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Order. This is the regular meeting of the government audit and Oversight Committee for thursday, july 7, 2016. Im supervisor norman yee vice chair of the committee todays meeting im joined by supervisor scott weiner good the Committee Clerk is erica meijer. The committee would also like to acknowledge the that that sfgov tv winnowed the asus and jim smith who recorded each of its meetings and make the transcript available to the public online. Any announcements . Yes. Please make sure to sounds all cell phones electronic devices. Items acted upon today will appear on the july 19 board of supervisors agenda. Okay. Before we begin can we have a motion to excuse supervisor peskin and supervisor breed . So we will with no objections the motion passes [gavel] mdm. Clerk these item the first item yes. Item number one, [reading code] it thank you. I would like to hand this off to supervisor weiner the sponsor of this legislation. Thank you very much mr. Chairman and thank you for agenda icing this important piece of land to legislation today. This legislation will be a significant step forward in our continuing quest to bring our Lgbt Community out of the shadows, into the sunlight and to make sure that we have all the information we need about our diverse community. The history of the Lgbt Community is a history of fighting against invisibility. Back to as long as theres been lgbt people, society has been trying to push us into the shadows and into the closet pretending that we dont exist. And trying to make sure that we are not fully part of society. Our fight for centuries or millennia, has been to not be invisible. To make sure that people know we are here, that we are part of society. Without data, we cannot fully be part of society get we cannot have that full visibility. We know that the Lgbt Community faces significant and disproportionate challenges relative to society at large regarding poverty, suicide, isolation, substance abuse, Mental Health and violence. There significant disparities with respect to the Lgbt Community and many of our health and safety challenges. Currently, there is no law in San Francisco requiring that our City Departments contractors or grantees that provide direct services to San Francisco that collect information about Sexual Orientation and agenda gender identity. Theres no requirement whatsoever. There required to collect data for other Demographic Data is not for our community. So, in general, we dont know how many lgbt people are accessing particular services. We dont know if there are services that are not culturally competent as reflected by a lack of lgbt participation. We dont know if this particular services that have a large number of lgbt people participating which tells us something about the needs of our community. So, this ordinance will require city dependence and contractors that provide healthcare and social services to our residents to seek collect and analyze data concerning the Sexual Orientation and gender identity of their clients. Of course, clients while the right not to provide that data but our departments and nonprofit partners will have to ask for it. The legislation mr. Chairman, was based on a recommendation by the lgbt 18 policy task force which as you will recall, was created by myself and supervisors campos andin 2012. The legislation the task force met for a year and havent made a series of recommendations to the board of supervisors to meet the needs of lgbt zenith. The first recommendation we adopted as legislation and that i authored with the lgbt senior bill of rights for People Living and longterm care the sorties. We have also obtained significant budget funding to fund recommendations of the path task force. This legislation is the next that in implementing the lgbt 18 policy task forces recommendations. The legislation applies to San Francisco department of Public Health department to services, San Francisco department of children and youth and families. Department of aging and Adult Services and the Mayors Office of housing and community development. Within 24 months of the operative date of the legislation, each department was amid a report to the city administrator including analysis of this data and identifying all services and programs with lgbt people are underrepresented along with a plan to make sure that the services and programs are more accessible to the Lgbt Community and more culturally competent. I also want to acknowledge that our Assembly Member and former colleague david chiu offered similar legislation at the state level last year that gov. Brown signed into law. Gov. Brown has vetoed that law previously and was a great step forward that Assembly Member mr. Chu was able to move it for. This legislation makes, womens Assembly Member choose work. Mr. Chairman, this legislation will help improve our outreach to support of all members of our community particularly the most vulnerable. And i ask for your support. We do have a few presentations today. First, i want to invite up dr. Marcy eight woman who is a member of the lgbt 18 task force and i want to thank dr. Aleman because she really was one of the people who came to me and to supervisors campos and45 years ago asking us for help and telling us, hey, when not doing we need to for lgbt seniors and so was in some ways her brainchild to do this task force oh dr. Aleman, welcome thank you supervisor wiener for that introduction and thank you for being such a leader on the needs and services of lgbt seniors in San Francisco. The lgbt 18 policy task force which convened in 2012 and ended in march of 2014 was charged with coming up with recommendations around service gaps and Service Needs for lgbt senior secured in San Francisco. To that end, of course the first thing we needed to do as the task force was to collect whatever data the city had and once we did that we realized we had a wonderful report given to us but we realized as much as is important as the report was for the data it provided was how little data there was. So, we set out to have another study, have a study done, and do focus groups in order to provide the task force with the meaningful information that they would need to make recommendations. You know, for me who has worked in decades for the field of lgbt aging this was another example of having to use resources and time tomoney and time to reinvent the wheel so that we could find out exactly what we needed to know to create the best policy and programs for our community. The task force took this to heart and realized that this was perhaps the most critical recommendation we could make. That critical recommendation was that the city mandate the collection of Sexual Orientation and gender identity data. Now, we could have just gone out and said lets just collect data for lgbt seniors, but that would have been poor judgment come i think at the end of the day because what we decided was that we would ask the city to collect data across departments, citywide good that way, [inaudible] lgbt seniors but seeing aging as a part of the lifecycle of lgbt people. So, thats what we have in this legislation. Theres youth and families, theres adult, data that will be collected on seniors as well. This for the first time, will give San Francisco the opportunity to create smart policy and programs not only for lgbt folks living in San Francisco today but for generations to come. So, thank you again so much. Thank you very much. Dr. 800 now i want to call up nolan, who in addition to his role at the mta iswas this staff member at the department of aging and Adult Services worked with the task force, to publicly thankfor being unequivocally supportive of the task force in the very beginning as well is this legislation and working closely with us. So mr. Nolan, he continues to work to move these items forward. So mr. Known. Thank you. Is your chairman and supervisor weiner im very happy to be here this morning about the department of aging and Adult Services and total support of supervisor weiners legislation and im joined this morning by the acting director of the department as look at inserting the Lgbt Community for many many years. In many ways wide variety of services we offer. The department has always been aware of the presence of the lgbt seniors and has supported a variety of efforts to assist them including number one, supporting creation of the lgbt 18 policy task was that supervisor weiner management contributing funding for the major way through the age of lgbt aging in the Golden Ticket the survey and focus groups that form the foundation for the lgbt passports recommendations provided and continues to provide sport that has forced now implanting this recommendation and the department is and was a key supporter [inaudible] verse in the kind in the nation bill of rights for lgbt and secondly, were currently about relating to proposals to provide culturally Probate Services for lgbt individuals around Dementia Care and isolation. There, and also funds lgbt cultural sensitivity and humility training in concert with the department of human resource. When the major findings of the passports was many lgbt seniors particularly those we see in baby boomers either extends determination or fear of it. Still because of their Sexual Orientation or gender identity. Thus, for some people back in the closet making it difficult if not impossible for agents to provide culturally sensitive and appropriate service. Supervisor weiners legislation is a big step forward. The first, google more than anecdotal information about the population and simply second simply asking the question will send a welcoming signal to lgbt seniors in vinton we are are enthusiastically supportive of this legislation. Thank you. Thank you very much. Finally, i want tosorry. Again, i recognize in some of the david chius work at the state level. Hello. Thanks very much for having us here to get im katiegunbattle Assembly Member david should these ugly member is in full support of supervisor weiners legislative last year hes only member offered 80 ab[inaudible] they did as they will level that supervisor weiner seeks to do at the local level. To better distribute government funding and resource to address needs in the Lgbt Community. The community counted [inaudible] window from Data Collected on nonprofit sister does exist in the Lgbt Community. Lgbt individuals are more likely to pay Certain Health disparities faced difficulty in finding and keeping housing and many other challenges than their straight counterparts. However with aggregated dad both used at the local and State Government level we can being in sight into the disparities that exist and effectively allocate resources to address these issues. We know this data will save lives help us target scarce Budget Resources achieve true in quality this ugly members the board of supervisors will support it. Thank you. Thank you very much. Richard chairman, if we may i like to open this up for Public Comment first of all, thank you for being in this legislation to us. I think the five departments that have been identified makes a lot of sense. I am just curious, was there any discussion or in regards to possibly looking at hsa . Also because as you know, they serve a lot of the low income and the foster kids and theres a substantial population around that. The hsa is part of this. I think it was referred to as the department of Human Services but thats the same thing as Human Services agency. I Guess Department of Human Servicesis that the official name . Okay. Yes so hsa is part of this just under its official name okay. I see that. If you look on page 3, line 6 definitions of departments, dph, department of Human Services, dos, the cys and moh cd. Thank. I will say the Youth Commission did come to us and as we include the juvenile Probation Department as well and we did reach out and weve had discussions with the juvenile Probation Department, with the City Attorney. Thus some tricky issues there around youth confidentiality and the criminal justice system. So, we have asked the Youth Commission to work directly with department of gen. Probation to come up with some ideas and if were able to do that i will its my intention to carry that as a trailing legislation. Thank you. Without mr. Chairman, if we may open it up to Public Comment did i want Public Comment card. Is there any Public Comment on item 1 . Please, come forward. Good morning supervisors. Im ashley, executive director of meals on wheels of San Francisco. I also sfgov tv you today as a former member of the lgbt 18 policy task force and look alongside my colleagues. I think dr. Aleman appropriately stated that our work has to be driven by data and that was one of the first recommendations that came out of the task force. But i actually want to speak you on behalf of being a leader of an agency in my experience with this ordinance and collecting data. I arrived at meals on wheels on in 2007 and as a gay man, when the first questions i asked of my team is, how many lgbt people do we serve . In fact, we do not know. Then, i asked her why and ultimately to a long conversation we realize how important it was restarted to collect this data immediately. Most people know meals on wheels as neil do what we are is a Service Provider in homes with supportive services. You cannot do that without trust. So beyond knowing whether or not we are serving people the right way, whether or not we should be changing operatives in the future, the biggest reason to support this ordinance is we have to build trust with all of our clients. This ordinance goes a long way to sending that signal from the very first interaction with any client in any department. So i want to thank supervisor weiner and also supervisor campos but their support of the lgbt 18 policy task force and thank you for moving this forward. Thank you. Next speaker. Mr. Chairman and supervisor weiner my name is keith baraka. On the from the San Francisco Fire Department and the reason why im here to make a Statement Today is because for some of the same reasons that dr. Aleman mentioned that we dont have information that we need to make sure our Fire Department reflects our community. Its been determined long ago that we best serve our city by having a department that is comprised of folks that are commensurate with our population are we can collect data on race, for instance, whether people are africanamerican, native american married filipino and such, but we are hands are tied when it comes to the collection of data on lgbt members. So i think this is a opportunity to also address the concerns that wethat i have had that sf rescue him player Resource Organization has had with the department and finding out how we can better determine with the numbers are for the Fire Department. So i believe it would be great if this measure could also cover departments for Public Safety like the Fire Department. Thats the statement i would likeo make and i think that again, this is a great opportunity for us to voluntarily collect information so we can better our Fire Department. Thank you. Are you referring to employment . Yes. Thank you to this of the first am hearing of this but this legislation focuses on services that are provided to members of the community. This is not require any department to collect employment related data that is obviously a significant issue could i agree with you 100 , but thatsits important but separate issue from what this legislation is about. About collecting data on provision of health and Human Services, or services to residents of San Francisco. So the employment issue is important, but its notits not the scope of this legislation but thank you for raising that issue because we do need information about how many lgbt people there are in the Fire Department come in the police department. Frankly, in a number of different departments because we know we want our First Responders to be as diverse as our city is. Thank you. Thank you. Any other Public Comments . Seeing none, Public Comment is closed. [gavel] i just want to say, again, i fully support this legislation. Ive done hotive been in struggles for trying to get data for other aspects throughout my life and we know how important it is to collect this type of data so that we can actually see what kind of services are provided, who is getting it and when we do an analysis that indeed, there certain groups that are not getting their fair share of services that the city could make some adjustments. Whether, in the past, and no data was ever collected, whether its about age or gender or ethnicity or language. These things have [inaudible] over decades and i think this is important as any of those other categories. So, given that, if you dont mind, the author of this legislation whether i could be added as a cosponsor . That would be great. Thank you mr. Chairman. Yes. Im happy to have you as a cosponsor. Thank you. So, again thank you to the members of the public and to our department and task force presenters for the dialogue today. This is important legislation to improve the visibility of our Lgbt Community and to make sure that as we provide Critical Health and Human Services to summon the most marginalized members of our community, that we are doing so in a knowledgeable and culturally competent way and that cultural competence does not just exist in some nonprofits were some agencies but universally. This legislation will help us to do that. So, mr. Chairman, i move that we forward item 1 to the full board of supervisors with a positive recommendation. Okay. No objection to motion passes [gavel] thank you. Mdm. Clerk item number two item number two, [reading code] okay. Thank you. I call this hearing today to get a better understanding of the citys actions and procedures regarding a winning place on the Pentecost Church also known as a place to meet jesus. The voice of the Pentecost Church owned the el rey theater, a historic theater located on ocean avenue in district 7. The city had a lien on the voice of the pentecost for not being able to pay rent for space on Treasure Island. Earlier this year we learned through the press that the theater was foreclosed upon and auctioned off on a front steps of city hall for 1. 06 million. What is perplexing to me is how this property could have been sold without the citys knowledge, especially given that we had a lien against the Property Owner. Furthermore, the el rey theater was also identified as part of the office of Academic Workforce of almonds neighborhood Asset Activation Program and is currently ongoing the community when marking process. I want to ensure that there is transparency in what transpired because we are not only lost money owed to the city but we also lost a beloved el rey theater to a new entity who as of now has not been responsive to the community. The purpose of todays hearing is to shed light on what exactly happened and to see if there are measures we can take to increase communication and possibly seize these opportunities in the future. So, the first presenter i would like to invite is bob back, Treasure Island director. Bob, please come up to the podium. Thank you by chair yee supervisor weiner. Bob back with the Treasure Island Development Authority and the Treasure Island developing a 40 did have a lien against the el rey theater. As you said resulting from property that they had leased on Treasure Island in 20062007 timeframe. I will go through the history there a little bit. At the time of the foreclosure, we were actually in discussions with the voice of the pentecost about ways in which they might be able to discharge the obligation of the judgment that been rendered and we were as surprised as anyone that the potential for closure had not been raised as an issue in our discussions. But i will go through a little bit of the events that led to the judgment being filed and then kind of where we were earlier this year when we learned of the foreclosure. So, the title was approached late 2004early 2005 about leasing space on the island for the purposes of film production. On june 1 of 2005, voice of pentecost entered into a lease a leasewith one or 40,000 ft. 2 and historical hanger three. For which they were paying a rent of . 12 a foot or little over 17,000 a month. That originally lease was close to run through march of 2006, with the options for up to five oneyear extensions. Beginning in january of 2006, the voice of the pentecost failed to pay their rent for that month. Between january and march of 2006 Treasure Island made repeated demands for payment of the rents due and the nonpayment of rent continued. The voice of pentecost did make overtures to make certain improvements and repairs to hangar three in exchange for rent credits and requested the exercise of an option to extend through march of 2007. Qaeda declined to extend the term or two Exchange Improvements for rent credits. At the end of march with the expiration of the lease and the nonpayment of rent, we sent a notice of default and termination to voice of pentecost. At that time, the accrued back rent were just over 55,000. From april through october of 2006, the voice of pentecost failed to vacate the premises and continued nonpayment of rent. The City Attorney during that time filed a unlawful detainer action on Treasure Islands behalf to vacate the property. In october of october 2006 the City Attorney and counsel to the voice of pentecost negotiated a stipulated agreement under which voice of pentecost would make a payment of 90,000 by november 15 of 2006 and vacate the property by the end of 2006. But then voice of pentecost failed to make that november payment. So, in december the City Attorney filed to enforce the stipulated agreement and the superior court entered a judgment on behalf of Treasure Island four winner 246,000 which is the accrued back rent interest and penalties at that time and the Court Ordered a 10 interest per annum be applied to that balance. In january 10th of 2007, notice eviction was served and the locks on the sony were changed and in january and february of that year the voice of pentecost was offered opportunities to enter the building and recover property. At that time, communication between voice of pentecost and the city discontinued. There was no further communication between Treasure Island and voice of pentecost for a period of several years until 2014, december of 2014 when the voice of pentecost approached Treasure Island and specifically, myself, at this point i had joined Treasure Island to discuss the judgment against voice of pentecost and the lien that it placed against the property on ocean avenue. With numerous conversations with course of 2015 and into early 2016 to discuss scenarios under which the voice of pentecost might satisfy or discharge their obligations under the judgment, or format for a settlement that johnck to recommend to the board of supervisors for approval. When in february of 2016 we learned also from reporters at the chronicle that the property had been sold, it auctioned by the lender in november of 2015so if that point the lien against the property was extinguished with the sale. The judgment against voice of pentecost is still there and we remain open to dialogue with the voice of pentecost on how that judgment might be satisfied, but we have not had further communication since february. When we are informed of the sale the property. So, at this point mr. Back, there is no more opportunity to actually collect any of this from the voice of pentecost . I think the opportunity exists. However, the judgment is no longer secured by the lien against the property on ocean avenue. But the judgment against the voice of pentecost is still outstanding can however, we dont have any assets that been identified yet do we could attach. I am just curious, this is not completely related to this topic, but it is related. How do you vet potential ecs . For vcs on the island they do provide certain Financial Information to show. Credit worthiness for the leases that they are entering into. Also, they are required to provide insurance for the facilities and property which they are leasing. Which, in the case of this was a fairly substantial insurance policy that they covered under their umbrella coverage for their church and their facility on ocean avenue. I guess this is all hindsight stuff. What else could we have asked in terms of information that could have foreseen Something Like this happening . Yes. I think, you know, again, i dont know in detail the depth of the credit check that was done in 2005, but perhaps more indepth credit check good also, we do carefully monitor and promptly send notices to tenants of nonpayment of rent so that we try to avoid the accrual of significant back charges of rent. So, we do try and stay on top of rent is there due to make sure that tenants are not falling into a situation where they have a large obligation accrued. So, you mentioned that you have attempted to reach out to them and communicate with and what actually have you done to do that . As i mentioned, over the course of 2015 we had a number of conversations with representative of voice of pentecost. They represented that they do not have liquid assets to fulfill the obligation and so we were having alternative discussions about alternative ways in which they might be able to fulfill their debt obligation, including potentially allowing a portion of their facility on ocean avenue to be used for communitybased organizations or other purposes. But, we did notthose conversations did not reach the point where we had a specific proposal to bring to the board of supervisors for consideration. When was the last medication with them . Last medications i had with voice of pentecost was in january, just prior to worry about this we were having a dialogue and then, when i communicated with them after learning about this, they said they would get back to us and we kind of have not had further to medications since then. Is it worth trying one more time or two more times . I think we can continue to reach out to the voice of pentecost. My understanding is there current focus has been on trying to retain or reclaim their property if at all possible. If its possible that the settlement of obligation could be part of a solution like that, we certainly are open to discussions. Maybe this is for a question for the City Attorney, but if we were to purchase it back are they still obligated to the lien . That may be a question for the City Attorney. I dont think the lien would snap back but i believe the lien could be placed against any asset whether its this church or another Real Property that we were aware of. Ill ask the City Attorney later i guess. Well thank you for your presentation. I hope that you continue communicating with them and see what you could retrieve back from them. Thank you. Any questions . The next person i would like to ask to present it would be the City Attorney by deputy city atty. John gibner deputy City Attorney john gibner. Im here today with two colleagues who have more background on this particular case is Matthew Rothschild is the head of our claims team and virginia how also on our claims team. We are planning to just run through the background mr. Back primarily ran through all of that good im not sure how much more we can add but certainly, in terms of answering your questions about how we got here in the unlawful detainer and the logistics of the lien, looking backward and looking forward, so i wonder if mr. Rothschild can speak on the background and maybe ms. Ho on the snapback question that you asked about the lien. Thats fine. Thank you. Matthew rothchild chief of the claims division for the City Attorneys office. And virginia ho is a claims adjuster on the team who worked on the abstract and filing the lien in this matter. Happy to answer your questions. So, what can we do legally in regards to if the church were to purchase or repurchase. Is there anything we can do legally . Well, i mean i would be speculating but we were, as bob said, we were in discussions with them and they were not exactly candid with us about they were not paying rent and they were about to foreclose on their mortgage. So come i think theres a lack of trust at the moment. Im trying to be diplomatic because they do not cause they were not paying their mortgage. So there is that just as background. Number two, the city has always willing to consider to talk to people we are in litigation with or have judgments against to try to resolve it and whats in the interest of just. Am sure we would always consider that. But, as we speak, we have a judgment. It is valid. It can be run in five yearsevery 10 yearsafter five years it can be renewed to add additional interest and we are entitled to the taxpayers are entitled to those funds. If they wish to, if the Credit Report is on a network that was to go forward our lien will show up. Anything else to add . Go ahead the lien is valid and if voice of pentecost decided to the purchase, if they need to refinance or get a loan, it would show on the Credit Reports and have to pay the city first before the loan would go through. I mean, i am justi guess where the committee and myself including, asking questions how did this happen . This wouldve happened without anyone noticing . Can you think ofwhat can we do legally or are their suggestions in terms of policies where we can maybe strengthen this so this does not happen again . Well they could have paid their rent to Treasure Island and they would not be in this position. What were they could have during the time when they were not paying the rent on Fisher Island they couldve tried to renegotiate the lease for what they could afford to pay or when there was an opportunity to work with them in 2014, when the lien was renewed, we did send them a document as required to under the law, that we are about to renew the lien and they couldve come forward at that time and im sure if they had come forward with pain the principle that was do we certainly wouldve looked at that kindly. But they did not do that. Yes. So, regardless of this particular situation, in terms of having entities of foreclose like this and none of us knowing that this was going to happen or happened, is there something the city can do to require maybe the banks to let us know . I just want this to be a recurringspit debbie City Attorney john gibner again. Thats a question that we just started looking to add your request supervisor, and i think the best way forward is for my office, perhaps mr. Rothschild are probably others on our Real Estate Team to continue look into whats possible. There are some are sections under state law that a hamstring us, and then report back to you about what options are might be to pursue legislation on this topic. Do you have a comment on this . Happy to work with you on a timeline. The person who will would handle this is out of the office this week. So i could not talk to him in advance of this meeting to figure out kind of what how complicated this task will be but, i will im happy to talk with you later this week, next week, to figure out a specific, so we can give you some options. Okay. Just been added, supervisor, we learned about the foreclosure at the same time you did. In the newspaper it was sold at christmas at the steps of city hall. We were hoping that there will be Funds Available for the city to collect somewhat on eileen. There was not. So, we were as disappointed as you are. I do think there arei agree with, john and we will research for you i think there are some state preemption issues about entities that dont pay their rent and theres foreclosure in city hall. I dont know that the city can say we want to know about it before its sold but we certainly will look into it for you. Yes. Arduously come i think this is one of these things people knew it was in a cell for only 1 million its worth a lot more than that. Whether the community were the city would step up to purchase it as an asset for our community. It couldve been done especially at that price. The other question i have, which is totally speculation on my part, supervisor, is why they do not sell the building. I mean, they do not have to foreclose on. They could have sold it for more and paid the city arlene and perhaps had some funds left over for the voice of pentecost that they chose not to do that. I understand and thats why i think we need to continue to monitor whether its 20 be flipped back to them. It doesnt seem very proper whatever was on. I guess ive been better not say any more than that. Thank you supervisor thank you very much. Any questions . No. Thank you very much. Walking tours from oewd, and do a short presentation. Good afternoon mr. Chairman and supervise. The pleasure to be here walking tours from office of economic and workforce development. I want to provide a quick and brief overview with regard to our work with the community and assessing and a level of engagement with the el rey theatre as part of a Larger Program referenced earlier. Our neighborhood as it Activation Program that looks at underutilized sites that have a positive neighborhood impact it activator across the city and particularly invested neighborhood corridor. We selected the el rey for a few reasons. One is because we blog setting working with the ocean Avenue Community through both invest in neighborhoods and the Community Benefit district program. We knew that was underutilized into disrepair with bacon looking storefronts and News Community desire to see more activated and potentially allow for some Additional Community use. We thought that maybe was going to be way to work with the Building Owner on these issues. However, we began assessing it like the rest of us, we learned it been transferred to a new owner the option after foreclosure by private lender. After as part of the assessment process, both our partner Northern California Community Loan fund and our office is out multiple times to engage the new owners to learn their intentions engage them positive with you we also reached out to the church and Community Stakeholders to find out what their intentions were for the property as well. The church nor the owners have been very willing to engage at all and they are pretty adamant theyre not interested in engaging in a conversation with us today. Despite our repeated attempts. Weve included multiple offers of assistance to Property Owner to open pursue any kind of renovation redevelopment plans. In march we have learned through i think is important process here in terms of how we monitor these types of sites it takes a lot of kind of gumshoe work in partnership with people of eyes on the street in our Community Partners let us know issues happening related to construction or renovation that had been properly permitted so we were able to work with your office and your staff on the community to make sure we assigned dbi right away to people that work there was taken an improperly. This work inbox is another development we been looking at. We do this both to raise Public Awareness of the value of a site like this and also it will inform the permitting process that we go through this when marking job leave a draft proposal is nearly completed writenow. From our Community Stakeholders. So that we can have the permitting process with any kind of alteration construction were potential demolition informed by landmark in process. Were a much looking forward to working partnership our office with the committing of pursuing that process. I think that would be the best kind of update i can provide at this time. Again, we are always very open throttle when marking process to continuing talks with the Property Owners. Should they wish to accept our calls. And have a conversation with us. We have also advised although not required for the Community Stakeholders to reach out as well to make sure that the Property Owner can be involved in that when marking process as well. Thank you very much. At this time, is there any Public Comment . Come on up, dan. Good morning. Thanks for having this hearing. My name is dan weaver and him representing the ocean ave. , Association Good almonds executive director and el rey theatre is the biggest thing on the ocean avenue. It may in fact be the biggest thing, biggest building west of twin peaks for that matter. Its been there a long time. When the church bought it in 1978 they proceeded to do the wrong kind of restoration. Systematically on the front, fortunately, the inside is remarkably intact oh according to the preservation consultants we hired, its hard to proceed from here because what i am hearing from the City Attorneys staff is that there is no need or law that says the senior lien holder has to notify the junior lien holder when theres more than one lien on the property thats going to be auctioned off on the steps. As a consequence, it just the way it is that San Francisco no one in San Francisco government learned that this was going to be auctioned off. Thats not my understanding of how the law works but are not a lawyer. So, it would be interesting to delve a little bit more into that to understand whether, in fact, the city was noticed or i dont know if this city knows if it was noticed. Thank you. Any other Public Comment . Come on up. Ace washington. I just happen to be here at city hall today. On some other business. I could peek in here and see this item coming up. Just listening to the backandforth rhetoric that the city and county gives me just give a parallel piece of property in the Western Addition, which oewd and all these departments are involved with. This is parallel with the same situation is where a property went bankrupt and city and county went haywire into it they want the we in our community the building is still run by the city and county we dont know what the hell is going on. I think its ludicrous. I think its disgusting the way we are treated in the Western Addition. That alone on ocean avenue pier on very familiar with the building i used to congregate there years ago to my church used to fellowship years ago and had changed ownership. But just a parallel to its going on in the Western Addition of a building that went bankrupt and the city took back over and we the Community Try to get some parts of it which we can get nothing, cant get information about it. We dont know what is going on from wendy to another because the city and county in the department they are talking about right now is overseeing it. This same department was in here last week with a least [inaudible] yes, they damn sure need oversight on that department as well as others. Now i speak parallel speaking that the department and if the owners are here, i would not look at the department get the hell out of it if the city and county does not on. If they do own it they dont manage their own business. Theyll manage the buildings they have. What al is going on here . At city hall. I call it silly hall. Where accountability is needed thank you. Next. My name is neil ballard anglicized resident. The el rey theatre is the most iconic building on ocean avenue and the most prominent art deco theater in the whole city. It should be preserved and dedicated to a Community Use but instead it was sold for the cost of a house i think is the real issue here. So, why that happened is still unclear and if every City Department by god about this in the newspaper i think somebody who knows what really went on i like to hear from them especially. Thank you. Good morning supervisors. Im Alex Mullaney and him and angle side resident also good i also publish the neighborhood newspaper. I lead say the el rey when i and other neighbors found out it was old we were very concerned. Because as you know, we could eat without for development when its a landmark and its farthest work product of the neighborhood i interface with a lot of neighborhoods and community. This like conspiracy theories about what happens. Theres a lot of concern that people want to feel like the city is on top of it and hoping this hearing could really put a cap on it. I wish the department of real estate had been your two kind of explain the process and i believe this post to monitor foreclosures were they have to the ability to anyhow. Anyway, i do appreciate having this hearing and i look forward to coming back bringing the land marking application. Thank you. Any othercome on up. Yes, my name is robert creed and i would leak with very closely to the el rey theatre. Im also the owner of the Victoria Theatre on 16th and mission. I just want to let the city know that that they had, or did have or may have a golden opportunity to enrich the lives of everyone in San Francisco. I took a theater 16 mission st. In 1978. It was boarded up. Since that time weve had programs from schoolchildren to musicals to stageplay two dramas and this year we hosted the San Francisco International Film festival. I mention this because this is a similar thing that could happen in the elegant in fact, the el rey zone was 10 times better than the Victoria Theatre and how no one could see the vision behind that and what it could do to enhance not only the neighborhood but the whole city, the school district, its just beyond me. Any other Public Comment . Seeing none, Public Comment is closed. [gavel] it seems like this hearing was to try to get some answers and certainly we do not get too many answers and none of us seem to know how this all transpired until after the fact and moving forward, i would love to see us emendations, in regards to policies preventing such an action to take place again. I think it is true when of the Public Comments why the department of real estate was here. I dont know if they would have given us any more information, but it was something i should have pushed for a living more for them to be here. In regards to this particular item, el rey, im looking forward to working with the community in terms of this land marking and the historical aspects of this particular property. And hopefully this will come sooner not later so we can actually move forward with me things where it may benefit, not only the community, but also the whole of San Francisco. Without any further comments, then can i have a motion to file. I will move to file no objection. The motion passes. [gavel] thanks for coming. Mdm. Clerk please call item number three yes. Item number three, [reading code] okay. Ms. Thank you supervisors for hearing this today. Good morning supervisors. For the record my name is mary and ms. Ago thompson and im speaking on behalf of director todd with photo. We are here today to followup on the june 2 gal hearing regarding the legacy registry. Weve come a long way since june 2 but we recognize that we have a way to go. For the past four weeks we have been focused on creating the policies, the procedures, around the legacy business registry. Weve been building the of the structure for the program and putting systems into place. Prior to the june 2 hearing, director with cocaine to me and asked if i would take the lead on this project and we could on board a manager. Without hesitation i said, yes. I believe in supporting local businesses and by way of background, i am the project manager for shop and dine in the 49, by local campaign. It was just one small hitch. That was my vacation. Im a single mom of two teenagers and i went home and told him that the vacation was on hold for just a small bit of time. My daughter asked me, mom, what are you going to do on this project . I told her the first thing i was going to do with to meet with all 37 of the businesses would yet submitted their applications. Legacy businesses deserve the best Customer Service and thats part of what i am focused on. So, on google maps is 16yearold daughter who insisted that she come with me, we went on an adventure. That is to say, we shopped and dimes are way too 37 businesses in San Francisco. Each and every business and every Business Owner had incredible story to tell. From roseanne from the anchor oyster bar to billy, from the Castro Country Club canada from fog city market, victoria door restaurant oceanside sheet metal, yes, i even took my 16yearold daughter to this cinch, why not. These businesses are woven into the fabric of what makes San Francisco unique and each merchant corridor is different from the next. When i walked into swan oyster depot tom yelled across his customers a ms. Ago how is your mom. Those were the days when myused to go to the nine are games. I had to pause for a moment deeming Candlestick Park or did he mean [inaudible]. Then it was gypsy rose lee. The woman who used to style my grandmothers hair. I was struck at this moment with the profound thought its not the brick and mortar that makes the businesses legacy businesses. If the people and the owners who are the businesses. The owners who took a chance to grow, start, and stay in San Francisco and maybe when my daughter goes back to school and she is asked, what did you do this summer, she will say, i got to explore the many treasures of San Francisco and i got to touch its history. So, here we are today having completed a significant amount of work on the registry knowing we have more work to do. But now, as we this city family, can focus on our legacy businesses we can share the narrative and show residents and visitors what makes San Francisco so unique. I want to thank each and every one of you. I especially want to thank you or aids. Darlene in particular who was always helpful and always willing to give me more information or to send me more businesses. Adam who was always willing to help me with these businesses. Aides who allowed me to stop into their offices unannounced and help me get i really want to thank them because as a city family that we really came together to unite and to bring for this legacy business registry. So, with that im quick to turn this over to regina dick and jesse from the office of Small Business who certainly helped to move this forward. Thank you. Thank you marianne. I really want to extend my appreciation again to talk with and to Marianne Thompson kazuko four being able to assist and dedicate their time in really getting the registry up and going and launch. As then in the amount of time thats needed to the spring the process to our businesses. With that, under move on to providing updates from the last gal meeting in terms of what transpired to date. So, most importantly, we have now hired the Legacy Business Program manager. I would like to introduce to you richard carrillo, who is part of the invested neighborhood steam who is now the Legacy Business Program manager could richard has a stellar reputation in terms of Program Management and Grant Management and just the type of person we need to move this program for work. So i am very excited with having him on board and starting monday, july 11, he will be officially handling all the applications that marianne and i have been handling. Then, on june 8, we held a marianne and i held the legacy business registry application training for the board of supervisors aides,. Just to walk through with the nomination process, with the application process and just to make sure theyre very clear. Then, the legacy business weve updated the legacy business website so that it has allit has instructions for the nominees good in case you are aides need to refer back to the process if there on the osc website. Are we not on . Thank you. Excuse me one moment. Can somebody help with that and you continue with your presentation . Yes. Then we had all the applications translated into english, chinese spanish and that is up on the website. Again, following the last meetings we continue to reach out to all the nominees, especially those that have not yet submitted applications to make sure theyre clear in the process they receive the information and be available to answer any questions. So, all the businesses again that were on the initial list are deemed officially nominated and we do have a new list of nominees. There will beso the nomination process that we are able to accept 300 year and so all the nominees that were submitted that we have on our list that is before you are deemed submitted through last fiscal year and so we are now able as of july 1 to accept new nominations. Then, next week were starting and meeting with the legacy Business Grant program. So, as of today, there had and 79 nominations by the board of supervisors. 26 of these nominees have submitted applications some form of another. 53 have still yet to submit applications. Of the 26, received, 18 are deemed complete and ready for the hpc review. So, eight havent submitted to hpc on july 20. 10 will be cemented on tomorrows, the eighth. And then five on august 22. There were three that the applications that still need some Additional Information and if we do get that in soon we will be able to for that on to the august 22 meeting. Then, just to provide you with an update of windows applications when they come back from hpc window be heard at the Small Business commission for their final hearing and to be placed on the registry. So, for thoseokay, for those businesses that will be heard at the july 20 hpc meeting, they will have their official hearing the Small Business commission on august 8. Are those that are being heard on the august 8august 30 hpc meeting, they will have their hearing on august 22, and then for those applications that are heard at hpc on august 17, they will be heard at the Small Business commission on september 12. So, just to reiterate the priorities for the legacy business registry, which rick will take on, its really working to those 26 applications getting to the process and onto the registry. Completing a branding program and getting that launch by early november. We are currently working with oewd to codify a list of nonprofits who will fit Small Business with crafting their historical narrative. Some has expressed this is a bit of a challenge for them and you need assistance. Then, the Legacy Business Program manager will provide with monthly updates on the status of your nominees. So, the next step is the Historical Preservation fund so theres to Fund Programs theres the Business Assistance Grant Program and the rent stabilization grants. These two programs be mr. Guidelines will have their official hearing at the Small Business commission on july 25 get they will be forwarded to you for your 30 day i think you have 30 days to review and provide comments or make any changes and then because the businesses Assistance Grant to proposition j the filing, to file for that grant is between july 1 and september 30. Because we are delayed in the registry process in consultation with our City Attorney, to a ordinance we were able to extend that grant timeline and so i will be soon submitting and ordinance to the board of supervisors to extend that grant period for an additional three months. So that those businesses that are currently in the process where the ability to be able to apply for the Grant Program. Could you quickly just state largest amount for each category of grants . So, the largest or the range . Well, for the Business Assistance grant the largest amount that can be awarded based upon the number of businesses and the number of employees that end up in the Grant Application is 500 for fulltime employee up to 100. Employees per business, fulltime equivalent. So its 500 and for the rent stabilization grant its four 50 ft. 2 up to 5000 ft. 2. Okay. Attached in your package if you have any questions feel free to ask me. Is just a list of those that submit the applications, the righthand column is the schedule which theyll be transferred to the hpc. This is not the date they are scheduled or the date the application will be transferred to the Historical Preservation commission. Then, the second list is the list of nominations and were still waiting to receive the applications. So, with that if you have any questions away happy to answer them. Do we have on the website somewhere were rehashing publish beyond the september 26 for this year i guess, application . Going forward so people know when to hand in things . We will be placing information on the application in terms of the list of businesses that been nominated and those that been submitted in the process. We are still trying to figure out the best means of handling that information, but we are in communication with those with the businesses. Which one are you referring to . There is the 79 that is currently going through the process, 26 of them will be looked at maybe 26 willwe have applications. The majority of them are complete and ready to be forwarded onto the struggle Preservation Commission and some, we are still working with the applicants and get a few bits of Additional Information. So, the remainder of the applicants, the ones in the second sheet theres 53 that are denominated by the supervisors and we are still waiting for those applications, and so, i thinkyyes . Were real specific about the dates of the hearings and everything for the first 26 i guess. We have specific dates, deadlines and so forth for the other 50ish we dont until we have a pretty clear idea of when theyre going to be ready to summit their applications. I think with richard moving forward will be able to start reporting out to you those nominees. The status of where they are with completing their applications. Part of it is doing the written narrative and providing some supplemental documents and we have identified at least five of the businesses that you need them, some languages systems and drafting their narrative. So we are working with oewd 12 provide a. I guess im trying to push the dates a little bit because if the next set of applicants, and theres some that would have completed everything and have to wait around forever for the dates to be set it seems unfair and also if you set the date thats reasonable hopefully a few of these applicants will get things done quicker. I think i will work with richard, hearing your feedback on what is the best means for us to ensure that those nominations get their applications in as soon, as quickly as possible so we can get them scheduled on the registry. Im just a little bit hesitant to forecast a date for an applicant and if theyre not ready but another applicant may come in earlier than that would take up that slot so but i think what well do to hear what your concern is supervisor yee, is really get a good assessment and idea and recommendation to you in terms of how will work with those businesses. Okay. Thank you. Any other questions . Seeing none, any Public Comment on this item . Always great to come down here to city hall because you never know what you run into. With all these new positions in all these new programs, it is hard for you guys, the board of supervisors to keep up with it. Let alone for the community it affects. With these characters are doing. Excuse my french condom characters i would Say Something else. Im just appalled. Oewd, spa and all the rest of the socalled groups that recently got together could always seven just request for a new program, new positions, new money, when we dont know where its going. Im fully requested i like to know everything about this new legacy. It sounds good. But if you come to western edition theres no letters. Everything is closed up to the africanamerican black negroes are here in San Francisco. Where have you heard about the city by the bay . My name is ace, on the case. The outmigration, the fillmore corridor, somethings wrong with everything that you do. But ive not heard jack dougal about nothing. I am appalled. Because were bringing in new programs, bringing in new Staff Members and were going to be affected. We dont know jack about and i am sick and tired of being sick and tired of this bs with a call politics down here at city hall. I call it silly hall. Almond with a program together in the Western Addition and aint nothing coming to the fillmore. Unless i know about it so i can tell my community. I want to smell every fark and home who did it. I want to know everything in the fillmore. From this day out or file an injunction to stop everything get my name is ace, dammit and i am on this case. Any other Public Comment . On this item . Seeing none, Public Comment is closed. [gavel] could ii want to thank the presenters for coming today. I know this a very important item for the business to have applied good as you know, many personal businesses seem to be living our city and this is one way we can be helpful as a city to keep our Small Businesses which is really the economic engine in San Francisco. Because the two authors of this hearing were not able to come today, but to have a motion to continue this item to the call of the chair . Supervisor weiner okay. There is a motion and without any objection that motion passes [gavel] mdm. Clerk anything else be one no further business. So, meeting adjourned. [gavel] [adjournment]. Good afternoon, id like to welcome you to the meeting ftd San Francisco Public Utilities commission. We will be calling the meeting to order. Commission secretary, can you read the call the roll, please. President vietor, here. Vice president moran, here. Commissioner caen, here. Commissioner courtney, here. Commissioner kwon is excused and we have a quorum. Thank you, next item. Next item is approval of the minutes of june 14, 2016. You have before you the minutes of june 14. May i have a motion to approve . So moved. Any questions or comments . All those in favor. Minutes are approved. Next item is general Public Comments. Members of the public may address the commission on members that are not on the agenda. Commissioners, you have the packet of communications before you. Are there any questions or comments . Were on item 4. Im sorry, general Public Comments. Are there any general Public Comments at this time . Mr. Decosta, good afternoon. Good afternoon. Im going to address 3 issues. One issue brought up before about lead in our pipes and i am referencing the lead pipes in public housing. And i heard something in janver but i would like some Empirical Data because i work with College Students and sometimes they are very savvy, you know, they will ask me to address something before the San Francisco Public Utilities commission and then they will ask me if i have any answers that are precise, not weight. I know the wish of the general manager is that some testing be done and he is nodding his head so i know im going to get some answers so that i can provide it to the College Students, which is good. The second issue i have is about our water. So ive been away but, you know, sometimes when you are away you can listen to the deliberations because we have in this digital world, you know, all these meetings recorded. So we have too many skyscrapers. We have too much of development. And i represent and the general manager has all the documentation, the first people of this area, the malok malone i am interested in seeing how our City Departments understand how resources are going to be shared in our city. So its a shame that even in the year 2016 in San Francisco with all the skyscrapers coming up they are going to be flushing their toilets with clean water, hetch hetchy that we brag about. We have to pay more money. And be somehow we have to address this by having gray water to flush our toilets. You dont need to be a rocket scientist. I have 20 seconds. I think we should reflect what happened in Great Britain and how we have invested our money and i know this is an Enterprise Department so i dont know if this is possible but i suppose you put it on the agenda further down the line how your investments are doing, the investments that we have invested in Great Britain for our information. Thank you very much. Thank you. Other general Public Comments at this time . Next item, please. Item 5 is communications. So now you have before you communications. Commissioners, any questions or comments on the communications . Any Public Comment on the communications . Hearing none, next item, please. Item 6 is other Commission Business. Any other Commission Business . Public comment . Next item. Item 7 is report of the general manager. Good afternoon, commissioners, first item is another retirement. So it is my great honor and pleasure to call up john come up, john. John gregson is a supervising senior chemist on our staff. Hes been working here for the city for 37 years. Is that right, 37 years . So hes been an important part of our team and in fact he worked for two bureaus, Water Quality and Water Pollution control. As well youve been working on our Collection System division as well. We want to thank you for your commitment with the puc and you worked dpw back in the day. Im not far behind you. But just want you to come and say a few words. Thank you very much, arlan when i started, i started in 1979 at the Old Southeast Sewage Treatment plant and for those of us who remember in those days there was no erosion side is, there was no southeast secondary site, no channel pump station. In fact, southeast was a primary plant, we used to use chlorine gas, anyone who was there remembers that smell taz comes out from the sed tanks but also i remember something else. But also i remember something else. I remember every week we would hear the loudspeakers saying all hands on deck. Scott drill will begin in 10 minutes. This was our superintendent named les spes messer and we would go into our drills to protect against chlorine, but why was that significant . Because the men who i worked with were all coming back from world war ii. They all served in mostly the pacific theater, some in the european theater, but many were exnavy men. They were built after world war ii. They were built, this is the point, by dpw it was not built by private contract. The plans were reviewed by the private Engineering Firm but the plant was built by our own people and that is something ive always felt very proud about, something i have cherished, which is selfconfidence and selfsufficiency and something that we will never give up, its in our its who we are. Many of us have had parents, fathers, mothers, who worked for the city and we came through the system and its part of us. This is the city i was born and raised in, i still live here, and i have too many people to thank but i do want to thank especially mr. Steve midberry, i want to end by thanks my wife, irene sirochivoch, she will be retiring in two days, we live in the outer sunset. I always like to tell me, you look so happy, i say yes, i am. I met my wife at the sewer plant 20 years ago and weve been happily married ever since. Thank you, everybody, its been a pleasure. applause . Yes, on behalf of the commission we really want to thank you for your many years of service and congratulate you and your wife on your retirement and please if you wouldnt mind coming up so we can present you with a certificate. Great, thank you very much. Next item on the general managers report. The next item is a drought update. The new and improved steve ritchie, please come up. Agm ritchie is at the Alameda County board of supervisors wading through a very extensive agenda so he couldnt be here. So first just looking at the reservoir storage levels, what you will see here, and you probably have been seeing since the last report as well, is that hetch hetchy is above 100 percent. We still have the spill gates in and we are still gaining in water bank, which is always very wonderful. Weve gone up about 4,000 acre feet since the last you saw this report. Here is a field visit that mr. Ritchie was on and this shows you hetch hetchy spilling. This actually is a video that we werent able to get the technology to work on but theres lots of noise and its very exciting and he got quite a bit of spray. Were happy to see hetch hetchy spilling, been a long time since we have. Our primary drought message, though, despite weve have a wetter season, water bank is only about 74 percent. We need to continue with a 10 percent systemwide demand reduction from 2013 demands. We formally notified our whole sale customers of this on june 26. inaudible directed us to do at 3 years of repeat hydroology of 2013 through 2015 using an average demand of 20132014 use and we had to demonstrate that through that repeat hydroology we would meet that average 201314 demand. We were able to meet that dpapbd through our modeling without imposing any rationing. However, because we have not filled the system we requested that the customers maintain a 10 percent voluntary reduction on their 2013 use. I know theres been a lot of Interesting Articles in the chronicle and i just want to make it very clear that while we met the state boards requirements, that isnt a planning process that were comfortable with saying that we can move forward with 100 percent delivery in were looking at a system that isnt entirely full. So hopefully well get that message straightened out in the next couple of days through the press. Looking at our total deliveries, what youre seeing is we have seen some rebound in demand. What i want to note on this slide is two things first the typed dashed line is where the state Water Resources control board reduction target was. Thats what we have been following all of last year. Now that were in a selfcertification period were showing the more separated dashed black line what our 10 percent voluntary reduction target is. While you have seen that demand has rebounded, demand is at about 218mgd and where were showing ourselves to be on that target line is somewhere around 230. So were still doing quite a bit better than we even asked our customer within that 10 percent reduction. I should also note here that that 218 mgd does show additional deliveries to the participating pumpers in the ground water storage and recovery program. We have the in lieu portion of the program turned on so there is about 4 mgd within that 418 thats being used to meet that in lieu recharge of the ground water basin. What you are going to hear later if the ayen today, theres two items that further our drought actions. One item will be additional water waste prohibitions to our regulations and also revising our Drought Program to include the new information on water supply to meet the required levels of pars4 drought conservation. Commissioner. Just a couple comments. First of all, thank you for bringing up the confusion that was in the press about what our plans are and i think its important to get that distinction very clear. The good news is we passed the stress test but a stress test isnt a plan and the plan is we will continue with rationing. I think reinforcing that is to build all our budget projections on that. You are probably planning this anyway, but weve been getting this as kind of a periodic update for the drut situation as we proceed. I think its important we keep getting these. I dont know if we have to keep getting them in exactly the same format but i want to make sure we keep track of our how were doing against our goal of 10 percent voluntary. I think its important to keep our eye on the ball and that will help us do that. Thank you. Thank you. Anything else . Public comments on the drought update . Next item. So the next item is clean power sf update. Atm barbara hale good afternoon, commissioners, barbara hale, assistant general manager for power. I have 4 items to give you a quick update on for our clean power procurement, our overall planning and the sydney plan we talked about and our efforts of collaboration with other cooperating ccas. Enrollment, our Program Continues to successfully serve and receive bill payments from our customers. We have over 7900 customer locations apblds are serving over 7400 active locations. Our total opt out percentage is now 1. 3 percent, i reported 1. 2 at the last meeting, so its gone up a small tick. We have a steady 3 percent participation in our super green offering. Commissioner caen at the last meeting you requested some information on why people are opting out of our program. Customers have, we do survey routinely survey our customers and i will be providing a written memo for you, but by way of preview the two main reasons that customers indicate they are opting out is the fact that the program is government run and secondly that they dislike automatic enrollment, the automatic enrollment feature of the program, which is part of the statutory requirements. So stay tuned, i will provide a written memo so you can see greater detail but those are the top two reasons. We continue to serve customers from our third party supply and from the hetch hetchy project while we have available generation. We also are seeing some additional sign up activity in advance of our august 1 deadline for enrollment. We have 471 preenrollments. 379 of those are for super green so more than 70 percent of the customers who have preenrolled have said they are committed to super green. We are continue to go do some work so we have the supply necessary for those august enrollees. This is for service in november. The market for the premium renewable product like we are using for our program right now is pretty tight. We conducted a and are evaluating our options, we followed the product content policy that you adopted in december and requested only product content category 1, the bundled California Renewables and are getting a pretty soft response to that. So were looking at our options. Well continue, well come to you july 26 with an action item if we find affordable supply is available. And that would allow us, that action item would allow us to exceed the 50 megawatt average demand that we currently have authority for, as we discussed at the last meeting, and to procure the necessary supply. As i mentioned, supply is tight right now because its the end of a compliance period for all of the load serving entities so its a tight market and were looking at what our options are. And as we look at our options were guided by the phasing policy that you adopted in december. And i think the main points from the there were 6 criteria in the phasing policy. I think the main points that are relevant for us for this small incremental addition would be that the Program Rates are sufficient to cover the cost and that the program supply commitments are sufficient to meet the projected customer demand at the levels of renewable that weve committed to, which for this first phase is 35 percent for our green and 100 percent for our super green products. So then the next item is our Overall Program planning. We are putting together a Program Growth road map that will help us implement our phasing policy and were preparing an integrated resource plan. Weve heard a number of times about the sydney plan so i wanted to give you a quick rundown on my take on that document. Its really quite a comprehensive review of energy use in sydney and the greater sydney area of australia, both electricity and gas usage is covered in that plan. The focus is really on Green House Gas reductions. Currently almost 90 percent of the electricity used in sydneys local government area comes from coalfired power plants. So the focus is really on getting at that problem. They are targeting 100 percent electricity demand being met by local generation by 2030 and in their plan, they are describing that 100 percent electricity demand being 30 percent renewable, 18 percent of that being inside the city of sydney as a target. So thats 30 percent renewable so that compares with our clean power sf program at 35 percent. The state school at 50, just to give you some context, and then 70 percent, the other to get to the balance of 100, 70 percent from what they call trigeneration, which would initially be natural gas cogen with the intent to convert that gas from natural gas to municipal solid waste gas, sewer system gas, and livestock manure. So their focus is to become more independent and free from the current coalfired resources that they are reliant upon. It also relies on fuel shifting within the plan replacing todays electric heating and cooling with waste heat from the gasfired generation. So thats the basis for their shift away from coal. And within the 30 Percent Renewables effort thats described in the plan, they cite a number of practices from around the globe which were informative, some of which were already undertaking, specifically solar incentives, generation from sewer system gasses, solar on municipal roofs. They are dedicated about 2 million a year it says in the plan toward municipal roof top solar, and building integrated wind. They also are studying offshore wind, tidal and wave power options are things that weve looked at as well. And then the final item i wanted to report on was our efforts at collaboration. We are working to formalize our legislative and regulatory collaboration with other operating Community Choice programs, in particular we are incorporating as an association with the operating ccas and were working on drafting by laws so well be hosting the next effort, next meeting on that in the next couple weeks and trying to become a more formal organization to help bolster our advocacy in both sacramento venues and at the california puc on issues like pcia and such that we have a common interest in. Those were my 4 items for you today. Im happy to take any questions if you have them. Thank you. Thank you. Questions . Thank you for your report. General comment . Mr. Brooks. Good afternoon, commissioners, eric brooks, San Francisco Clean Energy Advocates and all the other ones i always mention. Ill keep that part of it brief. So just to speak to that report, its once again 1. 3 percent is the best opt out rate that any Community Choice program has ever had in the country and there are thousands, theres over a thousand Community Choice programs. So thats spectacular, your staff is doing a good job. On the sydney report i want to specifically point out that the reason i keep hyping that report and talking about it and sending it to people is not because its perfect, but because its a citywide plan. It is a carefully considered city pf wide plan with financing with how to build a Renewable Energy infrastructure throughout the entire city and that is what i feel i and the other advocates feel is the one piece we dont have in place yet, is a plan for that citywide and for the jobs. Thankfully there is going to be a meeting this week with the Mayors Office and sf puc staff and department of environment and other staff to start hammering that out, to look at sydney and look at our situation and what we can build here. I should point out there is a big flaw in the sydney concept which is the idea that switching from coal even to biogas is going to really save a lot of carbon emissions. Gas has been proven by studies at cornell and Colorado University in denver, i think, that its actually not any better than coal if you look at the fugitive emissions that come from it. So we have to be very careful, even though im hyping this sydney thing, we dont want to use sydney as the model of what the actual resources are, we need to lean on things like Battery Storage instead of gas. Finally i will say the fact the Renewable Energy market is tight is exactly the reason why we need to finally get started with what advocates have been pushing for for the last 12 years, which is that citywide Renewable Energy and efficiency master plan to build it before the 2020 timeline staff has put forward because the sooner we have hundreds of megawatts of our own local generation and resources in efficiency, the less we will have to rely on those tight Renewable Energy markets and weve got a situation right now, Community Choice is going gangbusters in california and there are over 80 cities and counties, almost the entire west coast of california is switching to Community Choice. And most of them are not doing local buildout plans. So what thats going it create is a situation where theres so much dmrapbld for renewables that the Renewables Wont be there or they will be too expensive and we wont be able to move fast enough. So now is the time to get started on the local buildout plan. Hello, mr. Freed, good afternoon. Jason freed, executive officer for lafco i want to thank your staff for the excellent work to move this forward. The optout rate is an extremely low amount and something we should hang our hats on. While i expect it to go up a little bit while the final month takes place for the auptding out, you are seeing a very good Participation Rate and i agree we need to look toward the future, what does that look like. One thing i always want to say is a cautionary tale. We want to be sure were not locking ourselves up too much for longterm because the energy market, things you can build are changing so dramatically over the last when you look at when we first started talking about creating a cca just two or three years ago, building a cca plan, some of that stuff is outdated. We need to figure out a way to balance both longterm planning with the reality you can create something thats for a 10 year plan. Reality is year 2 or 3 you are probably going to be having to throw that plan out in some ways and change it or at least modify it to comply with how the market is in 2 or 3 years. We need to figure out how to strike that right balance with creating a longterm plan with the fact the market will change. Ive asked a few folk, they dont think coming up with a longterm plan is necessarily the best thing for longevity for the program. We need to figure out how to figure out something that gives you where you want to be, consider it a living document, every year you are annually renewing and changing. While the sydney plan is a good one and we have some of that information already, some of the bureau and staff reports, the black and beach report, some of that stuff is already out there, you already have it, tes a matter of how do we Start Building that program, how do we start financing it in a way thats good for the program. I will be pushing it as well as you how do we balance that all out together to figure out a good plan forward for build out, a good plan forward for future launches that are launching in good quick succession thats responsible to the current rate payers in the program. I am looking forward to the meeting later this week and will report back as needed. Thank you. Thank you. Any other comments on clean power sf and the report . Next item on the general managers report. So last night was the proposed state lodge ac a1 1. Yes, barbara hale, assistant general manager for power. Ac a1 1 addresses california puc reform. The california constitution gives the california puc certain powers over certain entities subject to the control of the legislature. The puc act set forth the structure, funding and responsibilities of the cpuc. Over the years there have been a number of initiatives to modify the cpucs scope of authority and internal practices associated with exercising that authority. One of the latest attempts is ac a1 1, proposed by Assembly Member mike gotto, who is a democrat from glendale. The bill would authorize the legislature to reassign all or some of the functions of the puc to other departments, boards or entities. As a constitutional amendment it would have needed 2 3 approval in both the assembly and the senate to be placed on the ballot where it would then need a majority approval of the voters of the state of california. The bill was scheduled to be heard yesterday in the senate but it was pulled from committee. You may have seen in your newspaper or social media today that other actions proposed by the governor seem to have displaced the aca 11 effort. It was pulled because the Governors Office worked with Assembly Member gotto, Assembly Members jerry hill and mark leno and nnounced the package of reforms stated today. The intent is to bolster governance, transparency and yofr sight of the california puc. The major changes to the california puc would transfer of some of the cpucs transportation responsibilities to departments within the california transportation agency, the dmv, the california highway patrol. Were looking into whether that transfer of authority is going to affect the regulation of light rail here in the city. Right now Safety Incidents that occur on an overall safety enforcement on the light rail system in the state of california is overseen by the california Public Utilities commission and that includes the sfmta facilities. It also is seeking assessment of the california Public Utilities commissions governance of telecommunications and it directs an assessment of that authority to be provided by january 1 of 2018. The california puc would maintain their existing rate setting and Regulatory Authority over electricity matters. So, for example, we expect to continue to participate there on rates that are paid for by San Francisco residents and businesses by the pcia charges and our street light rates, all of those activities we expect to continue at the california puc under this reform. The reforms would allow any California Agency to participate in the california puc proceedings without official party status. Were looking into whether that would apply to local agencies like ours. Its similar to the legislature, the reforms would require representatives of organizations that lobby the puc to register so youd have to be a registered lobbyist there under this reform and were looking into what that means for entities like ourselves who do participate there but were local government, were not sure that that registration as lobbyists would be required of us. The reform package does not include the aca 11 content and its our understanding that the author gotto does not intend to go forward with that proposal. So weve been closely monitoring these sorts of reforms as they come up over the years and will continue to monitor how the governors announced reforms play out and then well update you as we learn more. Happy to take any questions. Were there any conversations in connection with compliance or waiver under the contracts code . Not to my knowledge, but i can look into that. If you wouldnt mind. Anything else, commissioners . Public comment. Good afternoon again, commissioners, eric brooks, californians for energy choice. Thanks to staff for getting on top of this and keeping us up to speed. The thing we have to remember about this new deal, basically how we got to this point is senator leno, senator hill and some others last year proposed an entire raft of changes to the Public Utilities commission to reform it and the mayor vetoed all of them i mean the governor vetoed all of them. Its important for folks to remember that jerry brown, you know, he does some good things but two of his top staff people are former pg e executives, including Nancy Mcfadden so he has his interest in this and his staff has their interest in this. Senator mike gotto has interests to free up communication utilities from proper regulation so thats a dynamic there, then youve got this other dynamic that the senate especially is very angry that the governor keeps vetoing their efforts to try and actually reform this agency. So weve got to be mindful that what with the governor stepping in its good that they are not just giving the, throwing out the baby with the bathwater and not giving the legislature the power to just completely get rid of the cpuc, which is what was in aca 11, but at the same time we have to be mindful that the Governors Office is probably not going to be aggressive enough. And i think thats really shown by the fact they are barring former utility executives from being on the cpuc for two years. Thats pretty sent weak. And consumer watchdog has said in the paper these reforms are not very strong. So we have to remain vigilant. Thats one reason i was glad to hear in the previous item staff talk about the fact they are going to form a Community Choice consortium of Community Choice agencies to form a consortium because that can help us push hard against some of the problems weve had with the puc thats making it difficult for us to get clean power sf and the other programs off the ground. So we need to be vigilant on this. The governor because he stepped in is not necessarily the best word or the last word and we need as local communities to really be strong on making ourselves the last word on how our Community Choice programs and our utilities are managed. Thanks. Thank you. Any other comments on this item . That it for the general managers report . Yes, that concludes my report. Thank you, next item, please. Item 8 is the bawsca update. Good afternoon, commissioners. I wanted to speak about two things. First, thank you for your helpful discussion, questions and inaudible related to the Water Management plan that this commission discussed at your last meeting two weeks ago, several issues extremely important to bawscas agencies and their customers. I was pleased inaudible permanent customer status and more water for san jose and santa clara. I am aware palo alto is working with you and believe some briefing from san jose would also be helpful to you. Equally, commissioner moran, your comments about the challenges is very helpful. Bawsca looks forward to working with your staff on this and developing these critical elements to inform the commission on the water map process. I wanted to touch on the progress to fix the water map tunnel. I discussed with you pucs approach addressing the challenges to this important issue. Since that time the commission has adopted a plan to address this and subsfapx progress has been made on 3 major components of the effort. The Capital Projects to improve the tunnel in preparation for the repairs and evaluation of the condition, Emergency Restoration plan to restore service in the event of a tunnel failure before the work is completed, and an Emergency Response plan to identify alternative Water Supplies and demand Management Action in the event of a major failure. Your action today in fact to approve the nearly 5 Million Dollar contract for the mountain tunnel and the repair contract is further evidence. In addition the puc and recently committed to a higher level of preparedness associated with the potential use of the inaudible ready tie to continue to meet wholesale and retail customers alike in the case of a planned or unplanned outage of mountain tunnel. Bawsca understands a similar increased commitment with the east bay utility district is the hayward intertie is also being continued. Through emergency Mutual Aid Agreements that will protect the water customers from unnecessary risks as mountain tunnel progresses. From bawsca and its member agencies and the water customers they serve ensuring our ability to supply water during emergency outage during mountain tunnel failure is critically important and we will continue to pursue this matter. And i appreciate your time very much. Thank you very much. What is the, whats happening with the report back on the Water Management plan agencies and the recommendations . Did we set a timeline for that . With East Palo Alto. So from my understanding is were trying to help facilitate with East Palo Alto and maybe hayward not hayward, mountain view. We were talking about hayward. So were trying to facilitate trying to do things that the contract allows us under the terms of the contract. Thats what were trying to work are you talking about. Yeah, that and san jose and santa clara, too, just get a sense when well be checked back in with and when Decision Point might be. That one is a harder one. I think we havent set a date. That one is harder to list. My recollection was the process laid out the materials, last meeting, the last meeting was providing input to the staff so that they could come back and basically put out a plan for proceeding. Not answers on all those issues but basically how we are going to address them and what our priorities were and i thought that was tentatively scheduled fairly soon. It would be good to understand when well be hearing back on what the plan is so that we can continue the conversation because i know that were continuing to get some communications and letters around these issues. Okay. Thank you. Any Public Comment on the bawsca update . Hearing none, we will go to the consent calendar. Can you please read the items. Consent calendar, all matters hereunder constitute a consent calendar, are considered to be routine by the San Francisco Public Utilities commission and will be acted upon by a single vote of the commission. There will be no separate discussion of these items unless a member of the commission or the public so requests. . Iepb a, approve the plans and specifications and award contract no. Hh986, 2017 mountain tunnel interim repairs in the amount of 4,960,260 to the lowest qualified responsible and responsive bidder, sierra mountain construction. B, approve the plans and specifications and award contract no. Wd2760, 12 ifrpk and 8 inch ductile iron water main replacement, in the amount of 4,822,740 to the lowest qualified responsible and responsive bidder, m herpb dez construction. County of Alameda Community develop. Agency with an initial term of 3 years and not to exceed 75,000. Thank you. I would like to remove item 9e from the consent calendar if there is no objection. Hearing none we will take that item up after we get a motion on the consent calendar. Is there a motion to move the consent calendar . So moved. Second. Any comments on the remaining items 9a through d, the consent calendar . All those in favor, aye. Opposed . The consent calendar moves forward. Now we will take up 9e, which is the issue of the i had asked last week to have continued and its the issue of the memorandum of understanding between the city of San Francisco and the county of alameda. And you have an amended resolution before you. There are two whereas clauses that have been added to this resolution and im wondering if Commission Secretary wouldnt mind reading those two whereases into the record. Were adding a new, it would be the 6th whereas clause. Whereas exhibit a to the mou provided by Alameda County is included for purposes of setting bills rates only and does not constitute a recommended list of materials or resources to be used under this mou and another new whereas clause, whereas consistent with the city and county of San Franciscos integrated Pest Management ordinance, under this mou no pesticide products will be used that are not listed on the most current list from the San Francisco department of the environment. Thank you, mr. Ramirez is here, would you like to speak to these. Ill be happy to briefly. Since your last meeting tim ramirez i know at your last meeting two weeks ago there was some questions about this agreement and as a consequence since then and up to now we have worked with the department of the environment staff to develop these proposed additions to the resolution to ensure and to ensure all of you that we in fact are following and always follow the ordinance that governs our use of these materials on the land that we own in fee. We had phone calls with the staff and chris striver had to leave to go to a meeting. I want to also assure commissioners that our staff in the field are very familiar with these rules and responsibilities and hopefully this additional language provides Greater Transparency for folks tracking our work in the general public in particular because we work very closely with their staff throughout the year on our work. We were very involved this year as part of the annual process to amend their efforts and put additional restrictions on all departments so were very mindful of the current stat stus of things. Id be happy to answer specific questions if you have any. Thank you very much. Is there a motion to move forward these amendments . So moved. Second. Any questions or comments on the amendments . All those in favor, aye. Opposed . The amendments move forward. Now is there a motion on the overall resolution as amended . Move it. Second. Questions or comments . All those in favor, aye. General comment. I want to thank you, mr. Ramirez, for your work on this and i appreciate the updates you have done. Mr. Brooks. Good afternoon one more time, commissioners, eric brooks. Im sustainability chair for the San Francisco green party. And i was very glad that this got segregated out last week and this week and that this new language does appear to be much improved. I mean it really focuses on the fact that we need agencies in the east bay to follow our directions on how we khaifrb the use of pesticides and herbicides in San Francisco. With that said, the key thing that we were asking last week, not just green party but other advocates on pesticide issues and that were asking you to do this week is take the lead on saying, and i think some of you got language that we sent to you, saying that the sfpuc wants especially tier 1 herbicides used on plants to be minimized as much as possible. The reason were asking for that is recently the San Francisco department of environment did change its policies that was partly because of a lot of pressure from the public, the community, saying we are using too many of these chemicals and we need to cut back on them. The community was asking that tier 1 chemicals not be used at all. That was not what we got to. However, there was an agreement that what the standards are currently would be used until november, at which time we will reassess. And quite possibly and if we the public do our job well, we will have more, stronger restrictions on these and be heading in the direction of geting rid of tier 1 pesticides and herbicides in our public place sz and our watersheds and our natural areas. So the language that i sent to you is important because we and none of it is binding, it just says that the sf puc, i dont have it right in front of me because i couldnt get the password while i was trying to speak at the same time, but it just says that the sf pucs objective is to minimize as much as possible and where possible end the use of tier 1 herbicides and direct the general manager to pursue that under this mou agreement. The one other comment i would have, and it applies directly to the amendments you have done, so please if you would add some language to that effect based on what we sent you. The one other comment i have from some other colleagues in the language you have added right here we want to make sure that oakland cant hire private contractors that can then break these rules. So we might want to ask the City Attorney what the status of that is and if language needs to be indicated in here for independent contractors as well, so if you can bring up the language i emailed and possibly add some of that wed really appreciate it. Thanks. So my understanding is the puc is involved in collaborating with the department of the environment on an analysis of the pesticides scheduled to be completed before the end of the year. Right, that language applies to all departments, i got a chance to look at it and its lifted directly from the language thats part of their adoption package from march and we are working with them to prepare for november and it applies to all City Departments. Part of the reason our amendments a little more general because this is a multiple Year Agreement and their recommendations may change in november. We didnt want it to be restricted based on the current language because we want to be sure we always follow the requirements whatever they are and we want to be sure we follow the umbrella and the kurpbtd restriction package in march, but anything that changes in the future would also necessarily be covered still the way this is written because this is a 3 Year Agreement and we didnt want it to be outdated and use language that was only part of this years adoption package. That sounds right. I would like if possible toward the end of the year, maybe november, december, whenever the analysis is done, to get a report on what the findings are and what the recommendations end up being if we could just to make sure we keep track of that. We will be happy to share the information and we can only do what we are allowed to do under city and county ordinance. What they do on other property we have no say, but if they are on our property, they have to follow city county law. Appreciate that. Other Public Comment on the amended resolution . Hearing none, all those in favor, aye. Opposed . And the motion carries. Thank you. Next item, please . Oo . A item 10, approve amendment no. 10 to agreement no. Cs954b with a time extension of six months. Is there a motion to approve . So moved. Second. Public dmepbts, item no. 10 . All those in favor, aye. Opposed . Motion carries. Next item please, no. 11. Item 11, public hearing, discussion and possible action to adopt changes to the 20152016 Drought Program to ease mandatory reductions on outdoor irrigation with potable water. Good afternoon. Good afternoon, commissioners, paula keyhoe, manager of Water Resources. The item before you today is to adopt changes to the 20152016 Drought Program. The changes include to kees the current 25 percent mandatory reduction in use by dedicated irrigation customers and corresponding xus use charges, to reduce the current mandatory reduction in water use by interruptable customers from 30 percent to a 10 percent mandatory reduction, subject to excess use charges and to revert the reduced wait wauft err flow factors that have been adjusted to reflect a 25 percent reduction in irrigation usage back too their preadjusted redice the values. Id like to note the item also continues to call for a 10 percent voluntary reduction in water use by all of our customers system wide. We have had tremendous response from our customers over the past few years. In 2014 and 2015 we sked our customers to cut back by 10 percent. They exceeded that target both years and as wie maintain our call for 10 percent voluntary systemwide reduction in water use we will continue to implement our comprehensive retail Conservation Program here in San Francisco. Im happy to answer any questions that you may have. Question. Do you have an estimate of how much water is involved in these 3 items . How much water is involved . I can tell you how much water we have saved in our sectors from last year. Okay. In terms of irrigation customers last wreer in 2015 we saved 21. 7 percent. And in the Single Family multi family we have saved over 24 percent in those two sectors. So if the irrigation, do you know how much they use in a year . I would expect a whole lot. Irrigation customers, we have about 1600 irrigation customers and we have approximately 800 interruptable customers. These are our interruptable customers as opposed to the interruptable customers who are wholesale. Yes, im averaging retail accounts only. So the expectation would be the retail customers could relax from 25 percent. Remaining on the voluntary call for 10 percent or the interruptable going from 30 percent to 10 percent mandatory, subject to excess use charges. Thank you. Okay, is there a motion . Were in a drought, right . It seems like were enter ago 50year drought so i think we proceed cautiously here. We dont really know what the magic number is, probably. Were hoping people will continue to conserve. Were going to continue to be aggressive with our conservation measures, continue to ask people to volunteer. Hopefully people will stay at the 20 percent plus level but our reservoirs are not full. Correct. Were going to proceed cautiously. Correct . I think its appropriate, we had such incredible response from a voluntary request for reduction. In years prior we have struggled to get that degree of cooperation with mandatory programs and i think that thats a very important, you know, difference in the way this drought was handled. I think as the situation eases up a little bit it makes sense to ease up on some of the most severe parts of that plan, keeping in mind that we are still looking for the 10 percent reduction, we expect that San Franciscoans will continue to honor that and probably exceed it significantly. But lifting some of the mandatory elements i think makes a lot of sense just in sense of keeping faith with people. And we expect to see continued savings and obviously to continue to implement our comprehensive Retail Program with our rebates and audits and our Grant Programs to our customers. We keep getting those drought reports, we will keep our eye on it. So, motion . I will move the item. Second. Any Public Comments on this item . All those in favor, aye. Opposed . And the motion carries forward. Thank you. Next item, please. The next item would be Public Comment on matters in closed session. Is there any Public Comment on matters to be discussed . Would you like me to read the items . Item 14 is conference with Real Property negotiator property at 38240 Canyon Heights drive, fremont, california, under discussion payment and price. 16 is litigation, allied Insurance Company versus city and county of San Francisco, item 17, unlitigated claim, Raymond Kruse and ashly kruse versus precision engineering. 21, existing litigation, pacific gas and electric, 22, existing litigation, pacific gas and electric and item 23, existing litigation, pacific gas and electric and 24 will not be heard today. Any Public Comments on any of these items . Hearing none, is there a motion to assert attorneyclient privilege . Make a motion to assert the make a motion to assert the attorneyclient privilege. Comments on that . We will now move into closed session. closed session . clappin start by welcoming our San Francisco mayor ed lee. clapping. and next, we welcome our retiring be airport director john martin. clapping. and please welcome our newly appointed director art. clapping. all right. Were also going to invite a couple members of the gail Labor Council please welcome shelly kessler. clapping. representing the sgerm broadly from oregon jeff and tina smith. clapping. representing the terminal one c project terminal one central john and pencil phelps. clapping. from the new broadly the design belt ralph. clapping. from construction management. Okay. Well pause for a moment to take photos and let those gentlemen take us away. yeah . All right. Ed come on down. Yeah. clapping. yeah. There we go. Yeah. All right. clapping. tin in a. Come john all right. clapping. there we go there we go. Yeah. clapping. all right. I need to get the range and the colors so sorry i see it down here you know, before we get started it is just a appropriate to recognize the suffering that is going on from the terrorist attack yesterday ami id like to offer a moment of silence for the victims and families before we start the program silence thanks so thank you for everyone being here with us today and i particularly like to acknowledge special guests first linda linda our Vice President of the Airport Commission so glad to you have you with us today. clapping. and we have representatives from congresswoman Jackie Spiers office thank you for being here raise your hand glad to have you here. clapping. and welcome the members of the san mateo Labor Council we share a Strong Partnership in all say programs and representatives from the any design and construction firms that is will guarantee the successful delivery this project and so god to have you here as well so i think this is an exciting time this is an excited project and it is signals a trofrpgs and is perfect opportunity to talk about the trofrpgs that happens over the past 20 years as you may know our director john martin is retiring on 21 years as airport director a big round of applause for john, please. clapping. and you know talk about transformers that airport over the past 21 years has seen essentially redevelopment of every facility under johns leadership a tremendous thing for the airport and the traffic light public as well as the city and county of San Francisco and you know, i think about the 1990s and the transformers that occurred in the 90s and john lead a 3 billion dollars renovation a master plan expansion for the rim and a new International Train system and bart to sfo new cargo facilities we also have a new rental car center you think the transformers of the 90s and impactful to the customer dmrerns a positive way and the revenues of this airport i think about after 9 11 and john and his leadership through the progress of the leadership following 9 11 and his determination to continue to deliver the exceptional deliveries and the terminal two an amazing project that set so many new standards for the airport standards for passerby commerce or experience and excellence in sustainability, in fact, did first terminal in the year to get lead gold certification and setting the standards standard for future projects at the airport you know and then i think about the most recent 4 years under johns watchful eye the tremendous amount of work with the growth weve experienced a new air Traffic Controller tower for this are airport a new icon for the city and county of San Francisco and have a renovated terminal 3 delivering an exceptional passerby experience and i think about the future of this airport and this terminal one program and again an opportunity for that transformation and all of the preparation that it has taken under johns leadership to get us here this is an exist day and ill excited to Carry Forward the vision that john establishes for the airport and you know were standing in the intern broadly facilities b some facts it is a temporary facilities that allows set west to continue to operate were offering 9 gates out of this facility and essentially building a 24 gate operation around this operation is a challenging and requires just most of our project team it will create a new lobby and consolidated checkpoint and improve the passerby experiences and the shopping and dining serving both broadly areas b and c to that leading edge of terminal experience worldwide a worldwide facility so interesting i think a key part of broadly b project the capacity to deal with international as well as domestic operations and so thats a tremendous benefit to give us the flexibility to continue to allow for the focusing efficient use of facilities and maximizing new flight and new aircraft types of that is part of our success over the recent past and also provide for post security cocaine activity between 4 of the broadly areas of the airport and in the near future well build between t2 and 1940 t3 that allows us assess through the broadly areas a tremendous thing for the passersby i think about the Terminal Program the benefit that provides for the communities and to our Small Businesses were focused on local business participation a goal of 25 percent small local business participation and 300 million of the benefits through the contract wear estimating that will go to local and Small Businesses in the community and been so successful with the project approach and continue to use a pales in comparison approach with our teams we are in the midst feel having and have conceded 2 billion of work without a single claim and continues to deliver some such exceptional projects and lastly to turn back to sustainability if we will achieve lead gold certification and will make it zero ready so as we develop the Renewables Program given that leverage of a net zero facility with that, i want to thank the Terminal One Team and thank you all for being here. clapping. thank you now, please welcome the head of San Mateo Council shelly csa letter. clapping. shelly labor coincidental represents one and 10 units and 75 thousand workers here in the san mateo and bay area it is really an exciting time at the sfo with the groundbreaking of term one great opportunities that that will provide thousands of new jobs with local labor getting fair wages to construct and create and populate this state of the art the positive result of this a no small measure due to the cooperation between director john martin and our Labor Community as your last Major Construction project you can be so proud it will be done right with our construction and Building Trades represents by james of the Building Trades council and many members here today and john martin has provided credible leadership so the workers in key one will be compensated fairly as they take care of the traveling public that a professional experience is held from pilots to janitors and sfo folks take pride in the work the fact it john marthas understands and appreciates the fact we work hard on behalf of this airport with one of the reasons well honor him july 29th and grateful for the partnerships are this airport and really developed that aspirin with that community that is different and unique to any other airport in the United States United States of america and for that were proud of you john and for the team lead by the folks that will continue to have the mature respective youve developed over the years on behalf of the Labor Community thank you and all of you at the airport that are doing this work and in partnership with us who are here serve all of you thank you. clapping. thank you shelly and new please welcome the San Francisco mileanhour ed lee. clapping. well, everybody thank you for being here this morning at our sfo im in deep appreciation for what is going on at our air Traffic Controller for a number of reasons you know 201550 Million People came through the airport a records setting number if all indications john and i will exceed that number this year and when they came in we get the compliments i have often international viefrlts shaking their heads how is that like an arent like a hotel lobby and it is really the thought process the planning that is going on, i as i mentioned that john came from a financial world before we became the airport director and led the airport by kind of i think traded the mindset i got the pleasure of really having this new leadership take on but want to say thank you to the commissioners some of whom have been at the air Traffic Controller as long and john and the leadership of the commission and the staff, the vendors that are out here, of course, the airlines that are really have a lot of Investor Confidence in the airport weve done it right you look at what terminal one means by the 2. 1 Million Investment that is about to happen a four and a half billion dollars Capital Improvement plan that compliments the kind of planning our city has always been supportive and nurturing every seats like the airport to make long term planning at the center because when you do that planning then you can satisfy 75 thousand people as part of Labor Council shelly i want to say shelly ive got to say this im looking at did Unemployment Rate and every time San Francisco is goes down san mateo unemployments goes down further it has got to be that airport shelly and in great part were glad to do that we dont know and im always youve seen my announcement im having the plan time after time for any cause case in chief economic downturn thats why we have the incredible infrastructure planning for the city i get to be in charge of a 10 year plan and four and a half billion dollars of an infrastructure 10 year Capital Improvement plan for all the City Departments as we plan those things out and make the proper investment and get the projects on time and on budget and celebrate the leads certification and the green and Green House Gas reduction that all those designs are part of we not only modernize the infrastructures like the airport by bring in more of our constituents to enjoy the airport and use it properly so i must say that im appreciative of everyone involved in the engineers to the design firms the ones on the financial part and the management and, of course, the incredible work that the commission is doing to make sure that everyone is included this airport is for everyone and contributor to the entire Northern California economic such a center of industrial and of job creation and helping people out we also are appreciative that in march of this year our airport received what we called the level 3 accreditation reducing the Green House Gas emissions it is a very, very high award in fact, i think that were the only airport in california to received that level 3 recognitions and the second airport in the United States to receive it so again another accolade that the new tower the aviation tower maybe a less than a year away from opening is receiving engineering recognition time after time i love when people say im he hotel lobby at the aircraft that gives everyone a feeling of being in a comfortable place not only the routine are reflective of the diversities of bay area but the worldclass we have a museum at the airport with a lot of people shake their heads you have an museum at the air Traffic Controller i have my name saying ed lee welcomes you to San Francisco im proud of that as well and this entire staff as we need to be congratulated an economic engine when we dont know what will happen in the future i want 24 to be the shining example of Group Candidates and a strong Investor Confidence and the contractors those times and substances are working in pales in comparison want to thank you all for opening your doors and making sure that people go to work that number one thing that people says get to work were eager to what go to work here just a moment i want to say again to john martin who will go into a quiet life im looking at those videos and im sure im saying i want to make sure my yogurt stand is proilt place john will say and yoga place were anticipating how had terminal one will turnout 2024 will be shortly here and complimenting all the other things the airport is doing in the infrastructure so john, i want to say again i know ive going to be a great, great airport director with the team 150e7b8d assembled but we take a moment and thank those who catered the way for over 21 years i know you want a quieted life i want you to be back with me in maybe ill put in a yoga uniform and stand with the open on the ground of that great term one thank you, john for your wonderful years anticipate leadership and been a star amongst all the Department Heads we gridlock appreciate that and everybody lets go to work, huh . clapping. thank you, mayor ed lee. Now a please help me welcome his final appearance retired airport director john martin. clapping. thank you first want to acknowledge a staff person that justice arrived thank you for being here and your support and also mr. Mayor a gentleman whispered in my ear this building will be opened in 2019 while your mayor and complete in 6 or seven years 17 dates is that right. 17 gates in 2019 so just a little bit of reminiscing i came to San Francisco for the very first time a little bit over 95 years and graduated schools for a Job Interview for sfo on this building for World Airways i looked around this broadly airport and thought that is the worst broadly area laughter and it looked a bus terminal so in that time ive been here 35 years a lot of improvements are made to this boarding area but ptz to see it replaced in the last 20 years we rebuilt the whole airport a new international terminal, bart to the airport, train system and new parking garages and terminal 2 that set a standard for arntsdz worldwide and being improvements in terminal 3 but to demolish boarding area b it was a great pleasure to lift this sledgehammer and tear that place down that was built in 1962 as a temporary structure so 74 years later getting to taking it down so we had to take a projects in a unique way strong finances Steering Wheel strong concession sales sfta from the San Francisco concessions and that allows us to finance our own facilities we dont need third partys developers or ask the airlines to build facilities we insure the highest quality and maximize flexibility and maximize the gates and have new carriers to welcome virgin american and insuring they have the gates and able to welcome jet blue and southwest and had an extraordinarily highlevel of k350e78s one of the highest exception levels in the country that means low fairs much lower fairs is more nights in the hotels in San Francisco keeping this airport competitive is very important in our philosophy how and finance and control the airport is a key part an 1250er8d team in delivering the projects that i have been a leader on for 20 years delivering projects on schedule within budget not had a construction latitude over 20 years the envy of the public segment nationally and they look at our model how they should follow as well our model is based on partnering we embrace partnering and partnering with a Construction Industry and contractor, architecture e architect and engineers and Construction Managers and pales in comparison with the airlines our concession folks and other City Departments and labor a key partner and that partnering is one of transparency, setting time and goals and insuring clear open consumption and thats what allows us to deliver exceptional projects not just projects on schedule and within budget but projects exceptional from a point of view we aim to surprise the passersby with a level of amenities and services that we deliver we did that in terminal two and confident the team will that here our im a review lose and get better im confident when i could be four years from now as as peering ill have an steroid experience thank you all for being here today and really very satisfying for me as airport director after 35 years seeing this old building torn down and starting a new boarding area and new terminal one thank. It seems like everyone in San Francisco is talking about housing San Francisco housing prizes are among the highest it tops anyone Million Dollars and rent rise unfortunately, this is not the first time housing has been in the news thought california the cost of a home has made headline the medium prices for a house in the the 207,000 in california it is more than twice that amount and the laura u bay area is higher its more than doubled the states so while more than half of the americans can afford the medium fewer in california and quarter in the bayer and now fewer than a 6th of san franciscans can afford it so why it housing in San Francisco so go cheven condition tharz the obviously a high demand to live here the city is known for cultural diversities that attacks new residents and the credible opportunity our city diverse and will daytime committee grows jobs as a result we estimate the number of jobs is at ann an alltime 0 hive of 6 hundred thousand in the 80 the population was 6 hundred and 75 thousand now, its grown steadily and quickly the recent estimate is 8 hundred and 40 thousand the highest in the citys history and its not only San Francisco it is greek the bay area has 2 million for residents and jobs then in the 80 and the growth is expected to continue by the year 20403. 9 Million People unfortunately, our housing supply does not keep up with the demand i might not realize the majority of construction is housing thats been suspended for years due to the 2008 recession while population is increasing the housing is only increasing that i 9 percent if we dont pursues housing the cost of housing about only increase how do we plan the regional allocation identifies the total number of housing unit by affordable level to support the new residents San Francisco incorporates it into the housing elements that guides the housing policies the arena data places it in the investment plans for the growth throughout San Francisco those plans developed by years of Community Planning laid the ground work for the construction so the city he e sets the goals in broad terms the private sectors builds market rate housing and nonbuilt Affordability Housing that majority of housing in San Francisco as well as throughout the Country Market rate houses built by private developers within guidelines of the city some below market rate you howls paid pie public and private dollars and prized to be variable to certain population housing is considered affordable if it costs less than 1 3rd the medium income for a 2 percent householder is 70,000 this householder will have to pay no more than 7,150 to be affordable San Francisco has see long applied federal, state and local money often built and nonprofit tint for individual families the news cities in california what the Inclusive Program requires that 10 or ottawa more units to certain blow income levels or contribute to the fund that supports the blow market rate unit almost 25 thousand have been supported by city funds and more than 6 nous thousand of the unit were built between 2000 and 2012 what you cant afford a million will home youre not alone in response San Francisco mayor ed lee has set a goal of creating thirty thousand now emails homes by the year 2020 most will be in outreach of the san franciscan with federal and state funds drying up the San Francisco Ethics Commission is, taking an iv i of actually roll is providing housing across all levels were working diligently for everyone to live here and mr. Chair protect the housing semiand strengthen goals against evictions were commented for Housing Needs for all san franciscans to learn more visit highway speaking foreign language. shop and dine in the 49 promotes local biz and challenges the san franciscans to do their shop and dine in the 49 within the by supporting the services we help San Francisco remain unique and successful and vibrant so where will you shop and dine in the 49 San Francisco owes itch of the charm to the many neighborhoods people coma greet and meet it has an personality these neighborhoods are economic engine seeing the changes is a big deal to me especially being a San Francisco native and it is important to support the local businesses but also a lot to over here it is nice not to have to go downtown i think that is very important 0 for us to circulate our dollars the community before we bring them outside of the community for the time we have one dollars in the community is the better off we are it is about Economic Empowerment by apron ingress the businesses that are here. Shopping local cuts down the cyber foot youll find cookies and being transported the world where everything is manufactured and put on the Assembly Line having something local is meaning more the more we support our local businesses the more i can walk down to where i need to be. Bridges contingency bye like west portal it is about city and San Francisco may have a big name but a small city and a lot of small communities shop and dine in the 49 highlighted that and reminded people come outburst and i love that about this city ill always be a alright, good afternoon everyone. Welcome to the relural rules Committee Meeting of july 7, 2016. Im katy tang. To my left is malia cohen and to my non right is supposed to bhee supervisor mar who will not be here. Our clerk is derek evans and like to thank leo [inaudible] and jessie larsson. Do we ha

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