS CONSISTENT WITH A NEW PORT
00:20:29 POLICY FOR RETAIL LEASES TO CONSIDER REQUESTS FOR NEW
00:20:33 LEASES WHEN A TENANT FACES FINANCIAL CHALLENGES OR WANTS
00:20:36 TO MAKE CAPITAL IMPROVEMENTS IN THE PROPERTY.
00:20:37 >> WE HAVE A LIKE A TECHNICAL CORRECTION TO THE RESOLUTION WE
00:20:41 RECOMMEND THAT THE RESOLUTION BE AMENDED TO REPLACE
00:20:45 REFERENCES OF 5,877,000 IN POTENTIAL REVENUE WITH
00:20:53 3,236,000 AND 685. WE RECOMMEND APPROVAL OF ITEM
00:20:57 THREE AS AMENDED. >> GREAT.
00:20:58 THANK YOU SO MUCH. AND I JUST WANTED TO CONFIRM
00:21:01 THAT THE DEPARTMENT IS OGC IS ON BOARD WITH THAT.
00:21:05 YES WE SUPPORT THE AMENDMENT AND ACKNOWLEDGE THE MISTAKE.
00:21:06 THANK YOU. >> GREAT.
00:21:09 I DON'T HAVE ANY QUESTIONS OR COMMENTS BUT I DO WANT TO
00:21:13 EXPRESS MY APPRECIATION FOR EVERYTHING YOU'VE DONE TO I
00:21:16 THINK PROTECT THE INTERESTS OF TAXPAYERS BUT ALSO SAVE YOU
00:21:17 KNOW, A WELL REGARDED AND LOVED INSTITUTION INSIDE AND OUTSIDE
00:21:23 OF DISTRICT THREE. SO THANK YOU FOR YOUR WORK ON
00:21:27 THIS AND THANK YOU THANK YOU TO THE BUDGET LEGISLATIVE ANALYST
00:21:29 FOR ALL OF THEIR WORK. >> SEEING NO ONE ON THE ROSTER
00:21:32 WITH QUESTIONS OR COMMENTS COMMITTEE INVITE A PUBLIC
00:21:33 COMMENT ON THIS ITEM. >> YES IF WE HAVE ANY MEMBERS
00:21:36 OF THE PUBLIC WISH TO ADDRESS THIS COMMITTEE REGARD AND THIS
00:21:39 ITEM NUMBER THREE THAT WAS YOUR OPPORTUNITY IF I COULD HAVE FOR
00:21:41 SPEAKER HELLO, MY NAME IS MEGHAN LIBERT AND I'M THE
00:21:50 GENERAL MANAGER AT PURE 23 CAFE.
00:21:53 >> I'D LIKE TO THANK THE BOARD FOR ALL THEIR HARD WORK
00:21:56 AND RUNNING OUR CITY AND THAT WE'RE REALLY HAPPY TO BE HERE
00:22:01 AS A FAMILY AND AS A FAMILY BUSINESS.
00:22:05 WE JUST CELEBRATED 40 YEARS AT THE LOCATION PIER 23 IT'S BEEN
00:22:09 A LONG JOURNEY GETTING THROUGH COVID AND THE RECOVERY OF THE
00:22:15 CITY BUT WE FEEL LIKE WE'RE BACK AND WE'RE REALLY HAPPY TO
00:22:19 BE A PART OF THAT. WE'RE EXCITED FOR THE FUTURE
00:22:23 AND WE WERE REALLY APPRECIATIVE OF OUR PORT PARTNERS THAT HAVE
00:22:27 HELPED US GET TO THIS POINT. WE LOOK FORWARD TO CONTINUING
00:22:30 AS A AS A LEGACY BUSINESS FAMILY RUN AND WE LOOK FORWARD
00:22:34 TO MAKING SOME SIGNIFICANT INVESTMENT IN THE PROPERTY TO
00:22:39 JUSTIFY OUR LEASE EXTENSION. >> THANK YOU.
00:22:43 THANK YOU MUCH BIGGER AND LIBRARY AND SEEING NO OTHER
00:22:51 SPEAKERS MR. CHAIR THAT COMPLETES OUR Q THANK YOU MR.
00:22:52 FLOYD PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED.
00:22:56 SUPERVISOR SAUTER THANK YOU CHAIR AND FIRST LIKE TO MOVE TO
00:23:00 AMEND THE ITEM AS RECOMMENDED BY THE BILA WHICH IS ON LINES
00:23:07 ONE AND EIGHT PAGE ONE REPLACING THE CURRENT AMOUNT
00:23:11 WITH THE CORRECT AMOUNT BEING $3,236,685 AND AFTER THAT
00:23:14 AMENDMENT MOVE THIS THE FULL BOARD WITH RECOMMENDATION
00:23:21 AND YES THE CHAIR YES. >> AND ON THAT MOTION OKAY.
00:23:26 ON THE MOTION BY MEMBER SAUTER THAT WE AMEND THE RESOLUTION AS
00:23:32 SO THAT'S OFFERED BY THE BAILEY OR TO ACCEPT THE RECOMMENDATION
00:23:40 AND THAT WE REFER THAT RESOLUTION TO THE FULL BOARD
00:23:41 WITH THE RECOMMENDATION AS AMENDED.
00:23:44 >> VICE CHAIR CHEN CHEN I'M MEMBER SAUTER SAUTER I CHAIR
00:23:49 DORSEY I DORSEY I HAVE THREE EYES.
00:23:51 >> THANK YOU MR. CLERK THE MOTION PASSES.
00:23:54 >> CONGRATULATIONS. OKAY, MR. CLERK, MAY WE CALL UP
00:23:58 ITEM NUMBER FOUR? YES.
00:23:58 ITEM NUMBER FOUR IS A RESOLUTION RETROACTIVELY
00:24:02 AUTHORIZING THE DEPARTMENT OF PUBLIC HEALTH TO ACCEPT
00:24:03 AND EXPEND AN IN-KIND GIFT OF MATERIALS, SUPPLIES AND OTHER
00:24:06 IN-KIND ITEMS IN THE AMOUNT OF 300,000 FOR THE PERIOD OF JULY
00:24:13 1ST 2026 THROUGH JUNE 30TH 2027 FROM COMMUNITY INITIATIVES
00:24:19 THROUGH THEIR FOOD AS MEDICINE COLLABORATIVE PROJECT
00:24:20 IN SUPPORT OF THE FOOD PHARMACIES AT DEPARTMENT OF
00:24:23 PUBLIC HEALTH CLINICS. >> MR. CHAIR THANK YOU MR.
00:24:27 CLERK. WE ARE JOINED BY CAROL
00:24:28 TANIGUCHI, DEPUTY DIRECTOR OF PRIMARY CARE.
00:24:31 MS. TANIGUCHI, WELCOME TO THE BUDGET AND FINANCE COMMITTEE
00:24:34 TODAY. >> THE FLOOR IS YOURS.
00:24:35 GREAT. THANK YOU AND GOOD MORNING.
00:24:38 CHAIR DORSEY VICE CHAIR CHEN AND MEMBER SAUTER AGAIN MY NAME
00:24:42 IS KALE TANIGUCHI AND I'M HERE FROM THE DEPARTMENT OF PUBLIC
00:24:46 HEALTH AND PRIMARY CARE SECTION .
00:24:49 AND I'M HERE TO ASK FOR AN EXPEND FOR THE FOOD AS MEDICINE
00:24:53 COLLABORATIVE JUST TO TELL YOU A LITTLE BIT ABOUT THIS
00:24:57 PROJECT. THE GIFT IS A $300,000 WILL BE
00:25:00 FOR FISCAL YEAR 2627 AND THE FUNDERS COMMUNITY INITIATIVES
00:25:06 AGAIN THROUGH FOOD AS MEDICINE. >> THIS PROGRAM REALLY WORKS
00:25:10 WITH THE PRIMARY CARE SECTION IN SIX OF OUR CLINICS AND IN A
00:25:13 COLLABORATION I HOPE MYSELF WHICH ARE OUT IN D-10
00:25:17 AND PROVIDES HIGH QUALITY GROCERIES, COOKING
00:25:21 DEMONSTRATIONS, SUPPLIES, VOUCHERS, THINGS FOR PATIENTS
00:25:25 THAT HAVE HIGH BLOOD PRESSURE DIABETES IN HELPING THE PRIMARY
00:25:29 CARE SECTION AND THEIR HEALTH CARE TEAM TO HELP DECREASE
00:25:36 THEIR MORBIDITIES RELATED TO THEIR HEALTH ISSUES.
00:25:40 >> AND WE ARE SEEKING RETROACTIVE AUTHORIZATION TO
00:25:43 ACCEPT THIS GRANT. WE DID RECEIVE THE AWARD LETTER
00:25:44 IN APRIL OF THIS YEAR FOR A PROJECT START DATE OF JULY 1ST
00:25:50 AND THERE WERE SOME DELAYS IN PROCESSING THE GRANT DUE TO
00:25:54 VARIOUS DOCUMENTATION REQUESTS THAT WE GOT WHICH BROUGHT THIS
00:25:57 ITEM TO THE BOARD OF SUPERVISORS AFTER GOING THROUGH
00:25:59 ITS FISCAL APPROVAL PROCESS INCLUDING THE COMPTROLLER'S
00:26:02 OFFICE REVIEW AND APPROVAL. AND SO THE COMPTROLLER OFFICE
00:26:07 COMPTROLLER'S OFFICE REVIEWED AND FORWARDED THE PACKAGE TO
00:26:10 THE MAYOR'S OFFICE JULY 16TH AND FOR INTRODUCTION JULY 20TH
00:26:14 EIGHTH SO THAT HENCE THE DELAYS .
00:26:17 >> SO WE RESPECTIVELY REQUEST A RETROACTIVE APPROVAL.
00:26:21 >> THANK YOU SO MUCH. I DON'T HAVE ANY QUESTIONS
00:26:25 AND I DON'T SEE ANYONE WITH QUESTIONS OR COMMENTS ON THE
00:26:28 ROSTER SO ON AND AT THIS TIME WE INVITE PUBLIC COMMENT ON
00:26:30 THIS ITEM. YES WE'RE OPENING PUBLIC
00:26:32 COMMENT FOR THIS ITEM NUMBER FOUR IF WE HAVE ANY MEMBERS OF
00:26:35 THE PUBLIC OR I SHOULD ADDRESS THIS COMMITTEE.
00:26:38 MR. CHAIR, WE HAVE NO SPEAKERS. THANK YOU, MR. CLERK.
00:26:43 >> PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED AND AT THIS TIME
00:26:46 I WOULD MOVE TO FORWARD THIS ITEM TO THE FULL BOARD WITH OUR
00:26:47 POSITIVE RECOMMENDATION. MR. COURTNEY WE HAVE A ROLL
00:26:50 CALL ON THAT MOTION. YES.
00:26:51 AND ON THAT MOTION THAT WE REFER TO THE FULL BOARD WITH
00:26:54 THE RECOMMENDATION. VICE CHAIR CHEN CHEN I'M
00:26:57 AMBASSADOR SUTTER. I CHAIR DORSEY DORSEY WE HAVE
00:27:01 THREE EYES. >> THANK YOU, MR. CLERK.
00:27:02 THE MOTION PASSES. THANK YOU, MR. HAVING A GUCCI?
00:27:05 >> MR. CLERK, CAN YOU PLEASE CALL UP ITEM NUMBER FIVE?
00:27:07 >> YES, ITEM NUMBER FIVE IS A RESOLUTION RETROACTIVELY
00:27:15 AUTHORIZING THE OFFICE OF THE DISTRICT ATTORNEY TO RENEW ITS
00:27:17 CURRENT AGREEMENT WITH THE CALIFORNIA VICTIM COMPENSATION
00:27:20 BOARD, AN AGENT OF THE STATE OF CALIFORNIA FOR A REVOLVING FUND
00:27:24 IN THE AMOUNT OF 75,000 TO ESTABLISH A PROCESS TO PAY
00:27:27 EXPENSES ON AN EMERGENCY BASIS WHEN THE CLAIMANT WOULD SUFFER
00:27:31 A SUBSTANTIAL HARDSHIP IF THE PAYMENT WAS NOT MADE AND WHEN
00:27:35 THE PAYMENT WOULD HELP THE CLAIMANT WITH AN IMMEDIATE NEED
00:27:38 FOR THE PERIOD OF JULY 1ST 2026 THROUGH JUNE 30TH 2029.
00:27:42 >> MR. CHAIR ACTUALLY I THINK I'M SUPPOSED TO CALL AM I
00:27:49 SUPPOSED TO CALL ITEMS IF YOU WISH.
00:27:52 >> MR.. YEAH YOU WANT TO CALL ITEMS
00:27:54 FIVE THROUGH SEVEN TOGETHER? YES.
00:27:55 LET'S SEE ITEM NUMBER SIX AND SEVEN AUTHORIZES THE OFFICE
00:27:58 TO ACCEPT AND EXPEND GRANTS. >> ITEM NUMBER SIX
00:28:02 RETROACTIVELY AUTHORIZES A GRANT IN THE AMOUNT OF 1
00:28:05 MILLION FROM THE CALIFORNIA DEPARTMENT OF INSURANCE FOR THE
00:28:06 WORKER'S COMPENSATION INSURANCE FRAUD PROGRAM FOR THE GRANT
00:28:12 PERIOD OF JULY 1ST 2026 THROUGH JUNE 30TH 2027.
00:28:14 AND ITEM NUMBER SEVEN IS A GRANT WITH AN ESTIMATED ANNUAL
00:28:18 AMOUNT OF APPROXIMATELY 1.3 MILLION FOR A THREE YEAR TERM
00:28:23 FROM OCTOBER 1ST 2026 THROUGH SEPTEMBER 30TH 2029 FOR A TOTAL
00:28:27 ESTIMATED AMOUNT OF APPROXIMATELY 4 MILLION
00:28:30 DEPENDENT ON THE APPROVAL OF THE CALIFORNIA GOVERNOR'S
00:28:32 OFFICE OF EMERGENCY SERVICES FUNDING FOR RECURRENT FOUR
00:28:38 RECURRING GRANTS THAT SUPPORT THE VICTIM WITNESS ASSISTANCE
00:28:41 PROGRAM SHOULD THE PARTIES AGREED TO AN AMENDMENT AS
00:28:42 ALLOWED UNDER THE PROVISIONS OF THE GRANT AGREEMENT.
00:28:46 >> MR. CHAIR. THANK YOU, MR. CLERK.
00:28:49 WE HAVE THREE ITEMS BEFORE US FROM THE DISTRICT ATTORNEY'S
00:28:50 OFFICE. WE ARE JOINED BY KAREEM, A
00:28:53 BAPTIST CHIEF OF VICTIM SERVICES DIVISION.
00:28:54 ALSO TINA NUNEZ OUBRE MANAGING ATTORNEY OF THE ECONOMIC CRIMES
00:29:00 UNIT AND ALSO JEFF DALY, ASSISTANT DISTRICT ATTORNEY FOR
00:29:01 THE ECONOMIC CRIMES UNIT. WE WILL BEGIN WITH VERBAL
00:29:05 PRESENTATIONS FROM MISS BAPTIST FOR I UNDERSTAND ITEMS FIVE
00:29:08 AND SIX FOLLOWED BY A PRESENTATION ON ITEM SEVEN FROM
00:29:12 MR. NEWNESS, OPRAH AND MR. DALY IS BAPTIST.
00:29:15 WELCOME TO THE BUDGET AND FINANCE COMMITTEE.
00:29:18 >> THE FLOOR IS YOURS. GOOD MORNING.
00:29:19 THANK YOU FOR YOUR TIME TODAY. MY NAME IS KAREEM A BAPTIST
00:29:22 AND I'M THE CHIEF OF THE VICTIM SERVICES DIVISION.
00:29:24 >> YOU WANT TO MOVE IT? >> YEAH, PERFECT.
00:29:26 I'VE BEEN WITH THE OFFICE APPROXIMATELY 20 YEARS AND HAVE
00:29:28 THE DISTINCT PLEASURE OF SERVING AS AN ADVOCATE
00:29:30 AND HOLDING VARIOUS ROLES IN THE UNIT.
00:29:33 LAST YEAR WE SERVED 8263 VICTIMS OF VIOLENT CRIME.
00:29:37 AND TODAY WE ARE SEEKING BOARD OF SUPERVISOR APPROVAL TO
00:29:41 RETROACTIVELY RENEW ITS CURRENT AGREEMENT WITH THE CALIFORNIA
00:29:44 VICTIM COMPENSATION BOARD. AN AGENT OF THE STATE OF
00:29:48 CALIFORNIA FOR THE ROLL UP REVOLVING FUND IN THE AMOUNT OF
00:29:51 $75,000 FOR THREE YEAR GRANT TERM OF JULY 1ST 2026 THROUGH
00:29:57 JUNE 30TH 2029. THE AGREEMENT WOULD AUTHORIZE
00:30:01 THE DA'S OFFICE VICTIM SERVICES TO PAY FOR VERIFIED FUNERAL
00:30:05 BURIAL RELOCATION, CRIME SCENE CLEANUP AND OTHER EMERGENCY
00:30:08 LOSS EXPENSES FOR ELIGIBLE VICTIMS OUT OF THE FUND.
00:30:12 >> OKAY. OKAY.
00:30:16 >> THANKS. I DON'T HAVE ANY QUESTIONS OR
00:30:17 COMMENTS. >> WE HEAR ABOUT THE NEXT STEP
00:30:22 . >> GOOD MORNING.
00:30:23 MY NAME IS JEFF DALY. I'M HERE ACTUALLY TO PRESENT ON
00:30:27 ITEM NUMBER SIX THE WORKER'S COMPENSATION RESOLUTION.
00:30:31 I'M AN ASSISTANT DISTRICT ATTORNEY WITH THE ECONOMIC
00:30:35 CRIMES UNIT OF THE DA'S OFFICE ASSIGNED SPECIFICALLY TO
00:30:38 PROSECUTE WORKER'S COMPENSATION FRAUD.
00:30:42 THE DA'S OFFICE APPLIES ANNUALLY FOR THE WORKER'S
00:30:46 COMPENSATION FRAUD GRANT FROM THE CALIFORNIA DEPARTMENT OF
00:30:50 INSURANCE. ONE OF THE GRANT REQUIREMENTS
00:30:51 IS THAT THE RESOLUTION BEFORE YOU TODAY BE CONSIDERED
00:30:57 AND APPROVED. THE GRANT FUNDING PAYS FOR A
00:31:01 FULL TIME DISTRICT ATTORNEY INVESTIGATOR AND TWO ASSISTANT
00:31:04 DISTRICT ATTORNEY POSITIONS. ADDITIONALLY, THE FUNDING
00:31:09 COVERS TRAINING FOR PERSONNEL ASSIGNED TO THE GRANT WHICH
00:31:13 WOULD OTHERWISE NOT OCCUR WITH THE GRANT.
00:31:17 THE DA'S OFFICE HANDLES WORKER'S COMPENSATION CASES
00:31:18 FROM THE INVESTIGATION PHASE ALL THE WAY THROUGH PROSECUTION
00:31:23 AND CRIMINAL COURT. THE GRANT IS VITAL TO THE FIGHT
00:31:28 AGAINST WORKER'S COMPENSATION INSURANCE FRAUD IN THE CITY
00:31:31 AND COUNTY OF SAN FRANCISCO. SAN FRANCISCO IS A SELF-INSURED
00:31:35 ENTITY FOR WORKER'S COMPENSATION SO ANY FRAUD IS
00:31:42 HARMFUL TO THE CITY AND IT WHETHER IT'S COMMITTED BY
00:31:47 WORKERS, EMPLOYERS, PROVIDERS. THIS TAKES MONEY AWAY FROM
00:31:51 OTHER IMPORTANT SERVICES THAT COULD BE AVAILABLE TO THE
00:31:55 RESIDENTS OF THE CITY. FIGHTING WORKER'S COMPENSATION
00:31:59 FRAUD HELPS PROVIDE BETTER CARE FOR INJURED WORKERS, HELPS
00:32:02 LOWER THE COSTS FOR EMPLOYERS, INSURANCE COMPANIES AND THE
00:32:06 CITY. ALSO FIGHTING PREMIUM FRAUD
00:32:09 HELPS LEVEL THE PLAYING FIELD FOR THOSE BUSINESSES THAT ARE
00:32:14 FOLLOWING THE LAW AND PAYING INTO THE SYSTEM.
00:32:17 WITH THAT WE ARE ASKING THAT THIS COMMITTEE APPROVE THE
00:32:21 RESOLUTION AND I'M HAPPY TO TAKE ANY QUESTIONS ON THIS.
00:32:24 >> YEAH, I DON'T HAVE ANY QUESTIONS ON THIS SPECIFIC ITEM
00:32:28 AND I DON'T SEE ANYONE ON THE ROSTER OR DID YOU WANT TO
00:32:30 PRESENT ON ITEM SEVEN? >> YEAH, GREAT.
00:32:35 THANK YOU. WE ARE ALSO ASKING TO ACCEPT
00:32:39 AND EXPAND ON THE VICTIM WITNESS GRANT WITH THE
00:32:40 ESTIMATED TOTAL AMOUNT OF 4,017,070 $774 FOR THE THREE
00:32:45 YEAR GRANT TERM OF OCTOBER 1ST 2026 THROUGH SEPTEMBER 30TH
00:32:51 2029. THIS GRANT FUNDS NINE TOTAL
00:32:55 ADVOCATES AND THROUGH COUNTY CB AND CAL CAO OS GRANTS VSA CAN
00:33:01 EFFECTIVELY RESPOND TO THE NEEDS OF VICTIMS AND SURVIVORS
00:33:03 SO I APPRECIATE YOUR APPROVAL TODAY.
00:33:06 >> OKAY. THANKS SO MUCH.
00:33:10 I APPRECIATE ALL THE WORK BEING DONE AND I THINK THIS IS THESE
00:33:13 ARE DOLLARS THAT WILL BE WELL SPENT OF THE DEPARTMENTS THAT I
00:33:17 HAVE WORKED ON BEFORE COMING TO THE BOARD OF SUPERVISORS.
00:33:18 THE DISTRICT ATTORNEY'S OFFICE MANY YEARS AGO WAS WAS ONE OF
00:33:22 THEM AND I THINK I WORKED FOR THE DISTRICT ATTORNEY WHO
00:33:24 ACTUALLY CREATED THE VICTIMS SERVICES UNIT, ARLO SMITH MANY
00:33:28 YEARS AGO. SO I THINK THIS IS IMPORTANT
00:33:29 WORK AND I ALSO JUST FROM MY PERSPECTIVE OF HAVING WORKED
00:33:33 IN THE CITY ATTORNEY'S OFFICE, I APPRECIATE THAT THE CITY IS
00:33:36 SELF-INSURED AND THE WORK YOU'RE DOING TO SAFEGUARD
00:33:40 AGAINST WORKER'S COMPENSATION ABUSE IS IMPORTANT
00:33:41 AND APPRECIATED. SO I DON'T HAVE ANY FURTHER
00:33:44 QUESTIONS AT THIS TIME. WHY DON'T WE INVITE A PUBLIC
00:33:48 COMMENT? >> YES.
00:33:48 IF YOU HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS
00:33:51 COMMITTEE REGARDING THESE ITEMS FIVE, 6 OR 7 NOW IS YOUR
00:33:55 OPPORTUNITY. >> MR. CHAIR, WE HAVE NO
00:33:59 SPEAKERS. THANK YOU, MR. CLERK.
00:34:01 PUBLIC COMMENT ON THESE ITEMS IS NOW CLOSED AND AT THIS TIME
00:34:05 I WOULD MOVE TO FORWARD ITEMS FIVE THROUGH SEVEN TO THE FULL
00:34:08 BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION.
00:34:09 MAYBE HAVE A ROLL CALL ON THAT MOTION.
00:34:12 >> YES. AND ON THAT MOTION THERE WE
00:34:14 REFER THESE RESOLUTIONS TO THE FULL BOARD WITH THE
00:34:17 RECOMMENDATION VICE CHAIR CHEN CHEN I'M AMBASSADOR SARDAR I
00:34:20 CHAIR DORSEY DORSEY I HAVE THREE EYES.
00:34:24 >> THANK YOU, MR. CLERK. MOTIONS PASS THE MOTION PASSES.
00:34:27 >> MR. CLERK, CAN YOU PLEASE CALL UP ITEMS EIGHT THROUGH 11
00:34:32 TOGETHER? >> YES.
00:34:34 ITEM NUMBERS EIGHT THROUGH 11 ARE RESOLUTIONS AUTHORIZING THE
00:34:36 POLICE DEPARTMENT TO ACCEPT AND EXPEND THE FOLLOWING ITEM
00:34:39 NUMBER EIGHT AS A CASH GIFT IN THE AMOUNT OF 3 MILLION FROM
00:34:42 THE SAN FRANCISCO POLICE COMMUNITY FOUNDATION TO SUPPORT
00:34:45 THE REAL TIME INVESTIGATION CENTER FOR TECHNOLOGY SOFTWARE
00:34:49 AND INFRASTRUCTURE NEEDS ITEM NUMBER NINE RETROACTIVELY
00:34:51 AUTHORIZE THIS AN IN-KIND GIFT OF VENUE SPACE AND RELATED
00:34:58 FACILITY USE AT ORACLE PARK VALUE THAT 45.5 THOUSAND FROM
00:35:01 THE CHINA BASE AND BALLPARK COMPANY LLC TO SUPPORT A POLICE
00:35:05 DEPARTMENT RECRUITMENT TESTING EVENT ON JULY 22ND 2026.
00:35:11 ITEM NUMBER TEN RETROACTIVELY AUTHORIZED AS A CASH GIFT
00:35:13 IN THE AMOUNT OF APPROXIMATELY 103,000 FROM THE SAN FRANCISCO
00:35:16 POLICE COMMUNITY FOUNDATION TO SUPPORT THE POLICE DEPARTMENT'S
00:35:22 O2X WELLNESS INITIATIVE AND OFFICER WELLNESS PROGRAMING
00:35:26 FROM APRIL 1ST 2026 THROUGH JUNE 30TH 2026.
00:35:29 ITEM NUMBER 11 RETROACTIVELY AUTHORIZE A GRANT IN THE AMOUNT
00:35:34 OF APPROXIMATELY 772,000 AND TO EXECUTE A GRANT AGREEMENT FROM
00:35:40 THE DEPARTMENT OF CALIFORNIA HIGHWAY PATROL FOR THE FISCAL
00:35:43 YEAR 2026 TO 2027 CANNABIS TAX FUND GRANT PROGRAM TO EXPAND
00:35:47 SPEEDY'S DRUG RECOGNITION EXPERT ADVANCED ROADSIDE
00:35:51 IMPAIRED DRIVING ENFORCEMENT AND STANDARDIZED FIELD SOBRIETY
00:35:55 TESTING PROGRAMS WITH THE PROJECT PERIOD BEGINNING ON
00:35:59 JULY FIRST, 2026 THROUGH JUNE 30TH 2027.
00:36:05 >> MR. CHAIR THANK YOU MR. CLERK.
00:36:06 WE ARE JOINED TODAY BY MR. CARL NISHIDA, GOVERNMENT AFFAIRS
00:36:10 MANAGER FOR THE SAN FRANCISCO POLICE DEPARTMENT AND I SEE
00:36:13 THAT OFFICER PETUNIA IS ALSO HERE FROM THE POLICE DEPARTMENT
00:36:16 . >> MR. CEDAR, WELCOME TO THE
00:36:17 BUDGET AND FINANCE COMMITTEE. THE FLOOR IS YOURS.
00:36:20 >> THANK YOU. GOOD MORNING, CHAIR DORSEY VICE
00:36:22 CHAIR CHEN SUPERVISOR SAUTER I AM CARL ANICETO, GOVERNMENT
00:36:24 AFFAIRS MANAGER FOR THE POLICE DEPARTMENT.
00:36:25 I'LL RUN THROUGH OF WHERE ITEMS AND YOU HAVE SAID SUBJECT
00:36:28 MATTER EXPERTS HERE WITH ME TO ANSWER ANY QUESTIONS YOU MAY
00:36:32 HAVE. AS MR. CLERK JUST SAID ITEM
00:36:35 NUMBER EIGHT IS A RESOLUTION THAT AUTHORIZES THE POLICE
00:36:36 DEPARTMENT TO ACCEPT AND EXPEND A CASH GIFT OF $3 MILLION FROM
00:36:39 THE SAN FRANCISCO SAN FRANCISCO POLICE COMMUNITY FOUNDATION
00:36:43 IN SUPPORT OF THE REAL TIME INVESTIGATION CENTER AT 315
00:36:46 MONTGOMERY. THIS GIFT IS IN ADDITION TO A
00:36:50 PRIOR GIFT FROM THE POLICE COMMUNITY FOUNDATION THAT THE
00:36:54 BOARD AUTHORIZED UNDER FILE 25 723 FOR THAT SAME FACILITY.
00:37:00 THESE FUNDS WILL BE PROVIDED IN THREE ANNUAL INSTALLMENTS OF
00:37:04 APPROXIMATELY $1 MILLION EACH AND THE FIRST YEAR ALLOCATION
00:37:08 INCLUDES APPROXIMATELY $540,000 FOR TWO DRONE DOCKING STATIONS
00:37:11 AND APPROXIMATE $375,000 FOR COUNTER DRONE TECHNOLOGY.
00:37:18 THE REMAINING APPROXIMATELY 2.1 MILLION IS DESIGNATED FOR
00:37:22 ARCTIC TECHNOLOGY SOFTWARE AND INFRASTRUCTURE NEEDS
00:37:26 IN YEARS TWO AND THREE INCLUDING HARDWARE UPGRADES
00:37:29 AND REPLACEMENTS, SOFTWARE LICENSING AND MAINTENANCE
00:37:33 AND FACILITY RELATED COSTS. THIS IS A PRIVATELY FUNDED GIFT
00:37:37 WITH NO IMPACT TO THE CITY'S GENERAL FUND AND BOARD APPROVAL
00:37:41 IS REQUIRED UNDER THE ADMIN CODE BECAUSE THE GIFT EXCEEDS
00:37:44 $10,000. AGAIN THE FUNDING SUPPORTS
00:37:48 CONTINUED OPERATION OF ARCTIC. ALL CONSISTENT WITH PROPOSITION
00:37:52 E ADMIN CODE 19 BE AND CALIFORNIA ASSEMBLY BILL
00:37:57 481 ITEM NINE IS A RESOLUTION THAT RETROACTIVELY AUTHORIZES
00:38:01 THE POLICE DEPARTMENT TO ACCEPT AND EXPEND AND IN-KIND GIFT
00:38:04 FROM CHINA BASIN BALLPARK COMPANY THE OPERATOR OF ORACLE
00:38:08 PARK VALUED AT $45,500. THE GIFT CONSISTS OF WAIVED
00:38:15 RENTAL FEES FOR FOUR VENUE SPACES FOR A SINGLE DAY JULY
00:38:19 22ND 2026 INCLUDING THE SUITE LOBBY AND 15 SUITES THE MINI
00:38:22 BALLPARK, THE PERFORMANCE CENTER AND THE SHIELD LOUNGE.
00:38:25 THESE SPACES WERE USED FOR THE DEPARTMENT'S Q2 ENTRY LEVEL
00:38:29 POLICE OFFICER EXAMINATION EVENT INCLUDING PHYSICAL
00:38:30 AGILITY TESTING, ORAL INTERVIEWS AND CANDIDATE
00:38:34 ORIENTATION. JUST WANTED TO NOTE THAT THE
00:38:37 DEPARTMENT SEPARATELY PAID APPROXIMATELY 5700 770,000
00:38:43 IN ASSOCIATED STAFFING, SECURITY AND MAINTENANCE COSTS
00:38:44 WHICH ARE NOT PART OF THIS RESOLUTION AND THE RESOLUTION
00:38:47 IS RETROACTIVE BECAUSE OBVIOUSLY THE EVENT HAS ALREADY
00:38:51 OCCURRED AND BOARD APPROVAL IS REQUIRED UNDER THE ADMIN CODE
00:38:55 BECAUSE THE GIFT EXCEEDS $10,000.
00:38:57 >> ITEM TEN IS A RESOLUTION RETROACTIVELY AUTHORIZING THE
00:39:02 POLICE DEPARTMENT TO ACCEPT AND EXPEND A CASH GIFT OF
00:39:07 $103,750 AGAIN FROM THE POLICE COMMUNITY FOUNDATION TO SUPPORT
00:39:11 THE DEPARTMENT'S O2X WELLNESS INITIATIVE FOR THE PERIOD OF
00:39:16 APRIL 1ST THROUGH JUNE 30TH, 2026.
00:39:17 >> THE DEPARTMENT DID MAINTAIN AN EXISTING PERSONAL SERVICES
00:39:24 CONTRACT WITH O2X HUMAN PERFORMANCE APPROVED BY THE
00:39:25 CIVIL SERVICE COMMISSION FOR EMBEDDED WELLNESS AND READINESS
00:39:29 SERVICES NOT CURRENTLY PERFORMED BY EXISTING CITY
00:39:33 PERSONNEL. THE GIFT FUNDS CONTINUATION OF
00:39:37 THE O2X INTEGRATED READINESS PLATFORM AND TO EMBEDDED ON
00:39:40 SPECIALIST FOR THE SPECIFIED QUARTER ADD AN APPROXIMATE COST
00:39:44 OF $34,583 PER MONTH ALONG WITH UP TO $2,500 IN OTHER DIRECT
00:39:48 PROGRAM COSTS. THIS RESOLUTION IS RETROACTIVE
00:39:51 BECAUSE THE COVERED PERIOD HAS ALREADY CONCLUDED.
00:39:55 FINALLY, ITEM NUMBER 11 IS A RESOLUTION RETROACTIVELY
00:39:59 AUTHORIZING THE POLICE DEPARTMENT TO ACCEPT AND EXPEND
00:40:04 A GRANT OF $772,507 FROM THE CALIFORNIA HIGHWAY PATROL'S
00:40:09 FISCAL YEAR 2627 CANNABIS TAX FUND GRANT PROGRAM AND TO
00:40:14 EXECUTE THE ASSOCIATED GRANT AGREEMENT FOR THE PROJECT
00:40:15 PERIOD OF JULY 1ST 2026 THROUGH JUNE 30TH 2027.
00:40:20 THE GRANT EXPANDS THE DEPARTMENT'S DRUG RECOGNITION
00:40:22 EXPERT ADVANCED ROADSIDE IMPAIRED DRIVING ENFORCEMENT
00:40:26 AND STANDARDIZED FIELD SOBRIETY TESTING PROGRAMS.
00:40:30 FUNDING IS ALLOCATED AS FOLLOWS APPROXIMATELY 511,000 FOR
00:40:34 INSTRUCTOR OVER TIME SUPPORTING FOR STANDARD FIELD SOBRIETY
00:40:37 TESTING COURSES TO ADVANCED ROADSIDE IMPAIRED DRIVING
00:40:42 ENFORCEMENT COURSES FOR DRUG RECOGNITION EXPERT COURSES
00:40:47 AND EIGHT DRUG RECOGNITION EXPERT FIELD SITE OPERATIONS.
00:40:49 APPROXIMATELY $205,000 FOR A DUI PATROL VEHICLE AND TRAILER
00:40:52 TO REPLACE EQUIPMENT THAT HAS REACHED ITS END OF LIFE.
00:40:58 AND APPROXIMATELY 52,000 FOR PROGRAM SUPPLIES AND ROADSIDE
00:40:59 TESTING DEVICES. AND THIS RESOLUTION IS
00:41:03 RETROACTIVE BECAUSE THE PROJECT PERIOD HAS ALREADY COMMENCED
00:41:06 AND THE CHP REQUIRES DOCUMENTED BOARD APPROVAL PRIOR TO
00:41:10 EXECUTING THE GRANT AGREEMENT. THAT CONCLUDES ALL FOUR ITEMS.
00:41:14 I'M JOINED BY CAPTAIN STEVEN JONAS FROM CRIME FROM STRATEGIC
00:41:17 INVESTIGATIONS AS WELL AS ACTING SERGEANT MIKE PETUNIA
00:41:22 FOR BOTH ITEM EIGHT AND NINE. >> THANK YOU, MR. PRESIDENT
00:41:28 AND SORRY CAPTAIN, FOR NOT POINTING YOU OUT FOR YOUR
00:41:29 BEHIND THERE. I THANK YOU FOR YOUR
00:41:33 PRESENTATION, MR. NISHIDA. I'M PLEASED TO SUPPORT THESE
00:41:36 ITEMS IN PARTICULAR ITEM EIGHT. I REALLY AM GRATEFUL FOR THE
00:41:40 WORK BEING DONE BY THE REAL-TIME INVESTIGATION CENTER
00:41:43 . I HAVE BEEN A STRONG SUPPORTER
00:41:44 OF MAKING SURE THAT AS A PD HAS THE TOOLS THAT A MODERN POLICE
00:41:48 DEPARTMENT NEEDS TO IDENTIFY SUSPECTS COORDINATED RESPONSE
00:41:52 AND TO GET INFORMATION TO THE OFFICERS IN THE FIELD IN A
00:41:55 TIMELY MANNER. IT'S MY UNDERSTANDING THAT OUR
00:41:57 TECH HAS ASSISTED WITH MORE THAN 500 ARRESTS.
00:42:00 I DON'T KNOW IF THAT NUMBER HAS GONE UP.
00:42:03 >> ANY ANY NEW THINGS TO UPDATE US ON THE SUCCESS OF THE ARCTIC
00:42:07 I'D BE INTERESTED TO HEAR. >> YEAH.
00:42:10 SO FAR WE'RE NORTH OF 700 ARRESTS SO THE INTERCEPTION FOR
00:42:13 THE REAL TIME INVESTIGATION CENTER.
00:42:16 >> OKAY. I KNOW THAT THIS IS A GIFT THAT
00:42:21 WILL STRENGTHEN OUR TECHS TECHNOLOGY AND INFRASTRUCTURE
00:42:24 SO I'M HAPPY TO SUPPORT THAT. I'M ALSO HAPPY I WILL SAY ON
00:42:26 THE OTHER ITEMS YOU KNOW, POLICE STAFFING HAS BEEN PRIOR
00:42:33 CITY OF MINE AND I WILL SAY THAT THE WELLNESS OF OUR FIRST
00:42:37 RESPONDERS NOT JUST POLICE OFFICERS BUT ALSO FIREFIGHTERS
00:42:41 AND THE MOUNTIES AND OTHERS I THINK IS SOMETHING THAT ITEM
00:42:45 TEN TOUCHES ON. >> IN MY VIEW THIS IS SOMETHING
00:42:49 THAT I ACTUALLY SEE AS A RECRUITING.
00:42:51 IT'S SOMETHING THAT MAKES US COMPETITIVE THAT WE THAT WE
00:42:55 SUPPORT OUR FIRST RESPONDERS IN MUCH OF WHAT WE'RE DOING
00:42:57 AROUND POLICE RECRUITING. SO I DON'T KNOW IF THERE'S ANY
00:43:00 THOUGHTS ABOUT HOW WE'RE FOR ITEMS 9 OR 10 IF THIS IS
00:43:04 SOMETHING HOW WE'RE DOING ON RECRUITING.
00:43:07 IF THERE'S ANY UPDATES ON THAT THAT YOU'D WE'D LOVE TO HEAR.
00:43:11 >> GOOD MORNING CHAIR DORSEY VICE CHAIR CHEN AND SUPERVISOR
00:43:15 SAUDER OUR RECRUITING EFFORTS ARE DOING EXTREMELY WELL RIGHT
00:43:18 NOW PARTLY DUE TO THE FACT THAT WE HAVE PROGRAMS SUCH AS O2X
00:43:22 THAT EXISTED IN THE DEPARTMENT AND THE EFFORTS OF OUR TEAM
00:43:26 AND OUR COMMAND STAFF. >> THIS IS A SELLING POINT FOR
00:43:29 THE DEPARTMENT OUR WELLNESS PROGRAMS WE ARE WELL ON TRACK
00:43:34 TO EXCEED OVER 10,000 APPLICATIONS THIS CALENDAR YEAR
00:43:37 FOR ENTRY LEVEL STAFFING FOR THE DEPARTMENT.
00:43:41 SO ALL THESE EFFORTS COMBINED ARE LEADING TO THE MAJOR
00:43:44 SUCCESS OF THESE PROGRAMS IN LINE WITH THE ORACLE PARK
00:43:48 TESTING EVENT THAT WE DID. >> GREAT.
00:43:49 OKAY. OKAY.
00:43:52 THANKS SO MUCH. I DON'T SEE ANYONE ON THE
00:43:53 ROSTER WITH QUESTIONS OR COMMENTS.
00:43:55 I APPRECIATE THE ANSWERS AND THE PRESENTATION.
00:43:57 MR. CLERK AT THIS TIME WHY DON'T WE INVITE A PUBLIC
00:44:00 COMMENT ON THESE ITEMS? YES, WE'RE OPENING PUBLIC
00:44:02 COMMENT FOR THESE ITEM NUMBERS EIGHT, NINE, TEN AND 11.
00:44:04 >> IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS
00:44:08 THIS COMMITTEE. >> MR. CHAIR, WE HAVE NO
00:44:12 SPEAKERS. THANK YOU.
00:44:13 MR. FIRST PUBLIC COMMENT ON THESE ITEMS IS NOW CLOSED
00:44:15 AND AT THIS TIME I WOULD MOVE TO FORWARD THESE ITEMS TO THE
00:44:18 FULL BOARD OF SUPERVISORS WITH OUR POSITIVE RECOMMENDATION.
00:44:22 >> MR. CLERK, MAY WE HAVE A ROLL CALL ON THAT MOTION?
00:44:23 YES. AND ON THAT MOTION THAT WE
00:44:25 REFER ALL FOUR RESOLUTIONS TO THE FULL BOARD WITH THE
00:44:27 RECOMMENDATION. VICE CHAIR CHEN CHEN I'M
00:44:30 AMBASSADOR SOUDER. >> I CHAIR DORSEY ALL RIGHT,
00:44:34 DORSEY I WE HAVE THREE EYES. THANK YOU, MR. CLERK.
00:44:37 >> THE MOTION PASSES. THANKS SO MUCH, MR. CLERK.
00:44:40 >> AT THIS TIME CAN YOU CALL ITEM NUMBER 12?
00:44:42 YES. ITEM NUMBER 12 IS A RESOLUTION
00:44:45 APPROVING AMENDMENT NUMBER TWO TO THE AGREEMENT BETWEEN THE
00:44:48 CITY ACTING BY AND THROUGH THE OFFICE OF CONTRACT
00:44:51 ADMINISTRATION AND SAID TO OIL COMPANY INC DOING BUSINESS AS
00:44:57 MSI INDUSTRIAL SUPPLY COMPANY INC FOR THE PURCHASE OF AS
00:45:02 NEEDED CITYWIDE CONTRACT FOR INDUSTRIAL SUPPLIES TO INCREASE
00:45:06 THE AGREEMENTS NOT TO EXCEED AMOUNT BY 7.6 MILLION FOR A
00:45:08 TOTAL NOT TO EXCEED AMOUNT OF 17.1 MILLION WITH NO CHANGES TO
00:45:12 THE CONTRACT TERM OF DECEMBER 1ST 2023 THROUGH NOVEMBER 8TH
00:45:18 2028 AND TO AUTHORIZE THE OFFICE OF CONTRACT
00:45:19 ADMINISTRATION TO MAKE NON-MATERIAL CHANGES TO THE
00:45:23 AMENDMENT PRIOR TO ITS FINAL EXECUTION BY ALL PARTIES HAD TO
00:45:26 NOT MATERIALLY INCREASE THE OBLIGATIONS NOR LIABILITIES TO
00:45:30 THE CITY AND ARE NECESSARY OR ADVISABLE TO EFFECTUATE THE
00:45:31 PURPOSES OF THE AGREEMENT. >> MR. CHAIR.
00:45:33 THANK YOU, MR. CLERK AND WE ARE JOINED TODAY BY MISS ANGELA
00:45:37 YIP, GOVERNMENT AFFAIRS WITH THE CITY ADMINISTRATOR'S
00:45:40 OFFICE. MISS YEP.
00:45:41 WELCOME TO THE BUDGET AND FINANCE COMMITTEE.
00:45:44 >> THE FLOOR IS YOURS. THANK YOU CHAIR JOSE
00:45:45 AND COMMITTEE MEMBERS ANGELA YAP FROM THE OFFICE OF THE CITY
00:45:48 ADMINISTRATOR HERE ON BEHALF OF THE OFFICE OF CONTRACT
00:45:49 ADMINISTRATION TODAY TO REQUEST YOUR APPROVAL FOR OCA TO
00:45:53 EXECUTE AN AMENDMENT TO ITS TERM CONTRACT WITH MSE
00:45:56 INDUSTRIAL SUPPLY COMPANY INCREASING THE NOT TO EXCEED
00:46:00 AMOUNT BY 17 TO $17,100,000 WITH NO CHANGE TO THE CONTRACT
00:46:06 TERMS. THIS CONTRACT PROVIDES AN
00:46:07 AVENUE FOR DEPARTMENTS TO PURCHASE AS NEEDED INDUSTRIAL
00:46:10 SUPPLIES TO MAINTAIN PUBLIC INFRASTRUCTURE AND ENSURE
00:46:13 EMPLOYEE SAFETY. THESE ARE TOOLS SUCH AS H-BACK
00:46:16 COMPONENTS, SAFETY EQUIPMENT AND ELECTRICAL AND PLUMBING
00:46:18 SUPPLIES AND AS WITH OTHER TERM CONTRACTS THAT OCA MAINTAINS,
00:46:21 THIS CONTRACT SUPPORTS OPERATIONAL EFFICIENCY
00:46:24 AND SAVES TAXPAYERS MONEY AND BY REDUCING THE TIME
00:46:28 AND EFFORT IT TAKES DEPARTMENTS TO PURCHASE THESE NECESSARY
00:46:29 SUPPLIES AND SECURES ADVANTAGEOUS PRICING.
00:46:32 THE CONTRACT WAS PREVIOUSLY AMENDED ONCE TO INCREASE THE
00:46:36 NOT TO EXCEED AMOUNT AND EXTEND THE TERM LENGTH BUT SINCE THEN
00:46:40 DEMAND FROM DEPARTMENTS HAS CONTINUED TO INCREASE FOR THESE
00:46:41 INDUSTRIAL SUPPLIES TO MEET CITY FACILITY MAINTENANCE NEEDS
00:46:44 AND MAINTAIN HEALTH AND SAFETY REQUIREMENTS AND WE ARE
00:46:48 AVAILABLE IF YOU HAVE ANY QUESTIONS WE RESPECTFULLY
00:46:51 REQUEST YOUR APPROVAL ON THIS RESOLUTION.
00:46:52 >> GREAT. THANK YOU SO MUCH.
00:46:56 AND WE HAVE A PRESENTATION FROM THE BUDGET AND LEGISLATIVE
00:46:59 ANALYST IMPLEMENT ITEM TWO. >> ITEM TWO IS A PROPOSED
00:47:03 RESOLUTION TO APPROVE AN AMENDMENT TO AN EXISTING OCA
00:47:04 TERM CONTRACTS FOR INDUSTRIAL SUPPLIES WITH MSI INDUSTRIAL
00:47:08 SUPPLY COMPANY. IT'S AN INCREASE OF 7.6 MILLION
00:47:14 TO THE NOT TO EXCEED AMOUNT FOR A NEW TOTAL OF 17.1 MILLION
00:47:16 WITH NO CHANGE TO THE FIVE YEAR TERM.
00:47:17 OKAY. SELECTED MSI THROUGH A
00:47:21 COMPETITIVE PROCUREMENT CONDUCTED BY ANOTHER GOVERNMENT
00:47:24 ENTITY THEY OFFERED CONTRACT AWARDS THE TOP FIVE FIVE
00:47:28 SCORING PROPOSERS FROM THAT SOLICITATION AND ENTERED INTO
00:47:31 CONTRACTS WITH FOUR OF THOSE RESPONDENTS AND THEN THEY HAVE
00:47:35 INCREASED THE AGREEMENTS AS NEEDED BASED ON ACTUAL
00:47:39 DEPARTMENT USE OF THOSE CONTRACTS.
00:47:40 >> SO THE PROPOSED INCREASE WOULD ALIGN THE NOT TO EXCEED
00:47:47 AMOUNT WITH HISTORICAL EXPENDITURES IT PROVIDES FOR
00:47:50 APPROXIMATELY 3 MILLION IN ANNUAL EXPENDITURES WHICH
00:47:52 ARE FUNDED BY DEPARTMENT OPERATING BUDGETS THAT USE
00:47:55 INDUSTRIAL SUPPLIES. WE RECOMMEND APPROVAL OF ITEM
00:47:58 12. >> GREAT.
00:47:59 THANK THANKS SO MUCH. CAN I ASK IF DOES THE
00:48:02 ADDITIONAL FUNDING REFLECT SUSTAINED OPERATIONAL DEMAND OR
00:48:06 ONE TIME CAPITAL NEEDS OR IS OUR PURCHASING PATTERNS THAT
00:48:10 COULD BE MANAGED THROUGH THE CITY'S OTHER INDUSTRIAL SUPPLY
00:48:11 CONTRACTS? >> YEAH I'M GOING TO HAND IT
00:48:14 OFF TO WILL ALDERMAN FROM THE OFFICE OF CONTRACT
00:48:15 ADMINISTRATION. >> GREAT.
00:48:17 THANK YOU. WELL ALDERMAN OF CONTRACTS
00:48:19 ADMINISTRATION WE HAVE MULTIPLE CONTRACTS CURRENTLY MSI AS FAR
00:48:25 AS WE ARE AWARE THIS IS JUST ONGOING OPERATIONS.
00:48:29 IT'S NOT FOR CAPITAL PROJECTS. THERE ARE SOME CAPITAL PROJECTS
00:48:32 THAT ARE KIND OF CO-MINGLED IN WITH SOME OF THESE BUT IT'S
00:48:37 SPREAD OUT BETWEEN THIS ONE AND GRANGER TYPICALLY WITH
00:48:39 GRANGER BEING THE LARGER PORTION.
00:48:42 BUT AS FAR AS THIS CONTRACT I'M NOT AWARE OF ANY LARGE CAPITAL
00:48:47 PROJECTS THAT ARE COMING UP. OKAY.
00:48:50 >> OKAY. THANKS SO MUCH.
00:48:53 OKAY. SEE NO NO ONE WITH QUESTIONS OR
00:48:54 COMMENTS AT THIS TIME. I THINK WE WILL INVITE UP A
00:48:57 PUBLIC COMMENT ON THIS ITEM. MR. CLARK MAYBE BRING UP PUBLIC
00:49:01 COMMENT. >> YES, WE'RE OPENING PUBLIC
00:49:02 COMMENT ON THIS ITEM NUMBER 12 IF WE HAVE ANY MEMBERS OF THE
00:49:05 PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
00:49:08 >> MR. CHAIR, WE HAVE NO SPEAKERS.
00:49:09 THANK YOU, MR. CLARK PUBLIC COMMENT ON THIS ITEM IS NOW
00:49:12 CLOSED AND AT THIS TIME I WOULD MOVE TO FORWARD THIS ITEM TO
00:49:19 THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE
00:49:20 RECOMMENDATION. MR. CLARK MAY WE HAVE A ROLL
00:49:23 CALL ON THAT MOTION? >> YES.
00:49:24 AND ON THAT MOTION TO REFER TO THE FULL BOARD WITH
00:49:27 RECOMMENDATION VICE CHAIR CHEN CHEN I'M MEMBER SAUTER SAUTER I
00:49:30 CHAIR DORSEY I DORSEY I WE HAVE THREE EYES.
00:49:34 >> THANK YOU MR. CLERK THE MOTION PASSES.
00:49:37 >> THANKS SO MUCH MR. CLERK. CAN YOU PLEASE CALL ITEM NUMBER
00:49:41 13? YES.
00:49:41 ITEM NUMBER 13 IS A RESOLUTION RETROACTIVELY AUTHORIZING THE
00:49:44 OFFICE OF THE CHIEF MEDICAL EXAMINER TO ACCEPT AN EXPENSIVE
00:49:48 GRANT IN THE AMOUNT OF APPROXIMATELY 847,000 FROM THE
00:49:51 CALIFORNIA HIGHWAY PATROL FOR THE CANNABIS TAX FUND GRANT
00:49:55 PROGRAM TO SUPPORT OPTIMIZATION AND ACHIEVEMENTS IN TOXICOLOGY
00:49:59 TESTING CAPABILITIES RELATED TO DRIVING UNDER THE INFLUENCE OF
00:50:03 DRUGS FOR THE GRANT TERM OF JULY 1ST 2026 THROUGH JUNE 30TH
00:50:07 2020 EIGHT AND AUTHORIZING THE OFFICE OF THE CHIEF MEDICAL
00:50:10 EXAMINER TO EXECUTE THE DRAFT GRANT AGREEMENT.
00:50:13 >> MR. CHAIR THANK YOU. MR. CLERK.
00:50:16 WE ARE JOINED AGAIN BY MS.. YAP FROM THE CITY
00:50:18 ADMINISTRATOR'S OFFICE AS YOU OR AS YOURS.
00:50:21 >> THANK YOU CHAIR DORSEY AND SUPERVISORS.
00:50:24 SWITCHING GEARS TO THE OFFICE OF THE CHIEF MEDICAL EXAMINER,
00:50:25 THE RESOLUTION BEFORE YOU WOULD ALLOW THE OCA TO ACCEPT
00:50:29 AND EXPEND A GRANT IN THE AMOUNT OF ROUGHLY $847,000 OVER
00:50:35 A TWO YEAR TERM FROM THE CALIFORNIA HIGHWAY PATROL
00:50:36 CANNABIS TAX FUND. IN ADDITION TO INVESTIGATING
00:50:39 THE CAUSE AND MANNER OF DEATH FOR SUDDEN UNEXPECTED
00:50:43 AND VIOLENT DEATHS OCCURRING IN SAN FRANCISCO, THE OCA ALSO
00:50:44 CONDUCTS RIGOROUS TESTING FOR DUI, DUI AND SEXUAL ASSAULT
00:50:50 CASES TO SUPPORT PUBLIC HEALTH AND SAFETY FOR THE CITY.
00:50:52 >> THIS PARTICULAR GRANT ALLOWS THE OCA MEET TO ENHANCE
00:50:55 SPECIFICALLY ITS DUI OR DRIVING UNDER THE INFLUENCE OF DRUGS
00:50:59 TESTING AND REPORTING CAPABILITY AS THEY WILL USE
00:51:03 ADVANCED MACHINE LEARNING METHODS TO BUILD UPON OUR
00:51:06 EXISTING CASE MANAGEMENT SYSTEM AND UNLOCK DEEPER ANALYTICAL
00:51:10 INSIGHTS FROM THE DATA EXPANDED DATA QUALITY MANAGEMENT SYSTEMS
00:51:14 AND STREAMLINE OUR MANDATED REPORTING.
00:51:15 THESE IMPROVEMENTS SPECIFICALLY WILL ALLOW THE OCA MEAN TO
00:51:18 IDENTIFY NOVEL PSYCHOACTIVE SUBSTANCES QUICKLY AS THEY
00:51:22 EMERGE IN THE CASE WORK AND THE THE MONEY SPECIFICALLY FROM
00:51:26 THIS GRANT WILL FUND TWO FORENSIC TOXICOLOGIST POSITIONS
00:51:29 AS WELL AS SOFTWARE REQUIRED FOR DUI TESTING AND OTHER OCA
00:51:33 OPERATIONS. THESE POSITIONS ARE GRANT
00:51:34 FUNDED EXISTING POSITIONS. WE RESPECTFULLY ASK FOR YOUR
00:51:38 APPROVAL OF THE RESOLUTION AND ARE AVAILABLE IF THERE ARE
00:51:41 ANY QUESTIONS. >> THANK YOU.
00:51:42 MS.. I AM A BIG SUPPORTER OF THE
00:51:45 WORK THAT THE OFFICE OF THE CHIEF MEDICAL EXAMINER IS DOING
00:51:48 IN ITS TOXICOLOGY SECTION. I KNOW THAT THIS HAS BEEN SOME
00:51:52 PHENOMENAL WORK THAT THEY'RE DOING AND I KNOW THAT
00:51:53 SUPERVISOR PRESIDENT RANDLEMAN AND I ARE TRYING TO EXPLORE THE
00:51:57 POSSIBILITY OF FUNDING FOR WASTEWATER TESTING AND OTHER
00:52:00 THINGS. >> BUT I THINK THAT THE WORK
00:52:03 THAT THEY'RE DOING TO TEST FOR THINGS IN THE DRUG SUPPLY IS
00:52:08 REALLY IMPORTANT TO THE PUBLIC HEALTH OBJECTIVES OF THIS CITY.
00:52:12 SO I'M HAPPY TO SUPPORT THIS. I DON'T SEE ANY QUESTIONS OR
00:52:15 COMMENTS SO I APPRECIATE THE PRESENTATION.
00:52:18 MR. CLERK, CAN WE OPEN UP PUBLIC COMMENT ON THIS ITEM?
00:52:19 >> YES. SO IF WE HAVE ANY MEMBERS OF
00:52:22 THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE REGARDING THIS
00:52:23 ITEM NUMBER 13 THAT WAS YOUR OPPORTUNITY.
00:52:29 >> MR. CHAIR, WE HAVE NO SPEAKERS.
00:52:30 THANK YOU, MR. CLERK. PUBLIC COMMENT ON THIS ITEM IS
00:52:32 NOW CLOSED AND AT THIS TIME I WOULD MOVE TO FORWARD THIS ITEM
00:52:36 TO THE FULL BOARD OF SUPERVISORS WITH A POSITIVE
00:52:37 RECOMMENDATION. MR. CLERK MAY WE HAVE A ROLL
00:52:40 CALL ON THAT MOTION? >> YES.
00:52:41 AND ON THAT MOTION THAT WE REFER TO THE FULL BOARD WITH
00:52:44 RECOMMENDATION. >> VICE-CHAIR CHEN CHEN I
00:52:48 AMBASSADOR SAUTER I CHAIR DORSEY DORSEY.
00:52:49 WE HAVE THREE EYES. >> THANK YOU MR. CLERK.
00:52:52 THE MOTION PASSES. >> THANKS SO MUCH.
00:52:56 MR. KIRK, CAN WE PLEASE CALL UP ITEM 14?
00:52:59 YES. ITEM NUMBER 14 IS A RESOLUTION
00:53:03 AUTHORIZING THE DIRECTOR OF PROPERTY ON BEHALF OF THE
00:53:04 DEPARTMENT OF HOMELESSNESS AND SUPPORTIVE HOUSING TO ENTER
00:53:07 INTO A LEASE AMENDMENT FOR APPROXIMATE 8600 RENTABLE
00:53:10 SQUARE FEET OF OFFICE SPACE LOCATED AT 601 VENICE AVENUE
00:53:15 SWEET PEA WITH OPERA PLAZA LP FOR USE AS ADMINISTRATIVE
00:53:21 OFFICES FOR AN EXTENDED TERM TO COMMENCE ON AUGUST 1ST 2026
00:53:26 AND TERMINATE ON JULY 31ST, 2029 AND AN ANNUAL BASE RENT OF
00:53:31 APPROXIMATELY 345.8 THOUSAND IN THE INITIAL YEAR OF THE
00:53:34 EXTENDED TERM PLUS AN ANNUAL $1 PER SQUARE FOOT INCREASE EACH
00:53:41 AUGUST 1ST THEREAFTER. AND AUTHORIZING THE DIRECTOR OF
00:53:42 PROPERTY TO EXECUTE DOCUMENTS, MAKE CERTAIN MODIFICATIONS
00:53:46 AND TAKE CERTAIN ACTIONS IN FURTHERANCE OF THE LEASE
00:53:49 AMENDMENT AND THIS RESOLUTION AS DEFINED.
00:53:52 >> MR. CHAIR THANK YOU, MR. CLERK.
00:53:54 AND WE ARE JOINED BY SALLY EARTH, DIRECTOR OF REAL ESTATE
00:53:57 AND EMILY COHEN WHO WITH THE DIRECTOR THE DEPUTY DIRECTOR
00:54:01 FOR COMMUNICATIONS AND LEGISLATIVE AFFAIRS WITH
00:54:04 THE DEPARTMENT OF HOMELESSNESS AND SUPPORTIVE HOUSING OR H.
00:54:05 S H I MS. EARTH MS. COHEN WELCOME TO THE BOARD OF
00:54:08 SUPERVISORS BUDGET AND FINANCE COMMITTEE.
00:54:12 >> THE FLOOR IS YOURS. GREAT.
00:54:13 THANK YOU. THANK YOU, CHAIR DORSEY
00:54:15 AND COMMITTEE MEMBERS AGAIN SALLY ORTH, REAL ESTATE
00:54:16 DIRECTOR AND WILL BEGIN OUR PRESENTATION.
00:54:20 MS. COHEN WILL JUST GIVE A BRIEF BACKGROUND AND THEN I'LL
00:54:24 SHARE SOME DETAILS ABOUT THE LEASE AMENDMENT.
00:54:27 >> THANK YOU CHAIR DORSEY EMILY COHEN FROM H.
00:54:31 THIS LEASE WILL ALLOW US TO CONTINUE HOUSING OUR
00:54:34 ADMINISTRATIVE OFFICE FUNCTIONS.
00:54:35 OUR ADMIN AND FINANCE TEAM AT 601 VANCE JUST WHERE WE'VE BEEN
00:54:39 FOR THE PAST SEVERAL YEARS OUR HEADQUARTERS ARE AT 440 TURK
00:54:45 WE'RE ABOUT TWO THIRDS OF OUR STAFF ARE AND THE ADDITIONAL
00:54:47 STAFF ARE OVER AT SIX SO ONE VANCE AND THIS HAS BEEN A GREAT
00:54:51 OPTION FOR US UNTIL WE CAN ALL BE HAPPILY HOUSE TOGETHER BUT
00:54:56 AGAIN WE'VE BEEN IN THIS SPACE FOR FOR SEVERAL YEARS.
00:54:58 IT WORKS WELL FOR OUR ADMIN TEAM BUDGET FINANCE H R AND I
00:55:04 LOOK FORWARD TO STAYING THERE UNTIL WE CAN HAVE A MORE
00:55:06 CONSOLIDATED OFFICE SITUATION AND I'LL TURN IT OVER TO SALLY
00:55:09 FOR US >>. >> THANK YOU EMILY AND SO JUST
00:55:16 TO REVIEW THE SPECIFICS OF THIS LEASE AMENDMENT HERE AT 6017
00:55:22 AVENUE SO THE AMENDMENT IS QUITE SIMPLE.
00:55:24 IT EXTENDS THE TERM RETROACTIVELY FROM AUGUST 1ST
00:55:27 THROUGH JULY 31ST, 2029 WE WERE ABLE TO RENEGOTIATE THE RENT
00:55:33 DOWN TO $40 A SQUARE FOOT IN THE INITIAL YEAR WHICH WILL
00:55:35 SAVE OVER $52,000 IN THAT YEAR .
00:55:41 BUT IT ALSO MAINTAINS THE VERY MODEST ANNUAL ADJUSTMENT OF A
00:55:43 DOLLAR A SQUARE FOOT FOR EACH SUBSEQUENT AUGUST 1ST
00:55:46 ANNIVERSARY OF THE LEASE AND THE CITY CONTINUES TO PAY
00:55:50 FOR ITS OWN ELECTRICAL USAGE. I'M HAPPY TO SHARE THAT I'M
00:55:53 GOING TO BE HAVING MY FIRST MEETING NEXT WEEK WITH THE NEW
00:55:57 DIRECTOR LEVINE OF HCA AND TO GO OVER THEIR PORTFOLIO AND I
00:56:01 KNOW WE'LL BE TOUCHING BASE ON THE FUTURE PLANS FOR THEIR
00:56:04 ADMINISTRATIVE OFFICES BUT HAPPY TO ANSWER ANY QUESTIONS
00:56:07 THE COMMITTEE MAY HAVE ABOUT THAT GREAT.
00:56:10 GREAT. THANK YOU SO MUCH.
00:56:14 LET'S HEAR FROM THE BUDGET AND LEGISLATIVE ANALYST.
00:56:18 >> GOOD MORNING. NICK MAYNARD FROM THE BUDGET
00:56:19 LEGISLATIVE ANALYST'S OFFICE. SO ITEM 14 IS A RESOLUTION THAT
00:56:23 APPROVES AN AMENDMENT TO AN EXISTING LEASE THAT HCA HAS AT
00:56:26 SIX ON ONE VAN NESS AVENUE WITH OPERA PLAZA L.P. IT IS AN
00:56:30 OFFICE SUITE THAT IS USED TO HOUSE SOME HSA ADMINISTRATIVE
00:56:34 FUNCTIONS. WE SHOWED THE LEASE TERMS ON
00:56:38 PAGE 23 OF THE REPORT. THE AMENDMENT EXTENDS THE
00:56:41 EXISTING LEASE TO JULY 2029. THERE ARE NO FURTHER OPTIONS TO
00:56:45 EXTEND THE LEASE AFTER THAT TIME AND IT ALSO REDUCES THE
00:56:51 BASE RENT FROM $46 PER SQUARE FOOT AS IT IS NOW TO $42 A
00:56:54 SQUARE FOOT RETROACTIVE TO AUGUST OF THIS YEAR AND THEN AN
00:56:57 INCREASE IN $1 A YEAR GOING FORWARD.
00:56:58 WE SHOWED THE TOTAL RENT THAT INTEREST WILL PAY ON PAGE 23 OF
00:57:02 OUR REPORT WE ESTIMATE IT WILL PAY $1.1 MILLION OVER THE
00:57:06 PROPOSED EXTENSION TERM AND THOSE COSTS ARE FUNDED BY
00:57:09 THE GENERAL FUND. WE'VE RECOMMENDED APPROVAL OF
00:57:13 ITEM 14. THANK YOU MR. MINARD AND THANK
00:57:17 YOU BOTH FOR PRESENTING. I'M GLAD IS WORTH THAT YOU WERE
00:57:20 ABLE TO CONTINUE YOUR TRACK RECORD OF NEGOTIATING GREAT
00:57:24 DEALS FOR THE CITY. I REALLY APPRECIATE THIS AS WE
00:57:27 LOOK AHEAD YOU KNOW I AS AS YOU KNOW I'VE TALKED ABOUT THAT THE
00:57:32 IMPORTANCE IN MY VIEW OF MAKING SURE THAT WE ARE BEING
00:57:36 STRATEGIC WITH OUR REAL ESTATE PORTFOLIO.
00:57:39 WHAT I LIKE ABOUT THE UPPER PLAZA EVEN THOUGH IT'S NOT
00:57:42 STRICTLY SPEAKING WITHIN THE CIVIC CENTER AREA AS DEFINED
00:57:45 IN THE GENERAL PLAN AS A PRACTICAL MATTER IT'S THE CIVIC
00:57:47 CENTER AREA AND THE WHAT WHAT THAT WAS ENVISIONED IN IN OUR
00:57:51 GENERAL PLAN IS THAT WE SHOULD HAVE A VIBRANT A THRIVING
00:57:55 GOVERNMENT CENTER IN THE CIVIC CENTER AND MID-MARKET AREA BY
00:58:01 DAY AND THEN AT NIGHT IT'S ENRICHED BY CULTURAL
00:58:05 INSTITUTIONS LIKE THEATERS AND THE SYMPHONY AND OPERA
00:58:09 AND OTHER THINGS. >> SO AS WE AS WITH THE LEASE
00:58:11 EXPIRING IN 2029, I THINK WE HAVE AN OPPORTUNITY TO PLAN
00:58:14 AHEAD. IT WOULD BE MY WISH THAT, YOU
00:58:18 KNOW, WE MAYBE WE CAN SOLVE SOME OF THOSE ISSUES THAT I'M
00:58:25 FACING IN MY DISTRICT AND I THINK ACTUALLY THIS IS AN AREA
00:58:29 THAT REALLY IT'S THREE DIFFERENT DISTRICTS.
00:58:33 >> BUT I WOULD JUST WELCOME YOUR THOUGHTS ON WHAT THE
00:58:34 FUTURE LOOKS LIKE AFTER 2029 AND WHAT WE SHOULD BE THINKING
00:58:37 ABOUT. >> THANK YOU FOR THE QUESTION
00:58:40 SUPERVISOR AND YOU KNOW, I THINK WE'RE VERY MUCH ALIGNED
00:58:44 IN THAT HAVING A PROACTIVE AND STRATEGIC APPROACH IS
00:58:47 BENEFICIAL TO THE CITY AND SO THIS IS A GREAT TIME TO BEGIN
00:58:51 THAT THINKING AND DIALOG WITH H ACH.
00:58:52 YOU KNOW I'M REALLY LOOKING FORWARD TO UNDERSTAND ADDING
00:58:56 THEIR BROADER PROGRAMMATIC AND ADMINISTRATIVE REAL ESTATE
00:58:59 NEEDS. AND SO I THINK THE THE BEST
00:59:00 THING THAT WE CAN DO IS START WORKING ON A REALLY CLEAR
00:59:04 PROGRAMMATIC SCOPE WHAT DO WE WANT WHICH ISN'T ALWAYS JUST
00:59:11 REPLICATING EXACTLY WHAT WE HAVE.
00:59:12 >> HOW CAN WE THINK THREE YEARS IN THE FUTURE AND WHAT KIND OF
00:59:15 FOOTPRINT WOULD WE WANT TO HAVE ?
00:59:18 AND I THINK WE'RE ALIGNED THAT YOU KNOW THE MANY BENEFITS FOR
00:59:19 LOCATING THE CITY ADMINISTRATIVE OFFICES IN THE
00:59:23 CIVIC CENTER AREA. SO THAT WILL ABSOLUTELY BE YOU
00:59:26 KNOW, A FOCUS OF OUR SEARCH IS TO SEE WHAT'S AVAILABLE.
00:59:30 YOU CAN'T PREDICT EXACTLY TODAY WHAT WHAT THE MARKET WILL BEAR.
00:59:34 BUT I DO THINK THAT FORWARD THINKING AND SOME GOOD PLANNING
00:59:38 ARE DEFINITELY RECOMMENDED STEPS.
00:59:39 >> OKAY. THANKS SO MUCH.
00:59:41 >> OKAY. I DON'T SEE ANYONE ON THE
00:59:45 ROSTER WITH QUESTIONS OR COMMENTS SO AT THIS TIME MR.
00:59:47 CLERK CAN WE INVITE A PUBLIC COMMENT ON THIS ITEM?
00:59:49 YES, WE'RE OPENING PUBLIC COMMENT FOR THIS ITEM NUMBER
00:59:53 14. IF YOU HAVE ANY MEMBERS OF THE
00:59:54 PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
00:59:57 >> MR. CHAIR, WE HAVE NO SPEAKERS.
00:59:58 THANK YOU. MR..
01:00:01 FOR PUBLIC COMMENT ON THIS ITEM IS NOW CLOSED AND AT THIS TIME
01:00:04 I WOULD MOVE TO FORWARD THIS ITEM TO THE FULL BOARD OF
01:00:05 SUPERVISORS WITH OUR POSITIVE RECOMMENDATION WE HAVE A ROLL
01:00:08 CALL AND MOTION YES AND ON THAT MOTION THAT WE REFERRED TO THE
01:00:13 FULL BOARD WITH THE RECOMMENDATION VICE CHAIR CHEN
01:00:15 CHEN I'M AMBASSADOR SOUDER. I CHAIR DORSEY I DORSEY I WE
01:00:20 HAVE THREE EYES. >> THANK YOU, MR. CLERK THE
01:00:22 MOTION PASSES. >> THANKS SO MUCH.
01:00:24 MR. CLERK, CAN YOU PLEASE CALL UP ITEM NUMBER 15?
01:00:28 YES. ITEM NUMBER 15 IS A RESOLUTION
01:00:30 APPROVING AND AUTHORIZING THE DIRECTOR OF PROPERTY TO AMEND
01:00:35 AND RESTATE THE CURRENT LEASE FOR THE SAN FRANCISCO WHOLESALE
01:00:39 PRODUCE MARKET LOCATED NEAR 2095 GERALD AVENUE WITH THE SAN
01:00:42 FRANCISCO MARKET CORPORATION INCLUDING AUTHORIZING SEPARATE
01:00:46 PARCEL LEASES AS NEEDED FOR REAL ESTATE SECURITY TO OBTAIN
01:00:50 ONE OR MORE PRIVATE CONSTRUCTION LOANS ADOPTING
01:00:54 FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL
01:00:55 QUALITY ACT, ADOPTING FINDINGS THAT THE CONTEMPLATED
01:00:59 TRANSACTIONS ARE CONSISTENT WITH THE GENERAL PLAN AND THE
01:01:02 EIGHT PRIORITY POLICIES OF THE PLANNING CODE AND TAKE CERTAIN
01:01:05 ACTIONS IN FURTHERANCE OF THIS RESOLUTION AND THE AMENDED
01:01:07 AND RESTATED LEASE. >> MR. CHAIR.
01:01:10 THANK YOU, MR. CLERK. I UNDERSTAND WE HAVE A REQUEST
01:01:13 FROM THE DEPARTMENT TO CONTINUE THIS ITEM TO THE OCTOBER 21ST
01:01:16 MEETING TO ALLOW FOR SOME ADDITIONAL TIME TO GATHER MORE
01:01:19 INFORMATION. SO AT THIS TIME WHY DON'T WE
01:01:20 INVITE PUBLIC COMMENT ON THE CONTINUANCE?
01:01:23 >> YES, WE ARE OPENING PUBLIC COMMENT ON THIS ITEM NUMBER 15
01:01:27 OR ON THE CONTINUANCE OF THIS ITEM NUMBER 15 IF WE HAVE ANY
01:01:31 MEMBERS OF THE PUBLIC WHO WISH TO ADDRESS THIS COMMITTEE.
01:01:34 >> MR. CHAIR, WE HAVE NO SPEAKERS.
01:01:35 THANK YOU, MR. CLERK ALL THE COMMENT ON THIS ITEM IS NOW
01:01:39 CLOSED. AND AT THIS TIME I WOULD MOVE
01:01:40 TO CONTINUE THIS ITEM TO THE OCTOBER 21ST MEETING OF THIS
01:01:43 COMMITTEE. MR. CLERK, MAY WE HAVE A ROLL
01:01:44 CALL ON THAT MOTION? YES.
01:01:46 AND ON THAT MOTION THAT WE CONTINUE TO THE OCTOBER 21ST
01:01:50 MEETING OF THIS COMMITTEE. VICE-CHAIR CHEN CHEN I'M MEMBER
01:01:54 SAUTER SAUTER I CHAIR DORSEY I'M DORSEY.
01:01:57 >> WE HAVE THREE EYES. THANK YOU MR. CLERK.
01:01:59 THE MOTION PASSES. >> MR. CLERK CAN YOU PLEASE
01:02:02 CALL ITEM NUMBER 16? YES.
01:02:04 ITEM NUMBER 16 IS A RESOLUTION APPROVING AND AUTHORIZING THE
01:02:07 FIRST AMENDMENT TO THE AMENDED AND RESTATED LOAN AGREEMENT
01:02:10 IN A TOTAL AMOUNT NOT TO EXCEED APPROXIMATELY 16 MILLION TO
01:02:13 FINANCE DEVELOPMENT COSTS ASSOCIATED WITH THE DEVELOPMENT
01:02:18 OF A 35 UNIT MULTIFAMILY RESIDENTIAL PROJECT AFFORDABLE
01:02:21 TO LOW INCOME FAMILIES INCLUDING ONE MANAGER'S UNIT
01:02:25 AND A COMMERCIAL SHELL FOR COMMUNITY SERVING SPACE ON THE
01:02:28 PROPERTY LOCATED AT THREE 3330 306 AND 3308 MISSION STREET
01:02:34 ADOPTING FINDINGS THAT THE PROJECT AND PROPOSED
01:02:38 TRANSACTIONS ARE CONSISTENT WITH THE GENERAL PLAN AND THE
01:02:41 EIGHT PRIORITY PRIORITY POLICIES OF THE PLANNING CODE
01:02:42 AND AUTHORIZING THE DIRECTOR OF THE MAYOR'S OFFICE OF HOUSING
01:02:46 AND COMMUNITY DEVELOPMENT TO MAKE CERTAIN MODIFICATIONS TO
01:02:49 THE LOAN AGREEMENT AS DEFINED AND TAKE CERTAIN ACTIONS
01:02:52 IN FURTHERANCE OF THIS RESOLUTION.
01:02:53 >> MR. CHAIR, THANK YOU, MR. CLERK.
01:02:57 WE ARE JOINED TODAY BY MR. WILLIAM WILCOX, THE HOUSING
01:03:00 FINANCE MANAGER FOR THE MAYOR'S OFFICE OF HOUSING AND COMMUNITY
01:03:02 DEVELOPMENT. MR. WILCOX, WELCOME TO THE
01:03:04 BUDGET AND FINANCE COMMITTEE. >> THE FLOOR IS YOURS.
01:03:05 THANK YOU SO MUCH, CHAIR DORSEY THANK YOU SUPERVISORS.
01:03:08 >> MY NAME IS WILLIAM WILCOX. I AM THE HOUSING FINANCE
01:03:11 MANAGER AT MY SIDE AS WELL AS THE PROJECT MANAGER FOR THIS
01:03:15 PROJECT 3300 MISSION. WE HAVE IT WITH US AS WELL
01:03:16 SHANTE SPEARS FROM THE BERNAL HEIGHTS NEIGHBORHOOD CENTER,
01:03:20 ONE OF THE CO DEVELOPERS OF THE PROPERTY.
01:03:22 >> AS YOU CAN SEE THIS PROJECT ACTUALLY LOOKS LIKE THAT NOW
01:03:24 IT'S BUILT, IT'S COMPLETE INSIDE AND WE'RE HERE TO ASK
01:03:30 FOR $3.3 MILLION TO COVER UNFORESEEN INCREASES IN COSTS
01:03:35 GENERATED BY P, G AND E ADDING SIGNIFICANT ADDITIONAL
01:03:39 INFRASTRUCTURE TO THE PROPERTY LATE IN THE PROPERTY.
01:03:42 THE PROJECT WE EXPECTED FOR THIS PROJECT TO BE OPEN WE
01:03:50 EXPECTED PEOPLE TO BE LIVING THERE ALREADY AND IT WOULD HAVE
01:03:51 BEEN FULLY LEASED UP OVER THE SUMMER HAD IT NOT BEEN FOR
01:03:54 THESE PROJECT IS OTHERWISE ON TRACK.
01:03:57 WE'RE AT PUNCH LIST INSIDE AND WHAT HAPPENED THIS PROJECT
01:04:02 IS IS GREAT IT'S 35 UNITS IN WHAT WAS PREVIOUSLY A BURNED
01:04:06 OUT HUSK OF A BUILDING THAT HAD BURNED IN 2016 AND THESE UNITS
01:04:09 SERVE DEEPLY LOW INCOME HOUSEHOLDS.
01:04:13 IT'S NOT PERMANENT SUPPORTIVE HOUSING.
01:04:14 IT JUST SERVES LOW INCOME FAMILIES.
01:04:16 >> THERE'S 35 UNITS, 30 FOUR OF WHICH WILL SERVE THOSE
01:04:18 HOUSEHOLDS AND THEN THERE'S A MANAGERS UNIT.
01:04:20 >> IT'S ALSO SUPPORTED BY OUR AFFORDABLE HOUSING OPPORTUNITY
01:04:23 FUND THAT WE RECENTLY PASSED AND THE BOARD APPROVED AND YOUR
01:04:25 COMMITTEE APPROVED EARLIER THIS SUMMER THE FUNDS FOR THAT.
01:04:28 BUT WHAT HAPPENED WAS WE DID AN INITIAL SORT OF APPROVAL WITH P
01:04:32 G ABOUT WHAT THE PROJECT WOULD LOOK LIKE.
01:04:35 >> WE BUDGETED FOR THAT. THAT'S THE BEST KNOWLEDGE WE
01:04:39 CAN HAVE. BUT MIDWAY THROUGH LATE IN THE
01:04:40 PROJECT AND IT WAS NOT EVEN COMPLETED UNTIL JULY OF THIS
01:04:43 YEAR AND HE MADE MAJOR CHANGES TO THE SCOPE OF WORK.
01:04:47 THE BIGGEST OF WHICH WAS TRENCHING AN EXTRA 800FT WE
01:04:52 WERE SUPPOSED TO TRENCH 200FT TO CONNECT INTO THE MAIN POWER
01:04:56 SYSTEM. INSTEAD WE HAD TO DO A THOUSAND
01:04:59 WHICH IS UPGRADES AS WELL FOR OTHER G AND E CUSTOMERS.
01:05:03 THERE'S SIGNIFICANT PGE ANY DESIGN CHARGES ALONG SIDE OF
01:05:07 THAT AS WELL AS OTHER ARCHITECTURAL AND ENGINEERING
01:05:11 AND INSURANCE COSTS ON TOP OF THAT AND BEYOND THAT THE DELAYS
01:05:14 BECAUSE THIS IS A TAX CREDIT PROJECT THERE ARE ADDITIONAL
01:05:18 DELAY COSTS FOR THE TAX CREDIT INVESTOR THAT HIT THIS PROJECT
01:05:21 FURTHER. THIS IS COMPLETELY BEYOND THE
01:05:25 CONTROL OF THE DEVELOPER. THESE ARE THINGS THAT EDICTS
01:05:26 THAT COME DOWN FROM ANY WITH VERY LITTLE VISIBILITY AND NO
01:05:30 WAY TO NEGOTIATE. THEY IF WE DON'T AGREE WITH
01:05:34 THEM THEY DON'T TURN THE LIGHTS ON AND THIS DELAYS OUR ABILITY
01:05:37 TO GET INSPECTIONS AND TESTING FOR ELEVATORS AND ANY OTHER
01:05:41 SORT OF INSPECTIONS NEEDED FOR TEMPORARY CERTIFICATE OF
01:05:44 OCCUPANCY. WE'VE ENCOUNTERED THIS BEFORE
01:05:45 ANOTHER PROJECTS THIS IS NOT THE FIRST TIME 4840 MISSION A
01:05:51 PROJECT JUST DOWN THE SAN JOSE AVENUE ACTUALLY A LITTLE
01:05:53 FURTHER HIGH IS ALSO A IT HAD MILLIONS OF DOLLARS IN THESE
01:06:01 COSTS 555 LARKIN IN THE TENDERLOIN ALSO HAD MILLIONS
01:06:04 AND MILLIONS OF DOLLARS IN THESE COSTS AS WELL AND WE
01:06:06 CAME TO THE BOARD A FEW YEARS RELATED TO THAT AND WE'VE BEEN
01:06:08 WORKING CLOSELY WITH THE PUC ON THIS PROCESS AS THEY ARE THE
01:06:13 INTERMEDIARY WITH PPG AND ON A LOT OF THIS WE ARE HOPEFUL
01:06:16 MAYBE WE WILL GET SOME FUNDS RETURNED BY ANY AS PART OF
01:06:22 THEIR AGREEMENT WITH THE PUC OVER ANY UPGRADES THAT ARE SEEN
01:06:26 AS ACTUAL SERVICE UPGRADES TO OTHER USERS.
01:06:27 THAT'S STILL IN THE MIDDLE OF NEGOTIATION BETWEEN THOSE.
01:06:31 THAT WHOLE PROCESS HAD TO BE NEGOTIATED WITH THE FEDERAL
01:06:34 ENERGY REGULATORY COMMISSION FIRST OR BEFORE THAT COULD BE
01:06:38 APPROVED. >> SO WE WERE WE'RE SORT OF
01:06:42 CAUGHT IN THE MIDDLE OF THIS AND JUST TRYING TO GET THIS
01:06:44 PROJECT COMPLETE SO WE CAN GET FAMILIES INTO THE PROPERTY
01:06:47 AND SO WITH THESE ADDITIONAL FUNDS WE EXPECT TO COMPLETE
01:06:53 IN DECEMBER JANUARY AND THE LEASE UP IMMEDIATELY FOLLOWING
01:06:54 WE ACTUALLY ALREADY DID THE WAITLIST AND THE LONGER THE
01:06:58 WAITLIST IS OPEN THE LOTTERY APPLICATIONS ARE OPEN.
01:07:01 WE HAVE OUR 2000 PEOPLE WHO'VE APPLIED FOR THE PROPERTY AND SO
01:07:07 WE BELIEVE WILL BE LEASING UP RATHER QUICKLY.
01:07:08 I AND THE DEVELOPERS ALSO HAVE SIGNIFICANT SKIN IN THE GAME
01:07:12 THEY'VE HAD TO GIVE UP $800,000 IN THEIR DEVELOPER FEE SORT OF
01:07:16 PART OF THE OVERALL COST OVERRUNS RELATED TO THIS
01:07:19 AND WE'RE ALSO ADDING THE AIR SUBSIDY AS I MENTIONED IN ORDER
01:07:24 TO DEEPEN THE AFFORDABILITY SERVE LOWER INCOME HOUSEHOLDS
01:07:28 AND A AND HAPPY TO ANSWER ANY QUESTIONS YOU HAVE ABOUT THE
01:07:32 PROPERTY AND REALLY EXCITED TO GET THIS PROJECT COMPLETE.
01:07:35 >> GREAT THANK YOU MR. WILCOX AND WE HAVE A PRESENTATION FROM
01:07:38 THE BUDGET AND LEGISLATIVE ANALYST MR. BERNARD THANK YOU.
01:07:42 ITEM 16 IS A RESOLUTION THAT APPROVES AN AMENDMENT TO AN
01:07:43 EXISTING LOAN AGREEMENT BETWEEN EMILY CD AND THREE THREE OUR
01:07:49 MISSION PARTNERS LP WHICH IS A CORPORATE AFFILIATE OF BERNAL
01:07:53 HEIGHTS HOUSING AND TABERNACLE TO AFFORDABLE HOUSING
01:07:56 DEVELOPERS. THE AMENDMENT INCREASES THE
01:07:57 LOAN FROM 12.4 TO $16.1 MILLION OR ABOUT $3.6 MILLION TO PAY
01:08:07 FOR PROJECT COSTS AS A RESULT OF PGE NEED DELAYING ENERGIZE
01:08:11 IN THE BUILDING WE SHOW THE OVERALL PROJECT BUDGET ON PAGE
01:08:15 29 OF OUR REPORT YOU CAN SEE THAT THE CITY FUNDING IS TO PAY
01:08:18 FOR THOSE PER UNIT COSTS AND THEN IN ADDITION TO THAT
01:08:22 THERE'S ABOUT $2.4 MILLION OF OTHER INCREASES IN CONSTRUCTION
01:08:26 COST THAT ARE NOT RELATED TO PGD.
01:08:29 THOSE WILL NOT BE PAID FOR BY THE CITY THEY'RE BEING PAID FOR
01:08:32 BY ADDITIONAL NON CITY DEBT THAT THE DEVELOPER IS ABLE TO
01:08:37 TAKE ON DUE TO THIS CITY SUBSIDIZING SOME OF THE UNITS
01:08:40 IN THE BUILDING ON AN ONGOING BASIS AND THEN ALSO THE
01:08:44 DEVELOPER REDUCING THEIR DEVELOPER FEE.
01:08:47 WE DO RECOMMEND APPROVAL OF ITEM 16.
01:08:53 THANK YOU MR. MINARD YOU KNOW THIS IS OBVIOUSLY THIS IS
01:09:00 DISAPPOINTING TO SEE. IT'S NOT AS THOUGH WE DON'T
01:09:01 HAVE HOUSING AFFORDABILITY AND SUPPLY STRUGGLES HERE.
01:09:08 >> COULD I ASK I'D BE INTERESTED JUST IF YOU COULD
01:09:13 JUST INVITE YOU TO ELABORATE A LITTLE BIT ON HOW ANY HAS DONE
01:09:19 THIS AND FOR CONTEXT THIS ACTUALLY CAME UP YESTERDAY I
01:09:23 WILL SAY THAT I BROUGHT UP IN THE CONTEXT OF AN APPEAL
01:09:27 THAT PETRINI BROUGHT INTO THIS CHAMBER WHICH I VIEWED AS JUST
01:09:31 A TIME WASTING RESOURCE WASTING EXERCISE THAT IS EMBLEMATIC OF
01:09:39 WHAT THEY HAVE DONE AS A PARTNER IN THE LAST MANY YEARS
01:09:43 TO THIS CITY. THE THE ESTIMATE I GOT FROM THE
01:09:47 SAN FRANCISCO PUBLIC UTILITIES COMMISSION IS THAT IT IS COST
01:09:50 OUR CITY AND ITS TAXPAYERS ABOUT $76 MILLION SINCE 2018.
01:09:54 THESE KINDS OF OBSTRUCTIONS AND DELAYS HOW DID IT PLAY OUT
01:10:01 AND WHAT WAS THE I JUST BE INTERESTED TO GET SOME TIMELINE
01:10:02 FOR PEOPLE WHO ARE FOLLOWING THIS OR WATCHING IT OF WHAT HOW
01:10:06 THIS IS FRUSTRATING PROGRESS YEAH AND SO THE THE PROCESS I
01:10:13 REALLY STARTS WHEN YOU'RE IN PREDEVELOPMENT BEFORE
01:10:17 CONSTRUCTION STARTS YOU GET A AN INITIAL ESTIMATE AND YOU
01:10:20 HAVE TO HAVE ALL OF YOUR DRAWINGS APPROVED BY ANY BEFORE
01:10:24 YOU START CONSTRUCTION AND THEN YOU GET THAT INITIAL SCOPING
01:10:28 AND APPROVALS AND THERE'S ANY CHARGES IN DESIGN CHARGES FOR
01:10:31 THAT INITIAL SCOPING. BUT THEN WHAT HAPPENS IS THEY
01:10:36 COME LATER AND WHAT HAPPENED IN THIS CASE WAS WHILE WE WERE
01:10:40 IN THE MIDST OF CONSTRUCTION WE'RE WAITING FOR THE FINAL
01:10:44 APPROVAL AND THE SIGN OFF AS WE'RE WORKING THROUGH IT
01:10:47 AND THEN THEY ADDED THESE ADDITIONAL REQUIREMENTS
01:10:51 AND MAJOR CHANGES TO THE SCOPE OF THE WORK THAT WOULD COME
01:10:56 ALONG AND SO IN OTHER PROJECTS THAT'S BEEN LIKE ADDING LARGER
01:10:59 INTEREST RUPTURE OR REQUIRING AN UPGRADE IN WHAT YOU'RE
01:11:07 SERVING THE BUILDING WITH ADDING A NEW SWITCHGEAR IN THIS
01:11:14 CASE IT WAS THE ADDITIONAL TRENCHING WHICH CAME SO WE
01:11:15 WOULD HAVE CLOSED AND HAD THAT INITIAL APPROVAL IN JUST
01:11:19 NOVEMBER OF 2024 AND THEN WE DID NOT GET WE HAD AN INKLING
01:11:26 START OF THIS STARTING IN MAYBE LATE 2025 THAT THERE WAS GOING
01:11:32 TO BE MORE CHANGES BUT NOT UNTIL WE DIDN'T REALLY HAVE
01:11:36 NUMBERS UNTIL MARCH OF 2026 AND DIDN'T HAVE THAT FINALIZED
01:11:39 UNTIL JULY OF 2026 AND WE WERE ORIGINALLY EXPECTING TO TECO
01:11:45 IN JUNE OF 2026. SO THESE CAME ALONG VERY LATE
01:11:48 IN THE PROCESS FOR US. >> WELL AND SHANTI I DON'T KNOW
01:11:50 IF YOU WANT IF THAT SOUNDS CORRECT THAT IS ABSOLUTELY YEAH
01:11:53 OKAY DID YOU YOU MADE REFERENCE TO THE POSSIBILITY OF IS IT IS
01:12:00 THERE A SCENARIO WHERE THE CITY IS EVER GOING TO BE ABLE TO
01:12:01 RECOUP SOME OF ITS DOLLARS, SOME OF WHICH IF I'M
01:12:04 UNDERSTANDING THIS PRESENTATION AND ARE NOT FOR THE BENEFIT OF
01:12:08 THIS PROJECT BUT FOR PGE ANY CUSTOMERS AND RATEPAYERS
01:12:12 AND ULTIMATELY SHAREHOLDERS WE'VE BEEN TOLD THAT WE BY THE
01:12:17 PEOPLE THE PUC IS SORT OF THE INTERMEDIARY BETWEEN US AND P,
01:12:20 G AND E ON THIS BECAUSE THIS PROPERTY IS USING PUBLIC POWER.
01:12:24 SO THAT'S ANOTHER LAYER TO THE COMPLEXITY.
01:12:27 AND AS FOR ALL THE BECAUSE THIS PROJECT PRETTY IS ON A CITY THE
01:12:29 CITY OWNS THE LAND WHILE THE DEVELOPERS ON THE IMPROVEMENTS
01:12:32 THE BUILDING ITSELF AND THAT REQUIRES UNDER AN EXISTING CITY
01:12:36 RULE THAT WE USE THE PUBLIC POWER THROUGH SFP YOU SEE
01:12:39 AND SO THAT ADDS A LEVEL AN ADDITIONAL LEVEL OF COMPLEXITY
01:12:43 AND COMMUNICATION TO THE PROCESS.
01:12:47 SO THEY HAVE TOLD US WE EXPECT AROUND $430,000 POSSIBLY
01:12:54 IN FUNDS BACK FROM ANY NOW AS YOU CAN SEE THAT'S NOT $3.3
01:12:59 MILLION. THAT IS THE PORTION THAT THEY
01:13:02 HAVE DETERMINED IS UPGRADES. >> THAT'S STILL IN NEGOTIATION
01:13:06 AND THAT THAT IS NEW WITH THEIR ADDITIONAL NEGOTIATION WITH
01:13:09 FERC THAT GOT APPROVED BY FERC. BUT I AND THAT'S WHAT WE'RE
01:13:17 HOPING TO GET BACK BECAUSE IT DOESN'T TAKE INTO ACCOUNT THOSE
01:13:21 ADDITIONAL DESIGN COSTS, THE COSTS OF DELAY THAT ARE IMPOSED
01:13:25 ON THE PROPERTY AND IT'S STILL A PRETTY SMALL PORTION IN THE
01:13:28 SCHEME OF WHAT WE EXPECTED. >> RIGHT.
01:13:29 AND WE DID HAVE BUDGET FOR THIS IS THE OTHER PART.
01:13:33 >> THIS IS NOT LIKE WE DIDN'T BUDGET FOR THIS LINE ITEM
01:13:36 AND WE DIDN'T KNOW THERE WAS AMPLE BUDGET BASED ON THE
01:13:37 INITIAL SCOPE PROVIDED AND APPROVED BY PJANIC
01:13:41 CONSTRUCTION LOAN CLOSING THIS IS JUST ALL FROM THESE CHANGES.
01:13:45 >> OKAY. OKAY.
01:13:47 THANKS SO MUCH. OKAY.
01:13:48 AT THIS TIME WHY DON'T WE INVITE UP PUBLIC COMMENT ON
01:13:52 THIS ITEM? >> YES.
01:13:53 IF WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH ADDRESSED THIS
01:13:56 COMMITTEE REGARDING THIS ITEM NUMBER 16 THAT WAS YOUR
01:13:58 OPPORTUNITY, MR. CHAIR. >> WE HAVE NO SPEAKERS.
01:14:02 THANK YOU, MR. CLERK. PUBLIC COMMENT ON THIS ITEM IS
01:14:05 NOW CLOSED AND AT THIS TIME I WOULD MOVE TO FORWARD THIS ITEM
01:14:10 TO THE FULL BOARD OF SUPERVISORS WITH OUR POSITIVE
01:14:11 RECOMMENDATION. MR. KIRK MOVE OVER WALK ON THAT
01:14:15 MOTION. >> YES.
01:14:15 AND ON THAT MOTION THAT THAT WE REFER THIS RESOLUTION TO THE
01:14:18 FULL BOARD WITH THE RECOMMENDATION VICE CHAIR CHEN
01:14:21 CHEN I'M AMBASSADOR SAUTER. I CHAIR DORSEY I DORSEY I HAVE
01:14:26 THREE EYES. >> THANK YOU MR. CLERK THE
01:14:27 MOTION PASSES. >> THANKS SO MUCH, MR. CLERK.
01:14:30 IS THERE ANY MORE BUSINESS BEFORE THIS COMMITTEE TODAY?
01:14:33 MR. CHAIR, THAT CONCLUDES OUR BUSINESS.
01:14:36 >> THANK YOU, MR. CLERK AND THANK YOU EVERYONE FOR YOUR
01:14:38 PARTICIPATION. THIS MEETING IS ADJOURNED