Camera project, its a subgrant from the Union Square Business improvement district. We have seven locations with cameras and maps so theyre on golden gate and leavenworth and up by our new office on allison wheels, at the corner of ellis and leavenworth has cameras. We just received an oewd grant for the last go around for cameras so well put up somewhere between two and four more locations, depending how much we can leverage out of the Property Owners to put the cameras up. But these cameras have been very effective and we work closely with the San Francisco police department, theyre in our office quite often to get the tape to use in the prosecutions. Our biggest budget item always has been and probably will be is cleaning our sidewalks. You have seen this before, basically sweeping great feety and removing and pickup of the needles and we continue to do that in this fiscal year and were successful at that. And thats it. Im open to questions, thoughts, comments, on any of our work or anything that were doing. Thank you very much. Supervisor kim thank you, mr. Gibson and first of all i just want to thank the tenderloin c. B. D. For its work and its really grown since 2005 and i still remember alana, and delilah that kicked off the work that we saw around artwork and making sure that the c. B. D. Is also a convenor for the many communitybased organizations that really lovingly provide services in the neighborhood, but bringing i think our neighborhood resident leaders as well as our c. B. D. Leaders is incredibly important to building the resiliency and the stability of the neighborhood and the work of really growing safe passages and i acknowledge kate robinson, of course, for her work on that from just something that struggled to get volunteers on fridays to the fullfledged program. Every single afternoon. Its really amazing and seeing the tent at the park in the afternoon which has just been a dream for the residents to have constant supervision over the few playgrounds that we have the tenderloin for our families and i really see the difference that the c. B. D. Is making and, also, congratulations on hitting the benchmarks and the Camera Program also incredibly important to our office and sfpd, and, anyway, just being a convenor and helping to strengthen our partnerships and working on security and safety and resiliency is really important. So thank you for your work and your leadership. Youre welcome. And it wasnt in this period as you well know and there was the grand opening of our office on ellis to do just what you said to connect better with the community and have a place for the community to convene so were proud of that too. Supervisor kim i think that its great to have a store front and i know that its difficult to find but being in a basement before was challenging but having a storefront location is great and i have to say that i love the tend in the tenderloin campaign and its great to see that is moving forward. Thank you. Supervisor kim thank you, mr. Gibson. At this time well open up for Public Comment on item number one. Seeing no Public Comment, Public Comment is now closed. Colleagues, id like to make a motion to move this item forward with recommendation. So we have a motion and a second and we can do that without opposition. Thank you mr. Gibson. And mr. Corgas, at this time, clerk, call item 2. Agreementowners Association Administration management of japantown Community Benefit district. Resolution approving an agreement with the nonprofit Owners Association for Administration Management of the established propertybased Community Benefit district known as the japantown communit benefit district. Supervisor kim and i acknowledge president breed in whose district it is within. Superviso supervisor breed ty were hearing the agreement of the Owners Association for the administration and management of the c. B. D. And the Owners Association agreement allows the c. B. D. To receive funds for the city. This step comes after the group has completed a robust process and formed a strong, stern committee. Years of hard work and Community Organizing have brought us to this point today and im really excited to see this continue to move forward and thank you to all of the from the office of economic and workforce development, who have been involved, and this, along with other steps will continue to get us to the point where we can finally establish this collective revenue and pay for the things that we need to do most in japantown. Im really excited about this. So thank you so much and looking forward to the implementation. Thank you, good morning, president breed and supervisor kim and supervisor peskin. I work on the c. B. D. Team. Id like to thank the president breed for sponsoring the resolution to authorize the management contracts for the establish japantown Community Benefit district. As you may know on july 25th, 2017, the board of supervisors adopted a resolution to establish the trantown c. B. D. , to levy parcels within the proposed boundaries. Forward for in ordein order to y must enter into a Management Agreement of the Owners Association of the japantown c. B. D. And the document attached to the resolution is used for all c. B. D. S in the city and its adjusted according to each c. B. D. And the general benefit language for the japan c. B. D. Is different to reflect their specific benefit requirements which is 1. 56 of their total budget. If approved by the full board this allows the city to transfer the collected funds in january 2018, and we anticipate that the delivery of approximately 4 million to the japantown c. B. D. Over their 10year duration. If theres any question my manager, chris corgas and i, would be happy to take them. Supervisor kim seeing no questions from the members of the committee, i will open up for Public Comment on this item. Is there any members of the public who wish to testify on item number 2 . Seeing none, item Public Comment is now closed. Cool colleagues shall we make a motion. So moved. Supervisor kim we have a motion from president breed to move this forward with recommendation and we can do that without opposition. Mr. Clerk, can you call item number 3. Clerk for a grant acceptance agreement to execute a grant acceptance agreement and permit to enter with the Asian Art Museum foundation, whereby the city would indemnify Asian Art MuseumFoundation Trustees, officers, and employees for claims related to construction impprovements to the Asian Art Museum. Supervisor kim we have dr. Jay schu who will present on this item and our commissioner, and the trustee, and i know that we have nick makkovik, the Foundation Trustee as well. You have joanne schu, the operating officer and shes the Financial Officer who is all with the asian also with the Asian Art Museum here today. First of all, i want to congratulate you on your work to expand the Asian Art Museum. The design is beautiful. And im incredibly excited about this next stage for the Asian Art Museum and thank you so much for being here today with our committee. Thank you very much, supervisor kim, and thank you very much, supervisor peskin, and thank you very much, president breed. And im delighted to be here on behalf of the Asian Art Museum. And today the purpose is to request the committee to recommend approval of our grant acceptance agreement between the city acting through the Asian Art Commission and of the Asian Art Museum foundation. The agreement applies to the museums transformation project. The charter established the relationship between the commission, foundation and the museum. The city acting through the commission owns the building and the collection. The private foundation will establish to operate a museum, including overseeing the exhibitions and fundraising. The request of the acceptance of the agreement includes the city indemnity to protect the people of the foundation who are raising funds and overseeing thE Construction project in a way that is similar to the protection provided to commissioners. The indemnity is important to encourage the foundation to continue to participate and contribute to the transformation project of which were ultimately becoming as part of as the city and citizens of San Francisco. The transformation project is a museums first major Capital Project since its move from the Golden Gate Park to the renovated space in the civic center in the form of a Public Library in 2003. The physical transformation of the museum space consists of what were constructing a new 13,000 square feet addition at the back of the museum facing the street. Most of the space would be used for new special exhibition gallery, atop an existing lower level structure. This is a continuation of the buildings original renovation plan which anticipated additional height at the back of the museums building. The roof of the new addition would become an outdoor art gallery, adding vision iblghtd visibility and presence to the building to display the capability for serving schoolchildren. A new facade facing hyde street transforming our current back of the view into one of the transparency and vibrancy and enlivening hyde street. The Asia Art Museum connects art to life. Our mission is to connect Diverse Communities to historical and contemporary asian art and culture through our worldclass collection and exhibitions and programs. In the past 15 years im proud to say in pursuit of this mission, the Asia Art Museum has had an excellent record. The transformation project is essential to provide uptodate gallery space to create exhibitions that draw contemporary audiences for contemporary experiences. In particular, the actual construction project is modest and staying within the existing footprint and the building on top of the existing onestory building on the back of the street. But the impact would be huge. But only where we have the new pavilion for special subscriptions and above it a terrace for contemporary art. We would be doing also renovation in our educational classrooms, the lobby, and first floor public spaces as well as a brandnew display for our worldclass masterpieces in our collection. In addition the gallery currently uses those exhibitions to be further utilized for other purposes such as exhibitions and education and particularly for community engagement. A major role of the foundation is fundraising for the museum. Beyond annual fundraising for operations and exhibitions, our board has longterm perspectives for the growth and the sustainability of the Asia Art Museum. As part of the Business Plan approved by the city, the museum is pursuing four main goals. In housing special exhibition spaces and staff capacity and grow the museums endowment. Of november 30th im pleased to say that we have raised the cash and pledges close to 68 million, including 38 million required for the transformation project. That is out of the total fundraising goal of 90 million so were more than twothirds on the way. We are funding these goals through a multiyear Capital Campaign that is just beginning its public phase. However, the participation 100 participation from our 54 trustees and the commissioners. The trantransformation project l allow the museum to present multiple exhibitions at the same time to serve diverse audiences locally and nationally and internationally. The conversation between the worldclass historical collection and the cuttingedge contemporary art. Connect visitors personally through multilayered art cultural interesting and digital tours and we will serve as the cornerstone of the citys reenvisioning of the civic city commerce, in this case helping to enliven the hyde street. The pavilion for special exhibition will be the new home for major undertakings in our special exhibition areas. The new space would be three times larger than any of our existing galleries, dedicated for special exhibitions and it will be flexible anda as well as historical art and contemporary art that is often large and heavy and allow the existing gallery to be used for other exhibitions and community programs. The art terrace on top of the new special exhibition pavilion includes 7,500 square feet of programmable space and features contemporary art. It will be the largest art terrace in San Francisco. It will include all door galleries to Commission Art and allow the museum to expand its rental program as part of the revenue stream and to also create safe spaces for educational spaces for almost 40,000 school kids that we serve annually and were looking forward to growing our service to our school kids to 55,000. So the purpose in summary of the grand acceptance agreement is for the foundation to raise private funds and overseas execution of the transformation project, give the completed transformation project to the city, and we have now tripled our directors assurance from 5 million to 15 million in case anything happens. In correspondence the commission will allow the foundation to implement the transformation project, accept the gift of completed transformation project from the foundation and endem endemmified trustees, officers, employees, are equal footing as the protection provided to the commissioners. And this work, this drafted grant acceptance agreement, is a result of the collaboration with Foundation Staff and external counsel and the city attorneys office, coordinating with the citys Risk Management and thE Construction experts, terms have been finalized and we just need indemnity resolution for the foundation and the commission to sign. We have received historical committees Architectural Committee approval in may and the preservation committees approval in july and going through the permitting process right now. Negotiating with the general contractor for guaranteed maximum contract based on this. And we hope to lock in those favorable bids as soon as possible. Planning to break the ground in the First Quarter of 2018. So we must have the g. A. A. , grant acceptance agreement, in place before start of thE Construction. So receiving the g. A. O. s positive position today would help us to keep the project on time and on budget. Havingits a great privilege to present in front of you and is joining me is mr. Nick arcovant, the trustee and he provides Legal Services and the Foundation Trustee and the commissioner, miss joanne chow, our museum c. O. O. And c. F. O. And also here is miss lauren curry, the assistant attorney, and all of us will be delighted to answer any questions that you may have. Thank you. Supervisor kim thank you so much, dr. Schu and thanks to the entire art Museum Family for being here today to answer questions. First of all, congratulations on the progress of the Capital Campaign having raised 63 million is not a small feat. Im not sure how you did it, but it is a huge accomplishment and this extended wing is going to really help to transform the museum but also the backside of larkin street in this intersection that faces u. C. Hastings and its currently an area that we want to continue to activate so dr. Schu, thank you to coming to our office early to get our input and advice and really working to enliven this corridor, and making it more friendly and welcoming for so many of our residents that live in the tenderloin neighborhood and also for being committed to providing free passes to both the Public School kids but also our residents so that they can enjoy the museum as well. And im particularly biased because theres a korean couture exhibit going on which is incredibly exciting and i cant wait to visit it. So i dont see any questions from members of this committee, but i want to associate myself with the words of chair kim and thank you for the private briefing that you gave me and congratulate you on what is not only a boon to the museum, but to the people of San Francisco. And the folks that visit here. So, congratulations. Thank you very much. During the process, the board of supervisors has provided such strong support and guidance and it really took a village to make it happen. Thank you very much. Supervisor kim i should note that this is a big turnaround from when i first started on the board and we were seriously working with Asian Art Museum to support you during the economic crisis and really dr. Schu, i think that your leadership has been tremendous in moving a large ship and turning it around and really garnering a large Supportive Community to come to the aid of Asian Art Museum to ensure that it has longterm vitality and you really have an outstanding board of trustees, having attended and commissioner louis, having attended some of your events, it is one of the hardest working boards that i have seen and they are truly dedicated and committed toic maaing sure that we have committed to making sure that we have a longterm Asian Art Museum in San Francisco. And we will open up for Public Comment on this item. If you would like to speak on item number 3. Seeing no Public Comment, Public Comment is now closed. Colleagues, can we entertain a motion to move this forward with recommendation to the full board . So moved. Supervisor kim we have a motion from president breed and a second from supervisor peskin and we can do that without objection. Thank you so much and congratulations. Mr. Clerk, can you call item number 4. Mills act historical propert contract with the owners of 215 and 2019 hm 2019 haight street, formerly 55 laguna street. Resolution approving an historical property contract between alt a la gonea, l. L. C. , the owners of 215 and and 229haight street, formerly 55 laguna street, and the city and county of San Francisco, under administrative code, chapter 71, and authorizing the planning director and the assessorrecorder to execute the historical property contract. Mills act historical property contract between raintree 973 market newco l. L. C. , the owners of 973 Market Street and the city and county of San Francisco, under administrative code, chapter 71, and authorizing the planning director and the assessorrecorder to execute the historical property contract. Supervisor kim thank you so much, mr. Clerk. My apologies, we have tim frey here from the preservation Historic Preservation commission as well as shannon ferguson, the preservation planner with the pline department and Edward Mccaffrey and michael gin from the office of the assessorrecorder who will be presenting on these two items. I also note that bill bard, the chief of staff to supervisor jeff sheehy wanted to speak on item number 4 and ill call him up when hes here. Good morning, the two items before you today are the historical property contracts and the mills act legislation authorizes the local governments to enter into contracts with private owners and it has a reduction to the owners to allocate the savings towards a Maintenance Plan. The contracts are 10year revolving contracts that are renewed annually, essentially from perpetuity. Every landmark building as those on the National Registrar of Historic Places is eligible to apply for the Mills Act Program. The department has 25 active contracts that include Single Family houses and multifamily buildings and largescale commercial buildings. The Program Creates an incentive for proper maintenance of our architectural land marks and prevents the Property Owners from delaying largescale projects that when put off may cost greater and more costly damage to the building. The department received the two applications by may 1, 2017 filing date and the applications were reviewed by the Department Staff and staff conducted preapproval inspections and the department forwarded the applications to the assessorrecorder on june 1, 2017. The applications were recommended by the Historic Preservation commission on october 4, 2017. The First Property is 215 and 229 haight street and known as woods hall and woods hall annex. The buildings are owned by alt a la gonea l. L. C. And the buildings were constructed in 1926 and 1935, by the Works Progress administration for the San Francisco state teachers college. The annex has a mural known as a dissertation on alchemy. The applicant completed rehabilitation of the interior and the exterior in 2016. The proposed rethat billation plan Rehabilitation Plan had completion of the mural. It has inspection of the roofs and the walls and exterior walls and windows and roof and the care of the palm tree. Inspections and painting of the walls and roof joint system and windows occur every 10 years, and any needed repairs will be made in kind. And avoid altering or removing or obscuring the character defining features. In the case for 155 laguna street, unit 59 for illegal office use in a residential units, the tenant has vacated this unit and the case was abated and closed on december 1, 2017. Regarding the recent enforcement case for Richardson Hall this is owned by mercy housing and located on a separate parcel, the enforcement case is for a temporary gate that serves as the emergency emergency egress E Construction of the adjacent Affordable Housing development. The department has contacted the Property Owner and is working with them on other methods for securing the temporary gate that does not involve attaching it to the building. The second contract is for 973 Market Street, it is a seven story plus basement steel frame building designed by willis polk in 1900. The facade survived the 1906 earthquake. Its a contributing building to the National Market area. The applicant has completed substantial work to the property including seismic upgrade and terra cotta repair and window replacement and storefront system replacement and masonry and fire escape repair and roof replacement. And the proposed plan includes replacement of windows and storefronts, to mirror the historic configuration. Supervisor breed is there any way, though we have some of the photos in our packet while youre doing your presentation, i think that it would be helpful to share those with the members of the public. Thank you. The proposed Maintenance Plan for 973 market includes the inspection of the foundation, terra cota windows, storefront system, masonry, fire escape and roof on a five to 10year cycle. Regarding the enforcement case for 973 market, october 2015, the office of shortterm rentals imposed a penalty of 191,664 on raintree as the Property Owner of 973 market for illegally offering nine shortterm rental units at the property. And on november 29, 2017, raintree paid the full penalty imposed by the office of shortterm rentals and that same day the office of shortterm rentals closed its enforcement case and thus supervisor breed so they paid 190,000 they paid the full penalty. Theres no outstanding penalty against raintree and raintree dismissed its legal actions. The department has revised its application procedures for 2018, and instituted Performance Measures to produce highquality information packets for the committee. And to maintain an ongoing line of communication. The h. P. C. Has directed the planning staff to schedule a hearing to discuss how the program can better align with the committees intent for the program. We anticipate that hearing will be scheduled early for 2018 and to allow for improvements to the program to be incorporated into the 2018 application cycle. We will notify the committee when the hearing is scheduled and well followup with the Committee Regarding the h. P. C. s recommendations. This concludes my presentation and im happy to answer any questions and the Property Owner for 973 market is also here today. Supervisor kim jason chek is here and i see that bill barnes from the supervisor sheheeys office is here and wants to speak on this item. Thank you,. Marthank you madam chair and. I wanted to put in context the mill street contract. As many people know there was a project at 55 laguna which is commonly known as open house and thats the lgbt Senior Housing but in addition to that theres a number of other components that were built along with that. Tomorrow in the finance committee there will be a gift of in kind open space that the sponsor put forward, the frontage was part of this mill program where they would maintain that property to community standards, the interior standards and the two enforcement issues raised a few weeks ago, we investigated with the Planning Department and i wanted to report on those. In the issue of the office the illegal office use, that case remained open at planning each be though the planning even though the planning had concluded that person had vacated the unit and the other issue with the 4by4 is on property owned by mercy housing so once the project was built, the land was subdivided so the individual lots belonged to individual owners and the enforcement action was on a different legal parcel. So whether or not to approve the policy matter for the committee but because it was part of a larger project in district 8 that we inherited we wanted to put that information in the record if you think about whether or not to grant the mills act contract in that case. Thats all i have. Supervisor kim thank you, mr. Barnes, and we want to give mr. Chek an opportunity to speak as well and to answer questions. Thank you, president breed, supervisor kim and supervisor peskin. My name is jason chek and i work with raintree partners and were the owner of 973 Market Street known as the wilson building. I wanted to take a minute and talk briefly about the history of this project and our excitement to be part of it and also address the commentary earlier about the fine, rather large fine, paid by our Company Supervisor breed can you speak directly into the microphone, thank you. Its a property that we were involved with in 2011. At the time we purchased the property it actually was delapidated to the point where the city was considering demolishing the building. I have a picture here of the original building and then on the lefthand side here is just a representation of holes that were cut through the building by the prior owner prior to raintree taking ownership. And in the bottom picture you can see that the building had been exposed to the weather for many years and seismically. A lot of the structural elements inside of the building were taken out. When we lookeda it the project it was quite an effort, both technically and in terms of resources, to bring this building town par and retro fit it to allow the conversion that we had. Today, just briefly, you can see the exterior facade is quite striking and thats really one of the key features of the building is that the exterior terra cotta facade that took a lot to repair during part of the rehabilitation that is already taking place and Going Forward if this action is approved, well be spending money towards replacing the window system to something thats more traditional as those windows reach the end of their useful life. There were some requirements that were associated with the original entitlement that required us to keep the exterior windows that you see in place which is why those werent a part of the original Rehabilitation Plan. Down below is just showing you the interior of the property, its currently 67 rental apartments with onsite Affordable Housing as well and we have on the ground floor one commercial tenant which is fellow barber. And i have one more picture here just to show you that on the roof we actually worked with local Arts Community as well as an International Graffiti artist to put in place historic mural which we think will be historic. Its actually opening of the Golden Gate Bridge opening day. And this feature cascades down nine stories into the lightwell of the building. Down below here i just wanted to make you aware, last year this property was one of 50 properties nationwide that was ranked among the highest in terms of views and as well as online participation and we manage our reputation online and when we became aware of the fine that was recently paid, that was a result of the action by a resident at our property. We did appeal the fine initially and we spent some time working through that process with the city and i appreciate supervisor kims help and her staff in terms of clearing that violation, allowing us to get on the hearing agenda today. Supervisor kim could you provide for the sake of the committee, a few more details about this violation . Sure. Supervisor breed and you said that it was one individual but i thought that it was nine units so how is one individual able to do that with nine units . Sure, so the situation was a result of a single tenant who leased multiple apartments at our project. Under a pseudonym, effectively, and then started leasing those units and let me take a step back and say they entered into those leases on an annual contract similar to any other resident who would enter our Leasing Office from the street. And in this case this particular resident chose to then sublet those units, not withstanding that being a direct violation of our lease term with that resident and they were doing so in violation of their lease with us and also, you know, they were doing so against the city policy. So when the city became aware of that before us, they tracked back how long that resident had been in place and then levied a fine that effectively was, you know, the duration of how long that tenant had been at our property. We were not aware of what that tenant was doing until such time that we got the violation from the city and i spent some time trying to dig into the details and figure out really push that issue on to the resident who was violating the city policy. So we are still pursuing that claim against that particular resident. We have elected to just pay the fine in full with the city to move this issue forward today. Supervisor kim just a followup question to, that so one individual leased several units in this building and was that kind of an understanding . Was it a corporation that was going to lease it out to their employees im just wondering thats correct. So its typical for some owners to in a lease situation, which is the case when this tenant started leasing at the property to provide some units to a corporate provider and the name of that tenant was loomie, and that corporate tenant had apartments in other projects, other than ours, throughout the city. And so in this case they had the nine apartments in at our project and they were in the process of we were in the process of actually rolling them out of those leases to house individuals, rather than corporate tenants, which is not our policy generally, but during the course of a lease, when you have a lot of vacancy its typical to do to lease to a corporate tenant for a small portion of the building initially. Supervisor kim and those leases have expired . Thats correct. Supervisor kim all right, thank you so much for being here and for answering all of our questions. Sure, thank you. Supervisor kim so colleagues do we have any questions for our Historic Preservation staff, planning or the assessorreporter on these items . Super peskin. Supervisor peskin im not sure that i have questions and i have some kind of general policy observations that may lead to questions. I think what happened at the last hearing where we had a batch of these was a number of different policy considerations and i want to thank miss ferguson and mr. Frey for hearing those and working with h. B. C. To both further the cause of Historic Preservation through tax incentives while not rewarding bad behavior. So in both of these cases the fact that there were unresolved issues with notices of violation or shortterm rentals, we dont want to see those come before the committee until theyve been resolved and, of course, the committee or the board has ultimate jurisdiction whether or not we feel that were financially rewarding people for bad behavior, but we also had a separate conversation which was a conversation about the duration of a mills act tax credit and whether or not, indeed, we actually have a piece of trailing legislation that we need to get on, and ill get with mr. Gifner with relative to the individual that agreed that a 10year term was sufficient to recoup the type of Capital Investment. So i want that to kind of be something that both the h. P. C. Considers and this committee and future committees consider. So this may now be evolving into a question which is, relative to the 973 market situation, i mean, this is precisely the kind of place that you want to use the mills act because youre taking a building and breathe new life into it and it cost a lot of money and theres more work to be done and this makes perfect sense. And i also note that its approximately 150,000 a year of Tax Deduction to the city, 147,000 and change. So part of the question then, yes, theres ongoing every five to 10year Maintenance Requirements but is a 10year tax break that when all told will be worth more than a million dollars, is that sufficient to do the Capital Investment in the window system . Would it be fair for this committee, who has to balance money and preservation incentives, to ask you whether this is a question for the project sponsor or the applicant whether or not after a period of 10 years you would be sanguine with that mills act contract terminating . So the question, just so i understand it clearly, is at the end of this 10year term, should it be granted, are we okay with that going away . Is that general li generally th . Sure. So take a step back and just say that our initial investigation of this property anticipated that we would be before you, albeit a little sooner in the process, to discuss a mills act hearing for this project. There were substantial costs exceeding our original expectations to move forward the project along the timeframe that we did and put in place the restoration of the building that is already in place and we want to maintain that to the level that i think that the city expects and we expect Going Forward and theres significant costs in doing so. On an annual basis. And, frankly, that was our anticipation going into the project that we would have those added costs and we did anticipate the potential benefit of the mills act and, you know, how we thought about this project going into it. So, you know, i think that as it relates to the ongoing preservation of the building beyond 10 years, i mean, theres no question that a building like this has substantial operating costs to keep it in the form that you see today Going Forward, so if there are other components of the building that require a significant investment in order to keep them, you know, up to the standard that wed all expect, i could see a scenario in which there could be an extension of that contract with very specific reasons to address the added costs of operating a building like this. Does that answer your question . Supervisor peskin yeah, i mean, we could drill down into what those costs actually are and tailor it accordingly. I guess that this is maybe more of a policy direction that as we now have and, thank you to mr. Mccaffrey for the information, 25 mills act contracts in San Francisco that perhaps the h. P. C. And the planning Department Staff can also drill down into those numbers. So rather than using the formula that we can actually say this is a reallife guess of recouping the capital costs and what the out year maintenance actually looks like and we can tailor, given our broad latitude and discretion, the mills act grant accordingly. So rather than it and im just using you because you happen to be here, but rather than it being 147,000, that the department says, hey, this is what maintenance really looks like relative to adhering to the accepted standards and we, therefore, say to the committee, look, theyre eligible for 147,000 but if you want to scale it to where they can effectuate the kind of maintenance that we want to see at year 10, to be reduced to a lower amount, we have that discretion. So at any rate, food for thought, and maybe not for today and i will support whatever the chair whose district 973 market resides in and i appreciate the fact that you have resolved the shortterm rental issues and actually note to staff and my colleagues that were it not for chair kim refusing to put this on the last agenda because of the s. T. R. Issues and same with the unit number 59 at 55 laguna, i mean, this should be treated in the same way that you guys treat everything else, which is that you cant come if and get a new Building Permit until you have resolved all of your outstanding violations and the mills act should be no different. I know that you got that message but ill defer to whatever chair kim wants to do in this matter but as more and more mills acts are applied for and, by the way, the board should look at the other 25 and look at them through the same lens. And maybe staff could help with that. Supervisor kim i concur. President breed. Supervisor breed thank you, i appreciate supervisor peskins concerns and questions because i have some very similar concerns just in general about this process and i appreciate the departments willingness to make the appropriate changes in 2018 to address some of the things that we mentioned that we were most concerned about because when these matters come to us it implies somehow that the deal is done and its not necessarily the case, especially because were talking about a lot of money, a tax reduction, but one of the points that i brought up before that ill bring up again that i am most concerned about is these projects have been done and theyre just getting here and it looks like the work not only would have been done anyway, but it adds value to the property. And i dont understand why we would do this. And why would we give up the opportunity to collect this tax money if this is something that not only increases the value of the property but its work that would have been done anyway. And then its work thats already been done, and these are the kinds of things that i think that should be coming to the board prior to the completion of the work and so i guess im just not interested in going backwards here. So i just want the department to help us to understand why were at this point after the fact. Good question, i love this committee. Good afternoon, or good morning, Committee Members and supervisors. Tim frey, Department Staff. This is something that i think that the city has some flexibility in determining what is considered or defined as recently completed work. The recently completed work definition in the Mills Act Program does state that it can be work thats happened within the last two years. And thats something that the city attorneys office, along with the full commission and board decided was a reasonable time frame but based on what ive heard from the committee that is one of the big issues that were going to bring up with the commission is maybe to look at this as a rehabilitation credit, meaning that work has to be completed after this committee and the full board grant that contract to show that there is an actual need for the tax break to actually complete the work, rather than the reverse. Supervisor breed thank you, because as supervisor pes kipeskin mentioned the money spt on the work that is above what is traditionally necessary, theres just no clear guidelines around that particular issue and my goal is not to change the rules in the middle of the game but i think about, for example, 55 laguna and that particular project regardless of the violations which seem very minimal, i just this is a huge project, a lot of units, very expensive units, although onsite affordable units which are much appreciated. But i just dont have a strong desire to want to push to support that and also i think that bill barnes from supervisor sheehys office had expressed that there was a discussion with the community and i remember those discussions, not every sentence discussion, but the push to keep the facade not completely im not completely familiar with the details of that particular discussion and how that would lead to, you know, a mills act and what that means. So i guess that part of it is just trying to understand why we would go this route because you still have, again, with the 55 laguna project, a completed project, a lot of units, and why should we move forward in this and a lot of the market rate units. I mean, a very lucrative project for the project sponsor so i just dont see why we would move forward in this direction. Supervisors, not to advocate for a particular project but i can tell you that from the h. P. C. Hearings and the Department Discussions with the owners of the 55 l laguna site, one of the more important scopes of work that was included in that plan is the restoration of some of the murals on the interior, where the restoration of those murals was not included as part of the original project. Supervisor breed okay, thats helpful. While theres a wide variety of scopes they proposed, that was one of the most important to us because those are internationally known murals and they did not have money at that time to restore all of them and so there are a couple that still do need work. Supervisor breed okay. Thank you. Thats helpful. Supervisor kim thank you, mr. Frey. If maybe the Committee Members can remind me of the three that we forwarded with recommendation to the full board, 101 , and 940 grove and 637 waller, did we limit all three of those to a tenure mill is act . Supervisor breed i dont think that we did all three, the 940 grove i pushed for no limit, and i cant recall exactly i think that waller was a limit and what was the other one . I dont remember that one. Supervisor kim mr. Frey. My ris recollection is only e waller Street Project is the only one with a 10year limitation. Supervisor kim okay. And that was actually a significant reduction, at 59 in terms of their property assessed value. Okay. These two projects are slightly lower in their reduction rate. For me on a level of consistency i would move both of those items forward with the 10year limit and that would be my recommendation to have the Property Owners come back again to explain additional costs or rehabilitation at that time. So that will be the amendment that i will be making on these two on these two items. So before we take a motion to do that, were going to open up these two items for Public Comment . Any members of the public that would like to speak on items 4 and 5 . PackagPublic Comment is now clo. Colleagues on item 4 and 5, can we take a motion to move those forward with recommendation, amending it with a 10year term for the mills act exemptions . Supervisor breed so moved. Supervisors, so the way that these will work as with the waller item is that the board may approve the mills act agreement which has a 10year term and can be terminated by the city at its discretion at any time, 10 years in advance, so you would be approving the agreement and then any supervisor of the h. P. C. Can initiate termination by introducing a separate resolution as were working on for supervisor peskin with the waller item. Supervisor kim consistent with what were doing for 637 waller. Thats right, so you dont need to include changes to the agreement itself and youre expressing your intent that soon youll be introducing a resolution to terminate the agreement 10 years from now. Supervisor kim okay, great. So can we add that just to the same motion . You dont need to make any motion on that because the termination is just a separate item but we will take that direction from you to initiate that process. Supervisor kim thank you very much. Supervisor peskin . Supervisor peskin so just way of background ill introduce the 637 waller termination in january and i can add these two to that. Supervisor kim great. Supervisor peskin if you two would like to be i dont care who is the sponsors and cosponsors and all three members of committee can affix their names. Supervisor kim that would be great, and thank you very much, supervisor peskin. And that being clarified well take a motion to move forward items 4 and 5 with recommendation. We have a motion and a second and we can do that without objection. Thank you so much to all of the departments that were here today and to our Property Owner and also to mr. Barnes for coming to speak on this item. Mr. Clerk, call the next and final item . Clerk a review of theup date on recreation and parks departments strategic, operational, and capital plans. Supervisor kim good morning, mr. Ginsberg. We appreciate you being here today and i want to recognize that danny kurn, the operation director, talk and Taylor Emerson and the Strategic Planning analysts are here and theyre available to answer questions and i see that gary mccoy is here as well. If i can modify that a bit. Theyre upstairs in a Capital Planning presentation of his own that i was supposed to be in so hes covering that and i have tillerson who is overseeing, and danny kearn is our operation director and jordan lam berson is here, a chief land plan use owners and gary mccoy from our staff so we have plenty of people to answer questions should they arrive and they are here to cheer me on. Supervisor kim thank you for being here today and one of the civil grand jury recommendations that this board, that this committee took upon was to call a hearing as a followup on your Strategic Operational and capital plan and to also ask some questions that had come up during the civil grand jury process. But before we do that, why dont we start with you, mr. Ginsburg. Thank you, supervisor, and we appreciate the opportunity to present and we take a lot of pride in the work that weve done in the department over the last several years and particularly a lot of work, a lot of pride in our Strategic Planning work which weve taken extremely seriously in the last, you know, three, four years or so and its worth noting that prior to that the last Strategic Plan that was done in the department goes back to 2003. So i thought they would start with if we could flip on the projector very quickly because this was in response to the civil grand jury report and its worth noting the cover of the civil grand jury report which is planning to make our parks each better. I was doodling and it occurred to me, well, thats a good title, right, even better. And we thank the grand jury and, frankly, thank all of you for that work, thats what we want, we want the best park system that we can have. So ill turn back to the presentation now. And start here which is to offer a little bit of highlevel perspective before we can dive into the details which is that we have a very, very, very good park system and thats because of some very good Planning Decisions made a long time ago but its because of the work of numerous generations of the board of supervisors and numerous mayors and numerous general managers and most importantly, you know, generations of hardworking staff of our department, that we are considered and have been for several years one of the Top Performing park systems in the united states. This year we are the very we are the number one park system in the united states, except for minneapolis and st. Paul. And they supervisor peskin they have an incredible park system. They have incredible park systems and they have a lot less density and they have a lot more space and theyre built on the Mississippi River and they have some, you know, they have an incredible park system and i got to be there this summer and actually i particularly loved the railtotrail bike network, the crosstown bike network they had, and they had the benefit of having numerous train lines going north south, east west through, and they have been converted to bike highways with on ramps and offramps and exits and its pretty neat. But this is a sophisticated Evaluation System and the trust for public land annually analyzes the top 100 park systems and they look at a variety of quantitative criteria. And we as the criteria changes a little bit and they add new park systems but we have never in the last several years been lower than five and this year we are at number three, and so overall were doing pretty well and i thought that was an important place to start. The most important part, now turning to our Strategic Plan and the most important part of our stra teami strategein plan r mission and our values and they were refreshed through a rather comprehensive process that was internal, external, literally hundreds of meetings over a yearlong period and we got pro bono assistance from the Harvard BusinessSchool Partners program. But our mission is to provide enriching Recreational Activities and pain tain beautiful parks and to preserve the environment for all. Our vision, we boil it down to three simple words we seek to inspire, connect and play. This slide is overlapping a bit and making it very confusing for me and the long version of that is inspiring a more livable city for all and San Franciscos parks connect us to play and to nature and each other. Inspire, connect, play. And our values, and, by the way, i mean, a little bit i think that you all know this but a bit of h. R. Tech talk, you know, a Mission Statement should describe who we are and a vision statement should describe what we appear to b aspire to be ands should aspire how we do our work and in particular i love our five rs and our value statements because this really did come from staff. And these were the words that really resonated most w