When we get our designer, they feta cost estimate. So we have three levels of having some confidence that whatever that price is, were going to meet that. So i think were very comfortable with our ability to deliver the projects in phase one, but i do understand the projects in phase two and three, because those are further out. And then the question is, when do you bring them into the fold. And i agree with andy, in that were constantly looking. When we identify a solution, say, in phase one, it could eliminate something in phase two, so we want to come to you and let you know. So the other thing is that we talked about, this is a large program. Its a lots of projects. So we can go over the whole thing in one sitting, but you will be sitting for a long time. So we talked about doing it in chunks. So treatment is a chunk. So thats why we wanted to go over that. But the one thing that ive heard is that we want to be sure that we crossreference whats in phase one and phase two, so its clear what were combining. Like we did before. If something is eliminated, we cross it out and say why. If were combining, two arrows into a main project. And the reason is that its efficient and they can demo one versus another. So well do a better job of that. So i have some notes and will be sure when we present it, well make it clear. And we want to double back on the Green Infrastructure and efforts that talk about the triple bottom line and all of that stuff, so well come back and have another presentation just on Green Infrastructure. Yeah. And im still left behind in the Collection System presentation. I still have been processing and thinking about that overall. Its the other issues, i think, around that the world has changed, contractor is now on board, hes come up with efficiency solutions, which we appreciate, but it does impact our original visions and goals. A lot of the public participated in that. So maybe offline you can answer some more of my questions and in addition, too, how it fits together and what the implications are for the program and cost overall. Thank you. Thank you. Anyone for Public Comment on this item . Okay. Madam secretary . Item 9 is the consent calendar. All matters listed under consent calendar considered to be routine by the San FranciscoPublic Utilities commission and will be acted upon by a vote of the commission. No separate discussions unless a member of the commission or public request and in which time it will be removed from calendar. We need to remove 9a, because i have some changes to the resolution that were provided to the commission yesterday and also you have copies in front of you. And i will read those when you are ready. Line go ahead. Would you like to for me to do that first or approve b and c first . Lets approve b and c first. Call for Public Comment . Yes. Any Public Comment on items 9b or 9c . Okay. I would like to move second. Okay. All in favor. Aye. Opposed . Approved. For item 9a on the resolution, the seventh whereas clause, whereas moderations 19 were issued for aggregated amount of 13,244 and time efrm tension of 402 calendar days. And increasing contract amount to 7,403,000. It should red negative 37,500. And resolve clause fourth line should say decreasing the contract amount by 37,500. Other than that, the resolution has no other changes. So we would need a motion to approve the resolution as amended. I will move it as amended. Second. Any Public Comment . All in favor . Aye. Opposed . All right. Approved, thank you. Item 10, authorized the general manager to negotiate and execution exclusive negotiating agreement with Reservoir Community partners llc to develop mixed income, housing, and approximately 17 acres of property at ocean beach and phelan avenues in San Francisco known as balboa reservoir. Michael carlin, deputy g. M. I will be brief on this item since there was 160 pages of information in your packages that i assume youve all read. I thought i would answer a couple of questions raised by people. The first that keeps come thing up is city college in San Francisco. And city college of San Francisco has been a partner of ours in this process since 2015. Over the last two years, weve been working together to basically find a developer for the site and select the developer. They knew what our plans were. They were instrumental in helping to get the request for qualifications developed and approved and the requests for proposals approved. Weve been transparent with city college during this time. And i think thats a significant thing thats lost on the public that they did know about this project and its important. I also want to point out that basically, theres been some confusion on notification to other parties about the potential for this underutilized property for them to buy it from us. And we have asked the City Attorney with that and that you can proceed with approving the exclusive negotiating agreement. The other thing thats come up is parking. This property is used for parking for city college and other activities as well. They do some motorcycle training, things like that, in the parking right there. And this is a big issue. We specifically when we selected this developer, they were very responsive. Theyre bringing on a parking lot specialist. Somebody that knows how to build parking lots with educational facilities. So they do have experience like working on parking lots on the u. C. Berkeley campus and urban campus interface. So i think thats important. Its in the transit hub. Parking will be important. We want to be sure there is significant parking. And well work with city college. We dont have a final proposal. Those are things that we can negotiate and well negotiate hard with the developer. The next thing basically, Affordable Housing. I remember presenting the terms for the rfq. And this commission instructs me to take the 33 and push it to 50 . We did that. And this developer is committed to doing 50 Affordable Housing on the site. So if its 1,100 units, it will be about 550 that will be affordable, and thats to low moderate and middleincome families thats an important aspect to this. The city subsidy makes it impossible to do 100 Affordable Housing. They want to spread it around so we have mixed communities. Weve heard a lot about the performing arts center. We will work with city college as they develop their plans to make sure that its incorporated as part of the project. In other words, there will be a deliniation between the projects. There will be walkways. Not precluding that at all. The other thing that you should know, some people suggested that we sell this to city college for 1. You are required to get fair market value. Please recall youve done this with the recreation and Parks Department and Mayors Office of housing and we followed that letter of the law as well. I can go through and talk about the process that got us here today, but i think theres a lot of people waiting in this room to speak to you and you basically have the i will be available to answer any questions, but its been a long process and were at the point where we recommend you understand us to sign the exclusive negotiating agreement. Michael, the reservoir on bay street, we did that transaction within the last two years. Do you remember generally what the terms were . We got 12 million for it from recreation and Parks Department. Can i ask you a question, too . I know that one of the questions that ive received is around the state surplus land act. And City Attorney has opined on that. As a city agent and enterprise department, we have different rules were governed by, correct . Were governed by the same rules as anyone else in the city. State surplus land act, that says if there is surplus lands, that it needs to be made available for sale, but because our city charter says that we have to sell our lands at fair market value. Correct . Correct. Do you want to opine there are two issues. The state surplus lands act, the issue is not about the sales price. The requirement that puc obtain fair market value comes from the city charter and other state laws. Surplus land act has a provision that when public agencies have determined the land that needs to be surplus, need to give written notice to public entities to have the opportunity to purchase the property. Well, thats not governed by surplus land. So we would have to get notice to interested policies that land would be available. Yes. It would have to be in the next several years. This land is not declared surplus at this point. Thats right. Its underutilized. We will not declare it surplus once you accept the terms and conditions. Once the developer comes back, we finalize the deal and sell it to them. Before we go to Public Comment, we have a large number of speakers and we lose the room around 5 00 and we have a long list of agenda items and only one meeting in november. I have 12 requests. Can i ask, are there any folks here in the room that have not filled out this card that would like to speak . 1, 2, 3, 4. So we have 16 people total. 17. Do i hear 18 . [laughter] in the consider of time, would i like to give each speaker a chance to say their peace. Were going to truncate it to 2 minutes, so we can get everyone through and get through our agenda items. Im going to call each of you p up. The first is mr. Michael ahrens. My name is michael ahrens, resident of Westwood Park. And i am the appointee to the balboa reservoir citizens advisory committee. The parking problem for city college has to be solved between the city of San Francisco and city college. We talked to the city about that. Its not been done. Weve taken one position. That this exclusive negotiatation agreement should not be signed before that problem is solved. Why not . It gives substantial legal rights to a developer and not the city. Its not the city negotiating with city college. Its the developer. Look at paragraph 1a. It says that the city of San Francisco will not solicitor consider any other proposals or negotiate with any person for the aquisition or development. So if city college wants to talk to the city, they cant. Its in the hands of a profitmaking organization, the developer. Thats why and the developer may grant or withhold that consent in the sole discretion, absolute. So nothing can be done without the developer. How long do they have the rights . 2. 1, phase one, for 9 months and 6 months, and then they can extend it another 12 months. If in reasonable discretion, they havent been doing their job. Both sides have said, oh, this cant be solved until the problem is solved. City said that. The developer in the back of the room has said that, but its not in this contract. This contract is the only legal thing you are signing. You are giving away substantial legal rights on a onesided contract in favor of the contractor in this case. Bottom line, you will find that you will not be able to talk to city college, city cant talk to city college. Theres no condition in this contract that city college has to consent to this. Everybody says, thats the point, but theres an integration clause that said everything in this clause is all there is. Thank you. [applause] all right. Next is mr. John winston. Welcome. Limit to the second chime. I occupy seat 9 of the cac, atlarge seat. I have a letter from our chair, lisa spineli, sunniside residential seat. As chair of balboa seat, im sorry im unable to attend today as im out of town for work. I want to give my support for the developer. Over the last few years, the cac with the community have worked hard to outline the parameters and principles for the selection process. It created a framework for developer candidates to utilize for their proposals and serve as a core part of the criteria the select developer. In my role as chair, i serve on the Selection Committee and ccsf. We participated along with city employees, the process was very thoughtful and thorough. At the conclusion of the process, avalon bay bay Bridge Housing scored highest on the selection criteria. They appreciate the opportunity to build on 17 acres of San Francisco land. Theyre committed to working with the community and will bring their best thinking and creativity for open space and the community. Can i have 2 minutes for myself as well . No. You can fill out another card and come back up. Thank you. Jennifer heji . Im from sunnyside, neighborhood avase jays adjacent to the development. City college would be stressed. They train our police, firefighters, nurses, and provides opportunities for many others in the region. I request that you deny the e. N. A. Frequently Business Opportunities win out and access to educational institutions should not be at risk. Parking and Public Transportation has not been resolved. If this is developed, they will lose 1,000 parking spots. City college had planned to construct a needed Arts Education center on their campus, but would remove about 500 parking places, at least that many. In the city College Transportation survey, students top priority was to get to class on time. What stands in the way, inadequate public transit, parking, and congestion. Theres been no assurances that transit will be improved. Its unclear that the necessary improvements are even possible by the time this development is projected to be in place. These issues will not go away and the number of students is projected to increase. No getting around the fact that the denser the new development, the greatest the congestion. This includes sharing the crosswalks and sidewalks with high schools as well as city college as well as competing with buses, bicycles and projected longer lines at bart. City College Students is that it . Thank you. Yeah. Mr. Steve zeltzer. United Public Workers for action. First of all, im outraged really that the city has spent millions of dollars of city manage to push this developer theyve not come to the union or the staff and asked them their opinion. Thats a lie. You are using money, our public money, for the developers, that want this site, who want to make money off this site. Thats what this is about. The fact of the matter is, city college is a treasure and it should be protected. You are putting the developers first, not the people of San Francisco and students that need city college. Last night the San FranciscoLabor Council unanimously almost unanimously voted it should be turned over to city college for their development and not the privateers that want milliondollar condos. Ocean avenue is already crowded. Bring u1,300 units, it will be gridlock. You are not helping the students or the community. You talk about policy. Is it the policy of the board to privatize public space snz is that your policy . If it is, along with mayor ed lee, who is more interested in developers than the people of San Francisco. Its a charade. Its privitazation. You dont have an e. P. I. You havent done a steady on the effect of the community and gridlock of students that need parking. You made promises, but we know about the promises of developers. They promise, promise and then do what they damn well please. We have a rejection of transfer and transfer to city college for the use of city college. If you do pass this, we pledge that we will have an initiative to protect the people of city college and not have more milliondollar condos in San Francisco. Thats well we need to protect city college. Thank you. [applause] thank you. Next up, francena litrono. Good afternoon. Good afternoon. My comments are, public lands should not be privatized. Its been used by city college for 40 years. The best use is by the college and its students and future generations of students rather than housing. I have to ask, how can any one of you explain how government code can be ignored and circumvented. 54222 requires that the land be declared surplus. How is the execution of this exclusive negotiating agreement not illegal . Was a written public offer given to these Public Institutions . Finally, as far as the Robust Community engagement process, its important to know that the machinations of the balboa land grab has been anything but. Theyre politically motivated and controlled the processes that the public has expressed demands especially for the predetermined outcome of housing on the reservoir the neighborhoods are overwhelmingly against this and we have not been listened to like everybody says we have been. So when you read those principles and parameters, it would be illuminating to look at the minutes and comments. Thank you. Thank you. [applause] mr. Aldin jaw. First off, i would like to express my appreciation to commissioner vietor for wanting to connect the dots and see the big picture and im asking all of you to do the same in regard to the d. N. A. Way back, 50 years ago, i went through the Public High School system and i learned a few things. Basically, when you draw a conclusion, you have to make sure your assumptions are accurate. If you have incorrect assumptions, wrong assumptions, your conclusion will be wrong. If you only use evidence or facts in your favored conclusions and disregard the evidence and facts that are unfavorable, your conclusions will be wrong, okay . And basically, this is what the balboa project people are doing, the reservoir project staff is doing. Prior to the iraq war, British Intelligence analyzed how the iraq war was being set up and they said that th