Transcripts For SFGTV BOS Budget And Finance Committee 102616 20161030

Board of supervisors agenda unless otherwise stated thank you. Mdm. Clerk all item 1 is item 1, 2016 issuance by water Revenue Bonds [reading ordinance] thanks very much for our puc is here to speak good morning supervisors chairssf puc. The item before you this morning is a request for your review and approval of Revenue Bonds for water enterprise. These bonds are meant to fund our Water System Improvement Program were what you may know as the us which is a Multiyear Program to rebuild our Regional Water system. I have some slides to share with you to go through. If we could go to the school slides please . This transaction i will walk through some details on that. Ill talk about the sources and uses of the funds. We plan to use the money. Ill go within the board resolution before you today. I will talk a little bit about the transaction documents which as you know with these sorts of transactions theres a lot of different documents to review. Ill describe those. I will go through some disclosure q a which would we know with our commission which we found helpful and ill share those with you and then that transaction schedule. So this item supervisors, is what we are calling our 2016 series c water Revenue Bonds. That authorization before you is for up to 295 million and will be sold on a competitive basis. The bonds will be for up to 30 years term and they will have a stick straight and right now if we were issued those funds rate the rate would be about 3. 6 . Or so. These bonds will be repaid from water enterprise revenues. The bonds also interestingly will be certified as green bonds and green bonds as you may know, are meant to provide a environmental benefits and this will actually be our third series of green bonds that weve issued. The first two are in our watersorrywwastewater and power enterprise so thisll be the first green bonds certified green bond series for our water enterprise. The bonds will be issued as taxable as opposed to tax exempt. We are typically im sure familiar with taxexempt bond issued. This one is taxable and that is how the irs looks at a Regional Water system get we have some private entities that are plugged into our water water system and our wholesale customers Stanford University and a private company cal water are two of our allstar customers the iris deems those sales to those entities as private activity and thats why his particular bond transaction represents the taxable portion of our overall Water System Improvement Program. The 4. 7 billion program. These bonds were originally authorized by this board in 2010. This is the transaction now authorization to actually issue the debt. Here is the source of the uses good to enter 95up to two and 95 million the vast majority of these funds will be used to pay off our commercial paper. As a reminder, supervisors we use commercial Paper Program as a way to prefund project expense at a very low interest rate. Right now those Interest Rates are right under 1 . So its very tax cost advantageous for us use our commercial Paper Program. Then we roll them into these longer fixed rate debt series. Thats traditionally how we issue our debts. The rest of the funds from this issue will Fund Additional project monies from our program which will be issuing debt over the next couple of years and we are anticipating wrapping up with this in 2019 just a few more years. A few more years for that program. The rest of the funds will be used for capitalized interest and [inaudible]. In terms of the resolution before you today, supervisors, we got again the authorization to issue the debt. We are coveting promises, covenants to our bondholders related to our water indenture and we are reaffirming those. We are bringing forward to you the form of bond dockets with a walkthrough in a moment and describe those in more detail. Then this resolution before you a prices the execution of the transaction to our general manager. So again, theres typically many documents with these types of transactions. I will walk through those with you. The preliminary official statement is the largest of those documents that for the main Disclosure Document that describes who the sf puc is good what are Water Enterprises who are customers are and how we will use the money. The Supplemental Indenture is our agreement the basic agreement between the puc and bondholders and it talks about the bond details in the terms and provisions of the transaction. Notice of intention to sell is a notification to the Financial Community related to this pending sale. The official notice of sale is a notice to underwriters regarding the terms for this competitive transaction. A bond purchase contract, we wont be using that we include it just in case we have to switch to a negotiated transaction. All we include a form of that document should we need to renegotiate but as i mentioned earlier this would be a competitive sell. Then the continuing disclosure certificate it in our tos and describes our ongoing requirement to disclose and report to the investment community. The next couple of slides just talk about some big picture q a related to disclosure and her commissioners felt this was hopeful for them so thats why were showing this to you to get again to reiterate purpose of the debt to fund our previously authorized projects. The structure of the bonds, its up to 30 years senior lien longterm fixed rate debt to no variable bonds here. The bonds will be sold competitively. The repayment will be from water enterprise revenues. How much debt is a water enterprise currently have outstanding speakers 4. 1 billion. Just as an aside, we have full customers that fund about two thirds of this cost. B is worse about one third. How will bonds impact rates. One rates will increase approximately 3 dollars but again about one dollar of that is shared with our retail customers here in San Francisco and the whole also customers will pay about two dollars about three dollars. We dont integrate any negative impact related to our readings and the ratings are noted there for [inaudible]. In terms of the transaction schedule, the Commission Approved this last month. We were are before you today assuming the board gives us a thumbsup next week we are anticipating a pricing towards the end of november and closing in the middle of december. Im happy to answer your questions. Thank you very much it colleagues, any questions right now for puc staff . Okay. Mr. Rose can we go to her report for item 1 please . Yes mr. Chairman and members of the committee on page 4 of our report we have a table for which outlines the estimated sources and uses for the requested not to exceed 295 million in water Revenue Bonds and we also report that the annual debt service is projected at 18 million. 60 5. 69 were a total of 487 million. 76 4. 963 that includes the 295 million of principal and 190 21765 of interest expense and thats over a 27 year term. We do recommend that you approve this resolution thank you very much mr. Rose. Colleagues, any further questions . We will open this up to Public Comment could anyone wish to comment on item 1 . Seeing none, Public Comment is closed. [gavel] i make a motion to send for this recommendation without positive recognition moved and seconded. We can take that without objection [gavel] thank you very much. Mdm. Clerk klees item number two item number two a customer generation agreement with pacific gas and Electric Company solar power project at Willie Brown Middle School. Thanks very much for being here. Good morning my name is [inaudible] i manage the Renewable Energy at the San Francisco Public Utilities commission. This resolution proposed authorizes the general manager at the puc to enter into a customer generation agreement with pg e on behalf of the San Francisco unified School District. The customer generation agreement is required interconnected Solar Project that Willie Brown Middle School to the electric grid. The sf puc our customer the School District has developed 133 kw Solar Project on the roof of their building. In the past the puc has come before the board requesting your approval but connection agreement for home Solar Project. You may remember the north beach collaborate [inaudible] because this is interconnected out pg e to the grade we must execute the generating facility Interconnection Agreement with pg e. This is very similar to other in connection agreement and the only difference is that this facility will generate electricity and requires the execution of a customer generation agreement wherein the School District owns the project and puc is a new customer. With your support we asked the committee recommend this item to the full board of supervisors so that this project can be interconnected to the great. Im happy to answer questions. Colleagues, any questions right now . Okay. We do not have a budget on this item so long to Public Comment. Anyone wish to comment on item 2 . Seeing none, Public Comment is closed. [gavel] i will go ahead and move it. With a positive recommendation to the full board motion by supervisor yee. We can take that without objection [gavel] please call item number three item number three except an extended rant to the friends of San Francisco Public Library of two 150,000 of inkind services and cash monies from the friends of the San Francisco Public Library for a variety of Public Programs and services in the school year 201617. Welcome. Good morning supervisor. City librarian. We ask for your support in approval of the resolution that authorizes the library to accept seven 753,000 for the wonderful programs in which the library by helping us become a premier urban library. This funding is allow us to push innovation to support a lot of the Team Programs that we have good they use programs. Certainly are one city one book and just to give you some real quick statistics, last year we had over 18,000 separate programs and they were attended by over half 1 million residents and beyond the city. So we are very proud of that. He continues to be one of the fastestgrowing areas that the library supports. Our Summer Learning program and i know all of you have an terminus we support about that, within an alltime high. With over 900 programs this summer. Within alltime attendance of over 28,000 folks attending. This included families, teenagers, young people. So were very very proud of that and certainly ask that you support this resolution could so we can continue the great programming that takes place at the library. Thank you very much. Colleagues any questions because we will open this up to Public Comment. Anybody was to comment on item number three . Good morning. I just want to introduce myself on the executive director of friends of the San Francisco Public Library and we are extremely happy to be able to work in collaboration with the library allowing the community to lend support for more programs and we hope that continue to do this but i just want to say, thank you and to say its a wonderful experience to be able to bring the public to the private sector together with the Public Sector working with louise and his staff to make a great library. So, thank you thanks very much. Anybody else was to comment on item 3 . Public comment is now closed [gavel] i will make a motion to send for this resolution with a positive recognition to the full board moved and seconded. We can take that without objection [gavel] mdm. Clerk please call item number four item number four, and Agreement Amendment job apps including a contract increasing the maximum expenditure by possibly 600,000. Thank you very much. Welcome. Thank you limited pot we jump deputy, comptroller. Before you today is a contract on them and thats very brief presentation. Ill put on the overhead to walk you through it and of course answered questions you might have. The purpose of this is to basically run the electronic plumbing and applications that are Human Resources department uses and that our Department Partners with them on. Job apps allows for job applications including job postings recruitment Testing Certifications and referrals. This a twoyear extension and the agreement allows us to satisfy requested items from our department of Human Resources to serve them in our job candidates and her new hires well. Specifically, amendment number 10 is for two years totaled 612,000 and includes the extension of maintenance and support which ensures we are doing quarterly upgrades debugging and of our Disaster Preparedness and recovery plans up to date for this part of our business. Happy to answer any questions you have today. Thank you very much. Colleagues any questions . Supervisor tang just based on i believe it was mr. Roses report it sounds like the Comptrollers Office is also looking into other renderers after this contract extension expires good can you just talk a little bit about that . Thank you for the question. We are indeed going through a competitive process to look at how best and how economically to meet the department of Human Resources needs. So weve gone through a competitive process over the summer. Bids were due, three came in for service so we will be considering those. These types of services often take 12 years to implement and so we are asking for just a twoyear extension for this contract to allow us to continue operations as is as we then will look at those competitive bids and for potential deployment into years. Okay. Thank you limited colleagues, any other questions bequest is to rose can we go to your report please yes mr. Chairman and members of the committee on page 9 of our report we shall table two and that summarizes the additional requested etc. 12,000 in costs under the proposed 10th amendment of this agreement with job apps. We do recommend you approve the resolution he was thank you very much mr. Rose. Colleagues if theres no other questions want to Public Comment for item 4. Anybody was to comment the seeing none, Public Comment is closed. [gavel] i will go ahead and make a motion to pass this out of committee the positive recommendation to the full board. Weaver motion by supervisor yee. The move we can take that without objection bedevil mdm. Clerk please call adam five item 5, in agreement with the California Department of Health Care Services for participation in the oh Person Care Pilot Program coordination of Health Behavior health and Civil Services in a manner with the goal of a Group Beneficiary health and wellbeing to more efficient and effective use of resources. We have mr. Wagner hear from dph. Welcome he was good morning greg wagner chief Financial Officer from department of public health. The resolution before you relates to a Pilot Program in the states 1115 medicaid waiver which is a program that authorizes funding for healthCare Services for county governments including our own. There is a a pilot in the waiver call the whole Person Care Pilot Program. Those are federal funds that are available to counties to implement programs that improve quarter nation of services to targeted populations with high health needs. Where we are right now that San Francisco has submitted an application that this was a joint hopper effort by the department of public health, department of homelessness and Supportive Housing, Human Services agency, and a number of other notforprofit partners in the community. Where we stand right now is that the one of the requirements by the state is that in order for them to negotiate with us on grant awarding they need approval from the governing body of the county authorizing us to enter into an agreement with them. So we are here with a resolution asking for your authority to do that. Our application is currently in process get the next up would be we have a backandforth with the state about our application. If we are able to get to a point where we received an award then we would bring that program back again to the board of supervisors prior to appropriation. So this is a resolution authorizing us to agree with the state but it is not an acceptance of her appropriation of the funds for the program. Okay. Colleagues, any questions i know . Supervisor tang spears thank you. Nice to see you mr. Wyden. Im wondering if you could describe if youre able to be successful in obtaining or securing the funding for this Pilot Program. What is the difference between what occurs under this pilot and what happens under current practices. Basically, why would this pilot make how we provide services more efficient . Yes, thanks for the question. Again, this is still in progress. We dont have a final agreement on it but the basic concept here is that when of the pushes the efforts, from both the federal and state governments and also county providers has been to try to look at vulnerable populations that receive services from a number of different government and nonprofit providers that can because of the historical nature of the system of care developed in some cases be fragmented. Where a client is receiving care from varioUs Departments from outside providers. So the goal of the program is to establish a pilot that helps improve the coronation of all those services and they can much more seamless to the client in terms of how they are receiving services from the various programs and providers to the county did so this is very consistent with the direction that this city has been moving with our approaches including navigation centers, navigation services, entry into the system of care. At the core of this application there would be a number of things. Some programmatic infrastructure but also be creating Technology Solution that would bring data from a number of different agencies into a single platform and create some standardization in terms of how all the different programs, different care coordination entities categorize and develop a treatment plan or a Services Plan for those individual. So its really creating some infrastructure to strengthen our ability to coordinate all of these services into a single system of care for bone verbal populations. The target population for this group is the approximately 6700 homeless medicaid eligible individuals in San Francisco. So this is very well aligned with all the efforts through the department of homelessness and Supportive Housing and its helping us to create some infrastructure to make the next step on those journey possible. Okay. So we are still theres still another piece that would potentially have to come back here and then what would you say in terms of timing if we were able to implement this pilot . Yes, sure. The expected date for the state to respond to us is very soon and we should be hearing. Weve had some initial commerce nations but we expect to be hearing from the state within the next month. And working on getting to a final agreement on the program for this so the most likely point for this to come back to the board would be as we go into the budget process and as we have clarity about these funds proposal for how to appropriate them through the budget to align with the other initiatives that come before you at that time. Thank you. Okay. Thanks mr. Wyden. No other questions will open this up to be public. Anyone wish to comment on item 5 . Seeing none, Public Comment is closed. [gavel] i will make a motion than to send for this resolution to the full board with positive recommendation moved and seconded. We can take that without objection. [gavel] the clerk please call items six item number six ordinance amending the ministry of code regarding the toddler learning Scholarship Fund this item was sponsored by supervisor yee so ill turn it over to him thank you chairman farrell. This is a thing of it worked on for a little while now and something that i feel crucial to our delivery of Early Education and spirit him. I just want to say invest in familyfriendly policies and early care and education will always be one of my highest my worri researchers and studies have confirmed that the most critical time in Brain Development is from birth to age 3. Having Early Education options outside of the home will always be a Parents Choice however the reality is that the top three reasons families seek infant and toddler care is because they are working, seeking work, or in school or training. All which are critical in order to maintain an income that allows families to live and thrive in San Francisco. Today, quality infant care costs are staggering , 2400 per month. Thats nearly 29,000 per year. We createwe must create an investment system that only supports low income but also our middle income families who are struggling to survive and raise their families in the city. Currently, there are more than 1650 infants and toddlers in the what we call San Francisco 3c San Franciscos wait list. We need to support children but we must focus some investment to the greatest in the which is in our citys youngest children. We are under serving infants and toddlers in every single district in San Francisco. We need increased resources and other specialized strategies for further developing access to quality education for infants and toddlers. This Early Learning Scholarship Fund is a thoughtful and strategic approach that will be the vehicle to support the citys infant and toddlers. I want to say that its not real complicated. This piece of legislation. It doesnt really two things. It provides what i call a bucket. When we start identifying funding in the future to support infant and toddler programs. And it also, number two, is asking the office of early care and education to start looking at start looking at creating a program as we identify the funding that would be very similar hopefully, to a model that we would use which is the preschool for all program. The office of early care and education and first five are working to great a continuum of care for the children 05. But the biggest gap still remains for the infants and toddlers. The fund would allow families to return to work or continue their studies in order to provide better for their families. When children are learning in a healthy and quality environment and when families are able to provide our economic our economy grows. Helping to support a cities infants and toddlers is an investment in a stronger San Francisco. Data is clear. The needs is far greater far to great them. Our babies and toddlers can no longer wait to be an afterthought in citywide planning for families. So againwell not again but i really want to thank supervisors Kane Mar Campos virchow sponsoring the legislation and i also want to thank my staff eric a bar who is been working on this piece of legislation for a while now. So i also want to note that you each have a copy of 22 providers that signed to zip support this legislation and a letter of support from the Department Status of women. But i believe we have somebody here from the department of status of women who can speak to the letter in in a second. So either any questions before i call up speakers . Supervisor tang are we going to go over your amendment were later . Yes. I can do that right now to have in the record . Sure. Basically, the sum of the amendment i am offering to the original language is on page 3 model line 56. This clarifies that the priority will be for parents of caregivers attending publicly funded schools but does not exclude parents attending other schools that are not public funded. Such is golden gate hastings or one of them. The rules shall establish criteria that right prizes funding that supports parents and guardians within publicly funded colleges and universities in the city over those who attend other colleges and universities. Then the Second Amendment would be in the next section, line six through 11. This should read, when 15 days after adopting an initial goals for the program under subsection done the office of early care and education cell summit submit a copy to the board of supervisors. These rules should not become effective and office of early care and education shall issue [inaudible] there under until at least 90 days after the office of early care and education has submitted the wolves to the board of supervisors to any subsequent rules or rule amendment adopted by the early care and education to become effective immediate upon adoption. Switches added that last part. Any other questions bequest . Can i bring up speakers right now yes sure. Two questions will at this looking at this. The 90 days, why will he wait for 90 days . Whats the 90 day buffer in therefore . Basically we are asking the officer early care and education to do is him up with a game plan or a program that would with rules and so forth. So what i would like to do, i would like to weigh in on those by having a hearing on it within 90 days but we cant get together by 90 days is can go forward that same purpose and thats why we took out the amendment parts of it. That if they make amendment in the future, its their call. Got it. Okay. The second one just to be clear is very supportive of what youre doing here. One question though on the page 3 i guess line 3, you talk like this is meant to be obviously infant and toddler with Early Learning. Then we talked about the were talked about the criteria for determining which families tuition costs may be reduced by grant funds. That seems to be contrary to what i can let me explain what it is yes. With the office are early care and education would do is, again, make up the rules and that their funding will eventually go as a grant two providers at the Childcare Center or finally childcare. So its not up to those centers to say well who am i going to give this reduction to. The program the office of old ece will make of those with rules. Thats what same here. Its not like we give the grantor provider and they make up the rules. So this wait will be consistent. Whatever gets the grants. Okay. Okay. Thanks. T1 open up to Public Comment supervisor . Sure. We will open this up to Public Comment. Supervisor yee has the list of speaker cards. I have a list of speaker cards the first one being Elizabeth Newman in the department of status of women. Go ahead. Thank you. Good morning supervisors. Elizabeth newman with the department on the status of women in as supervisor yee mention we submitted a letter yesterday i did bring one copy to cement to the clerk and you have received copies provided by the supervisors staff. The department on the status of women works to address the economic political and social inequalities of women in San Francisco and one of the issues we are frequently with regards to women in the workforce is the lack of access to childcare in the barrier that presents to their gainful employment and success in the workplace. In fact with the mayor lee and oakland mayor libby schaaf hosted the bay area womens summit childcare was cited as one of the top issues of concern for working women. So we know this issue is affecting so many families in San Francisco. In fact according to the Census Bureau three quarters of families in San Francisco with children under the age of six have both parents working. So its a real necessity but we also know that often times women feel its not a choice whether to return to the workforce after they have a child. So they often times will stay home because of the cost of childcare is so high. For these low income families moderate income families, any support to allow women to maintain their presence in the workforce will contribute to decreasing the wage gap get their lifetime earnings potential, their Social Security income when they retire. These are important factors that have contributed to women high rates of poverty and we also that single mothers that a threetime greater rate of property than other families. So they especially need help in order to continue their careers and to continue their education we really want to support supervisor yee efforts to expand access to quality care and any support to these families to be with to continue to work in attend school. Thank you. Thank you elizabeth. Next is would be Monica Watterson cindy lynn. Are they here . Then, after that [calling Public Comment cards] good morning supervisors Monica Walters executive director youth and childrens service. Im here grateful support to supervisor yee and the other sponsors for putting forward this wonderful ordinance to create this special Early Learning scholarship of funds. It will serve literally hundreds of infants and dollars but we know theres so many more on the waitlist that supervisor yee said. I just want to say again we know quality Early Learning is the key to both academic success for children later on and also for helping families stay stable in housing in education and work in San Francisco get all of our kids deserve to be especially our babies and toddlers, deserve to be in safe happy healthy settings and this is a wonderful addition to our support for San Francisco families. So i thank you and strongly urge you to support this amendment. He was thank you ms. Waters. Thank you ms. Waters hi. Good morning my name is cindy lynn or manager ed children seven. I am here to speak in support of the Early Learning Scholarship Fund it every day in our office we low income and moderate income families come in seeking care so they can go back to work but the reality is theres not enough resources supporting the infants and toddlers in getting quality care. So we strongly strongly suggest that you support this so that we can support the youngest numbers of our community. Thank you. Then, after rosiei dont see pat. Pat sullivan. After rosie, heather the lotto and kitty lane. Good morning, supervise. My name is rosie kennedy. Im the director of the Family Childcare association of San Francisco. The event has about hundred 30 license i might Childcare Providers with the capacity to care for about 56000 children on any given day. If for every dollar spent on preschool needs yields seven dollars in return of Public Benefit than every dollar spent on infants and toddlers will yield will be incalculably more. Why . Because the ride largest Brain Development occurs in the first three years. That means the quality of life and the success of that life inches on what happens in the first three years. Thats very sobering. For those who know the development explosion that occurs in the first three years, we know that this is very longoverdue course correction in the Early Childhood education field. If we get the first three years right we will be able to do so much more with our fouryearolds and we will see a huge improvement in school readiness, college readiness, and so forth. We can take that to the bank it is guaranteed. I just want to make sure that we think supervisor yee for taking the lead supervisor kim supervisor avalos supervisor mar and supervisor tang. Thank you, rosie. Hello. My name is heatheris that of dr. Holy family [inaudible]. We currently are in full support of this initiative and we really want to express that at the time we are in our budgeting possibly have to make choices on how many subsidize families we are going to serve and often it comes down to if were going to be able to continue to support the low income and moderate families we are working with. This year we want to continue to do that we want to continue to support our community. I thought it was important to bring one of our parents and member of our workforce to explain the challenges we are facing. Good morning everyone get my name is adele and im the infant and toddler site supervisor of family gay home this past january i became a mom. So i speak to you as an educator also a mother. While i was fortunate to be able to pay for my child at the center i worked a center that is quality early care, many San Francisco families dont have this opportunity due to a multitude of obstacles that families face. The birth of a new baby should be an exciting and joyful time but for many low income and moderate income families is where stress big access to infant and father care due to lack of openings do the due to the cost of two or the biggest obstacles families face. Currently holy family gay home has 100 families on the waitlist for infant rooms and only 12 available to offer annually. Quality infant care is very expensive to provide an small group sizes. As a parent, skyrocketing tuition costs and lack of openings and a pushing families and a pushing families to make decisions for the child out of desperation and not what is good fit for their family. Once a famous secures a spot they are forced to figure out how to stain their life in San Francisco. But expensive rents and expensive childcare cost. Many famous cannot make ends meet just to move out of the city. The infant toddler Early Learning Scholarship Fund attempts to remedy made a point i brought up. The funds allocated to bridge the gap between tuition cost and affordability for families not only consumers begin to make ends meet programs they begin to expand and offer much needed infant toddler care. Is that for mehe was 30 seconds is a professional and mother i urge you to support this on. Thank you thank you. [calling Public Comment cards] hello. I name is ameliai am speaking to you today is a dumb woman who would love to raise her family in this city but currently doesnt know how thats possible. So the Scholarship Fund gives hope to us who want to be able to continue to live here. So thank you very much. Thank you. I guess there are other speakers i would like to speak. Go ahead and lineup. Sarah, do you want to speak . Good morning supervise. First i want to think supervisor 20stang avalos and other cosponsors of this important piece of legislation. Its a long time in coming good having done a lot of policy in planning for children and families over the last one the years i think its important that we spent a lot of time and important work around focusing on preschoolers and i think we are beginning we are seeing the positive impacts of that. I think in terms of now focusing a little bit more attention on our younger children infant fathers is really key. The greatest gap we have in terms of services for these kids is in the area of infant dollars because i think without that focus of attention we have not made the same strides as we have for the broader services for kids in our city. I think its especially as i hear from the actually really didnt think of this from the standpoint but from a woman standpoint the fact that often times when there are isnt the support around infantile or for young things is often the woman that has to make certain sacrifices in terms of continuing education or their jobs and things like that. In terms of being able to provide some support for their families. By having this infant toddler scholarship is key to that in terms of supporting women were completing their education as well as working to advance their careers. That way theyre also making improvements in how theyre able to provide support for their families. In terms of our supports printing toddlers i think the meeting kids earlier is best because 80 of childs brain is developed at the earliest age i think we need to focus more attention on that. Thank you ms. Wong. Hi. Good morning tony tyson see that coordinate. Im higher on the efficacy back membership to fully supports these ordinance to establish the infant toddler Early Learning trust upon. Tony for those the public that is listening, see back stance for what . Childcare planning advisory council. Made up of 25 numbers selected from the board of education and half from the board of supervisors. I know its been stated earlier that theres about 1700 children on the waitlist but that doesnt include as were looking at the unmet needs of the city, there is approximately 7000 children infant and toddlers, that are eligible for subsidy and subsidize care. Thats a huge number we are going to need to tackle moving forward and we do know this is a growing population the city as well. So again we fully support the adoption of the infant child father fun. Thank you. Thank you. Good morning supervise. And staff. My name is sarah killed eight and i have the privilege of working with the San Francisco Childcare Provider association and in that capacity the privilege again of going out and speaking to providers throughout the city. I was at a meeting this saturday the primary care associations in the 22 signatures you have in front of you is from that. I also want to share a bit of Early Childhood educator expertise in other candor at the end of a long meeting that is that early care and education providers are pleased to see the recognition that children are not born at the age of 34. We are glad to be seen that recognize publicly through this legislation and that families and children need support from infancy. Providers also note childcare in the communitythey care for children zero through kindergarten yet they infant toddler care and provisions for that the care is the most expensive and the provisions for that the lease. So we very much appreciate supervisor yee for bringing this to the board and Kim Avalos Tang Mar for supporting it. Thank you. Good morning supermarket im glenn dobson representing the opposite early care and education this morning. We very much look forward to partnering with supervisor yee and the rest of the board of supervisors on the implementation of Early Learning Scholarship Fund for infants and toddlers. We recently published our citywide plan early care and education and the goals of this Scholarship Fund sort of me were the priorities and recommendations that we have in our plan. Wethe city has made incredible strides forward in serving preschoolers to our pfa program here in San Francisco but we really want to see a continuity of care for 05yearolds as part of our restructuring of the financing of the early care and Education System here in San Francisco. Any additional funding and resources that we can have to serve 03 euros would be put to great use through the Early Learning scholarship model that we are currently planning for rolling out next year. So we look forward to a continued working together and thank you for this legislation. Thank you. Any other Public Comment . Seeing none, mr. Chairman we will now close of the comment [gavel] so what i would like to do is make a motion to pass the amendment second we have a motion to approve the minutes is circulated by supervisor trainees. We can take that without objection [gavel] i like a motion make a motion to pass this ordinance out of committee as amended to the full positive recommendation to the full board. Second moved and seconded. We can also take that without objection. [gavel] i want to thank just really want to thank the public coming out for supporting this. This is really important for the families that are trying good they are struggling to make a living here and thanks for taking the time off from your job said i know you are really busy and hopefully we can in the future find the funding to support this. Thank you very much. Okay. With that speaker please call item number seven item number seven amending the emission of code poet prohibition on leasing the extraction of fossil fuel from cityowned land in acquiring inspection with an evaluation of constructed future uses for such land. Supervisor avalos good to see you on that side of the wall. Soon enough you may see me here. I thought i get a little practice. [laughing] wow ticktock. I have an overhead i will be putting on a little bit in a second. But i thought id start off you. I will there once i finish my presentation to begin with. Thank you colleagues for hearing this item today. Its a very important idea we actually introduce this item back in march of this year. This money cosponsored it i dont have them all for me right now but essentially this item is really to respond to our Global Crisis of Climate Change. And while we are not quite at catastrophe we are on a trajectory that will get us to catastrophe if we do not start making changes in how we do our business. We need institutional change in our economy got institutional change in how we derive Energy Sources and this measure is part of that process. This item before us goes back to 1941 when mr. Alford furman bequeathed his estate to the city and county of San Francisco with a direction that the revenues be split between the library and park and rec. This land is in Current County close to bakersfield just north and maybe a little west of bakersfield. His estate included thousands of acres of land in fresno and kern counties including a working oilfield. I will start off with as we get into the climate portion with a number. 2c. To prevent catastrophic Climate Change and eight impact on our climate, we need to limit the increase in Global Temperatures to 2c below preindustrial levels. We have already hit about 1c and are well on our way to going much higher to increase the global temperature above preindustrial levels. The Climate Summit in paris last year directed us, countries around the world, to work to limit temperature increase 2c the countries when it said further and said, 1. 5 increase in temperature was what we should be going for. This year and i think was may of this year, both china and the United States ratified the agreement and we are still well behind where we need to be in terms of actually creating real change and that mechanisms to bring our temperatures and are emission levels down. We, in order to achieve these temperatures, we had to limit Greenhouse Gas emissions in the biggest Greenhouse Gas and we all know, is co2 Carbon Dioxide. It was in 2013 that we measured the first time that we had gotten above 400 ppm in Carbon Dioxide increase. Now this year we had an average global level of 400 ppm. So we are still not having the impact that we want to have on achieving reductions in co2 that would help to limit global Climate Change. Scientists also said that now the we hit 400 ppm as an average temperature it will take decades for us to get below that number. We are already seeing the impacts of this rise in Global Temperatures could we have dramatic climatic events, droughts that last a number of years, could we are in the middle of a unprecedented whats now a fourfiveyear drought in california with no and thats visible insight. Our el nino event was much less dramatic than we expected it to be. It did not help us pull us out of our drought situation. Weve also seen across the United States huge climactic events like hurricanes. Hurricane katrina in 2005, hurricane cindy in 2012. Most recently hurricane nephew which was [nonenglish speaker language] in cuba. Weve seen across other, to events like typhoon i and in 2013. These are just happening over and over again and joined showing us we need to take real concerted action to make a difference. For the past 11 months the world has not a new monthly record high for temperature and every year its the think nasa is predicting the global average temperature for 2016 will be well above 1c in the preindustrial era. Most scientists agree that the human sources of ghd are the sources of co2 are the main source for Climate Change. At the cop 21 conference 196 parts including the United States because you the Paris Agreement to reaffirm the goal of limiting Global Temperatures increase well above 2c while urging efforts to limit the increase to 1. 5 as i said earlier. Climate scientists have published several studies of the world remaining carbon budget which is the maximum amount of future carbon that can be emitted into the atmosphere to provide a certain probable ability of limiting global temperature increase. Heres my overhead. Im not sure if thats appearing. Okay. So this is representing our carbon budget. The 11,000 number is a big circle is the actual resources that are expected to be out there that will companies and scientists believe are out in the world. The reserves thats 3200, the smaller circle thats orange, is what a lot of fossil fuel companies have it then divide that they actually have in the reserves but theyre not developed sites. They are not sites that are actually in the process of production but of that number, theres 942 developed reserves. Those 11,000 numbers are in terms of co2, what we spent that we would emit from these sources. The carbon budget also says that in order to be able to stable over 2c number we dont have a firm 43 i think thats the circle right ear, the green circle, 843 tons of single co2 that we can stay below the 2c number. If we were to actually work to stay below the 1. 5c we would need to limit gigaton output of co2 to 393 gt. So you can see the numbers that we have already in terms of the reserves that are known are well above what we would have on hand that we can actually use towe could burn to actually cook the planet to a level that we would not be able to maintain sustainable life. So it makes sense that we actually cannot burn our reserves that are known and we have to keep much of them in the ground and that is what this legislation is before us is about. In last year or maybe a couple years ago sen. Jeff berkeley and i believe congress [inaudible] has introduced the cupid in the ground act to permit only credit new leases for the exhaustion of fossil fuels and also public lands in federal waters. While there has been no progress at the federal level because there hasnt been much progress on much of anything at the federal level with gridlock, many units about is a taken steps to keep fossil fuels in the ground. Last year Portland Oregon voted unanimously to ban you fossil fuel in structure. In 2014 San Benito County voters banned all tracking and steam injection was halted a proposed new oilfield to your Pinnacle National park. In september the Venetian City Council voted unanimously to deny a valero crewed by rail project and in november Monterey County will vote on a proposed ban on tracking and new oil wells that would impact the san ardo will feel. So this measure is San Francisco adding itself to these limited efforts but hopefully they can steamroll into new ones. This ordinance and i have amendment today to actually i think that are not substantivethis ordinance will prohibit the city from entering into leases for the extraction of fossil fuel from cityowned land and for City Property that is currently leased for fossil fuel the ordinance directs the director of real estate to create a Just Transition plan for the property. Thats what we have for the new amendment that we have before us today. This new conduct an inspection of the property to a valuate the state of the property and ensure [inaudible] the lease is can climb with all investment was the Just Transition plan will also evaluate possible constructive future uses for the property including noble power generation, recreation, habitat restoration. The San Francisco Public Utility Commission has conducted a preliminary project Feasibility Study of the studies properties and current and Fresno County and have determined that much of the property is well suited for solar power which will get the presentation here today. What is perhaps most exciting about this study is that this land could generate more revenue from a solar power from solar power that what we are currently receiving from chevron. This shows how we can transition from a fossil fuel based economy to a Renewable Energy based economy also creating new jobs. If you saw in the paper today, john updike who will be talking that talked about how the transition could actually be equal in terms of revenue that will come back to the city that has traditionally gone to our parks and libraries will be with to come back to the city to help those budgets. So we are not really losing anything while were actually doing our part on Global Warming and creating new renewable sources. With that, i will seed the podium and go sit over where i usually sit. Feed the podium to john updike director of real estate after him will be Lori Mitchell from the San Francisco Public Utility Commission and then jason freed executive Office Officer of alaska. Others may want to join from recreation and park and library if they are hit. I do, colleagues. Mr. Updike. John updike director of wheels get thank you supervisor avalos for your leadership as well as your patience while we worked out what i think is a really excellentoutcome and Going Forward stance on this. As a supervisor mentioned, this property was received by the city in 1941 along with numerous other properties out of county and within the county stocks, bonds and another of other holdings from the estate which was the city and county of San Francisco were grateful to receive. Many of those assets were sold off. What was not sold was about a little over 1400 acres of land both fresno and kern county. Of that acreage, really at issue here today is 800, particular acres within the Current River oilfield thatcherite oil and gas revenues and since theyve done so since at least 1963 between the city and county and at that time shall rue a number of subsequent acquisitions and mergers, now today chevron. This current lease we have which was amended in the mid1990s expires in 2020. So this is a perfect opportunity to have this discussion to align ourselves with what we do with this property in the future after that lease expiration. And prepare for the lease expiration. It also allowed us to take a second look at the remaining 600 acres not under lease to chevron but we believe today there a viable for solar good i will let laurie speak to that opportunity. I think what i want to bring to the attention of the committee is just that weve had an alignment of market forces. I think trading the perfect opportunity to move forward with this as proposed to you. That is that, not unexpectedly, the yields from the lease had been declining and of course the price of those yields on a per barrel basis have also been declining and so as indicated in the budget legislative Analyst Report we are now down to something in the lowmid 300,000 per year revenue stream that that is our royalty revenue a little over 15 of the revenue earned it thats the royalty agreement we have with chevron could that is down from something over 800,000 per year. Easily. That combined with crater efficiency of solar farms and the potential revenue changing in an upward direction we crossed paths. Were a few years ago this might not have been a smart this Cool Investment and theres no question its a smart move to make to save the planet. That should be our goal. Its a nice bonus that we can do so in a way that is neutral to the departments receiving the revenue and as mentioned, the request is very specific. I want to note that. Any revenues received a moscow to 50 to the library and 50 to the park and rec for the quote adornment of Golden Gate Park unquote. That is the bequest requirements. So if we have continued Revenue Streams for whatever purposes it would be split 5050 if there is a sale of some of the assets that might be an option with certain Deed Restrictions consistent with this legislation, those revenues, to come up with the flow. Any those agreements would be subject to further board approval. This is just initial direction on this. With that information i will turn it over to lori and i assume you go over the amendment. Thank you. Thank you mr. Updike. Good morning. My name is Elizabeth Uber guidebook Public Utilities commission we were happy to assist in this project is john and the supervisor noted, we completed a Feasibility Study in june of this year look at the parcels of land not least by chevron and we concluded it is feasible to install solar on the sides. This number projects have artie been installed in the area and so it looks like a promising opportunity for the city. In addition to that feasibility report we work with a Budget Analyst Office in determining what might be possible in terms of leasing this site to a solar developer. We advise them that generally leases for solar sites range from about 500 15 and acre. That could be a potential revenue stream that would replace the oil revenues that the city is currently getting. Obviously thats a large range and thats just an average age of the general Solar Project in california. We would recommend in order to understand the actual revenue might be that we potentially do an rfp to Solar Developers and see what they might pay to lease the site in that area which would give this a better idea of what revenues could be possible through that site. I think the other opportunity we see are the Public Utilities commission is if the city did we stood aside to a sober developer we would certainly be interested in understanding more details about that site potentially wouldve urges agreement would look like could obviously, you know the Public Utilities commission is out in the market procuring renewables for new clean power as half program. So its definitely a site we would like to look at her cca into see thats feasible. Obviously, that would depend on the Economic Centers of power purchase agreement. I think there are two separate issues but definitely some exciting opportunities here. Im happy to answer any questions. Thanks. Colleagues from any questions because supervisor avalos . Next up jason freed jason freed the second officer of last. Thank you. You might remember in the backing in 2015 we issued a report from several which we will save [inaudible] job creation. How can utilize the. Were talking about here could potentially fit well into a job creation Renewable Energy Program Generation system for the clean power as a program. From that report, on the overhead, you will see there is if you look at generic utility scale projects that there is the ability to create jobs by the simple production of it theres a longterm maintenance in the operation of the site that also does create small numbers still does create a number. You do have that. This would be something that fall under the california section which is much better areas we will get a better better bang for your buck with a job creation doing it down there. When you look at potential regional and state projects that we do look at at the time was again on the overhead you will see there is work job creation available through programs that we look at. These projects were actually not included in that list partly because we were not really looking at that attempted trafficking about this particular item wasnt on the list of things to be reviewed. So we would encourage you to look a very serious look as mitchell just mentioned from sf pc is a lot more work than is to be done. I think that done a lot of great work that shown there is some feasibility to this project at one of the things i would potentially look at not just selling to clean power as that which is key and critical. We would not want necessarily potential solar down there that might be too much solar in one location for our program but theres a lot of programs out there. Youve got not just the ones in Northern California here your lancaster which is a program that several other in Southern California dont make a good fit for their program as well. Not only should be looking to hydrate the this program for ourselves but how do we maybe help sober neighboring programs around cca is was was open market figure out what the right balance how do we make sure were getting enough money for park and rec and the library through this is a Stable Funding source and how do we also make sure we are helping other sister programs like clean power as a. If you have any questions or be happy to answer them thank you. We are also seeing there is a greater alignment. Certainly theres more cca appearing. Theyre doing clean power as a type programs. This a greater alignment among them to actually coordinate resources as well. Yes. They actually just formed calsusie at California Community choice association. Its all the currently running programs are part of that and theres actually looking to join that are in the process of creating a program. So theres deftly a lot more alignment within the state among the cca programs theres actually ag barbara hill is the president of that association. Rates. Its good to know district and and district 11 are closest to fresno and kern county so we will probably see a lot of residents from those districts get these jobs. Right . Thats quite possible although thats a little bit of drive to get down to kern county [inaudible]. Great. Thank you. Do we have anyone from the park and Rec Department or library here . Thats all the presenters i have for the legislation and chairman farrell if you want to go on to the budget Analyst Reports and go on to Public Comment it spews first of all supervisor tang i just want to thank you supervisor avalos for your efforts on guide these really wonderful that we are able to find the Perfect Timing and never to be doing this could just want to commend you for that. Also want to share with you and hopefully you and others can go on what i consider as sister effort is we have called a hearing and put out a directive, a goal, to transition our cities city hall vehicle fleet the light duty vehicle fleet, to one of percent electric by the year 2020 at swifty huge goal of mine. [applause] sorry chairman farrell. Applause allowed. Interest them from personally wanted to be able to drive electric theres a lot of areas for me living in multiunit buildings and so we figured that we would start with our own looking internally at city hall and how it is we can address that there would really transitioning up off lines onto also fuels and so forth. Again want to thank supervisor avalos on this in a happy to cosponsor the ordinance. Thank you supervisor tang. Great. Thank you for going to the budget analyst i do want to recognize the work that john updike and Real Estate Office as well as San Francisco Public Utility Commission as well for their work in helping us to find Great Solutions to revenue that could be not lost a coming from other sources to maintain our funding levels for the library and park and rec. Also all the luck work youve done in looking at this property could originally, the recognition of this property came from someone outside of city hall from jeff altman whos here in the audience was doing a lot of his research and he said fantastic in doing that and supporting a lot of the work that the air district we do in other bodies are doing with Climate Change. I just want to thank him for finding this and bring it before us did thank you. [applause] all right. Mr. Rose one of you go to your report for item 7, please . Yes mr. Chairman and members of Committee Supervisor avalos, on page 12 of our report we report as shown in table one and that is on page 13 of our report, from 20112015 under the lease between chevron and the city for the use of the current oilfields chevron played the city will see revenues totally totaling 3 million and this ordinance would result in termination of this lease on march 31 2020 and the lease expires at which point the city would no longer receive royalty revenues. We also note as shown in that table 1 that in 2015 as mr. Update has already stated, the city received 319,000 so thats a significant decrease from the 800two 900,000 the city was previously receiving. We note that termination of the lease would result in a revenue loss based on those two 2015 revenues of 319,000 per year at which 159. 798 would be reduced revenues to the recreation and Park Department in 159 would be reduced revenues to the library and thats in accordance with the terms and conditions. Our recommendation is we consider this to be a policy matter for the board of supervisors. Thank you much mr. Rose picked collies from any questions for budget analyst . At this point will open up to Public Comment it under this number of speaker cards. I given them to supervisor avalos two can call them in order. Public comment is now open i will call your names and if you would line up on the wall with a windows are and more or less the order your names are called. [calling Public Comment cards] good morning sunrise. Eric brooks how corny for Energy Choice San Francisco Clean Energy Advocates and San Francisco green party. This ones pretty much i know brain. Learning that the city and county of San Francisco was making money off of fossil fuel was something out of the sorrow world and its good kudos to jed and 350 bay area for finding out about this. Was incredible work in this is incredibly important. On the substance of the matter is up i would just strongly urge that as we move forward with this we do not sell off any this land and we dont even lease it to Renewable Energy producers lets make these projects public projects the way they ought to be. We should own any solar panels or Wind Turbines were nobles, we should add Battery Storage of course which is a crucial component to all these things should be owned by the community and by your note are Public Utilities commission of clean power as a program or maybe one other thing could be another Committee Choice program but i think we should own it is a community p i believe one or two of the original solar panels that were created over 70 years ago are still running. So we actually started leasing this property and leasing it if we actually build our own solar panels and own them we are looking at decades to more than a century of revenue for park and rec and the library that we would not get as much revenue from just we seen it out to corporations. So i would urge you to continue in that way on these and make them public projects. Hello chairman farrell and supervise. Thank you so much. Mine is jed holtman am a policy analyst for 350 bay area when the leaders of 350 San Francisco working for gbh reductions in the nine county bay area. It was a move statewide to restrict tracking and looking extreme extraction looked at how San Francisco might be able to be involved through a hunch and some public records request found this kind of open secret in the city about this request. I would like to thank supervisor avalos is others for picking this up and doing tons of work to move this forward was of fossil free vinton i like to think the department of real estate and qc for their work in our parks apartment to be funded by fossil fuels which are going to radically change our parks. Our city has electricity Resource Plan calls for 1 jg free electricity by 2030. If starter clean power as a program which is providing cleaner power for cheaper than pg e and the option for 1 removal power. Our Pension System for city workers and retirees has divested from coal stocks may 100 million fossil free investment so our city is really moving towards becoming fossil free and this is an obvious move to make on that angle. More broadly, supervisor avalos regimen must keep fossil fuels in the ground. Even burning only those fuels of coal oil and gas currently being extracted would push us past the International Carbon budget that we need to maintain. This information is just published a month or two ago. This is very timely. We will need to keep fossil fuels in the ground elsewhere but it has to start somewhere and we can survive putting our money where our mouth is it. I urge you to support this measure note that the full board. We can get equivalent so more revenue from renewables and create jobs. Thank you. Hello supervisor. My name is Brett Fleishman Senior Analyst for the International Climate focused on profit 350. Org. I first want to thank Supervisor John Avalos and jeb altman for pushing this forward. Just to quickly underscore some of the points already been made, here on record, changes happening. Its happening out we are empirically out of time to address this issue. In peer clique, aside, from a community perspective, the time for Climate Action has passed long ago. The new letter i want to put on this looking at this issue the Climate Movement globally and nationally, is that Climate Action at the local and City Government level is picking up in a big way in the nation is watching San Francisco today and on november 1 using this as a model to be spread throughout the globe. So i wish you the best of luck. Thank you. Thank you. Before the next speaker i do want to say that germany pollock by legislative aide in my office, has done a lot of the legwork on this phenomena thank you for his work and of course i want to thinktank for cosponsoring today. Thank you. My name is jean sue good morning everyone. Im with the center for biological diversity is also proud San Francisco resident. Im here today to urge you to please vote in favor of this incredible ordinance i just want to take a step back and actually help us connect the dots between whats going on globally and locally. I think at times when everybody thinks about Climate Change it is something thats extremely existential and what difference can we make here on a local level. Let me tell you that difference is enormous. I went to the Paris Agreement last year and next week i will be in morocco as well. There i will be meeting with fellow activists from five continents around the world. Where fighting fossil fuel divestment of away from zambia to the philippines to brazil and here in san iraq in north america. There, what we are all seen them on every single level governments are kicking the can to other governments. Under global level theyre trying to Kick International level. On the National Level are trying to kick it to state levels in the us and the state levels are kicking into local levels good im telling you that here today there is a huge difference you can make because you are being empowered to actually do something with the rubber needs the road finally. Where every other government above you simply cannot and we as citizens activists are trying to talk to every single level and keep going whether its going to be in morocco next week and whether it is here today. I just want to emphasize what so important that all these Community Activists are here in front of you today and elsewhere around the world. It is because the effects of Climate Change are twofold. Wherever we see fossil fuels. Being extracted. The first is that on frontline communities, especially here in california, whenever you have the tracking thats coming going on in kern county or the Oil Extraction in general that were fighting against all of that equates to toxics in our air to the earthquakes that we feel into the water that is being contaminated the people are exposed to. Take you. Thank you so much thank you. We urge that you vote, yes, today could thank you. I will read a few more cards. The c [calling public cards] hello to my name is sally northup, thank supervisor avalos and speak as a citizen of the San Francisco could i live in the outer sunset could ive lived here since 1980 and is a grandmother citizen of San Francisco i and earth citizen i believe passionately in the necessity of keeping fossil fuels in the ground. Please, vote for this. Thank you thank you next speaker, please. Good to see you all. Steve jones biological diverse. Since i left him and doing a lot of work on helping with Climate Change issue in transition to the Clean Energy Future we need. Public lands and waters is important place to do that. San francisco can show real leadership in on the Climate Change issue instead of profiting from our overuse of fossil fuels. As supervisor avalos said hindsight is really clear that if we are going to avoid cataclysmic Climate Change scenarios we leaned to leave untapped fossil fuels in the ground and public lands and waters the Perfect Place to do that. So honestly get a nice benefit here if youre serious about clean power as set and creating Global Portfolio for the citizens of San Francisco, theres a great opportunity you really cant let pass by. I really hope you approve this. Thanks. Hello. Im rose brown with the center for biological diversity and im kind of embarrassed and im embarrassed into full. One is i didnt know that the city of San Francisco owned oil and was extracting oil and two, i am embarrassed the city of San Francisco owns this oil and extracting this old. So im depending on our residence here in San Francisco who are here today to speak up and depending on her board of supervisors to speak out and stop this practice before it continues. Particularly, at this moment when now more than ever we have an opportunity to address Climate Change before it gets even more of a crisis situation. That was a. Im depending on you and we are all here with you so lets do it. Thanks thank you. Yes, jed holton blew our minds. Next speaker, please. Hello. My name is asher clean energy complainant with the center for biological diversity. This ordinance is a terminus opportunity to be a National Leader both in the fight against Climate Change but also the work too great a Just Transition and Robust Energy Economy Group i urge you to support it. The city could become a beacon for municipalities cross california to divest from the toxic and dangerous practice of tracking in Current County is awful. If you ever been there its horrible. Really across america to move from a Climate Chaos scenario to clean and just energy future. With this ordinance the city can transition their lease from dirty extraction work with the utility scale for the company to build solar on this degraded land and offer jobs in Transition Opportunities to those impacted by the closure of the oil fields. Since the lease ends in 2020 we have four years since california is a solar leader in four years the Solar Industry is can even be stronger in the citys land is prime real estate this exponentially growing industry. The sf puc has evaluated and according to mr. Updike the city can move forward on leasing those acres for solar power before lease expired and if the going rate for solar lease is around 1000 an acre actually twice what you been earning from chevron those revenues could be billed to the Public Library, the parks and recreation sector. Additionally in the 2015 local Agency Formation commission gave estimates of job creation that really puts many hundreds potentially of new construction jobs. Just to wrap up here, weve so few opportunities to really demonstrate the clear nexus an opportunity to have transition from dirty fuels to clean energy that this really could be an opportunity for San Francisco to be a leader as we would like to be at thank you so much for your time. Thank you very much. Next speaker, please. I get my name is laura mckinney. I also work for the center for biological diversity in the San Francisco expat it moved to the state a few years ago but im really proud of San Francisco today and i want to thank supervisor avalos and all of you here get this is an exciting opportunity and him and oil gas a researcher for the center and i want to add that you are not only protecting the climate by ending Oil Extraction and Current River will feel good for every gallon of were for every barrel of oil that comes up there sometimes is monies 99 barrels of water that comes out of the ground polluted with chemicals that put down into oil fields. The water gets reinjected at extreme oil instruction involves injecting a lot of water underground and recent study from stanford shows as much of a third of californias deep groundwater reserves are in danger by oil and gas operations. Current river will field contains numerous injection wells have been illegally injecting four years into aquifers that convey Drinking Water and the state is now will be soon putting forth an aquifer exemption asking for more opportunities to inject water. So by ending Oil Extraction row preserving the climate you are also preserving our very very precious water reserves is way applaud this proposal and i hope that you will support its. Thank you very. Before the next figure albeit a few more cards. [calling Public Comment cards] good morning. My name isexecutive director of the united native americans packing it today to be here in support of my allies, my friends, our family who of course are diamond toasted stewards of the land and protectors of our mother earth. I would just like to bring to the attention of a course San Francisco leadership here, according to the World Health Organization called who, 7 million premature deaths annually are linked to air pollution and of course this is now the Worlds Largest single Environmental Health risk and reducing air pollution could serve no millions of lives. We as una, the founders of the i dont know more here in the San Francisco bay area as the that mayor ed lee signed into law the ordinance and the board of supervisors here please prove this. I would just like to add that as Indigenous People we defend our mother earth. We defend the sacredness of our mother earth. The four sacred almonds, earth, wind, fire, water. We ask of your support by brothers and sisters, back home in north dakota, and south dakota mobilize to stop this huge pipeline from coming through and desecrating our water supply is the only our water. Water is very sacred go without water we would have no life. We need your help. Please, help us today. Thank you. Janet stromberg from 350 bay area. Good morning supervisors. Shut up and thank you to supervisor avalos and all the many cosigners. Of thi ordinance and i also want to give a shout out to jeremy, who i know his work very very hard on this in a big thank you to jed for discovering this situation. In listening to the other speakers, im speaking in terms of the healing that this act is going to do. Weve talked about the healing of the earths water. Its not a groundbreaking act you are doing good into ground healing act youre doing. I attended California Air Resources Board hearing about a month ago on amendment to the raid will. At that meeting, the center for waste poverty in the environment brought 3740 people from Current County live among those oilfields but i dont avail of your oilfields but they live on the oil fields and their suffering extreme health problems. If unbelievable rates of cancer and rates of lung disease among the children. So i want you to know that in this act as i assume you are going to do, is passed this ordinance unanimously. You will be healing people, the earth and the water and that is far more important than the financial penciling out of the project but im very happy to see that, too and we always knew this was going to happen. Thank you. Thank you very much. Next speaker, please. Hi. Mime alayna angle with 350 San Francisco annamae citizen and voter in San Francisco. So much has already been said so i wont repeat it. I would just say that when the voters voted for clean power sf they made their voices heard really clearly. We want noble energy. We want clean energy. We do not want fossil fuels. We know that would destroy our planet. I urge you to do the right thing and just continue with the will of the voters of San Francisco. Thank you. Thank you. Next speaker, please. Kathleen ramos 350 bay area and i feel actions and measures like this are so important that the state and local level since federal government is virtually paralyzed and in thrall to the corporate lobbies and fossil fuel energy. So these things coming from the state and local are so important. I have a poster i taken around two dollars at the lead outside of course but a couple of things that i think are just critical for california of course besides the devastating effects of tracking everywhere, is racking and drought country are you kidding me . 100,000 gallons or more or less of water to track one well. The water is then useless chemicals that go into our groundwater. Tracking and earthquakes country . Are you kidding me . I met a guy on the bus and he saw me my poster which was cool these from oklahoma. Oklahoma, as you know is is hundreds of earthquakes which are attributable to the flocking. Oklahoma is taking action. They told me to oklahoma to think of them as being particularly progressive print i big oil pro regulation but getting them where they live. So its only no california is not take a second seat to oklahoma in this that thank you supervisor avalos for bringing this forward. Good morning everyone. My name is chris cox began here as an individual resident of davis california. I would like to commend chairman farrell and the other members of the committee for taking this important step to reduce Greenhouse Gas emissions and bring us closer to a trajectory that will bring us on the 2 scenario. At the same time i think its really important we address the elephant in the room which is scrabble transport in the city according to the bay area air Quality Management district transportation account is the largest was a Greenhouse Gas Emissions Accounting for 40 of all emissions in the bijan. I think of supervisors really want to take a leadership role in Climate Change its important we address this. I think theres two key action. One is that we need a radical change in the landuse policy in the city that we need to allow the developer to more Affordable Housing near transit to the people can live close to their work. They can walk and bike to the workplaces and places of school. Instead of having to drive in from the farflung stretches of the region. Second, i think we need to do a lot more to make it easier for people to walk cycle, use transparent need to reallocate or road space to public transport into nonmotorized transport. We need to redouble the efforts on the bus Rapid Transit project which is been moving but moving very slowly. I think if we really address these issues then the city can take a much better leadership role. Thank you thank you very much. Next speaker, please. Hello. Chairman farrell and members of the board. My name is daisya resident of San Francisco im speaking in support of this measure. Think you for your courageous leadership in really leading the nation and our state in trying to keep our fossil fuel reserves in the ground. As others have alluded to, we need to keep 50 fall of our oil 9 of the remaining coal in the ground in the United States and were to me are 2 Global Warming target. That must begin with oscar so im very glad to see this moving forward. In addition to the climate reasons to keep fossil fuels in the ground, as others have alluded to, is also very Strong Health imperative. Up until last week i was working for an Organization Called physician scientists and engineers for healthy energy. I myself have a masters of science in energy in land use. The community in Current County are suffering from a lot of pollution because of the oil and gas developed in the region. Recent data released by chevron for an investigation looking at the reuse of oilfield produced water which is being used to irrigate agricultural crops right now in the region, reveals there are dozens if not hundreds of chemicals that are put into wells causes of whether their fractal and appeared well production and dozens of these chemicals around the prop 65 artists and agents. These are getting into our water supply but these are getting into peoples bodies and their ashley getting onto our crops now. We need to protect the health of the community and Current County protect the conscience of San Francisco residence and the future of the children were going to be libraries and parks again this monday the money come from clean source. So thank you for your leadership and please, pass this. Thank you very much. Next speaker, please. If theres any other members of the public would like to comment be please let up on the wall or coach the podium after the speaker. Thank you hello. My name is odell framer resident of San Francisco for over 40 years. I urge you to support pass this measure supervisor avalos laid out the Science Behind the keeping it in the ground. This is very important. Im a member of 350 San Francisco and the 350 organization derives its name from the 350 parts per million of carbon in the odyssey are. That is supposed to be the maximum amount to maintain a stable climate on earth. We are now over 400 ppm. We dont have anymore time to waste in converting our Energy Production to clean energy and reducing pollution as much as we can. I urge you to pass not only this measure but every city action should be shaped to reduce carbon in the atmosphere and help keep the citizens of San Francisco and the world safe. This includes transportation, city planning, air Quality Management, parks, public works, retrofit the built environment, construction, and every other activity that the city is involved in. The police, please think of the climate in all your decisions. We are going to have to move forward in every way possible to limit carbon in the honesty of. Thank you. Thank you very much. Next speaker, please. Hi there came a name is ben becker. Im the cochairman of the San Francisco sparrow and devil i like to echo the sentiments everybody said here already. The position of the bernie kratz is the economic value or potential value of the oil in the fields is round 300 20,000 per year. San francisco is a very wealthy and Progressive Community we control budget of nearly im sorry 10 billion per year. This money regardless of whether we are able to convert it into solar power is trivial to our expenses and we should follow our hearts. Thank you. Thank you very much. Are there any other members of the public would like to comment . Seeing none, Public Comment is closed. Public comment is now closed [gavel] numbers i do have a member symbol for this legislation it just some cleanup language on page 3, line 19 changing Carbon Monoxide to Carbon Dioxide and we added some language that discusses a Just Transition and including varmints oh cleanup making sure that this inspection to ensure that obama the cleanup is carried out including report on the value of the property as a habitat potential for restoration. The other part is around creating transition plan and asking the San Francisco Public Utilities Commission Submit to the board of supervisors with that plan would look like for the property. Those are the main parts that were added and would like to request that we motion to accept with that does this have to sit for a week . B was i dont believe it does, no okay. Supervisor tang spews all make a motion to adopt those amendment. He was moved and seconded. Moved and seconded. Will take these memos without objection [gavel] one question i know that was an exception in this legislation for the permits for example if theres an elusive jurisdiction department and if for example this ordinance would make them violate the charter or their ability to carry out their function under the charter to we have departments that would fall under this exception . Reynaud to the chair to supervisor avalos . Lets ask the City Attorney spews deputy City Attorney john gibner. Theyre certain the permits that have jurisdictioni think we have to work out whether any given situation if at some point in the future qc wanted to extract fossil fuel on the property with her that would actuallywhether complying with the ordinance would undermine their charter authority. Im not sure the circumstances that would cause us to say, you dont have to file the ordinance but it probably depends on the time so qc am curious whether other examples so department would seek an exemption . Are there any others . I would not know the port has inclusive authority over this party the mta has exclusive 40 over its property. The reason we included this provision in the ordinance is that when we are regulating the use of property in this way we try to be explicit that they are just some places where the board cannot legislate. Were it is really up to that the commission would exclude the control and we wanted to be clear about that in the ordinance. Okay. I hope from a policy perspective these departments will understand we sorely dont want them to engage in extracting fossil fuels even if they have authority i can imagine our department doing a bit might happen in a postapollo apocalyptic road work habits and arab and hopefully that will never happen. [laughing] mr. Update i can top that supervisor avalos but yes, we did look at all the county as is not only to look at existing operations but potentially updates. We do not under the file proper the fall under this category with the extraction. As you know we do have some Quarry Mining efforts within the pucs out of county acids but i dont see that is in conflict with this issue and actually if you recall, the amendment to those leases were actually very favorable relative to being sensitive to Climate Action plan. So i dont think we see an existing conflict and as deputy City Attorney mentioned, highly unlikely in the future. Good question. Thank you okay. Great. Supervisor tang thank you for cosponsorship adding her name here again and again i want to the governments of the public for coming today and for your work in helping to advance this legislate. Vertically want to thank jed holtzman from 350 p fan in bay area for your work and of course germy pollock in my office with done an outstanding job shepherding this through. These past few months. Mr. Updike, thank you and without colleagues, i would love to have your support. Thank you supervisor avalos and if you would add me as a cosponsor as well that would be great colleagues, emotion bequest make a motion to passes to the board with full recordation moved and seconded. We can take it without objection. Thanks everyone [gavel] cap in the was mdm. Clerk please call animate item 8 issuance of bonds by the California Statewide Community Development Authority enacted an amount not to exceed 159 to finance the acquisition construction equipping and furnishing of the [inaudible] hebrew home age disabled. Extremist group we have my name is scuttled him public financing. I believe also in attendance represented from jewish home of San Francisco. If she still your jan reichert. Give any specific questions about the project get to give you a little background this is a proposed issuance under the tax equity discourse possible that which allows the taxes option of interest on certain types of debt issues or joint Powers Authoritys. This did was fun as it issued to the companies they want to me, the 40 rc cda joint Powers Authority to which city county is San Francisco is a participating member. The resolution before you today is before you today because federal tax law requires the governing body of the jurisdiction was a project is located was to prove the financing of the project i provide an opportunity for duly noticed public hearing good so it may be issued on taxexempt basis. This jurisdiction in the city and county of San Francisco when sitting county is not obligated for payment on the bond. We post a hearing notice in San Francisco examiner on september 27 of this year. The public hearing was held at [inaudible] on october 11 the comments were received. Bernie members of the public to the public hearing prosperity the pseudothe requests [inaudible] are obtained we would issue taxes them and you know not to exceed 150 million. The purpose of the bonds would be to finance the cost or reimbursement for the acquisition construction renovation and version of facilities owned and managed by jewish homes of San Francisco. Which provides senior residential and Care Services and to pay expenses with the [inaudible] issuance of bonds. Who would this legislation but no physical physical impact. A little background the jewish [inaudible] back 280 with pacific [inaudible] to maintain asylum for orphaned children. And to establish and support of agent and informed israelites. Its expanded over as modern stateoftheart facilities in Geriatric Research centers provide high standards for its residents and its aim is to become a regional resource as in the bay area for senior adults with a variety of the enriching programs and service. The project is located in district 11 the legislation is being sponsored as supervisor avalos. Thank you very much. Colleagues from any questions because we will go to Public Comment. Anybody wish to comment on item 8 . Seeing none, Public Comment is closed. [gavel] i motion this to move to this full board we can take that without objection [gavel] the clerk can you call item 9 . Item 9 issuance and sale of revenue obligations not to exceed 30 to finance the cost of the acquisition demolition codes conjunction equipment and or furnishing of pk eight educational facilities to be owned in operated by presidio jalisco. Welcome back. As with the previous item this is a tab for issuance in proposed. In this instance of the association of bay area Government Finance authority and the applicant for the borrower this budget is Presidio School and we have a blessing in attendance. If there are questions for him. About the project. Again, San Francisco is a member of the joint Powers Authority a bad and jurisdiction which the project is located. So we are here to approve the project to be issued on a taxexempt basis. Hearing notice was published in San Francisco chronicle on august 29 and the public hearing was held the office of public hearing on september 12 this. The comments from any members of the public were received to the public hearing process and with the required approval ada would issue taxes patients amount of 30 million. The purposes of which would be for the acquisition demolition and construction renovation and furnishing of k12 educational and related ancillary facilities at 4050 howard st. 220[inaudible] 10 street in San Francisco all owned and operated by the borrower Presidio School. Including once for a garage pk building Elementary School building innovation of an existing building conversion thereof to be used through home for educational facilities construction to threestory buildings for educational facilities and one onestory building proposal 1000 ft. 2 per use as a Music Building outdoor play areas bicycle play areas that such a. These also relocate on the campus of the school and also proceed to be used to refinance certain indebtedness of the borrower in connection with the acquisition of the project [inaudible] for bonds could approval of the live session to get what no fiscal impact of the city and county of San Francisco and just a Little Information on the borrower the Presidio School was open in a preschool in 2008 the presidio known for its progressive educational model and [inaudible] immersion program. The school decided 21 to expand to takea program relocate to a spacious facility in San Franciscos supper market neighborhood. As of this 20 1617 square their enrollment of approximate 300 students at the project is located in district 6 and legislation is sponsored by supervisor kim thank you much. Colleagues have any questions on item 9 . We will open this to public on. Anyone wish to comment on item 9 . Seeing none, Public Comment is closed. [gavel] permission to move this item for . I make a motion to move this forward with positive recommendation moved and seconded. We can take it without objection [gavel] mdm. Clerk please call item number 10 item number 10 legislation moving Sister Agency the renomination to the city to execute their rights partial at 250 fremont st. With t8 Housing Partners for less than fair market value rent of approximate 50,000 per year for 75 years the purpose of developing housing for very low income households thanks very much. Good afternoon supervised it on then Brandon Bowman specialist with the office of Community Investment and infrastructure ocii. Before you today are two resolutions regarding a control for an 80 unit permanently affordable rental Housing Project at 250 fremont st. And financing of the same project. As well as a 350 unit multifamily mixed income rental project at 450 also street. Together the foreign 30 units across the two project 250 fremont and 450 also mistreat prize two thirds of related california method opponent noticed trans babe block rated the telling Neighborhood Development corporation tndcs lives partner on the [inaudible] transport wondered 18 condominiums but its entirely separate from the two other rental project elements representing a third component of the transbay blockade Master Developments. The first resolution approves and authorize ocii to execute the 75 year air right to lease with teight Housing Project count, deliver partial and affiliate the development and operation of 80 units of Affordable Housing on transbay blockade. The second resolution authorizes the issuance and delivery of a multifamily housing revenue note in amount not to exceed 90,290,000 for the purpose of providing financing for the construction of the unit multifamily rental Housing Project. Additionally, the second resolution authorizes the issuance and delivery of variablerate multifamily Revenue Bonds in an amount not to exceed 263,000,000. 01 per thousand dollars a multifamily house and note not to exceed 20 million for the purpose of providing financing for the construction of the 350 unit wealthy family mixed income rental project to give you sense of the entire development oh provide a very brief overview of the transbay block eight project. Before returned to the two items before you today. As you can see on the context map i have at the overhead, transbay block eight is looking with within ocii transbay project area. It is bounded by first street to the west, to be constructed extension of, tina street to the north, fremont street to the east and pull some street to the south. Once completed the transbay blockade master project will comprise 55 story tower is 65 foot podium building an 85 foot podium building townhouses totaling 540 units. The development includes 118 marketrate condominiums, 279 marketrate rentals, 71 developers subsidize below market rate rentals. The ocii subsidized 80 unit for whole project located in the two podium buildings approximate 17,000 square feet with a bridge serving retail. The ocii subsidized the portal project includes 41 bedroom units, 16 twobedroom units and 24 threebedroom units all the apartments within the ocr ocii subset project or designee for exerting up to 50 of area Median Income and 71 developers subsidize units in the tower will be targeted to households earning less than 40 or less than 50 of the area Median Income. Also the for this translates into an annual income under 43,000 to just under 53,000 it earned 50. Transbay blockade project assist ocii meeting the obligation created by some legal a12 ensures 35 of the new Housing Units built in the transbay project area are affordable to and occupied by airy low, low and moderate income households. To briefly let you know of the ocii ocii project, with the approval of these two resolutions this option will start in november of 2016. With anticipated construction completion date the summer of 2019. The entire transbay block eight Master Development will be completed by the fall of 2019. The air rights leasing connection with the ocii affordable project presented for your approval allows the air right parcels that will contain the ocii sponsored units to remain under ocii ownership to the construction of the building has a term of 75 years with one option to extend for an additional 24 years. The approval by the board of supervisors is requested pursuant to the redevelopment plan the transbay redevelopment project area which provides the board shall approve the sale or lease any property required by the Agency Pursuant to the transbay option agreement in a manner consistent standards and procedures that govern the former agencies dispositional property acquired with tax increment monies there. Section 33433 of the California Community redevelopment law. Transbay block eight which is not acquired by ocii with tax increment money but pursuant to the redevelopment plan requirements the board of supervisors approval is requested. The 19 million and 283 million in taxexempt bond issuance is respectively contributing to the ocii subsidized 80 unit affordable project in the 350 unit wealthy family mixed income rental project being presented for your approval to make a crucial parts of the financing the transbay blockade Master Development. In addition to these taxexempt bonds the ocii subsidies project is also sport a low Income Housing tax credit and a 60 million low loan from ocii. As you know, the bond issuance is conduit financing which is not required the city to put repayment of the bond. Bondholders only permitted to look for the owner of the project and collateral provided by the owner of the project for repayment of the bond and thethe taxexempt bond allocation from the california debt limited Allocation Committee expires december 31, 2016. Therefore approval of the ground lease the bond and note issuance items by the november 1 board of supervisors meeting ensures the Development Team has enough time to close a budget financing well before end of year deadline and begin construction shortly thereafter. This concludes status report am available to answer any questions you might have. Also here with me today Jonathan Shum senior project manager represent related california. Catty katie lamont tndcs developer director and jeff white ocii Housing Program management we appreciate your support look forward to seeing you at the grand opening of transbay eight 2019. Thank you she was based on much. Colleagues, any questions because mr. Rose, go to your report for items and . Yes mr. Chairman and members of the committee. Under item 10, as stated on page of 18 of our report the base annual rent to be paid by teight housing to ocii is 15,000 per year which is less than their market value rent annual residual rent two 727. 237 would be paid by t8 housing to ocii if t8 housing exhibition income after expenses to pay the additional residual rent. The combined annual base residual rent of 742. 237 percent of the value of 7 million of the air right parcels to be leased to t8 housing for the Affordable Housing development. We do recommend that you approve this proposal resolution thank you mr. Colleagues have any questions because of a comment on item 10 chris seeing none, Public Comment is closed. [gavel] i will make a motion to pass item 10 and 11 i guess. With a positive recommendation to the billboard we are on item number just item number 10. Moved and seconded. We can take that without objection [gavel] mdm. Clerk legal item number 11 item 11 issuance of multifamily having housing revenue note not to exceed also 19 3 million providing financing for the acquisition and construction of an 80 unit multifamily rental Housing Project located in the city at 250 fremont st. That you supervise. The presentation that i just gave also related to item 11. Okay. Colleagues any other questions on this . Shouldve together. None open this up to Public Comment at nus anyone was to comment on item 11 request seeing none, Public Comment is closed. Now will make a motion to add item number 11 with a positive recognition to the full board moved and seconded. We can take that without objection. [gavel] the clerk please call item number 12 item number 12 resolution to the claire from the city and authorizing the director of the Mayors Office of housing and Community Development to cement an application and related documents to the california debt limit Allocation Committee permit the issuance of Revenue Bonds in that. Principal amount not to exceed six email dollars per 288 walker drive. Okay. Ocii is here presenting this as well . Good afternoon. Im elizabeth, the scene at about one specials with the opposite Community Investment and infrastructure good ocii. The resolution before you will authorize the application for bond proceeds to pay for construction and related Development Costs browse griffith phase for looking at 2000 really is walker drive. The comic and salazar were mbs is the project sponsor one with her nonprofit partner Tabernacle Community moment corporation. Additional the vomiting numbers include the San Francisco Housing Authority and urban strategys incrementing the social Services Program at alice griffith. This project is the fourth phase of the rebound went to 256 unit outskirts of Public Housing site is a mixed Income Service and Rich Community developed according to the principles of hope as a. Consistent with the principles noticing residents were displaced as a result of this development and resident rent calculations were made the same as they are today. When the redevelopment is complete all 256 public Housing Units will be replaced. Along with twitter 48 new affordable units. Three and 67 market rate units before the occlusion or units and two and 37 workforce units. These four totals 31 units which would be a mix of Public Housing replacements and new affordable units plus the managers unit. These four will also include a mix of one, two, four and five bedroom units. To be chartered to households earning no more than 6 of area Median Income was 64,600 per year for a family of four. These four late phases one, two, and three is located on really as walker died. Phases one and two are currently under construction and will be complete by february of next year. These three is currently under construction be completed by september of next year. No demolition of existing units is expected prior to late 2017 at the earliest. Double Rock Ventures is the Development Entity mbs created for the redevelopment about scripted. As you know five points formally the Lennar Corporation is the master developer for the winner Point Shipyard in Candlestick Point area could see monies a partnership created by lennar now five point the purpose of the developing the shipyard phase two in Candlestick Point. June 3, 2010 the former San Francisco we Development Agency now ocii, executed a moment and disposition agreement with dda with Cp Development company. Five point is required per the terms of this dda writer minimum of 90,000 per Public Housing replacement units and 70,000 per new portal units for the redevelopment cost about script. Per the dda ocii is also providing a base subsidy of approximate 40 million to be divided among the phases. In august 2011 mbs Developer Team was awarded a Us Department housing and urban Development Work hard Choice Neighborhoods Initiative implementation grant were see and i grant them out of the . 5 million. This eni funding comes with a variety of deadlines and deliverables. Most porn of which is the statutory obligation to grant funds be expended in units under construction by september 2016 for the proportion of Funds Associated with phases one and two september 2017 for the portion of funds being used on phases three and four. The bond inducement before you today will allow the Mayors Office of housing and Community Development to make applications for bond financing that along with the other funding i described, will allow the project to start conception in time to meet these critical hud deadline. These bond transactions or conduit financing does not require the city to pledge repayment of the bond. Anticipates omitting the application to the california debt limit Allocation Committee no later than march 27. If awarded an allocation will return for the board of supervisors approval to issue the bonds in april or may of 2017. The project is slated to begin construction by june of 2017 and complete construction at september 2018. Here with me today is Daniel Renville from mbs and we both appreciate your support and look forward to seeing you at the groundbreaking and grand opening event. Thank you very much kristi was thanks premise. Colleagues have any questions . Seeing none, open this up to Public Comment that anyone was to comment on item 12 . Seeing none, Public Comment is closed. [gavel] supervisor tang make a motion to support this with a resolution to moved and seconded. We can take that without objection. Bart [gavel] mdm. Clerk these call item 13 item number 13 authorizing interim financing pencil corridor joint powers board electrification project in aggregate pencil amount not to exceed 150 million at any one time. Good afternoon supervise my name is michael burns. Im the chief officer for the Caltrain Modernization Program which is responsible for electrification project for caltrain including the Infrastructure Improvement and the purchase of 96 new highperformance electric trains referred to as dm use. This project will reduce emissions, increase capacity, about caltrain to provide Additional Service and set the stage for future highspeed rail winded service on the peninsula. I want to say we truly appreciate all the support from the various city departments on the project including the Mayors Office, Transportation Authority, and the sf mta. The item under consideration for the committee today is to approve and to move to the full board caltrains request to secure shortterm interim financing up to a maximum of 150 million to cover cash flow needs for the project. As you know caltrain is a joint powers board could city and county of San Francisco is one of the three members of the caltrain gpb. The others are the san mateo kids at kansas and santa clara thats just ovation agent. Under state law financing joint powers board cannot be approved approved by the governing board at gpb until a public hearing was held in the financing is approved by each partner agency. Both these Santa Clara Valley Transportation Authority and the San Mateo County Transportation Authority have approved this financing. We have seven Funding Partners on the project all of whom will provide funding on a reimbursement basis. We need this interim financing capacity to cover shortterm gaps between me to pay our contractors and when we need to get reimbursed from our Funding Partners. The major sources of funding for the program include the partner contributions and thank you to the board and the city for their participation in the seven party agreement, which secured the needed funding for the project. State funding from the California Highspeed Rail Authority am a federal formula funds, and fta core capacity grants. All funds have been secured except for the sfgh which is expected by january 15. The contract for both the Infrastructure Project and the vehicles has been awarded, have been awarded, and both products have been issued limited notices to proceed to advanced design work on the project. Full notice to proceed in construction and Manufacturing Activities are expected to start in the spring of 2017. Full Revenue Service electrified Revenue Service on the peninsula is expected by the end of 2021. The proposed shortterm interim financing is in negotiated transaction discussions were held with a number of Financial Institutions over the course of several months. Six banks were invited to submit bids received bytes from two jp morgan has been selected as the preferred lender. The finalizing the agreement and the details of the agreement renegotiations currently. The expectation is that the jp board will be approving that agreement in november. The interim financing has been reviewed and discussed with the Comptrollers Office and the Mayors Office of Public Finance could we recommend you approve the proposed financing capacity in accordance with Government Code Section 6586 and 6586. 5 and im happy to answer any questions whether it relates to the financing or the project itself. I also joined by financial staff from caltrain it is any diesel financial questions. Supervisor tang thank you. Can you go back to the issue of the federal grants and for the Public Purposes can you tell us how much we are excited out of that . Yes. We been working with fta or full Funding Grant agreement for the last two years intensely and we are in the last stages of securing all the necessary approvals for that grant. The total is 647 million. So its roughly about 30 of the total project cost. So i dont know how contrary view about getting the grant and what would happen if eventually we are not able to secure that . We have a substantial amount of support for this project both from local delegations, federal delegations, from the fta itself and as i said we have been working through the details with them on the all the various documentation requirements to be able to qualify for the grant and there is a 30 day congressional review period that we expect will begin about mid december and we are just about at the closing and of including all of the necessary work thats needed , coordination work for with fta to recommend the grant so are we feeling so confident about this that we dont have any sort of backup or contingency plan . We are feeling very confident about it. Based on the work we have done with fta. The limited notices to proceed having issued specifically for the Design Elements of the project. So if for some reason the full Funding Grant agreement and not materialize the wasnt another alternative we would be able to terminate those contracts. That is not the expectation. We have further backup plans in the event that the full Funding Grant agreement is delayed beyond what we have now as march 1 for the notice to proceed for construction could we have enough money for fiscal year 17 through the other sources to cover but at this point there is no reason for us to have any expectation other than we are going to receive that grant. All right, thank you. Okay. Any further questions . We will move on to Public Comment. Anyone was to comment on item 13 . Seeing none, Public Comment is closed. [gavel] i will make a motion than to forward this to ordinance or resolution to the full board with a positive recognition moved and seconded. We can take it without objection. [gavel] mdm. Clerk any other business in front of us be was that is the end of business thanks everybody. We are adjourned. [gavel] [adjournment] good morning. Good morning thank you so much for being here. It is my pleasure and deep honor to welcome everyone to our grand Opening Celebration and Birthday Party for our new westbound i 80 yerba buena ramps project are happy birthday to our new ramp. [applause] i am kelly tang director here at the county Transportation Authority. Thank you all for taking the time to join our celebration. The four i begin i would like to recognize some of our officials and special guest who are with us today. Assembly membered david chius office we have judson true g5 staff. Over here. Per david hes who i understand is celebrating his wedding anniversary. I wanted to be here but is celebrating his wedding anniversary. Smart man. [laughing] we are grateful. So grateful to judgment and Assembly Member two 480 7324 over the finish line this past session which provides us and other sponsors with Construction Management general contractor Delivery Authority which will help our next stage project the westside ramp and bridges next year. From the betide a board we have president s panel and window bridges and linda spoken our groundbreaking 2. 5 years ago on so pleased and grateful for your participation today. And bobour executive director from tida his team. This man get so much done with so few words. Bob. Thank you, bob. From the tac presenting district 6 and herself a resident, did i see becky hope . I saw her last night at the tiedye event but becky is ours on our Citizens Advisory Committee did thank you, becky and from our board we have chairman scott weiner and commissioner jane kim. Thank you chairman weiner and bobby thank you so much [inaudible]. And from the Us Coast Guard we have right rescue. Thank you, greg and your team. And the captain as well. You been tremendous allies throughout our project. From the chp we have commander christopher sherry. His team will be speaking later as well in our program. And from the cpc even mahler is again thank you so much for being here, stephen. And for your support and from ntc we have executive director Steve Preminger as well. Thank you, steve. Steven has a striped cap. [inaudible] so youve got the biggest giants fan up here as what could id also like to recognize several people who were unable to be here today. Who provided critical advocacy legislative and funding support for this project. Senators feinstein and boxer, sen. State sen. Mark leno. Former state sen. Carol mcginn and Assembly Member john amato at the time. This project was 90 million project funded by federal highway Bridge Program funds. Not easy to get. And state prop b b1 funds as well as local match provided by tida and it was through their efforts were able to help secure those funds. Gov. Schwarzenegger brown, and sec. Bonner reinhardt, kelly and caltrans dir. Kempton [inaudible] generations of leadership at the state level have all been great partners in support to our project as well. Of course, radical California Division administrative [inaudible] who cannot be here again but we do have mr. Cole who will be speaking. Going back to the beginning of our partnership with oewd that is the office of economic and Workforce Development the Mayors Office and tida that was