Transcripts For SFGTV BOS Land Use Committee 20240712

Chair peskin welcome to the land use and Transportation Committee today, september 21, 2020. I am chair aaron peskin, joined by supervisor ahsha safai and supervisor dean preston. Our clerk is miss erica major. Miss major, could you please make any announcements. Clerk yes. Due to the covid19 pandemic, city hall and board rooms are closed. Committee members will attend through Video Conference and participate in the meeting to the same extent as if they are physically present. Public comment will be available on each item of this agenda. Depending on your provider, you can watch the meeting on cable channels 26, 78, or 99 or sfgov. Org is streami sfgovtv streaming the number across the stream. The number is 4156550001. The meeting i. D. Is 1462832975. Press pound, and pound again. When connected, you will hear the meeting discussions, but you will be muted and in listening mode only. When your item of interest comes up, please press star, three to be added to the speaker line. Best practices are to call from a quiet location, speak slowly and clearly, and turn down your television or radio. You may also submit comments comments in the following ways. Email myself at erica. Major sfgov. Org or mail your comments to city hall. Items recommended today will appear on the board of supervisors meeting on september 22, 2020. Chair peskin miss major, would you please call item 1. Clerk yes. Item 1 is an ordinance amending the Building Code to require new construction to utilize only interesting electric power. Thank you, mr. Chair. Supervisor mandelman the chair is frozen. We can wait for him to get back on, or supervisor safai, if you would like to take the reins and then i will text supervisor peskin. Supervisor safai i know this item is being called by supervisor mandelman, so im just going to hand it over to him to make his Opening Statements and comments so we can keep the agenda going. Supervisor mandelman does the clerk need to call the first item or can we just go . Clerk ive called the first item. Did i supervisor safai no, you did. Supervisor mandelman thank you, vice chair safai, and supervisor preston, and chair peskin if you can hear this. This ordinary an is anoth ordinance is another step towards towards a safer San Francisco. Last fall, this board passed the electric preference ordinance which requires building to s buildings to compensate for their natural gas emissions by requiring higher construction rates. Natural gas is the second largest source of Greenhouse Gas in San Francisco behind transportation emissions. We can see where our beautiful green planet is headed, and we do not like it. I believe we must take every opportunity we can to change direction, and today, we have before you one such opportunity. Natural gas is also a major health and safety hazard. This month marks the tenyear anniversary of the gas explosion in san bruno that killed eight people and destroyed virtually an entire neighborhood. Last year, a gas line ruptured on geary boulevard that destroyed several buildings still sitting empty today. Just last month, a gas explosion in a Baltimore Neighborhood killed two people and injured several others. In california, there are there is more than one gas leak or emergency reported every minute, and then, of course, we know that in california, natural gas poses an even bigger risk. Half of all the fires in the loma prieta were because of gas explosions. By comparison, Electricity Service can be restored very quickly, making us resilient in the face of future emergencies, as well. Natural gas is also bad for our health. When used in our buildings and homes, it increased the risk of respiratory and cardiovascular disease, as well as carbon die objection ice exposure. Seniors with gas ranges and restaurant workers in hot kitchens are at higher risk of injuries due to gas and open flames, as well. So there are an abundance of reasons to quit natural gas, and at the very least, to require all electric construction for new residential and commercial buildings in San Francisco, starting with projects that file for permits Going Forward. The ordinance would allow buildings that have already submitted for permits to proceed, including under the electric preference requiremen requirements. This is a big change, but were living through a big moment, and now, i believe is the right take to at the same this step, and i believe we have to keep moving quickly to dekosh annize our lives howevannize decarbonize our lives whenever we can. I am convinced that all of this is not only doable but for protecting our city for future generations. Since hes back. Since i introduced the legislation in june, the ordinance has been thoroughly discussed for the Building Inspection Commission and the Environment Commission and has been reviewed in detail by d. B. I. And environment staff and has received recommendations by both commissions. In addition, d. B. I. Bulletin i want to thank the commissioners and especially president Angus Mccarthy as well as d. B. I. And department of environment as well as the dozens of san franciscans who participated and contributed their insight and passions through this project. Im sure well be hearing from many of you today, as well. Colleagues, before concluding, i want to put forward a couple of amendments based on recommendations received by the commission as well as community advocates. This includes a banning of natural gas for outside heating in new homes or buildings, and any building constructed must be wired as electric ready. With regard to some of the concerns i have heard about this lemgs lation, i think it is important for everyone to keep in mind that this ordinance does not affect any existing home or building in San Francisco. It doesnt affect buildings remodels or retrofits. This is only for negate construction permits applied for next year or later. So you will still be able to use your gas range, and so will all of your favorite restaurants. Chair peskin i thought you were done. I apologize. Supervisor mandelman i did say that i was concluding, but i still have a couple more paragraphs. I will conclude shortly. The proposal was developed through a broad stakeholder process that began in earnest back in january, and thats why my office has worked closely with city staff. In addition, i will also be offering amendments that include a reporting requirement on the issue of mixed fuel reporting requirements to be reported to d. B. I. To be sure were tracking effectiveness of the all electric requirement. There has been significant support from Many Organizations as well as from dozens of design, technology, and construction professionals and organizations, including the california and San Francisco chapters of american student architects and many organization organizatio organizations. I want to express my profound gratitude to all the city staff who have brought us to this point. Following staff presentations and Public Comment, i will be asking that you move the amendments that we brought to you today and then continue this item 2 weeks until october 5. I believe these the amendments are substantive, and there remain several outstanding items that i imagine well hear about and discuss today that we need to resolve prior to this Committee Voting on the legislation itself. I want to thank you for your time and attention today, and your partnership in keeping San Francisco a leader in responding to Climate Change. Chair peskin thank you, sponsor mandelman. And let me just start with this is an imperative in every city in america. This is not just for a side like the San Francisco municipality, but when a city our size does it, its very meaningful. I cities do things like styrofoam ban. Berkeley did it 20 years before us, but we got the credit. Its time that San Francisco joined this movement, and weve got some very particular situations here, and i really want to thank you for the meeting that you offered the Chinese Chamber of commerce last week, and theres still more work to be done there, and you acknowledge that, and i really appreciate that, and i would like to, you know, help bring those policy matters discussed in that because the financial underpinning of this legislation is as with most pieces of legislation is Going Forward, grandfather things going backward, thats kind of the time tested and true way that we legislate at the state, federal, and local level. I heard two conflicting pieces of advice relative to the concept of force majeure or what would happen if there was an earthquake or a fire, would the castro be able to reconnect in the case of a major act of god . That ends with a question mark . Supervisor mandelman and i am going to ask that our City Attorney spend some time during this hearing confirming, because i think you and i have differe different chair peskin your staff and my staff actually have the same interpretation, but yeah, lets hear it we can hear it from the department, but ultimately, i want to hear it from the attorney. Hi, supervisor. This is james sohn. I hope everybody can hear me. Chair peskin we can hear you. I lead a testimony of mechanical engineer 11 mechanical engineer and electrical engineer to provide supplement and implementation to this wonderful ordinance. Chair peskin mr. Song . Yes. Chair peskin can you answer the question that supervisor mandelman just asked . Supervisor mandelman, can you repeat the answer, please . Chair peskin the question is very simple. If there is a fire, and 1,000 buildings burn down, you want to respectfully, supervisor mandelman, lets just hear from the attorney. Okay. Okay. Thank you. Chair peskin sorry, mr. Song. We mean you no disrespect, but this is a totally inappropriate way to get my question answered. So i appreciate your professionalism, but thats not what im asking. Im not sure how this happened, but this is all happening on microsoft teams, so please do not feel disrespected. No problem, supervisor. Chair peskin thanks. Ill stand by in case you have [inaudible] chair peskin fundamentally, i support this legislation, but were trying to answer some fundamental questions here. Deputy City Attorney pearson, good afternoon. Deputy City Attorney ann pearson, good afternoon. Deputy City Attorney rob kapla has been looking at this issue. Im going to ask him to call in with the answer. Chair peskin this is the first time that you learned of this issue . I have not considered this question before it was raised today, but deputy tee attorney rob kapla has been working on this issue, so i would like him to department City Attorney rob kapla has been working on this, so i would like him to dial in. Chair peskin i think that is a threshold question. Understood. Ill get him on the line. Chair peskin thank you, deputy city pearson. Supervisor mandelman, im sorry to have interjected. Do you have any other questions or responses or answers or anything left to say before i call on miss raphael . Nothing, other than im rafael and shes raphael. Chair peskin its hard to tell. Madam director, department of environment. Yes. I am debbie raphael, and i am the director of the department of environment, and im super excited to be here to present this item before you. I want to thank members of the transportation and Land Use Committee. I am joined, as we already saw by james zahn, several of my colleagues. Very quickly, as the slides come up, so as you will see from the next slide that we have a pie chart that shows our emissions. This is what already supervisor mandelman has indicated, and the key thing is we have both joint emissions matters that were dealing with right now. One is in diesel and gasoline, and the other is in the builtin environment in the form of natural gas. If we do not tackle these items in the pie chart, we will not succeed in meeting our goals, and we will not protect the planet. Next slide. In the first three arrows, our economy is growing, our population has been growing robustly, and our last measurement was to show that in 2018 we were 36 below 1990 levels. Whats interesting about that slippage, if you will, is that this is all because of natural gas. What happened between 2017 and 2018 is that the way we do the calculation trued up the leaks in the natural gas system. That is methane coming straight out of the pipes in the atmosphere, 86 more times potent than carbon dioxide, and actually, our emissions just went up a little bit. Chair peskin so youre saying in the context of these approximately 50 square miles . Thats correct. Thats correct. Chair peskin so were not doing cows across the bay . So the methane that might come hafrom cows is not the methane that we measure, although the methane coming from your banana peels in the landfill would be. So the methane is whats making us flat and not being able to go down in our emissions. Next slide. We have those bold goals that supervisor mandelman referred to. These were signed off by mayor breed in front of a global audience. Now, more than ever, i think we really understand that the use of any fossil fuel, including natural gas, is incompatible with our goals. Today is an incredibly important start on that journey. It has as you heard, its very important to keep reiterating, this is just a start, because this ordinance is for new construction. Its not for tenant improvements, its for renovations, its not for retrofit. We have a lot of existing buildings that were going to need to tackle. Thats not what is before you today. Before you is to put a line in the sand and say no more natural gas because we understand the imperatives for the future. No city as complex in terms of its building types have done this in the state. We are the first, and so all eyes are on us, and its really important that we give this right, and with that, i would like to ask you Cindy Comerford to give you a really high outline of what this does and what weve accomplished. Chair peskin thank you, and my apologies for butchering your name. Next speaker, please. Thank you, supervisor peskin. Can you hear me . Chair peskin yes, we can. Thank you. I feel like im presenting into a big black box. My name is Cindy Comerford. Obje objectiv as we go through this presentation, youre going to hear the term mixed fuel buildings, and that just refers to a building being built with natural gas. So all electric new construction or sometimes use the term building electrification has many benefits, and this illustrates all the benefits that supervisor mandelman has gone over in detail. For lowincome communities and communities of color that are more likely to suffer from asthma because of impacts because of poor air quality, zero emission homes are an important way to deliver equity benefits. So next, im going to go through state efforts and our policies to deliver this ordinance. Mayor breed has signed an ordinance of zero net emissions by 2050, so to accomplish this goal, we embarked on launching the mayors zero emissions Building Task force last year to ensure that we had inclusive and diverse representation. Just to reiterate, we are only talking about newly constructed buildings today. So for the all electric billion constructibillion Building Work group, we brought together many key perspectives. Community groups, Affordable Housing developers, investors, design professionals, environmental advocates, and the list goes on and on, and we also have a steering committee, which we reported up the findings from our work group, which was a Public Private steering committee. So we had two work groups. This shows the breadth of our outreach efforts of all of them were cancered on not only trying to get this ordinance done but really about establishing expectations for longterm pardon nerships, Building Trust with our stakeholders and really identifying what are the best opportunities for the city to be a partner in this project. Chair peskin and miss comerford, i apologize for interrupting your presentation, but how many languages was the outreach done in . Thats a great question. We had outreach done in chinese and spanish and allowed them to ask questions. Chair peskin you reached out to building owners and managers association. Did you ever reach out to the Chinese Chamber of commerce . We did. Just to clarify some of the cultural outreach that we did, we did reach out to the chinese sorry, the Chinese Chamber of commerce, chinese for affirmative action, a. P. I. , and a. T. P. The media roundtable we did was both in chinese or english. Chair peskin and i dont see that on this presentation. Where does that happen . Thats correct. So this slide shows our outreach until the introduction of the ordinance, which was in june, so just kind of showing what we did to craft the ordinance, but since the introduction of the ordinance, we have been meeting with stakeholders almost every day, and i just mentioned some of our engagement, and we have also presented to the full Building Inspection Commission, multiple subcommittees. Chair peskin supervisor mandelman said that. So basically, what youre saying is you cooked it, and after cooking it, you took it to the community. Is that true it . We have been developing the ordinance, and then after the development of the ordinance, we have been doing additional outreach. Chair peskin so let me ask you this is this supervisor mandelmans legislation or d. E. Od. E d. O. E. S legislation . Supervisor mandelman is the author of this legislation, and we worked very closely with his office to develop it. Chair peskin sorry for the interruption. Please go on. No, theyre great questions. Almost everyone agreed that we needed. We really focused on making sure that we were achieving our important objectives and goals, and that the ordinance was fair and balanced. I ism im having problems advancing. So that was a lot of Background Information, so now, im going to get into the specifics of the ordinance. So as i mentioned earlier, the authority of this ordinance is from the California Health and safety code, and there are five key components to this ordinance. So for projects that apply for initial building permitted after january 1, 2021, heating, water cooling, and clothes drying must be 100 electric. No permits will be issued to convert all electric buildings into mixedfield buildings, and for projects that include commercial food service establishments, mixed fuel Building Permits may continue to be accepted until january 1, 2022, provided that the gas lines are only for cooking. We know that the Restaurant Industry is one of the hardest hit down the pandemic, and we want to make sure that we work especially with the Restaurant Industry. Lastly, in the rare case that an exception is granted, mixed fuel permits must be as electric ready as feasible all complying with all Energy Efficiency codes, for all of you who arent familiar with the term electric ready, it means in the rare case that there is an exception, and natural gas is available in the building, that the building needs to be wired for a future conversion all electric. So d. B. I. Will be the implementing agency for this ordinance . So starting in 2021, if you build an allelectric building, you will just go through the regular Building Application process. So in the rare case that our project sponsor has a physical or technical feasibility issue to build all electric, you will need to submit a waiver request accompanied in most cases by Third Party Review to d. B. I. So once that waiver request is spitted, it will be reviewed submitted, it will be reviewed by d. B. I. , a building plan review official, and the process is outlined in an administrative bulletin, either 112 or ab 112. Its about 20 pages lost. It was presented at Building Inspection Commission last week, and it was passed. Miss comerford, if ab 112 has been adopted by d. B. I. , what are we doing here . So that document is just how the document will be implemented if passed, so its really chair peskin hold on a second. D. B. I. Is passing the regulatory implementation before we are passing the ordinance . Is that which is, by the way, awesome. Ive never seen it before, but thats awesome. Yeah, i mean, we did it in to be transparent about how we were documenting the standard and procedures for implementation. Its a really key component to how we move forward with the ordinance. Supervisor mandelman i think both the Environmental Community and the Development Community were concerned about how this legislation would get interpreted and wanted to see those the interpretation up front and have the arguments and fights on the front end rather than after the legislation had gotten passed. Chair peskin supervisor mandelman, through myself, im delighted that you figured all this stuff out. When we talked last week, i did not realize youd gotten an administrative bulletin actually voted on by the commission. Ive never seen that, but this is great. Thank good. Its good to see a positive response. Just to reiterate all the key components of that document, theres no exceptions. The exceptions are really meant to be limited to technical infeasibility. While there is an exception, it really should be limited to the specific area or system of the building that cant be electric, and then lastly, all exceptions will need to be electric ready. So we believe it is feasible in almost all instances to construct new all electric buildings in San Francisco, and that this waiver request should be infrequent. And while the exception process is meant to be very narrow, we said it up to ensure that we do not impede the development of housi housing. Chair peskin oh, sorry. Go ahead. So this is the last section of the ordinance that im going to discuss, and i want to talk about the cost and Equity Analysis. So also, we are not required to do a cost effectiveness study because this will not go through the energy code. If we do want to present the best available cost data, so generally we believe this ordinance will be cost neutral based on both the qualitative and quantitative information weve collected as a department. So this illustrates data from three separate cost effectiveness studies, and it generally shows that building all electric costs less. In many scenarios, the Construction Costs are less, which is depicted by the change in Construction Cost column, so those negative numbers represent change in first cost and also the elimination of the natural Gas Infrastructure. And then, the column on the right, which is labelled lifetime net present value kind of shows the positive savings from the operational cost over a 30year period. And so that kind of outlines our the cost information. And lastly, id just like to talk about our equity assessment. Last year, when the board of supervisors passed the legislation establishing the office of racial equity, that same piece of legislation will require departments to submit an equity scan for legislation starting in the year 2022, but our department is very dedicated to racial equity, so we decided to pilot tool our equity scan sorry. We start today pilot test or equity scan tool on this piece of legislation. I want to provide a very brief analysis every overview. So this slide shows some of the areas of analysis and some of the potential concerns. We have submitted this report, and its on file in the ordinance for you to read. Some of the information was around lowincome tenants and Affordable Housing. Basically, we want to make sure that we work with our lowincome tenants in afford na able housing. Affordable housing has been a leader in this field, and this Equity Analysis just kind of recommends that we continue to provide this technical service, and we investigate funding mechanisms and partnerships to support these ideas. So in summary, electric buildings can provide lowincome communities access to cleaner air, healthier jobs, and good homes, but we really need to be intentional about it. So this is my last slide, and this slide illustrates some great examples of all electric buildings that are already exist in San Francisco, so we know that this ordinance is possible. So i want to thank all the stakeholders that have contributed to this ordinance. Im really proud of the work that we have collaborated on with supervisor mandelmans office, and we believe we have developed an ordinance thats fair, balanced, and equitable, and that will achieve our longterm climate, housing, and health goals. The result of this process is one of the most comprehensive pieces of legislation that significantly restricts the use of natural gas and applies to every building under San Franciscos jurisdiction with only the narrowest exceptions. So with the covid19 pandemic and the wild spread Racial Injustice and our recent wildfires caused by Climate Change, i feel like supporting this ordinance will give hope. Chair peskin no, no, no, no. We will pass the public policy, you just give us the facts. Please, dont do so i will conclude my presentation, and were happy to answer any questions. Chair peskin thank you, and i apologize for that, but respectfully, when we hear from a department, we want facts. This is i mean, youre talking to the board of supervisors. Please and i support this legislation. Weve got a few kinks to work out, but your sales job is you dont tell us about hope and faith, please. All right. Supervisor mandelman, back to you. Supervisor mandelman i dont think i have much more than that. I mean, i think that the equity issues that that the department has raised, and one of the things that the community that the Environmental Community has advocates for is us to invest in some resources within the department of the environment to actually help folks manage this transition to all electric and ensure equity. Theres a little we are introducing some amendments today, i think were going to talk about some other potential amendments that may get introduced, and one of the potential amendments would be establishing some capacity in the department of the environment to assist developers, entrepreneurs, folks who need help sort of to manage all new all electric future, so thats a thing that we may take up with an which we could build in this legislation. Chair peskin all right. Are there members of this Committee Supervisor safai . Thank you, chair. Thank you, department of the environment. I understand that was kind of a quick presentation based on the time and what were doing. Id like to know who was involved in the new construction working group. Were the building and construction trades involved in that, and have they been involved in the conversation, and who comprised the new Construction Group . Also, kind of jumped over the idea of restaurants. Strau restaurants of the backbone, in many ways, of our tourist economy. They employ so many people. By the time this legislation is introduced and signed, really, what were saying is were giving new construction one year for there to be an exception for building permitted that are placed. You know, i want to commend the department of environment. Ive worked with them before, you know, on really forward thinking legislation that had to do with waste diversion. Were going to have a second phase of that coming up that will also help us meet our environmental goals. Im very committed to this legislation, but i do get the sense from some of the calls that i received from folks in the Restaurant Industry, both from specific ethnic communities represented in our city and then hearing from more recently from those in the Construction Industry that they havent been fully involved in the overall conversation, but id like to hear supervisor mandelmans office respond to that and then maybe the department of environment. Building managers arent involved in any new construction. Obviously, theyre involved in managing their existing properties, and existing properties arent impacted by this legislation. Its really about new construction, so id like to hear who was involved in the new construction working group, and then, id like to hear how much input the overall Restaurant Industry had, and then, you know, lastly, what supervisor peskin brought up, you know, not just in language, you know in chinese, but what other outreach was done in other none nonenglish speaking communities. Supervisor mandelman so im going to leave it to i think it would be beneficial to have either the department or jacob and my staff run through a list of who all was involved in the new construction working group. It was extensive, and i think cindy probably has that list, which i hope or somebody can run through it. It did involve developers in both market rate and affordable construction. It did involve the trades. The plumbers participated, the electricians, of course, were part of it. Vince courtney showed up for one or two of the meetings from the laborers, so there was an amazing trade representation there, as well. But we should get that test and even just run through it quickly, if somebody can. Cindy, are you able to chair peskin yeah, and supervisor mandelman, as you know, based on the conversation that you and i had with the Chinese Chamber and your staff and my staff last week, i am deeply committed to this legislation. It is the right thing. We are not the leader, but as San Francisco slowly redevelops and as i say, possession of ninetenths of the law, we are going to get this thing passed, and we can go down the list of who was at the table. Id just let the head of the department of environment know that this has not been well handled any number of ways, particularly with the Chinese Community, and but were going to fix this. We are going to fix this, and its profoundly important that everybody fixes this and believes in this or its not going to work. The government shoving stuff down peoples throat, people get around it. Theyll just throw a gas line. Theyll never find out about it. People have to invest in this or its not going to work. And i dont mean to cutoff supervisor safai or your response to his outreach, which im sure thats what it was, and all these meetings happened. The regular thing is these meetings happened a year ago, and all of these things kicked in, and we didnt have time and the pandemic and im not blaming you, miss raphael or you or anybody else, but lets go cross or is and dot our ts. My desire is to continue this for a very short period of time, and lets go do that work, and then, lets bring it back with acceptance from the Restaurant Community, the Chinese American Community, the Building Trades community, and get this thing passed. And lets have some real facts. And to the representative from the department of the environment, im sorry for being harsh, but we deal with acts as public policy. You want the legislation, i want the legislation, but thats not how we actually craft legislation. So if im going to ask you questions, im going to say okay, we had a waiver process for restaurants Going Forward, and probably no ones going to pull the gas line into new construction. How much methane are we going to add in San Francisco, and whats that worth . That is your job. Your job is not to sell estimates. Supervisor safai so thank you, mr. Chair. Appreciate you, in many ways, adding onto what i said. I just want to say, ive worked with director raphael and her team, and weve done a lot of this type of work before. Somehow with the massive disruption of covid, a lot of work has been disrupted in terms of community outreach, so now, were picking it back up. People are paying attention now. I agree with what you said, chair peskin. I am 100 committed to this legislation. I think its very forward thinking. Were going to get there, but we have to make sure that all the stakeholders that will be impacted have an opportunity to weighin, and whether its two weeks or whether its a month, i mean, director raphael will tell you, when we did our you know, our large refuse generator, i like to call it our green jobs legislation, it took quite a bit longer than it might have, but in the end, it ultimately was a consensus measure. We made the few exceptions that we needed to make. We delayed certain aspects of the legislations implications that we needed to make skpr, a the end, the legislation is working well for San Francisco, and i think the same thing will be true here. I just wanted to get on the record that i got a flurry of calls in the last few days from people that felt like this was being rushed. I want to give them the opportunity and i appreciate, supervisor mandelman, all the hard work that you put into this. Were going to get tot finish line together, and im sure youre going to come back and say well, now, theyre responding, and now, its on their radar. Thats what happens once its agendized and people see that its moving forward. I think there needs to be a little more conversation with the Restaurant Industry, and we can understand that a little bit more. If youre saying that the new Construction Group involved many different aspects of the trades, im sure well hear from them today. And then, the nonenglish speaking community, thats always a challenge for any piece of legislation, for sure. Thank you. Supervisor mandelman yeah. I mean, i think those are good points. I am going to push back on the notion that this has been a pushed process. The Environmental Community, correctly realizing that we are facing the destruction of life on the planet as we know it, has was alarmed by our electric preference legislation last year because it did not go far enough and opted us to instead be doing a ban. And we said oh, no, no, we cant just do a ban right now, we need to have all these conversations. So we began a series of conversations, i think with great help preferably led by the department of the environment, and a lot of great work went into these conversations over many, many months to develop the legislation. I i am not at this point saying we should rush it. At this point, as i said, im asking for a continuance for two weeks, and i think that, you know, we may need one more bite. Assuming there are additional amendments that get introduced in two weeks, its going to be one more meeting after that at least. But the notion that it would take this board longer than a year to get a ban on natural gas in new construction is the hard part, this is the easy part where we can accommodate most peoples reasonable requests and expectations, and if were actually going to be avoiding having blackout days this is the days that the sun doesnt rise, being most days, were going to have to move much more quickly in the future in ways that make life, you know that do impact peoples lives. It is possible that we dont get everyones buy in i see the chair shaking his head and acknowledging that he understands that okay. Ill stop. Chair peskin look, thank you, supervisor mandelman and look. Im going to share my implicit bias, and my implicit bias, and director raphael, correct me if i am wrong, and i think you just said this, supervisor mandelman and look, i truly appreciate. It is a global imperative that every city on the planet stops using methane and ch4, and how we do that, and in this, the Chinese Community is profoundly important. And how those communities do this and come to embrace is a conversation. My implicit bias is the department of the environment doesnt do this well at all. Director raphael, how much outreach have you done over supervisor mandelmans or your collaborative outreach in cantonese or mandarin or other languages . So that is frankly, that is fair, and i say it is fair not weve never done it, but we do a lot of chinese language outreach. With this initiative, we invited people to the table to be part of these working groups towards figuring out how to get this ordinance written in a way that was implementable and understandable. We did not get the attention of language, and we likely did not do enough in language, and we can do more of that. We can absolutely do more. It is not something we are blind to, it is something we have a long history to, so thank you. Chair peskin and i was very, very clear with the Chinese Chamber of commerce that this is an imperative, but how we do that, and how we do that in a way that is inclusive and respectful is profoundly important to the success of this legislation not only in San Francisco but around the world. If its im sorry for being just so candid, you know. Elite white people shoving this stuff down other communitys throats, it will be a failure on its first day. Why dont we open this up supervisor preston, if you have no comments supervisor preston . Supervisor preston yeah, if i can just jump in. Thank you, supervisor mandelman and department of environment, for bringing this forward. I do want to say that while ive gotten certainly a lot of emails from folks who want to make substantive changes one way or another, which one would expect on legislation of this importance and impacting so many constituencies, i feel like i may be missing a little what the concerns are rushes. I hear the sponsor coming in asking for a couple of weeks to working out amendments. I look forward to learning more about the amendments. I think i share with supervisor mandelman, and i know this with you, colleagues, the sense of urgency, and its just been i think it was april of 2019, before i was on the board, when the board declared nanny passed a resolution declaring Climate Emergency. Its been a while, as supervisor mandelman pointed out, since the electric preference lemgs latiogislatio as he pointed out was successful but not addressing Climate Change, so this is a followup piece of legislation on that. Im certainly not commenting one way or another by outreach efforts on the department. If theres outreach that needs to happen, im confident that supervisor mandelmans office and the department of the environment will lead that. But i did just want to say, you know, that some of these are difficult things to swallow for the industry, but theyre critically important, so i just wanted to just wanted to weighin to thank you for your advocacy efforts on this, supervisor mandelman, and i think well get there, it sounds like. I was not aware maybe i missed it in the materials of the administrative bulletin that was referenced, 112, so would love if that was in the material pacts, but also if there are any other regulations that have been passed in advance of this passing. As jeff haskin has said, it would make implementation much easier, but definitely would like to see this item come back to us, assuming it is continued. Chair peskin thank you, supervisor preston. Supervisor safai, if you just raised your hand. Supervisor safai i did. I did hear this from some in the building community, thats why i was asking about the new Construction Group. Maybe theres someone from Building Department that can give us some insight on this, but in regards to the technology that has to do with water heating for a large apartment building, is the technology in place that theyre electric versus natural gas because when i do my due diligence, talking to some people in the Construction Industry, they seem fine overall with the legislation. The only question they had push back on in terms of water heating for a large apartment building, is the technology there thats all electric . Chair peskin so i do believe that this is the appropriate time for mr. Zahn from d. B. I. Could respond. Supervisor safai and did i that so mr. Zahn could actually speak. Yes, supervisors, i can do my best to address that. So they are a Newer Technology for water heating thats called the [inaudible] water heating. Supervisor safai say that again. Heat pump. Supervisor safai heat pump water heating. Yeah, its a heat pump. So its particularly a technology that heats from the the surrounding of the building or this device, so that that is a highly efficient technology. Now, they are mostly used for smaller buildings. I can definitely envision that a heat pump water heater would provide for three to five, even six units, so that is the primarily that the industry has been talking about to replace the gas tank water heater. Supervisor safai and you said how many units would that go to . I would say for one larger size unit, its probably used for five units. Supervisor safai what about a what about a 60 or 100unit building . That technology this technology of water heating is not designed or built for that kind of supervisor safai okay. Thank you, mr. Zahn. So my question would be, then, for the legislation, doesnt legislation account for if the technology is not in place for that certain aspect, does it account for that building to be mix mixed fuel with the option in place to go all electric . Supervisor mandelman how big was that building that just opened . There are lots of examples of dozens and dozens of ten floors and above of residential units with all electric, so this may be a question, supervisor safai, of a little bit of crossed wires in terms of interpretation. And to answer your question directly, we have exception language that definitely understands that there may be narrow circumstances where the technology has not caught up, and in those cases, you have exceptions because its not technically feasible. Supervisor safai yeah, that was my question, if somethings not technically feasible. Yeah, and thats super important in a city as complicated as San Francisco with so many different building types. Supervisor safai okay. Thank you. Chair peskin okay. Can we open this up for Public Comment . Madam clerk . Clerk thank you, mr. Chair. Looks like we have 33 listeners, 17 in queue. Shawnna, if you can queue in the first caller, please. Chair peskin thank you. First speaker, please. Hi. My name is [inaudible] im a resident of San Francisco and a resident of district 7 . I strongly support the phasing out of gas in new construction. San francisco has the chance to lead the state and the country in building a better future. As a young person, the expansion of natural gas in our buildings is very importantly because as weve seen over the past few weeks, Climate Change is happening even more faster and with more consequences than have been predicted . So with the latest wildfire season and hazard air quality throughout the bay area, its apparent were out of time to waste, and so we really need to pass this ordinance as strongly as possible. Electrification will reduce Greenhouse Gases in homes 30 to 60 , and that savings will only rise as our energy grid gets cleaner . Id also like to note that natural gas is a health risk. As [inaudible] as lung cancer and most respiratory diseases and increases risk from covid19, and we know that electrification is actually cheaper, its better, and its easier to employ, and with this ordina ordinance, itll be easier to put up. [inaudible] the San Francisco Emergency Coalition and other local groups in going to the commission and board. Id also like to read a brief quote from Greta Thunberg to remind us of this crisis. She said i dont want you clerk thank you. Thank you. Next speaker, please. Hello. My name is [inaudible] rodriguez, and im a resident of San Francisco, specifically, district 9, and im calling to share my support in elimination of natural gas in new construction. My wife and i were wanting to start a family, but we are really scared. I dont have to tell you that Climate Change is here, and with all the conditions that weve been dealing with the last few weeks are our new normal, and theres no way of escaping it. Even in our homes, the gas range significantly degrades the air quality inside our homes, so i urge you to pass this through the board of supervisors without further delay. I dont i dont want to sound like an alarmist, but you know, jack, the alarms are already going off, we cant delay our response, and as head of the department of environment said, continued use of natural gas is incompatible with our citys goals. The new ordinance would only apply to new construction, i think you should strongly consider eliminating the feasibility exceptions to electric requirements. Now if you do keep the feasibility determination, any determination should be based on substantial revenues and subject to judicial review. Another thing, because this ordinance only applies to new construction is [inaudible]. Thank you very much for taking the time to address this issue, and i hope you recommend it to the board of supervisors, and i do now with no further adieu, encourage you to pass this item. We need to move fast, act with strong decisions. Thank you very much. Clerk thank you for your comments. Next speaker, please. Hello. Good afternoon. My name is mora mcknight, and i am the executive director of the council for Climate Change based in San Francisco. Its been an honor to are in this hearing today, and i want to thank the board of supervisors and city staff that are leading on this ordinance, especially on the department of the environment during this critical time. Our organization was founded in 2007, and were a membership driven nonprofit as corporate Sustainability Leaders that are championing tangible Climate Action here in this region. Our members are some of the largest employers of San Francisco and collectively, they employ over 750,000 people. This legislation that youre considering today is a really bold step on climate, and i applaud all of the individuals and groups that have worked on this to date. Many of our 20member companies have set Carbon Neutral and netzero goals on emissions by 2050. Were moving towards what i call a moon shot goal. Some of them have set carbon negative environments goals by 2030, and theyre moving towards Carbon Capture and removal technology. I will echo what has been said multiple times today that all of us in the bay area have just been reminded of the very real Climate Emergency that we are in and the disastrous effects for Public Health and for our environment, and especially during the pandemic. The time to act boldly is now, and this legislation is perfectly timed. Our members are leaders in this space, and they have been doing electrification pilot projects here in San Francisco and abroad because they know this is key to meeting our climate goals. Natural gas and the fossil fuel pollutant is 86 times more potent than carbon dioxide. Clerk your time is up. Thank you. We strongly support this legislation. Thank you. Clerk next speaker, please. It looks like we have 39 listeners and 26 in queue to speak. Hello, good afternoon. My name is Danielle Cortez of flat lines. Flat lines is an Environmental Justice nonprofit that serves lowincome communities through San Francisco through air quality monitoring, leadership, and john training, among other work. We support this lejs lakes as serving Environmental Justice, we cant add new plux or emissio [inaudible] in 2019, victoria stafford of flat line was also supportive of your work in last years meeting. [inaudible] we commend the supervisor for following up that decision with extensive action. Thank you for your time. Clerk thank you for your comments. Next speaker, please. Good afternoon, supervisors. Tory smith on behalf of the San Francisco Housing Action coalition in support of the legislation. When this first got introduced, we reached out to the Supervisors Office with a couple of questions, concerns, certainly around the impact on construction for new housing as well as whether or not this would lead to us burning fossil fuels at a different level in the process. The supervisor and jacob in his office came and talked to us and presented at a Member Committee and has already highlighted those concerns were alleviated after having conversations. So happy to be here in support. This is certainly something that we want to see moving forward. Thank you. Clerk thank you very much for your comments. Next speaker, please. Hello. My name is helena berkey, and i live in district 9 [inaudible] and then passing it as soon as possible. Physics doesnt wait. You are concerned about restaurants. Think about whats happened when you have covid, and you cant have people indoors, and then, you have smoke, and you cant have people outdoors. What does that do to the restaurants . Acting on Climate Change is not about acting on chielimate cha, its about acting on peoples health, for peoples safety. Its about acting so that people can continue to have businesses and have them run and have people come. We know that we cant not mitigate Climate Change respectively without going all electric. All electric buildings are the first, easiest step in that direction. You want all stakeholders to have a voice . Think about if there were an earthquake, and because of natural gas pipelines, 1,000 homes burned down . You dont think those tenants and children would want those gas lines back if they could have a safer, cleaner all electric home instead . We are in emergency times. It is not like it was. People recognize emergency, and they want to be safe and healthy. Please strengthen this ordinance, make it so that anything that cant be completely all electric right now must be fully electric ready so that real can swap out the sciences for healthier homes when it is available. Clerk your time is up. Thank you so much for your comments. Next speaker, please. Hello. My name is dave fahey, and i am calling with local 38, the policemeners and pipe fitters plumbers and Pipe Fitters Union of San Francisco. I was a participating member on the citys zero emission Task Force New construction steering committee. We appreciated the opportunity to be part of this ordinance process to date, but we are still not in toting acceptance per our agreement with the ordinance as it is written. With that being said, we understand the need for decarbonization and just as important, renewable gas and sustainability for a smart future. We look forward to the opportunity to continue working on the ordinance prior to its final approval process as the supervisors had mentioned. Specifically, one of the points we dont feel is being addressed is a Just Transition for the workforce, the gas workforce, and the impacts that the ordinance creates on all the workforce that deals with gas, specifically with the covid going on. Along with the holistic approach that we mechanintioneh renewable gas energy and green build methoded, specifically, this new construction ordinance is, you know, the grounds for the future, and the all the effects that it has on the decommissioning of the Gas Infrastructure as it goes forward. So i think if we take a little bit of time and make sure that everybody is totally on board with this ordinance, its the best process moving forward. Thank you. Clerk thank you so much for your comments. Next speaker, please. Looks like we have 37 listeners with 27 in queue. Hello . Can you hear me . Clerk yes. You may begin your comments. [inaudible] im a resident of San Francisco in district 2. I strongly support this ordinance. Natural gas are not necessarily needed in building our homes and building. As a renter here in the city, prohibiting gas in apartments and buildings is stivery import to me. I still have gas in my buildings, and if i used the gas, it would be a health risk to myself and the people near to me, and i wouldnt be able to open the windows. As we move closer to Climate Change, the air quality is going to get worse and worse. Flaubl and [inaudible] its also important to me that this legislation eliminates the blanket exemption for commercial kitchens delaying compliance until 2022. This is not helping by giving builders a pass in making future kitchens all electric. Yeah, that is all. Thank you. Clerk thank you for your comments again. If you would like to make Public Comment on item number 1 today, please call in 4156550001. The meeting i. D. Is 1462832975. Press pound, and pound again. Next speaker, please. Hello. My name is nan foster. Im a resident of district 10 here in San Francisco. Ive lived in the district for 20 years, and i really am im asking you to support this legislation. I think the recent fires and the smoke that weve had from the fires here in San Francisco has made it really clear that we need to do everything we can to reduce Climate Change, and its and we have to protect air quality. Just a little anecdote in our home in the bayview, we recently got one of the purple air monitors. We were shocked to find that even with the windows closed, we had the monitor inside the house, and in the living room, we get up in the morning, and we find out that the air quality was in the unhealthy range in the house with the windows shut, so it wasnt until we put the air purifier on high within a few feet of the monitor, that we had the air quality good, and we have natural gas in our house like most people do. Weve got to do everything we can to protect air quality, and if people are going to have windows closed, its especially important to do everything we can to protect indoor air quality. Especially as we know, asthma and other respiratory diseases are impacted by these pollution, and the interpretation is that the Greenhouse Gas emissions are reduced by 60 . Please pass legislation as soon as possible to do what we can and need in reducing Greenhouse Gas emissions. Clerk thank you so much. Next speaker, please. [inaudible]. Clerk maam, we cant really hear you. Were going to pause your time. If you can if you can speak into the phone. [inaudible]. Clerk thank you. Next speaker, please. Hello. This is elizabeth chant. Im with nrdc, the Natural Resources defense council, and i work with cities around the west on achieving their climate goals. Im also a constituent. I live in supervisor mandelmans district, and i applaud his efforts and all of your efforts on this legislation. Natural gas is dangerous. I personally get the citys text alerts weekly about dangerous gas leaks around San Francisco, and we all remember san bruno. Natural gas is a natural fuel, and much of it naturally comes from fracking, and its possible to get most of this out of our buildings. Its the source of more than a third of San Franciscos carbon emissions, and in this Climate Emergency, we need action, and fast. Natural gas pollutes the air both in our cities and our homes, endangering the residence de residents, as weve heard, children and people with asthma. We urge you to pass this in three ways. All buildings passed with an exemption should be at least passed with electric ready. We urge more public oversight and visibility into exemptions, and we suggest creating a clean Energy Building [inaudible] to coordinate resources and training. Weve all gone through the terrible air quality from california real estates fires, and we all remember the recent day when the air was so dark with smoke, it was like the sun never came up. Clerk thank you for your comments. [inaudible]. Thank you. Clerk next speaker, please. Hello . Clerk yes, we can hear you. You have two minutes. San francisco resident in San Francisco district 2. [inaudible] kind of disruption from covid19 can do to our lives and actually [inaudible] is we have to attach big changes very fast, and they did a great job clerk looks like we may have lost that caller, so lets do this. Lets take note of the caller number, and then, well return to that caller and move onto the next caller. Again, if you would like to make spubPublic Comment, call 4156550001. Enter the meeting i. D. And press pound, and pound again. Press star, three to lineup into the queue. You only have to do this once, and the system prompt will indicate you have raised your hand. When we get to you, it will indicate that you have been unmuted. Sean, next speaker, please. It looks like the last caller was dropped, so if you could call back to get into the queue. Thank you. Thank you to the city officials and workers for allowing me time to comment on this. My name is matthew modine, and [inaudible] in bayviewhunters point called city of dreams. As someone whos had chronic asthma since childhood and bauc watching the challenges of the large number of kids in this program, i strongly urge that you pass this ordinance. The impact of pollution, in particular natural gas, has been established by previous commenters, but id like to comment as someone who worked in the Restaurant Industry for multiple decades. First off, anyone whos gone into a closed restaurant, open it up and see six to eight burners that have been burning on natural gas pilot lights for a sixtoeightmonth closing understands the overturning the ordinance. It is really turning a blind eye to the need. First of all, i know that the supervisors are all really well versed in understanding the difference between constituents and Industry Groups, but i know that much of the opposition to this comes from Industry Groups but are more franchise chain operations that dont include those that have been really thoughtful on the impact, particularly of entrepreneurial food service establishments. And just like the other folks, i hope you consider the [inaudible] clerk your time is up. Thank you. Thank you. Clerk thank you so much. If you have not done so already, please press star, three to enter into the queue. To the caller who had a bad connection, just go ahead and call the number thats streaming on the screen, and well get to you. Thank you. Hi. Is it my turn now . Clerk yes, youve been unmuted. Its your turn. Okay. All right. So i understand that many people have a concern about natural gas, which is of course legitimate, but im kind of confused because this legislation seems to be a ban its not a ban on usage of natural gas, its a mandate requiring all new construction to be to just use be all electric, not just you know, not using natural gas, and and requiring new construction to be all electric. So i the concern is natural gas, why isnt the the proposed legislation just simply a ban on natural gas . I have concerns that this legislation could, you know, limit Consumer Choice and yeah. I just dont understand why theres not simply a ban on natural gas if the issue is natural gas. Thank you. Clerk thank you so much. Next speaker, please. Hello. My name is bonnie joil. I am a resident of San Francisco district 10, and i support this legislation. I have had to be covid tested several times recently because of my reaction tot bad air, and i would like to see that nobody else, including myself, is affected that way in the future. Thank you. Clerk thank you so much. We have 18 callers in queue. Next speaker, please. Youll be notified that your line has been unmuted, and you may begin. Hi. My name is [inaudible], and i live in district 5, and i want to thank supervisors for their work on this, particularly supervisor mandelman in your work that youve done [inaudible] in the last year. I want to support this policy. As many policies have been mentioned, the Climate Change that we talked about so long is here, and the impact is real, and as an avid outdoors person, ive seen a number of places that i know and love have been just absolutely devastated by wildfires this year. Limiting the fuel like natural gas [inaudible] those sorts of changes [inaudible] department of environment last year one of the major contributors to emissions in San Francisco, so i think this [inaudible]. I just want to express my support for the letter written by [inaudible] and other organizations expressing support for [inaudible] some of the opportunities to wiggle out of some of these policies, and we just want to make sure that this policy is effective [inaudible]. Thank you so much for your consideration. Clerk thank you so much for your comments. Next speaker, please. Hi. Are you able to hear me . Clerk yes, we can hear you. Okay. I think i attempted to comment earlier, but my line wasnt working well, so im going to try again. My name is [inaudible] sheer. Im a resident of San Francisco district 6, and a senior medical student at ucsf. Today, im speaking on behalf of Climate Health now as well as physicians for Climate Social responsibility. As medical professionals, we strongly support adopting this ordinance along with the amendments to strengthen it as recommended by the earth justice letter, including requiring all buildings to be fully electric ready and eliminating things like decorative natural gas use. As a future pediatrician, i want to highlight especially the risk to children. The metaanalysis between the child of gas stoves and asthma in between [inaudible] 42 higher chance of asthma. They are well established triggers of lung and Heart Disease for which there is no known [inaudible] level of exposure. Theres also concern that growing exposure to those elements have an increased risk of death due to covid19. Its more crucial than ever to protect the people of San Francisco from harmful indoor air pollution. In addition, worsening wildfire smoke events our major Public Health intervention is cleaning indoor air. The Health Professionals i speak for today are deeply worried about how our children are going to live in the world that we live for them. Clerk thank you. That concludes your time. Next speaker, please. Next speaker, please. Hi. This is [inaudible] jeffrey living stone consulting. Im speaking in support of this legislation and really all decarbonization efforts but across San Francisco, all of the bay area, california, and abroad. I have the pleasure of sitting on the task force for existing buildings while working for a retailer in San Francisco earlier this year before joining [inaudible] consulting, and i just want to echo what the department of environment has already outlined as many of the issues first and foremost, that were in a Climate Emergency, but secondly, to point out that the technologies are available to us today. My firm helps provide a lot of that technology to stakeholders in order to process and meet the ordinance, and i just want to make sure that the group knows from a commercial building perspective through to residential buildings, the if he can technology is more than available to us on this ordinance, and i would encourage that we move forward with the ordinance [inaudible]. Thank you again to the supervisors, the department of the environment, and everybody. Clerk hello. You have two minutes. Hello, supervisors. My name is paul werme, and ive been involved in Climate Change for many, many years, both looking at the industry and in climate environment. First, i would like to endorse the statement from the speaker from the nrdc. I would note the Pacific Energy center has incredible skill in this area. Theyre located on howard street, and could very well be an excellent resource to bring in. Its clear, listening to the answer from the d. B. I. Meeting, these are new technologies, and training is needed to make sure everyone comes up to speed. I am concerned about the the way the instructions are managed. Some things are just blanket okay. If its not part of the water heating or heating systems, it can go in. Any use of natural gas in a building should require an exception process to demonstrate why there is not an acceptable alternative. The number of these cases are rare, but bear in mind, any building built using natural gas for any purpose whatsoever will, as of today, be objecsol in terms of its Energy Systems by 2045, if not sooner, given the stated goals of the state of california through executive orders, through the positions taken by mayor breed, and the growing recognition of the urgency of this matter. Is it really wise to provide exceptions to build any building that will no longer be able to function as intended in less than 25 years . This is especially the case when, for example, there is not face for transformers clerk thank you very much. [inaudible]. Clerk next speaker, please. Youll notified that you have been unmuted, and you may begin your comments. Hello. My name is eric [inaudible] and i am 24 and i live in San Francisco in supervisor mandelmans district. When we talking about the people who are going to be living not only with the consequences of the Climate Crisis, which is exacerbated by natural gas in buildings, but also the people who are going to be living in these buildings, and the people who are going to be living with the consequences of the air pollution that is being locked in, i think others have made the point very eloquently with data that there is a Public Health risk just purely from the effects of the air pollution that is resulting from this natural gas in buildings. The e. P. A. Air pollution limits the air pollution thats produced by natural gas, if it was produced outside, the e. P. A. Would consider it illegal and harmful, and that just i think speaks to the fact that on a pure health basis alone, it should be [inaudible]. Last, i just wanted to thank supervisor peskin for keeping the department of environment honest. Theres been a long history of not listening to marginalized communities, and i think theres been some effort to reverse that. Many concerns that have historically been levelled by allegedly [inaudible] are propaganda from fossil fuel companies. There is a push to get this ban issued at the state level [inaudible]. Thank you so much. Clerk thank you so much. Next speaker, please. Youll have two minutes, and youll be notified that your line has been unmuted, and you may begin your comments. Good afternoon. My name is tom [inaudible]. We know from past experience that transition never happens after the fact. [inaudible] the time to act on it is now, otherwise, itll be just another empty promise. All eyes are on San Francisco for this ordinance, so its more important than ever to do this right. We think theres time to do this right. We urge you to work with local 38 as we move forward. Thank you. Clerk thank you very much. We have 12 speakers in queue, and youll be notified when your line has been unmuted and you may provide your comments. Hi. My name is [inaudible] and i live in supervisor mandelmans district. [inaudible] im calling in support of this ordinance. I want to thank supervisor mandelmans office for moving it forward, and i do want to thank supervisor peskin for [inaudible] i look forward to the leadership of this committee to address these things Going Forward but to stop this from going through. Two weeks to work out the details [inaudible] making sure it does pass and passes as quickly as possible, so thank you. Clerk thank you so much for your comments. Next speaker, please. Hello, caller . Chair peskin caller, please go ahead. Clerk sean, lets return to this caller, and lets take the next speaker. Chair peskin next speaker, please. Hi, commissioners. My name is [inaudible], and im calling in on behalf of sierra club, and im also a resident of district 3. So im calling in today to state our support for the ordinance to stop further building Gas Infrastructure. There are right now 30 cities in california that have adopted Building Codes to reduce their alliance of gas, and really excited to hear that San Francisco is also moving forward. We cannot wait. Gas free buildings should be the standard for new construction because it is technically feasible and ecologically feasible. There is a study that estimates the positive impacts of electrification, and the Study Reveals about a 100,000 increase in electrician whand 4500 in construction jobs when switching to all electric. Im going to ask that the commissioners pass this ordinance with the recommended changes mentioned to strengthen the ordinance . City leadership is really essential, not just for local Climate Action, but also to convince the California Energy commission to require at least for all electric new construction in the next iteration of the statewide Building Code of title 24 . Again, this ordinance cannot wait. Our federal government has already made a lot of environmental roll backs, so we are really heavily relying on local cities to lead the way. Thank you for the opportunity to speak. Clerk thank you for your comments. Were going to take the caller that we didnt hear before this one. Sean, next caller, please. Chair peskin thank you, madam clerk. Hi, can you hear me . My names [inaudible] im a resident of San Francisco living in district 3. I strongly support eliminating gas in new construction. All of us know that San Francisco can lead the state and country in building a better future. As someone who chose to live in the bay area [inaudible] is important because Climate Change is upon us and [inaudible] i dont want to have to teach my children one day that we didnt do everything we could in this city of all places. In the last few weeks, poor air quality on the west coast forced people to stay inside [inaudible] or just not cooking and using appliances. Whats more, Affordable Housing developers know that all electric is healthier, cheaper to build and more reliable [inaudible] so i ask you to please recommend the changes to the ordinance [inaudible]. Clerk thank you. Next speaker, please. Youll have two minutes, and youll be notified that your line has been unmuted. Hi. My name is chris, and im a resident of supervisor mandelman in district 3. There are a number of critical loopholes that are in the Public Interest and its time for the city to close them. [inaudible] you should create a Public Interest exemption process so that developers can prove to the public that the proposed exceptional use is in the Public Interest. Please also amend section 106a d 117. When an exemption is granted, ordinance does not mandate electric ready in every case. Instead, it only requires electric ready as feasible. This is unacceptable to give away to developers [inaudible] with electric ready, you have the power to mitigate [inaudible] asseted and prepare for the future [inaudible] finally, i strongly support establishing a clean Energy Building hub as proposed by poder and others. [inaudible] thank you so much for taking up this important issue and considering the health and safety of our city and climate. Clerk thank you so much for your comments. Next speaker, please. Hi. My name is rebecca parker, and im a resident of district 3 and an attorney on above of justice. I wanted to comment today personally, as well. I dont want to repeat what so many other speakers have reiterated so well, so ill be brief. Our home is on fire and we need to act like it. New construction is the easy part, and adoption of this ordinance will reverberate beyond this city and impact state Building Code standards that are currently under consideration by the California Building commission. [inaudible] thank you for your time. Clerk thank you. Next speaker , please. Youll be notified that your line has been unmuted, and you may begin your comments. Hi. This is erica reinhart. Im a resident of San Francisco in district 7. The Health Impacts of gas in our homes are horrendous. Im the mother of a 2. 5yearold whos new preasthmatic. I strongly recommend that this legislation be passed as quickly as possible not only to help preserve the health of all of our children particularly those in smaller homes where these impacts are felt more acutely, but also to help the climate. As we just saw in the last few weeks, when we were stuck inside, and that same little toddler had to be taken out of San Francisco to allow him to be outside. Its really important that we educate people on on the benefits of these changes. As someone whos also [inaudible] working on electrifying my home, these are all changes that im quite happy about now that i know about, so im urging you to invest in the Clean Energy Hub to educate more residents in their options and we dont consider to invest in poor Energy Structure that will be more expensive later down the road to put in place. Clerk thank you. We have 26 listeners and six speakers left in few. [inaudible] district 6 resident, and i want to say i support this resolution. We do need to switch off of natural gas as a major part of Climate Change and as weve seen with the recent fires, we need to take action now. Theres much more that needs to be done, as well, which should be a major job creator, as well, in converting all of these buildings to natural gas. We need to take action now and ensure that were getting to upgrading the buildings as soon as possible and this is the first step in doing that, so i urge you to take action quickly on this. Thank you. Clerk thank you so much. Next speaker, please. Hi, supervisors. Im dean wilson. Im a resident of San Francisco in district 4, and i strongly support this legislation. It is only a first small step, but it is incredibly necessary to address Climate Change. Im a lifetime resident of San Francisco, and it has been incredibly upsetting to see my home on fire these past weeks, and i would like to encourage the committee and the board to strengthen this ordinance as other speakers and organizations have mentioned. There should not be the feasibility exception to the electric ready requirement, and any exceptions to this ordinance, we must undergo a [inaudible] and not just in the interest of private developers. As well, there should not be the blanket exception for commercial kitchens. This is unnecessary, and it does not help current restaurants, since it only affects current construction. Thank you for your time, and please support this ordinance. Clerk thank you for your comments. Next speaker, please. Hi. This is john anderson, San Francisco resident from district 2, continuing my call. The point was the disruptions caused by the Restaurant Community and the community as a whole, theyre nothing compared to the Climate Crisis. The Climate Crisis is not happening as fast as the pandemic, but the risks are far greater. I mean, the this would be nothing compared to what were looking at. We have the technology for going gas free. All of the barriers are for adaptation adoption, sorry. The longer we wait, the bigger the disruption is going to be. Were in the middle of a housing crisis. Were supposed to be building housing as fast as we can. The longer we wait to implement these restrictions, the more stranded assets the citys going to be stuck with. Weve seen with the pandemic the cost of delay, so i understand the desire for Just Transition, and the consideration, but we cannot delay indefinitely. Its going on two years. Thank you. Clerk thank you so much for your comments. Next speaker, please. Youll have two minutes, and the line will notify that your line has been unmuted or the system prompt, rather. Hello. My name is [inaudible] im a 12year resident and independent Business Owner here in district 9. We all know that the goal of ele electrificati electrification of everybody here in San Francisco and worldwide. Well only have a gas furnace in 2021. So if we can electrify our little 1,000 square foot house to protect the climate on our own dime, we can certainly require forprofit developers and builders to do the same thing. So i urge the Land Use Committee to ensure that this ordinance has as huge [inaudible] as possible. Finally, id like to see this expands to as many buildings as possible. Thank you for your good work. Thats it. Clerk thank you for your comments. Next speaker, please. Hi. My name is jennifer [inaudible] im a resident in district 3 in San Francisco. Speaking publicly is one of the last thi last things i thought i would do, but here i am [inaudible] its important to me as someone is terrified at the effects of Climate Change, the Health Condition for recent por air quality in San Francisco due to the fires ravaging the west coast staying inside with the windows closed. I currently live with my grandparents who have lived in San Francisco for 30 years. [inaudible] of all Vulnerable People in this increasingly hostile world. [inaudible] thank you, supervisors, for taking up this important issue and considering the health and safety of our residents and Climate Change. Clerk thank you. Next speaker, please. Hi. My name is daniel tejar d a. I tejarda. Im going to break from my usually rundown of all the systems that we think need to be improved in this passage. You can read the joint letter [inaudible] and also the hundreds of letters sent by constituents in the last week or so for that. Im just going to tell you a story youve heard a few times but this is my version of it. I moved to San Francisco six years ago having grew up as a Long Distance runner. I now have asthma. The recent poor air quality has confronted me with a future that i cant [inaudible] with the heat wave, my asthma and poor air, i have to run an air purifier and air conditioning to keep my air clean. Heat exhaustion respiratory complications, and trouble sleepgs are just a few of the things theyll be able to look forward to when they do. Every foot of Gas Infrastructure creates a fire risk. Every gas stove we allow for every home thats not electric ready is a child with asthma. Every home built with gas is a heat exhaustion [inaudible] the time being to opt out of these choices has long since passed. [inaudible] were counting on you. Thank you. Clerk thank you for your comments. That completes the queue, mr. Chair. Chair peskin thank you, madam clerk, and thank you to all of the speakers and supervisor mandelman. As i said in the beginning, we are going to land this plane. Weve just got to figure out how to do it. Weve got to figure out how to reach out to a number of communities, and thank you to the comments of the members of this committee, supervisor safai, and supervisor preston. I think in the beginning, the sponsor, supervisor mandelman, asked to continue this for two weeks. I actually think its going to take a little bit longer than that, so supervisor mandelman, i would like to suggest we continue this to october 12, which is only one more week, which really should give us the time, and im doing this in concert with you as it relates to the chaninese chamber of commerce. The revelations around the Building Trades are now as of today, but i think another week would benefit us well, theyre new to me. I had not heard about that before today. As you know, i always seek the truth, so there you go. So having said that, i would like to suggest, with your concurrence, that we continue this three weeks to give us the space and time, particularly as it relates to the Chinese American Community in San Francisco not only in my district in my district, as you know, supervisor mandelman, those issues are pretty solvable, but i think we still have outreach to do, and ms. Raphael, if i pronounced that correctly, acknowledged that outreach did not happen. So that gives time for that, and with respect to the department of the environment, and i meant no disrespect to you or supervisor mandelman, but when youre doing the outreach, and you are getting ahead of the sponsor, your outreach has to be a little bit better and culturally competent. With that, supervisor mandelman, on the notion of extending this item three weeks and let me be clear, were going to get this thing done. The amendments, when they come, are going to be deminimus, but having the respect to do real and meaningful outreach, even when we craft those amendments, is profoundly important. So before i hear from supervisor mandelman, to members of this committee, supervisor safai, supervisor preston, the floor is yours in that order. Supervisor preston supervisor peskin, are you suggesting move the amendments and chair peskin im suggesting we move the amendments as supervisor mandelman has suggested and continue the item for three weeks as opposed to two, and we meet every week. Supervisor safai allegedly. Clerk through the chair, october 12 is a holiday, so the next available meeting after the 12 would be the 19 of october. Chair peskin okay. Allegedly means that october 12 is a holiday. What is october 12 oh, Indigenous Peoples day. Got it. My bad. Then, ill say the 19, and that gives us a month for really meaningful, Robust Community engagement and dialogue. And i dont want to put words in supervisor mandelmans mouth, and i think the conversation that we had with the Chinese Chamber was really productive. I think i was very clear that this is a societial imperative, but we do it in a way that is not embraced by communities, its not going to end well, and thats the work that we have to all do together between now and i will make a motion, subject to more discussion, to take the amendments offered by supervisor mandelman and then make a subsequent motion to continue this october 19. Supervisor preston and i just would be interested to hear about the timeline from supervisor mandelman. My only concern is when we convene, the additional amendments, could be pushing it out far more than a month. Im amenable chair peskin and well first hear from supervisor mandelman. I would imagine that any amendments that were made i wish it were the 12, but the 19 should the committee see fit to adopt the two motions that i already mentioned, they would actually not be substantive, and we can defer to deputy City Attorney pearson, but those amendments would actually make the legislation less onerous, not more onerous. So i believe if we were to say that certain buildings in chinatown, like 772 pacific avenue could rebuild, that would not be substantive. Supervisor preston and with respect, we may be hearing from different folks. You know, im hearing from a lot of advocates who, in recent days, are looking for things to be strengthened in certain ways, and it sounds like you may be hearing from a number of folks who want to narrow things. I frankly have no idea where that lands, and i just wonder if something shorter makes sense, and then further continuances if needed. But again, i would really defer to sponsor and to chair. Chair peskin mr. Sponsor . Supervisor mandelman you know, my my approach has been is we should talk about it with many people as we need to talk about it with as long as we need to talk about it as long as we can get it done this year. Our hope, what our sort of initial commitment to the Environmental Committee last year when we didnt do the ban then and did the electric preference is we will try to get this done in the spring of 2020. Of course conditions intervened, the world changed, and so frankly, i think its been important to take a lot of time at you know, take as much time as we need at the board of supervisors. I do not have a problem with going to the 19 chblt. I suspect there will be amendments that might have to have it go a week or so longer. I dont have a problem with that. Chair peskin supervisor mandelman, in that spirit, and i say as the supervisor for chinatown, that everybody understanding that more amendments, one way or another, theyre not on anybodys particular side are going to happen, and our collective desire it to have this be law as of the first day of 2021, then let me withdraw my newest amendment, which i thought would be helpful, and lets create two weeks of space with a full acknowledgement that were going to create more space thereafter, and that this is an ongoing discussion, and our collective goal and desire for what is truly a societial imperative will be done on or before the first day of january of 2021. So i will withdraw my sorry about the Holiday Concept and go back to your original notion of a twoweek continuance, and lets use those two complicated weeks to try to build that support. So im totally down with two weeks continuance. Thank you, sir. Supervisor mandelman you know, and with regards to some of the other concerns, i think we can solve we certainly can solve the particular location in chinatown. I think we can do something perhaps broader. For some of the other issues that have been raised here, we are of course happy to continue talking with the trades. They have they did, you know, they did participate in the conversations in the spring. They did request by letter, which we can share, if we have not already, with your offices, but they would really prefer that San Francisco wait on the state, and that we take action on a local ban after the state has figured out what it is doing on all electric. I dont think that we should do that, but im happy to continue to talk talking with them and making sure that their feedback has been incorporated to the extent that it can be incorporated in the legislation, again, providing that we get it done this year. Chair peskin so supervisor mandelman, i know we get in trouble for San Francisco exceptionalism, but generally, as goes our city, so goes the state, and occasionally, as the state goes, so goes the nation, so i im not im not waiting around for the state. Im totally clear on that. I think weve got some work to do in our town, in our community with the Chinese American Community, with the Restaurant Community, and with the Building Trades, and yes, everything you just said is true and correct. I do want to say to the department of environment and miss raphael, talking to you, rather than your department and our peoples tax dollars to the elected decision makers, what we need is facts. So relative to facts, if there were the a waiver process for people who want to build restaurants in future new construction at the ground floor, how many b. T. U. S is that going to mean . If you can clarify that, that would be helpful rather than having your staff make the advocacy comments that i found to be remarkably inappropriate. Supervisor safai . Supervisor safai just to add onto that point, what would also be helpful if there was a waiver process for restaurants and new construction and the person that was building the new construction, maybe there was a way to think about offsets for the rest of the building. Maybe theres a way to think about commercial allowances for restaurants, but then maybe the building has another way to offset its environmental footprint because i know natural gas is just punione as of it. Just some other things to think about. I know you guys have put a lot of time and effort into it. Supervisor, im sorry. I know youve made points, but i really want to underscore a point. I have Great Respect for everyone that called in today. I am absolutely committed to our environmental goals and reducing our carbon footprint, and no time more than now. I dont want to lose that in any way, shape, or form, and i support it 100 , but there has to be a conversation. And i know that were talking about a smaller amount, compared to our existing footprint, but i have to underscore that restaurants are a phenomenal part of San Franciscos culture. They are the backbone of our mom and pop businesses. I represent so many of those Business Owners in my district. Many in your district, supervisor peskin, many in your district, supervisor mandelman, and many in your district, supervisor preston. So many of these businesses are all over San Francisco, and we have to take into consideration i will tell you, supervisor mandelman, and i appreciate your acknowledgement that as long as you want many conversations as long as we get through this by the first of the year, in my committee, [inaudible] we got it passed to the full board, and then, it is a unanimous vote, and then, i think the same thing will happen here. Well have multiple conversations, and think were going to lock arms that will put San Francisco at the forefront of the environmental movement, and it will have impact across the state and across the rest of the country. But i dont want to lose that impact. When i say impacts, it impacts the folks in chinatown. It impacts restaurants all over the city, and then, the Construction Industry, well hear more from them. As ive sat in this meeting, ive gotten some opinions from the Construction Industry that the cost doesnt go up, it goes down. Id just like some analysis by going to another construction mode, does it impact the cost of construction because this idea of being able to heat water in a multi a multiunit building, that is an important piece of the conversation. That is something where im not exactly convinced that technology has caught up with our policy demands. Im sure it will, but itll be interesting to have more thoughtful conversation about that, as well. Thank you, mr. Chair. Chair peskin thank you, supervisor safai. Supervisor preston, any last comments . Supervisor preston no. Chair peskin perfect. So let me just say this about that, which is right now, and to the foreseeable future. There are so many restaurant spaces that are serving guests that will be served by this legislation. As we are tea yalking about ne Housing Starts with restaurants down below, a handful may have restaurants, a handful of those may ask to have gas. This is kind of not a really important conversation, but i do want to honor the Chinese American Community of San Francisco, so lets have that conversation. I dont think this is about new Housing Starts, i think its really about having a conversation with the chinese commerce, the chinese benevolent association. That is the conversation that i have, and i know that supervisor mandelman is amenable to that. On the amendments, madam clerk, ive made a motion to adopt that. Madam clerk, can i have a roll call vote, please. Clerk on the motion to amend [roll call] clerk you have three ayes. Chair peskin thank you, madam clerk, and on the motion to continue the item as amended, roll call, please. [roll call] clerk you have three ayes. Chair peskin thank you, madam clerk. Is there any more business before this committee . Clerk theres no further business. Chair peskin seeing none, thank you, everyone, thank you, members of the public, thank you, supervisor safai, thank you, supervisor preston, thank you, supervisor mandelman. And with that, we are adjourned. [gavel] hi. My name is carmen chiu, San Franciscos elected assessor. When i meet with seniors in the community, theyre thinking about the future. Some want to down size or move to a new neighborhood thats closer to family, but they also worry that making such a change will increase their property taxes. Thats why i want to share with you a property tax saving program called proposition 60. So how does this work . Prop 60 was passed in 1986 to allow seniors who are 55 years and older to keep their prop 13 value, even when they move into a new home. Under prop 13 law, property growth is limited to 2 growth a year. But when ownership changes the law requires that we reassess the value to new market value. Compared to your existing home, which was benefited from the which has benefited from the prop 13 growth limit on taxable value, the new limit on the replacement home would likely be higher. Thats where prop 60 comes in. Prop 60 recognizes that seniors on fixed income may not be able to afford higher taxes so it allows them to carryover their existing prop 13 value to their new home which means seniors can continue to pay their prop 13 tax values as if they had never moved. Remember, the prop 60 is a one time tax benefit, and the Property Value must be equal to or below around your replacement home. If you plan to purchase your new home before selling your existing home, please make sure that your new home is at the same price or cheaper than your existing home. This means that if your existing home is worth 1 million in market value, your new home must be 1 million or below. If youre looking to purchase and sell within a year, were you nur home must not be at a value that is worth more than 105 of your exist egging home. Which means if you sell your old home for 1 million, and you buy a home within one year, your new home should not be worth more than 1. 15 million. If you sell your existing home at 1 million and buy a replacement between year one and two, it should be no more than 1. 1 million. Know that your ability to participate in this Program Expires after two years. You will not be able to receive prop 60 tax benefits if you cannot make the purchase within two years. So benefit from this tax savings program, you have to apply. Just download the prop 60 form from our website and submit it to our office. For more, visit our website, sfassessor. Org, thanhello, everyone. The meeting will come to order, this is the rescheduled budget and finance committee meeting. Im sandra lee fewer, the chair, and im joined by supervisors walton and supervisor handelman. I thank the sfgovtv for broadcasting this meeting. Madam clerk, any announcements . Clerk to protect the Board Members and the employees and the public, the board of supervisors legislative chamber and Committee Room are closed, and they will participate remotely. This precaution is taken pursuant to the local and state and federal orders, declarations and directives. The Committee Members will attend through Video Conference and participate in the meeting to the same extent as if they were physically present. Public comments will be available on each item on this agenda and both channel 26 and sfgovtv. Org are streaming the number across the screen. Each speaker is given two minutes to speak. The opportunity to speak during the Public Comment period are available by calling 1 415 6550001, again, 1 415 6550001. And meeting i. D. , 146 892 6687. Again, 146 892 6687. And then press pound twice. When connected you will hear the meeting discussion, but you will be muted and in listening mode only. When your item of interest comes up, dial star, 3, to be added to the speaker line. And the best practice is to call from a quiet location, speak clearly and slowly and turn down your television or radio. Alternatively you may submit Public Comment in the following ways, email to myself, the budget and finance committee clerk, and if you submit Public Comments via email it will be forwarded to the supervisors and it will be included as part of the official file. And finally items acted on today are appearing on the board of supervisors agenda of september 22nd unless otherwise stated. Chair fewer thank you very much. Call item 1. Clerk item one, the resolution levying property taxes at a combined rate of 1. 19 on each 100 valuation of taxable property for the city and county of San Francisco, San Francisco, unified school district, San Francisco county office of education, San Francisco Community College district, Bay Area Rapid transit direct, and the bay area air quality district, and establishing a passthrough rate of. 7 cents per 100 of the assessed value for residential tenants pursuant to administrative code, chapter 37, for the fiscal year ending june 30, 2021. To difPublic Comment on this item, call 1 415 6550001 and meeting i. D. , 146 892 6687. Then press pound twice. If you havent been so, please dial star, 3, to line up to speak. A system prompt will indicate that you have raised your hand, wait until the system indicates that you have been unmuted and then begin your products. Chair fewer we have the property tax manager from the Controllers Office, and also michelle from the Division Director of the Controllers Office. Mr. Whitaker, you have the floor. Good morning, thank you, chair fewer and supervisor mandelman and supervisor walton. The teams software is telling me only meeting organizers and presenters can share. I have a couple of slides. Clerk madam chair fewer we are not seeing it on the screen. Madam clerk, can you assist. There we go. Thank you. This sets the secured property tax rate for 20202021. It also establishes the tenant passthrough rate. So the slide that im showing now has the last several years. Property secure property tax rates at the bottom is the proposed property tax rate for 20202021. And the first column there is the prop 13 base rate which is set by prop 13 from 1978, so 1 is the set base rate. The next column over is San Franciscos general Obligation Bonds tax rate. This is the tax rate that we need to charge in order to raise revenue to pay for voter approved general Obligation Bonds issued by the city and county of San Francisco. The rates are. 1197 . Under the. 12 cap that we try to manage our debt service to stay under. The next column is the general bond tax rate factor for the general Obligation Bond that service for the school district, city college, and bart, San Francisco is one of three counties that pay property tax towards general Obligation Bonds issued by the Bay Area Rapid transit district, Alameda County and conta costa county are the two other counties. So the combined secured property tax rate that is proposed is 1 1. 19846368, if you are curious why theres so many darned decimals, we have a new property tax system that we just rolled out in july with the treasurer and tax collectors office, and the state controller actually has us distribute funds based on eight decimal precision tax rate factor but our property tax system that we just replaced only went out four decimals so thats why theres a difference there. For a median value residential property, which is very different from or median assessed value, i should say, which is very different from the market value in San Francisco, this tax rate will increase the portion of the tax bill by about 248 in 20202021. That is all that i have to present. I welcome any questions. Chair fewer thank you very much. Can we hear from the b. L. A. , please. Yes, chair fewer and members of the committee, Sandra Campbell from the legislative analyst office. The proposed resolution as mr. Whitaker states, approves the tax rate for fiscal year 20202021, and mr. Whitaker summarized the 1. 8cent increase in the property tax rate per 100 of assessed value for all taxing entities in the year. We show on page 4 of our report, we get the detail on the taxing entity and on page 5 of our report we show the increase in the rate to a property tax of a Residence Owner assessed at 590,000. And we estimate based on that increase to be 66 specifically. We recommend approval. Chair fewer thank you very much. Any comments or questions. Open it up for the public queue. Clerk yes, madam chair. Operations, please let us know that there are callers that are ready. If you have not done so, please press star, 3 to be added to the queue. Wait until the system indicates that you have been unmuted. Let us know if theres any callers for item number 1. Madam chair, there are no callers in the queue. Chair fewer Public Comment for item one is closed. I make a motion to move to the board with a positive recommendation. Could i please have a roll call vote. Clerk yes. On the motion [roll call] you have three ayes. Chair fewer thank you very much. Madam clerk call item number 2. Clerk item 2, a resolution approving the sheriff offices home detention and Electronic Monitoring Program rules and regulations and approving evidence of financial responsibility demonstrated by program administrator, sentinel offender services, l. L. C. , for fiscal years 20202021. For those who wish to provide Public Comment, call 1 415 6550001. Meeting i. D. , 146 892 6687. Then press pound twice. If you have not already done so, please dial star, 3, to line up to speak. Our system will indicate that you have raised your hand and wait until the system indicates that you have been unmuted and you may begin your comment. Chair fewer thank you very much. This was continued from our last meeting, but as the request of the sheriffs office, i am going to make a motion to continue this item until september 30t september 30th. And so any comments from my colleagues at all . Seeing none, lets open up for Public Comment. Thank you very much. Clerk yes, madam chair. Operation is checking to see if theres any callers in the cue. Let us know if there are callers that are ready. If you have not done so, press star, 3, to be added to the queue. For those already on hold, please continue to wait until you are prompted to begin. Are there any speakers for item number 2 . Madam chair, there are no callers in the queue. Chair fewer thank you very much. Public comment is now closed and i make a motion to move this item continue this item to the meeting of september 30th. Clerk on the motion [roll call] you have three as. Chair fewer thank you very much. Call item number 3. Clerk yes, item number 3, the resolution authorizing adoption of the San Francisco Mental Health services act threeyear program and expenditure, integrated plan, for fiscal years, 20202023. Members of the public who wish to provide Public Comment on this item should call 1 415 6550001. Meeting i. D. , 146 892 6687. Then press pound twice. If you have not already done so, please dial star, 3, to line up to speak. A system prompt will indicate that you have raised your hand and wait until the system indicates that you have been unmuted and you may begin comments. Chair fewer thank you very much, madam clerk. So we have teresa yu and Jessica Brown here. And marlo simmons, alyssa zackariah, is that how you pronounce your name from the department of Public Health. We have a whole team here. The floor is yours, miss brown. Great. Hi, thank you, thank you, supervisor fewer. Im going to actually pass over to teresa yu and shell conduct the presentation for us and well be here to answer any questions that you may have. Go ahead, teresa. All right, good morning. Good morning, chair fewer, supervisor walton and supervisor mandelman. Im teresa yu and until very recently i was filling in as the interim Mental Health services act director, and im currently assisting to comanage to the end of october. And im here today to present you our San Francisco Mental Health services act fiscal year 20202023, threeyear integrated plan. The purpose of todays presentation is to present to you the plan for implementation and its not a budget request for the various components. As the budget request takes place in the broader behavioral Health Services budget approval process. This plan is required in order to access the funding from the state and like previous years it was developed in collaboration with Mental Health consumers and stakeholders. Its posted for 30day Public Comment from february 6, 2020, through march 9, 2020. And presented to the San Francisco Behavioral Health commission at a public hearing on may 20, 2020. The legislation requires that stakeholder develop plans to be adopted by the board of supervisors prior to submission to the state, which is why the department is seeking board approval today. As you know, behavioral Health Services offers a full range of special team behavioral Health Services provided by a culturally Diverse Network of community Behavioral Health programs and private psychiatrists and psychologists and therapists. Mental health and Substance Use Services Include outpatient treatment and inpatient treatment and linkage services, and a large array of more specialized treatment services. And the services are available to residents of San Francisco who receive medical benefits. And the health plan benefits, and to residents with limited resources. M. H. S. A. Is one of the funding streams that supports the behavioral Health Services and represents about 9 of its total funding. Mhsa funding is found throughout the Behavioral Health system and supports b. H. S. Functions, including full Service Partnerships, transitional age programs and our Access Center and our office on equity, social justice and multicultural education. And its a component of the overarching efforts of Mental Health h. S. And it may change as Mental Health h. S. Rolls out. The Mental Health services act was enacted through a Ballot Initiative in 2004 and enacted into law in 2005. It provides funding to support new and expanded county Mental Health programs through a tax on personal income over 1 million. The Core Principles are cultural competence, community collaboration, client consumer and family involvement, integrated Service Delivery and wellness and recovery. And it specifies five components with San Francisco further breaks down into seven service categories. These are Community Services and supports, which includes full Service Partnership programs and other programs improving the Mental Health Service Delivery system for all clients. Such as recovery oriented treatment, peertopeer services and locational services and housing for f. S. P. Clients. Innovation funding tests creative Mental Health practices and approaches that contribute to learning. Prevention and Early Intervention funding identifies risks early on, prevents worsening of Mental Illness and promotes public outlooks. It funds outreach, identification and linkage. Workforce education and training identifies gaps in the workforce, increases the workforces cultural and linguistic capacities and educates consumers. And finally, capital facilities and Technology Needs include renovation of administrative and Service Facilities owned by the city, modernizes the information system, and provides access to Health Records to consumers and family members. San francisco and m. H. S. A. Funds 84 programs and in fiscal year 20182019, served around 50,000 individuals. And here you will see the breakdown of the programs by type and the number of programs of each type. Some of our larger programs are populationfocused programs, of which we have 15 Mental Health promotion and Early Intervention programs, of which we have 14. And full Service Partnership programs. And peer programs. Both at 12. And due to the revenue coming from an income tax on personal income over a million dollars, we are always planning for the volatility that comes with the highs and lows of the economy. In this slide you can see how on the state level the funding amounts greatly vary from yeartoyear. County funding is based upon a fixed formula that is determined by the state and based upon the population size. This slide shows San Francisco funding specifically landing between 22 million to 38 million. Theres a twoyear excuse me theres a twoyear delay with funding and projections for budget cuts from the state due to the effects of covid that have been as high as 20 , starting in fiscal year 20222023. However, if we operate conservativetively were hopeful that we can maintain services and plan on growing at a conservative rate given funding availability. And in addition theres a required prudent reserve that each county must maintain, which would likely would be accessed if needed. And theres been extensive outreeoutreach communities to he stakstakeholder feedback to guie the threeyear integrated plan. In 2019 we hosted 19 Community Engagement meetings. Over 430 individuals participated. And some of the participants included local veterans, transitional age use, and the lgbtq plus community, law enforcement, Maternal Health providers and the department of equity from sfdph, among others. And our black African American and latinox communities. New Mental Health act projects implemented within the last few years are shown on this slide and these have already been approved by the board, but were providing an update on these projects. So the first project are technologybased Mental Health solutions, involve 24 7 peer chat application. And we have recently partnered with our consumerled organization, Mental Health association of San Francisco, to look into planning and implementing this program. Which will focus on socially isolated transgender adults. And the middle three programs which focuses on the latinax immigrant use and programming and intensive Case Management and outpatient transition support which provides a peer linkage team and wrap around services and a warm handoff and more intensive level of services to outpatient services. And wellness in the streets, which is a roving support team of formerly homeless peers providing manualbased and evidencebased interventions. These programs have started and theyve been up and running. Many of them have adapted slightly to covid, moving online. The first one is moving to working with 10 schools to actually to focusing on one school because of the difficulties of partnering during this time with schools. And our last project listed on this slide, the Online Learning and Management System, that the contracts have been finalized and we will be starting the Staff Development opportunities that will increase the access and the opportunity to have Staff Development throughout the Behavioral Health systems. And that will be beginning in this fiscal year. We also wanted to provide a short update about no place like home which repurposes statewide emergency funds and will provide california with 2 billion bond for the construction and the rehabilitation of permanent Supportive Housing for Homeless Individuals with severe and persistent Mental Illness. That includes those who are chronically homeless and at risk of chronic homelessness. And these bonds are repaid by funding from the mhsa fund. And San Francisco mhsa is projected to receive about 100 million in total over the course of the project. Roughly encompassing 500 no place like home units. And the units are projected to be completed by 2021. The city and county of San Francisco departments that are leading this project are the Mayors Office of housing and Community Development, and h. S. H. Were asking the board to allow and to continue programming as previously approved by the board, such as with those previous projects, with one addition being this new Innovation Project for black African Americans. And the funding is required to go towards the Innovation Projects which are pilot projects that can be no longer than five years. Innovation projects go through an intensive Community Feedback process, including local approval. And once we have board of supervisors approval for this Innovation Project we will seek Mental Health services, oversight and Accountability Commission approval before we can begin expending the innovation funds that the county already has available. This program would be partly funded by innovation funds that are subject to reversion at the end of this fiscal year. This project in particular would be for the maximum of five years, and it will have a total budget of 4. 2 million. It will focus on the development of culturally Congruent Services for black African American populations. And this slide highlights the projects learning goals, which include a Community Needs assessment, new outreach and engagement practices, culturally adaptive practices and interventions, using peers with lived experience to provide support, and a wellnessoriented life curriculum that could be used with other populations and a network of trained staff that will be leading training sessions. This slide lists the key components of the program, which include pilot sites possibly be south of market Mental Health, mission Mental Health clinic and omhi mental system. And well partner with the Community Organizations serving individuals from neighborhoods, including bayview, hunters point, phil mormore, and south f market area, downtown, etc. And well begin the process of hiring Behavioral Health staff that demographically represent the black african American Community and those who have expertise in culturally responsive intervention. Well be testing out culturally congruent interventions, and also do engagement and outreach with churches and barbershops to provide Mental Health promotion. We may be looking into certain subgroups as listed here and evaluation like with all of our Innovation Projects will be a critical component of this project. Some of the projected client outcomes include increasing feelings of personal value or selfworth, increasing quality, reducing utilization. For example, the Emergency Department visits, hospitalizations. Increasing the Community Engagement, satisfaction with intervention strategies, and satisfaction with outreach and engagement strategies. And this places a strong emphasis on Program Evaluation across all of the components. Over the past years we have worked hard to enhance our monitoring and evaluation expertise in order to effectively meet the objectives of what we need for our program. And here in this slide you can see some 20182019 fiscal year performance highlights such as from our full Service Partnership programs. Where we saw an 86 decrease in expulsions for children and youth. And 90 decrease in Mental Health disorder emergencies. And 83 of our students receiving reduced schoolbased programs, reduced chronic absenteeism in the trauma and recovery program. And 100 of our First Impression vocational construction programs, with an improvement in development of Work Readiness skills. And also just wanted to mention the success of our peertopeer support services, which when we had a recent mhsa audit from dhcs, they specifically highlighted the success of our peer programs and called it a model where we have now gone to 352 peer specialists that are currently employed through our b. H. S. System. In closing we respectfully ask that you approve our 20202023 Mental Health threeyear integrated plan. And we thank you for your time. And please let us know if you have any questions. Chair fewer thank you very much. Colleagues, any questions or comments for the presenter . Im hoping that my queue works. If my queue is working, please give me a shoutout. I actually have a few questions from the presentation. So i wanted to know, are any of your programs language specific . Meaning, that are you giving services in multiple languages . Yes. We do have multilingual programs that employ multilingual peers and staff. Some examples are our newly funded Innovation Program forte, which provides psycho analyst help in spanish. And we have our populationfocused program that includes programs that provide services in spanish and asian languages as well with our asianpacific islander and Mental Health collaborative. Chair fewer so the languages are spanish and then cantonese and mandarin, vietnamese, is that what im hearing . Yeah. We have multiple languages that are covered in our a. P. I. Mental health collaborative. And most recently were expanding programming to the mongolian populations and definitely chinese, mandarin and cantonese capabilities in different programs. We have vietnamese, um. Chair fewer how about arabic . At this time we dont im not aware of us having arabicspeaking capabilities, but our forte program is specifically looking into also providing culturally specific projects to that community at the request of schools. And seeing the great needs that are in that community. Theyre very similar to our latinax newly arrived population. Chair fewer so i think that whether i was on th when il board there was a great need to have mental and behavioral Health Services for arabicspeaking services that came for women, quite frankly, and that had experienced a lot of trauma in their homeland. When they came here, sfsud, did not have the expertise actually to serve them in their language. And culturally too. So thats why i ask. And then another thing is, you know, we have been hearing from s. F. U. With the Mental Health providers that there arent any beds, Mental Health beds, for High Schoolers or middle schoolers. Is that correct . And are those programs actually including that . I think that maybe i could ask marlo if she wants to speak around the beds. But i wanted to just mention that we do have a peer in the tenderloin that does services in arabic. And weve also heard a lot of feedback around those needs in the school settings. So thats why we are looking at developing forte is just one initial program that were doing. So the latinax youth, but were definitely creating a manual that could be that could be used with other populations, including arabicspeaking populations. Chair fewer great. And we have High Schoolers. The childrens beds for the under18 has been identified by our system as one of the most pressing issues that we need to take on. So theres a wide issue, a regional issue, so we started to talk about partnering with other counties. And theres conversations happening but, unfortunately, i dont have any hopeful news at this point. But it is definitely a need. Chair fewer okay. So im glad that its on your radar. And then another thing is that do you in your plan have any funds or resources to help build the professional capacity of your Program Providers . I think that sitting on this Budget Committee we have heard in the past of certain programs that serve vulnerable populations and Mental Health needs. I think that the one that comes to my mind is the one in the philmore that they actually had to reduce their capacity because they werent able to serve so many, even though they actually could i mean, and they were you know, one of the few Service Providers for African Americans with Mental Health for Mental Health services. So i just wanted to know if there was any funds or resources, or do you do that, to help the capacity of these organizations to provide more programming for more people . Anyone . Yes, maybe i can speak on that one. We do have Workforce Development team, and within mhsa funding we do have workforce and Education Development funding sources. The component that is specific for Workforce Development which helps to provide staffing for mhsa programs. It also provides training and Supportive Services for staff themselves. We are also asked by the state, mhsa, to provide an assessment on our own capacity to deliver services that are being asked by the community. As you saw we have a very Robust Community Program Planning Effort Initiative to collect data and information from the community, what they would like to see. But then we also have to then do an assessment on ourselves to determine our own capacity to implement what is being requested. So we have actually done that recently and turned it into the states in february of this past this past february. Does that answer your question . Chair fewer yes. Miss brown . I wanted to add thank you, charlie. Were partnering with the bay area Regional Committee to do loan assumptions for therapists, because the need is that we do have a disparity, especially with we talk about black and African American therapists within our system to provide services for these communities. So were partners with Alameda County and santa clara, all of the regional counties, to do a loan Assumption Program through the state. So thats another component of mhsa as well. And also the Online Learning Management System that i mentioned that is a newly funded program for this fiscal year is also providing its support to the c. B. O. Staff as well within the Behavioral Health system. It has a wide range of professional Development Training within that. And as charlie was mentioning, thank you, charlie, we do a lot of support through our Workforce Development programming, including one project that is supporting building curricula for populationspecific therapists. And also working with the San Francisco state university, and eastbay, which have academy we have a street Violence Intervention Prevention academy and community Mental Health academies for providers. Chair fewer okay. And we do spaces for the feature as well. So for those in high school that are looking into health professions, we also provide funding for the future there. And the program is i think in oakland that expanded to San Francisco for young people to get into health areas. So mhsa funds that program as well at the pipeline. Chair fewer because there are already Health Academies, are are partnering with those Health Academies . Im wondering are we partnering with their Health Academies . Yes. Yes. Yes. Chair fewer the students are concerned, many percent of those students are students of color, and a large majority of them already have bilingual skills. I think that is something that were going to really need. And also when you have your presentation about shared groups and from learned experience, actually, i think that, you know, this is a really great opportunity, not only for our youth, to actually tot to get ia growing field that is professional. And also to serve the residents of San Francisco. I agree. Yeah, we partner with don oconnor and bart high school. Chair fewer indiscernible . Yes, yes, yes. Chair fewer thats great. Okay, colleagues, any comments or questions . Theres no b. L. A. Report on this. So we today are approving a plan that would go on to the board for final approval, is that correct . Okay. So after we have a look see at this point, now that ive seen the powerpoint and were going into more indepth, i was thinking if we wanted to make any changes, if we saw that, for example, supervisor mandelman saw that there was a gap somewhere or one piece that was missing, is this the place at the board that we would have the opportunity actually to insert something that if we felt and you agreed with, that maybe should be in the plan that wasnt would the full board or we have to do that at committee here . Jessica, do you mind if i respond to that . Go ahead, marla. Sorry. So the legislation has a very has very specific language and requirements around Community Engagement process. And so if we were to make any changes at this point to the plan, then we would need to go back and kind of restart the Community Planning process not that we couldnt do that if you saw something glaring. What i would ask if you are seeing things that arent there, that we really talk kind of at the b. H. S. Level, right. Because mhsa is one piece. And the Mental Health s. F. Theres so many exciting things that are happening that complement. So i would imagine that we could find a way to address some of the gaps. Chair fewer okay. So wed love to talk with you about it, but i wanted to put that concern out. Chair fewer sure. And then i have one last question on the last page of your powerpoint, matt, thank you, but the one before you gave percentages. Do you have actual numbers of clients served . Yeah, sure, we can get that for you. Are you looking for actual numbers related to those percentages . Chair fewer yeah. Okay, definitely can do that. Chair fewer i think that well, i think that the actual numbers are really important to be able to see the breadth and the width of how many people we are actually serving. I think that the Success Percentage rates are great, but i think that, you know, are we talking about a hundred people or talking about five people, i think that is a really big difference. So if we could get that, that would be great. Lets open it up for Public Comment now. Madam clerk, if you dont mind. Clerk yes, madam chair. Operation is checking to see if theres any callers in the queue. Operations, please let us know if there are callers that are ready. If you have not already done so, please press star, 3, to be added to the queue. If youre on hold, wait until the system indicates that you are unmuted. Operator, let us know if theres any callers to comment on item number 3. Yes, i have one caller in the queue. Chair fewer okay. Lets hear from the caller, please. Caller thank you, madam chair. Good morning, lady and gentleman. I oppose this resolution. The certificate of mar marlo sis stating that the institutions section 584 5848 complied with s false. No public hearing was held on may 20, 2020, no hearing was held because the Behavioral Health commission did not meet. The commission did not meet because there was not a quorum. There was no quorum because and the board of supervisors records will show that. Only three people were appointed to the commission at that time. While two of the three were present on may 20th, 2020, this was not the quorum. The Commission Bylaws enforced at that time state as follows article 4. 3. D as in david, and i quote, a quorum for a full Board Meeting is always nine members. Per the San Francisco administrative code which states that the quorum is 51 of the number of members designated by law, rather than the number of seats actually filled. And the code charter section 4. 104, end quote. It cannot be disputed that nine members were not present on may 20th, 2020. There was no hearing. The commission did not meet. And the section code 58. 48 was not complied with. And miss simmons certificate is false. Therefore, the resolution should be rejected. Back to you, madam clerk. Chair fewer thank you very much. Any more callers in the queue . Madam chair, that completes the queue. Chair fewer Public Comment is now closed. So i did have this i did have a question did this plan have to be approved by the San Francisco Health Commission . No it gets presented but its not required to be approved. Chair fewer okay, great. indiscernible correct me if im wrong. Correct, youre right. Chair fewer okay. So we do have as we mentioned before, that the Public Comment, anyone could give comments on any revisions or edits that need to happen. We also work with the Mental Health board for this plan as well to get their approval. indiscernible after i went off for maternity leave. So it does have a lot of oversight which is getting involvement from our Mental Health above. Chair fewer okay. Thats great. Supervisor walton. Supervisor walton thank you, chair fewer. And my question was also going to be in line with yours, but i did want to know, even though approval is not required by the Health Commission, did you receive a lot of feedback during the 30day Comment Period . And what was your process for letting folks know that you received comment and some of the feedback . Yeah, we did receive several comments and each of those comments were responded to. And maybe charlie, what you would know other changes that were made to any of those comments . Yes. Several changes were made due to those comments and we did include a summary of the changes that we made in the report that you all have with the board. Chair fewer thank you very much. Any other comments or questions from my colleagues . Seeing none, i just wanted to mention is that i the reason that i asked also about language capability and, you know, having i mean, supervisor walton and i have been we have served on the San Francisco High School District school board, of course, and so we have heard constantly about the need for cultural competency when giving providing these types of services. I think that in my own community, is that the issue of Mental Health is not something that i think that is readily accepted or people are even open to. It is actually not spoken about, and yet there is great, great need. Because we know that these are communities that are also under a lot of stress and actually when you culturally are you dont have an opening to actually seek help or have people to understand it, i think that a lot of times we miss a lot of people that would be could be helping. Thats why i mentioned it. And thats why i also mentioned about arabic speakers, because we do have that need in our school districts. We thank you for that, because as you had mentioned with mhsa, the great thing about mhsa is that it can basically expand upon the legacy of the Mental Health s. F. And the mhsa and the work they have done in the community. We are able to reach out to vulnerable communities as one of our guiding principles. Its what we live by. We really focus on wellness to recovery. Our goal is not to just get people into treatment, our clients into treatment, but also to help them to live whole, holistic, healthier lives. So it is extremely important that we make sure that our programs continue to be culturally adaptive and responsive. And, again, the great thing about mhsa is that we can put forward an Innovation Project to reach the community that has been neglected. As were doing right now with our African American intervention proposals. So we really appreciate that feedback and that insight because it is something that we stand by as far as ensuring is that we are reaching all communities and ensuring they have optimal health, especially with Mental Health. So thank you, chair fewer. Chair fewer thank you so much. I have been very concerned about black Maternal Health also and im glad to see that on your list too. When we look at our infant mortality rate it starts before pregnancy, its about the whole body. So, anyway, thank you very much. And id like to make a motion to move to the board with a positive recommendation. Could we have a roll call vote, please. Clerk yes, on the motion. [roll call] there are three ayes. Chair fewer thank you very much. Madam clerk, call item 4. Clerk item 4, the resolution retroactively approving a First Amendment to the contract between the city and allied universal security for the provision of the contract for a total amount not to exceed 17. 2 million to commence on july 15, 2020, and to revise the term end date from 60 calendar days after expiration of the local emergency as declared by the mayor or his designee to december 31, 2020, for an amended Agreement Term of april 1, 2020, through december 31, 2020. Members of the public who wish to provide Public Comment call 1 415 6550001. Meeting i. D. , 146 892 6687. Then press pound twice. If you have not already done so, dial star, 3, to line up to speak. A system prompt will indicate that you have raised your hand and wait until the system indicates that you have been unmuted and you may begin your comments. Chair fewer thank you very much. We have our guest from the Human Resources agency. I am elizabeth mulen, from the office of contract management at h. S. A. The agency is requesting approval of the resolution amending the contract with allied universal Security Services for the rovision of 24hour, sevendayaweek unarmed Security Guard services through the pandemic at various hotel sites throughout the city. The term was april 1, 2020 through july 15, 2020. And the original not to exceed amount was 9,333,840. With this amendment, we are we seek to expand the term from july 16th, 2020, to december 31st, 2020, in the increased amount of 7, 888,248. For a new total nottoexceed amount of 17,222,088. This contract with the emergency procurement under the administrative code 2115. Im happy to answer any questions that you have and also theres additional staff available as well. Chair fewer i understand that there are no general fund moneys for this. This is completely reimbursable, is that correct . I think part of it is general fund money and most of it will be reimbursed by fema. Chair fewer okay. Supervisor walton . Supervisor walton thank you, chair fewer. Do we know how many San Francisco residents are employed through this contract . Or if theres any kind of local hire plan that the contractor has in place to make sure that our residents are working . I dont have the details of who exactly is employed at the agency. I can tell you the agencies that we have contracted with, but i dont have that i can get it to you. Supervisor walton i would just definitely appreciate to know that information there, if were going to be contracting with companies, they should be making sure that our residents are employed. Thank you. Chair fewer supervisor walton, would you like to have miss leone come back next week with that information or do you feel comfortable voting on this particular resolution today without that information . Supervisor walton are there any timeline constraints, miss leone, if we continue to next week . No, we are eager to get this, because we already have extended already. indiscernible so there are outstanding payments. But other than that concern, no. Supervisor walton chair fewer, i think that we should continue so we can get that information. Just so we can also get the departments in the habit of collecting this information and knowing what theyre getting from these contracts. Thats not a problem. Chair fewer thank you very much. Can we hear from the b. L. A. , please. Yes, chair fewer and members of the committee, so this resolution approves the First Amendment to an existing contract between h. S. A. And allied security. Its in july to december of this year. And the increase of 7. 9 million to 17. 2 million total. We show the uses of funds on page 11 of our report. This actually is funded to our knowledge by both fema reimbursements and cares act fund. Expenditure by site for the demand is on page 12 of our report. And i think that a point that wasnt mentioned in the presentation is that the agency gets to select new providers through a competitive process and are in the process of negotiating new contracts. We do recommend approval. Chair fewer thank you very much. Lets open this up for Public Comment. Clerk yes, madam chair. Operation is checking to see if theres any callers in the queue. Operations, please let us know if there are callers that are ready. If you have not already done so, please press star, 3, to be added to the sciew. Queue. Wait until the system indicates that you have been unmuted. Let us know if theres any callers who wish to comment on item number 4. Madam chair, there are no callers in the queue. Chair fewer thank you very much, Public Comment for this item is closed. Supervisor walton, would you like to make a motion . Supervisor walton yes, i move that we continue this to next weeks Budget Committee meeting so that we can get information on employment demographics in terms of residency from this contract. Chair fewer thank you very much. Madam clerk, can we please have a roll call vote. Clerk yes, on the motion [roll call vote] doctor three aye therthere are. Chair fewer call item 5. Clerk resolution approving the terminal 3 boarding area f news and multiconcept retail store lease between m. R. G. San francisco terminal 3, l. L. C. , as tenant, and the city and county of San Francisco, acting by and through its airport commission, for a term of seven years with two oneyear options to extend and a minimum annual guarantee of 750,000 for the first year to lease. Those wishing to give Public Comment call 1 415 6550001 and meeting i. D. , 146 892 6687. Mea system prompt will indicate that you have raised your hand and wait until the system indicates that you have been unmuted and you may begin your comments. Chair fewer thank you very much. We have deana from the San Francisco international airport. Oh, youre on mute. Good morning, thank you so much. I told myself i wouldnt do it, and i did it. Chair fewer all of us, yeah. With the airport. The airport is seeking your approval for a retail store lease in terminal 3 with m. R. G. San francisco l. L. C. , for a lease term of seven years with two oneyear options to extend. M. R. G. San francisco l. L. C. Is a partnership with two locally based femaleowned Small Businesses. Merchandising American Incorporated and travel while holdings. Rent is the greater of the percentage structure or a guarantee of 75,000. However, the lease contains the provision that suspends if its below 80 of 2018 levels for three months. If that occurs m. R. G. Pays Percentage Rate that may be lower than the max. And its reinstated in the employment is back to at least 80 of 2018 levels for two consecutive months. We have reviewed and recommends approval but im happy to answer any questions that you may have. Chair fewer thank you very much. Could we hear from the b. L. A. , please. Yes. The proposed resolution as note side approving a new sevenyear concession lease with m. R. T. In terminal 3. And two oneyear options to extend. The minimum guaranteed rent is 750,000. And our report summarizes the lease terms. The expected max over the initial lease term would be approximately actually over the nineyear term is 6. 7 million. But as noted its the airport policy to have employment below 80 of the 2018 levels, the airport expects to get percentage rent in the beginning of the lease which is less than the max. But because this is Standard Airport policy and its been reviewed by the board and so we recommend approval. Chair fewer thank you very much. Seeing no comments or questions from my colleagues, can we open this up for Public Comment. Clerk yes, madam chair. Operation is checking to see if theres callers in the queue. Operations, let us know if there are callers that are ready. If you have not done so, press star, 3, to be added to the queue. For those on hold, please wait until the system indicates that you have been unmuted. Let us know if there are any callers to comment on item number 5. Madam chair, no callers in the queue. Chair fewer Public Comment is closed on item number 5 and i would like to make a motion to move to the board with a positive recommendation. A roll call vote. Clerk on the motion [roll call] there are three ayes. Chair fewer item number 6. Clerk item 67, ordinance amending the business and tax regulations code to amend the penalties and the provision of waiver of penalties and interest, relating to tax that are subject to the common administrative pr provisions ofe code and to ad provisions for adminnisterring the cannabis business tax. Those who wish to provide Public Comment, call 1 415 6550001. Meeting i. D. , 146 892 6687. And then press pound twice. If you have not already done so, please tile star, 3, to dial star 3 to line up to speak. Wait until the system indicates that you have been unmuted and you may begin your comments. Chair fewer hi, now we have amanda freed. Good to see you again from the treasurer and tax collectors office. Good morning, supervisors, thank you for having me. Amanda freed from the treasurer and the tax collector. The legislation has two components today. The first would revise our business tax penalty structure and the second provides administrative provisions for the cannabis tax measure. First, the Treasurers Office has been looking critically at our penalty structures for several years. Particularly where penalties were confusing and resulted in overly complicated and harsh outcomes. please stand by we can add a 20 penalty on top of the original 20 . So that last penalty is harsh. This legislation would remove that last 20 penalty so that our structure is five, 10, 15, 25 . I also wanted to mention, shot measure on the ballot this fall, the gross received measure passed, that would have the impact of furthering reducing our citys reliance on business tax penalties. Because it would eliminate the payroll expense tax and increase the number of Small Business exempt from paying the gross receipts tax. So, that, you know, over all, were expecting should that pass that our reliance will go down as well. Now, asper the cannabis tax pre visions, when we pass a new tax on the ballot i come before you and talk about legislation that ties what we passed at the ballot to the rest of our administrative laws. This just makes sure that all of our taxes have the same set of rules for filing and penalties s and we can changes without going to the voters each time. Im happy to take any comments or questions. Chair fewer any comments or questions. Seeing none, lets hear from the b. L. A. , please. Yes, members of the committee. The proposed ordinances is the business and tax regulations code section 6 to revise the penalty structure and add the cannabis tax to the provisions of section 6. We summarized what the changes are in changes 21 and 22 of our report. We summarized revenue reductions on page 23. The reduction of the penalty revenue is 290,000 in the current fiscal year increase to go 600,000 in fiscal year 202223. Because this is an existed code admission its a policy matter for the board of supervisors. Chair fewer thank you, very much. Seeing no comments or questions we opened up for Public Comment, please. Clerk yes, madam operation, operations is checking to see if there are callers in the queue, let us know if there are callers ready. If you have youve not already done so, please press star 3. For those on hold wait until the system indicates you have been unmuted. Please let us know if there are callers who wish to comment on item number 6. Madam chair, there are no callers on the queue. Chair fewer Public Comment is closed on item number 6. I just want to say thank you for being a kinder and gentler tax collecter. And id like to make a motion to move this to the board with a positive recommendation. Can i have a roll call vote, please. [ roll call vote ] chair fewer thank you, very much. Madam clerk, can you call item 7 and 8 today. Clerk item number 7, resolution authorization the execution of revenue in one or more series in aggregated not to exceed 50 million and providing financing for the construction of a 130unit multiFamily Rental Housing Project known as 681 florida street and approving other agreements and documents. Item number 8, authorization an amended stated Loan Agreement not exceeding 35 million for a minimum longterm of 57 years to finance the construction of 100 affordable 130unit multi Family Rental Housing Development unit and a staff unit at 681 for low income households with space for introduction, design and repair users approving a grant lease to 681 for Housing Association for a lease term of 75 years and one 20year option to extend a annual base of 15,000 in order to construct and operate the project and adopting various findings. Members of the public who wish to provide Public Comment on these items should call 415 6550001 and meeting i. D. 146 892 6687 and press pound twice. If you have not already done so, please dial star 3 and raise your hand and wait until the system indicates you have been unmuted and you may begin your comments. Chair fewer thank you, madam clerk. Theres no daily report on item number 7 but theres a daily report on item number 8. Before we have johnathan gagan from the moacd, lets hear from the b. L. A. On item number 8 first. Yes, chair fewer, members of the committee. Item 8 is a resolution approving the amended and restated Loan Agreement between the Mayors Office of housing Community Development and Neighborhood Development and Economic Development for development of the Affordable Housing project on florida street. The loan amount would be up to 35 million over 57 year term and the ground lease would be up to 99 years. Both the loan provisions and 99 year ground lease are with those sub committed to the committee and board for approval. Uses for total product funds are shown on page 28 of our report. City sources for the loan are shown on page 29 of our report and we recommend approval. Thank you, very much. Now mr. Gagan, i hope i pronounced it right. The floor is yours. Thank you. Good morning, supervisors. My name is johnathan and im a project manager. Im here to request your a ralph for two items before you today related to the proposed development in the mission neighborhood. The project, known as 681 florida street is being the tenderloin Neighborhood Development corporation. The first resolution, which is part of item 7, authorizes the execution and delivery of a multifamily housing not to exceed 50 million. The second resolution, which is part of item 8, will allow 57year low interest loan the loan will provide city subsidy for the construction of this Affordable Housing. The same resolution also requested approval for the city to enter into ground use and the developer with the term of 75 years and annual base rent of 15,000 and order to construct and operate the project. And now id like to provide a brief description of the project. The site is 27 bright street and it will include 130 units of Affordable Housing for families and it includes 30 set aside for formerly for families experiencing homelessness. The site includes 9,250 square feet of Production Design repair space and it will be help retain the art and culture identity of the mission. It will prove a mix of income from 25 ocd ami to 85 . And the site was originally conveyed in march of 2018. The market rate of 2,000 bright street and as part of the option for the requirement. Chair fewer when it will be completed . In two years of october of 2020. Ok, any comments or questions . Seeing none. Lets open this up for Public Comment, please, on items number 7 and 8. Actually, apologies for the interruption. For the file number 20 200976 i would like to request an amendment to correct the references to the commencement date and planning approval. Those are no those are non s. Are there any callers in the queue. Operations, let us know if there are callers. Please press star 3 to be add to the cue. For those already on hold continue to wait until the system indicates that you have been unmuted. Please let us know if there are any callers who wish to comment on item number 7 and 8. There are no callers in the queue, madam chair. Chair fewer Public Comment is closed for item 7 and 8 and an amendment for approval on item number 8, is that correct . We have been provided with the language for that amendment . Yes, madam chair. A copy of the amendment has been forwarded to you. Chair fewer thank you, very much. And so, id like to make a motion to approve the amendment as presented to us and item number 8 could have a roll call vote, please. [ roll call vote ] clerk there are throw ayes. Chair fewer thank you, very much. I would love to have a Development Like this in my district. Just f. Y. I. I just had to say that. This is great. So id like to make a motion to move item 7 and 8 as amended to the full board with a positive recommendation. Can i have a roll call vote, please. [ roll call vote[. Chair fewer you can please call item number 9. Clerk resolution approving the form of an the distribution of a preliminary official statement relating to the execution and delivery of city and county of San Francisco certificates of participation for the animal care and control project and authorizing the preparation, execution and delivery of a final official statement and modify and ratify the approval and terms and conditions of a previous resolution and related matters. Members of the public who wish to provide public should call. Press pound twice. If you have not already done so, please dial star 3 to speak. A system prompt will indicate you have raised your hand. Wait until the system indicates that you have been unmuted and you may begin your comments. Chair fewer thank you, very much. We have luke brewerrer from the public Controllers Office of finance. Good morning. Thank you. My name is luke brewer and item number 9 a proves the final official statement offering documents to close the city current Financial Information to investors in order to comply with federal security. If approved the resolution will allow the controller to distribute these documents and bidders and investors as it relate to threrelates to the up. In 2015 the board authorized 60. 5 million in ocd for the animal control project and they have utilized the citys inaudible to get construction and may of 2019. In order to refinance the project, the office of finance intends to sell them in october. The finance previous authorized that board has not changed in our intention to sell them not to exceed authorized in terms of the project is scheduled for completion in december of 2020 with move in in april of 2021. Im available for questions related to financing and stim available to answer questions about the projects construction setting. Thank you very much. Any comments or questions for mr. Brew error mr. Kemp . Seeing none. Lets open it up for Public Comment. Theres no d. L. A. Return on this. Public comment, please. Clerk operations is checking to see if there are any callers in the queue. Let us know if there are callers ready. If you have not already done so express star 3 to be added to the queue. Do we have a meeting at three . Wait until the system indicates you have been unmuted and let us know if any callers who wish to comment on item number 9. There are no callers in the queue. Chair fewer ok. Public comment on item number 9 is now closed. Id like to move this to the board with a positive recommendation. Can i have a roll call vote, please. [ roll call vote ] clerk you have three ayes. Chair fewer madam clerk, can you call item number 10. Ordinance waving for a twoyear period permit and the renewal folks for public works code for cafe tables and chairs for public sidewalks and roadway areas and for display of fruits and vegetables or non food merchandise on public sidewalks and waving fees for use of parklets. Members of the public who wish to provide Public Comment should call chair fewer thank you. Very much. Supervisor mandelman is a speaker today and a response offer this resolution and he is joined my lee heppner and i understand that you are requesting a oneweek continuance. Supervisor mandelman, the floor is yours. Supervisor mandelman thank you, im going to turn it over to lee heppner. Thank you, Committee Chair fewer and Committee Members. Briefly, the work in our office and with supervisor mandelmans office to inaudible at chair implemented on the sidewalk dates back to late last year. Of course, when the pandemic hit and the citys response really became shared spaces, that proposal transformed and now what were hearing from the Small Business community is a desire to extend the shared spaces programs to give Small Businesses who are now utilizing the public realm in this way some security they will be able to continue doing so in the longterm. So, i was prepared to make some of those amendments today. We just heard there are a couple issues we need to iron out. So yes, well respectfully why a oneweek continuance. Thank you, very much. Chair fewer thats great. So we will hear then the dla report when it comes back to us on september 23rd. Lets open this up for Public Comment now. Madam clerk. Yes, madam chair. Operations is checking to see if there are callers in the queue. Let us know if there are callers that are ready. Please dial star 3 to be added to the cue for those already on hold, please continue to wait until the system indicates you have been unmuted. Please let us know if there are any callers who wish to comment on item number 10. Y. I have one caller in the queue. Caller im concerned whether or not this would have implications for ada. Imagine that, you know, public sidewalks are usually available for people to use and people for example, who use wheels, chairs or strollers or other people who need sidewalks to be opened and unobstructed, i just like to know, im concerned that having Different Things on sidewalks and stuff would kind of impair those individuals ability to use sidewalks as they normally do. And so i really like some clarification as to how this new program for having things on sidewalks is going to i am particular the ability of users who node their sidewalks to be open. That is my only comment. Thank you. Chair fewer Public Comment is closed on item 10. Lets take notes of the commenter questions for next week, when we have a thorough discussion and supervisor mandelman, make a motion. Supervisor mandelman id like to continue this week. Chair fewer thank you, very much. Roll call vote. [ roll call vote ] clerk we have three ayes. Chair fewer it can you call 11 and 12 together. Report is of San Francisco Community Facility districts nur 20161 Treasure Island as improvement area number 2 of the city and county of San Francisco Community Facilities district number 20161 Treasure Island and. Resolution supplementing resolution number 1217 authorizing the issuance and sale of one or more series of special tax bonds for city and county of San Francisco Community Facilities district number 20161 Treasure Island and an aggregated Principal Amount not to exceed 17. 9 million approving related documents including an official statement, fiscal agent agreement, bond Purchase Agreement and continuing the disclosure certificates and clarifying certain terms of the rate and methods of apportionment of special tax. Members of the public who wish to provide public call kilometr chair fewer thank you, very much. Mr. Brewer, are you presenting today . I will hand it over to bob who will start the presentation. Chair fewer welcome. Chair fewer, members of the committee, next slide, luke. We have two items. Aan next Additional Properties into the cfd in form of annexation area number 2 under the cfd and the second is to issue bonds in the amount of 17,990,000 against improvement area number one. The disposition that the Development Agreement and the accompanying financing plan were approved by the board and executed in 2011. Following the first transfer of land from the navy in 2015, weve formed the infrastructure and revitalization financing district and Community Facilities district over Treasure Island. They included 5 billion in bonds or the improvement area number one bond amount not to exceed 250 million and beginning in june of 2019, the first Building Permits were issued on Treasure Island and the first project broke ground resulting in the First Special taxes under the Community Facility district being leveed in december of 2019. Then this past may, there was the formation of improvement area number 2 but unanimous vote of the landowners and were bringing that formation to you today for improvement as i mentioned on the first item and then the authorization to issue bonds against area number one in the second item. Next slide. Just a review of what the cfd is and how it functions. The cfd levees a supplemental special tax on Properties Within the specified district based on the type of land use and the Square Footage of that property. Cfd proceeds can be used forever eligible infrastructure, expenses with a useful life of five years or more and the program for the cfd special taxes is first to reimburse Treasure Island Community Development for eligible infrastructure costs and also to establish a capital reserve for future Sea Level Rise adaptation on Treasure Island and to be the on going revenue stream for the maintenance of parks and open spaces on the island. Unlike the irfd the cfd cannot be used to finance Affordable Housing construction and it was anticipated that we would annex additional property over the life of the cfd as we are proposing to do today. As i mentioned, the first improvement area covered the four Development Parcels and improvement area two is incorporating seven Development Parcels on Treasure Island. Here you see an aerial view of the planned development and theres a total of 261 units being developed. The bristol, which is the building in the upper righthand corner is i building with 14 affordable units included. That was the building that broke ground last june and is the subject of the special taxes that we will be leveraged in the first bond sale. This gives a descriptive view of the is it property and the status of designing construction. Again, the bristol building has broken ground. These are renderings of the planned development. The image on the upperright is a court yard within the bristol. The view in the lower left is a view down mccullough road with the profile of the bristol building at the end of the road there. This gives you a view of the status of construction today on the island. Crutcmuch of Yerba Buena Island theyve completed four of five levels of stillframing and will be topping out relatively soon. Next slide. On the infrastructure side, the subdivision map was recorded in 2018 and the street improvement permits were issued. A variety of Infrastructure Improvements are underway as you saw in the prior picture, including the construction of new water storage reservoirs to serve both Treasure Island and yesh a buena island as you see in the lower images on the current slide. The next slide. This is some more detailed photos of the bristol. They will top it and continue working on with the building will be completed in the Fourth Quarter of next year. With that, ill hand it over to anna to talk to you a little bit more about the proposed bond issuance. Hi, anna, director of the office of the Public Finance and so more speculative than the triple a rated t. O. Bonds secured by unlimited ad valorem property taxes county wise. As we are not pledging the funded security for the bonds, the bonds will not carry the citys rating and theyll be non rated but it is worth noting if they still carry the San Francisco name in the bond market. The bonds will be secured only by tax payments made by the developer, which creates concentration risk and this risk is somewhat mitigate by the citys promise to for close upon the property for the benefit of the bond holders if theres a nonpayment of taxes or the adult by the developer. As the project is built sought, there will be more diversity in the tax phase. And youve seen with other financing packages we bring for your consideration weve included the draft offering statement that we share with potential investors. This is the pos. It outlines the key bond provisions including the sources of repayment, security for the bonds and and associated with the investments. As a reminder under federal security laws, if you have any relevant information about the project that is not already publicly available, that you would like to share or if youve questions about the disclosure and the p. O. S. Or potential risk, please dont hesitate to contact myself or deputy City Attorney mark blake. I will hand it over to my colleague, luke brewer. Thank you, anna. So the bonds are collected on all property in Yerba Buena Island but its under construction and being taxed as developed properties and we collect 833,000 in inaudible . The propose bands are leveraging only those taxes with 110 Debt Service Coverage escalating at 2 annually. So the citys adopted local goals and policies require a value to lead ratio of 31 which is based on anna praised or assessed value of the taxable property in the csd to divided by the special tax and assessment debt that is planned to be inkum bettering the property. So in conjunction with this financing, weve had anna praising prepared to determine the market value of the taxable property in under Yerba Buena Island and the appraised value is 95 million and our proposed not to exceed special tax bonds and its 17. 99 million so therefore, our value to lean ratio and context is 5. 3 to one and meets the citys policies. The official we provide ratios for investors. While sub lot 4y allocated the full amount of the debt based on a share of the fess cal year 2021 tax levee and has a ratio of 2. 5 to one and and those parcels are taxable property and could support bonds as theyre under development now that weve issued bonds that are fortunate for number one. So the bonds are expected to reimburse the developers and Development Agreement on site infrastructure and bedrock and related Pre Development cost and the bonds will fund that Services Fund and fee for two of thcost withfinancing. Based on Market Conditions as an yoaudit. It would be 3. 84 which is very low for non rated Development Bonds due to the very simple clarifying language that makes clear what the intent is. Ok. Does that complete your presentation. If there are no questions, yes. Chair fewer any comments or questions from colleagues . Theres no bla report on this and lets open this up for Public Comment. Are there any members of the public that can comment on items 11 and 12. Clerk madam chair, operation is checking to see if there are any callers in the queue. Please let us know if there are any callers ready. If you have not already done so press star 3 to be add to the queue for those already on hold wait until the system indicates you have been unmuted and please let us know, is there any callers who wish to comment on items 11 and 12. Yes, i have one caller in the queue. Caller supervisors, my name is francisco de costa and i want to make it very clear. I know the main people who are in authority at Treasure Island and and i think its unfair and i think the brown act comes into this that your presentation, its so fine that we, the people, we the people, we the people who provide you with the taxes, cannot follow the presentation its a hype of hoodwinking in broad daylight. The conceptual plans look good. I surveyed the entire Treasure Island and Yerba Buena Island way back in 1991 with chuck stronson. I know how political it is and we found human remains on yerba buena and those things have been operated if we want to have a holistic opinion or operation. The board of supervisors they may think they know some but you know, you can put it forward only for so long. Again, i say you can push it so long. We need to get some questions answered and we also need the attorney who is not looking to some crooks many of his name is david anderson, to look into Treasure Island. This hoodwinking in broad daylight must stop. I represent the first people and i havent intervened as much as i want to because the politics stinks. The corruption stinks. Yesterday i saw three supervisors talking about Treasure Island. I paid attention to what they were saying. They came and that was the end of the meeting. Lets see how far this nonsense goes. Thank you, very much. Clerk thank you for your comments. That completes the queue. Public comment is closed on items 11 and 12. This is risky issuing bonds on so id like to make to move this to the board items 11 and 12 with a positive recommendation. Clerk i believe the department has a question amendments on item number 12. O[ roll call vote ] chair fewer thank you, very much. Thousand dollars id like to move items 11 and 12 as amended to the full board with a positive recommendation. On the motion [ roll call vote ] there are thro three as. Clerk post section 147f the issuance and sales of revenue obligations by the california Enterprise Department of authority in aggregated Principal Amount not to exceed 20 million to finance the acquisition construction, renovation, rehabilitation, improvement and or equipping of educational and related facilities to be owned and operated by San Francisco day school. Members of wish who wish to provide Public Comment should call chair fewer thank you, very much. Joining us today is kyle smiley. Is that how you pronounce your last name. Chair fewer michelle from the Controllers Office who i met over a pizza and dr. Mike walker from San Francisco day school and my friend and constituent beau hayward. Thank you, kyle, legislative aid for supervisor dean preston. Im here to state our supports for the resolution before this committee today. We recognize i also want to acknowledge these funds are intended to provide improvements at the school but to create teacher housing. We would ask you please move this forward to the full board with a positive recommendation and i believe we have representatives of the day school on the line to present and answer any questions. Thank you. Chair fewer thank you, very much. Supervisors, i think that you might recall we received correspondence from mr. Hayward that in detail, described the school and gave a lot of Background Information about the schools. If im assuming that mr. Mike walker is from the San Francisco day school is there something you would like to say dr. Walk dr. Walker . I would, supervisor mandelman, thank you for your time and attention today. To hear this matter on behalf of San Francisco day school. Also i want to make a point of thanking supervisor preston and his staff, skill, thank you very much for your help and sponsorship and support of the resolution. The brief production and day school was founded 39 years ago as the first secular k8 school and now we have 415 students at 9 corner of golden gate avenue. As stated in our mission statement, the schools commitment to diversity with a founding value of the school. And even as such, we continue to examine and evolve our principles so they reflect the needs of our time. Last year in a schoolwide effort, the School Updated our diversity equity and inclusion statement and we encloud that in our packet as a significant expression of who we are as a school. We work hard to track families from across the city. Currently we have families coming to us from over 30 zip codes and 196 students that live in the neighborhood. 44 of our students identify as people of color. We allocate annually 2. 1 million in Financial Aid that goes to 21 of our students. Actual low this year the economic downturn, we have set aside an additional ro reserve o help see our families through these difficult times. Another founding value of the school was our responsibility to embrace and contribute to the community that were part of and our 26 year sponsorship of break through San Francisco. A program that supports students to full feel the dream and were currently serving 240 students in grades five through 512 and packet as well. And we employ 102 faculty and they have their children enrolled and they live in the city. Even so, the single most reason and and as such, our board as made a decision to help our faculty with burden of housing cost so this project includes we will is seven units and adjacent property the school has purchased and that advances our goal of addressing the severe lack of middle Income Housing for teachers in the city. We sent those rates below the low Income Housing rate in San Francisco and weve moved faculty too to the units when the project is complete. The project includes our innovation spaces, Performance Space or Sustainable Program and and enhanced playground space for outdoor space. Its a brief summary and production to the school and were doing all we can to help contribute to our community so thank you for your attention and were now available for our questions and additional information. Thank you, very much. Is there anything youd like to add . No. Thank you. And we have heard this before. Other schools have also approved the issuances of sale and revenue obligations and california enterprise so were familiar with that. I wanted to and just to mention your school is sa cross the street from our districts and you are aware that you assess this building 600 units of housing that should free up a lot of housing around that area. Most of that is rent controlled and so, hopefully your teachers will be able to secure housing there. Any comments or questions from my colleagues. Lets open this up from Public Comment. Operations, is checking to see if there are any callers in the cue, operations, let us know if there are callers that are ready. There are no callers in the queue. Public comment is closed on item number 1. 13. Id like to make a motion to move this with a positive recommendation. Can i i have a roll call, plea. [roll call] chair fewer thank you very much. Good luck, dr. Walker. With your Housing Project. And madam clerk, is there anymore business before us today . Theres no further business. We are adjourned. Thank you. Chair ronen good morning. The meeting will come to order. We