Good morning. Welcome to the budget and finance Committee Meeting for january 25th, and i guess i want to thank sfgov tv, michael and jim, for recording todays meeting, and making it available to the public and also good morning to our clerk, linda wong. Announcements . Silence all cell phones, completed speaker cards and copies of documents submitted to the clerk. Item acted upon appear on february 6th, board of supervisors agenda unless others stated. Number one. Authorizing the Police Department to accept and expand a grant in amount of 166,000 from the department of Homeland Security federal Emergency Management agency for the safe boat refurbishment and Service Life Extension program, september 1, 2017, through august 31, 2020. And chair cohen will be here in a moment, since i dont have notes in front of me, i wont know who is speaking for which item. As you come up, please announce yourself. Good morning, patrick young, the grants manager for the San FranciscoPolice Department. Im here to request recommendation from the budget and finance committee for our sf expend resolution for the 2017 grant security Award Program for the federal bureau of management agency. Grant funds will be used to refurbish and overhaul our 31foot safe boat patrol vessel. The project includes the installation of a new collar system, as well as updating the electrical wiring and replacing some of the other Safety Equipment on the vessel. The Standard Service life of a patrol vessel is ten years and with the grant we are hoping to extend the service life of our safe boat by additional 10 to 15 years. Our safe boat vessel is our only, the only towable vessel in our inventory with 3d sonar equipment and radiation equipment. Sfpd marine unit is the primary Maritime Law Enforcement agency for the city and county of San Francisco, and its responsible for securing the 64 square miles of San Francisco waterways, as well as securing the port of San Francisco properties which includes ferry and cruise ship terminals. This grant will extend the useful life of our safe boat vessel and it will provide our marine unit with updated equipment to safeguard our waterways and port infrastructure. And if you have any questions, ill be happy to answer them. Ok. Thank you for your presentation, any questions . Seeing none, any Public Comments on this item n . Seeing none, Public Comment is now closed. Can i have a motion for this very important item to protect our city . Ill make a motion to send forth item one with positive recommendation. Passes, thank you very much. Resolution, retroactively for the department of Public Health to accept a grant approximately 300,000, participate in a program, California Department of Public Health and Oral Health Program, proposition 56, january 1, 2018, through june 30, 2018. Department of health. Hi, my name is margaret fisher, i represent the m. C. H. Department section of the department of Public Health. Im the Oral Health Consultant and the child health and disability prevention program. Approve the accept and expend for the grant of 308,000 sorry, exact amount. 879 for the first fiscal year, its a fiveyear grant, totaling 1. 500000 1,500,000. Sorry. With this grant we hope to create and support the infrastructure for local Oral Health Program that we have been developing for the past four years. Some of you were here when we presented the Strategic Plan for childrens oral health in San Francisco. With this, these funds, we will be able to hire for a category 18 grant funded only position and epidemologist, to help us describe the Oral Health Status of children and young adults in San Francisco. The other portion of this fund used for express hire for a Health Educator trainee for three years, to help promote the Oral Health Program in San Francisco. We also hope to support our three Oral Health Task forces in the high risk neighborhoods in the mission, in district ten, and also in chinatown, who have the highest rate of dental decay. Our children have up to 60 , kinders have dental decay in the high risk areas and we are hoping to bring it down to the National Healthy peoples average of 30 or less. So, we are targeting Health Disparity among the children of color and low income children in San Francisco. If theres any questions, im happy to answer. Ok. Thank you, any questions . Seeing none, glad you are going to be talking in those two areas, 60 sounds like a lot. So hopefully well get it back down to the normal and maybe drop below the normal, the 30. Any Public Comments on this item . Seeing none, Public Comment is now closed. Can i have a motion, please . Make a motion to send forth item two to full board with positive recommendation. Passes, thank you very much. Resolution approving authorizing agreement for conveyance and acceptance of interest in Real Property from state of California Department of general services, easements for subservice tiebacks, and property at 100 armory street. All right. This bundle of money coming. Rightofway manager, item before you today is the acquisition of some easements from the state of California National guard armory for the sfpc westside recycled water project. If you see on the graphic in front of you there, the project proposes 1. 6 million gallons of recycled water, to serve Golden Gate National park, lincoln gate golf course and a lot of the presidio properties, to save Drinking Water for drinking purposes instead of watering plants. The project is completely in the ocean side Treatment Plant and the National Guard armory one more, so if you look at the graphic, the next graphic here, this plat map, the National Guard armory sits like a castle above the ocean side Treatment Plant looking down on the village there. So, this is the graphic here shows that we have mostly hillside and terraced hillside, so its the easements are completely within the ocean side Treatment Plant but are technically on the National Guard armory property. And this next graphic just kind of shows you the areas that we are acquiring, a building easement, a permanent maintenance area, a tieback to go back into the hillside to support the walls and then a temporary staging area. And then the last graphic shows, or picture shows what it looks like from inside the ocean side Treatment Plant. So the National Guard armory building would be on the far left top corner there, looking down on the building, or looking down on the ocean side Treatment Plant, and then youll see here the hillside and the terraced kind of side, excuse me, the Hillside Terrace affected. Youll see in the photo there. Those green structures in the foreground on the righthand side will all come out and the westside recycled facility will go in that footprint there. Any questions, please ask. Thank you. Supervisor tang. Thank you very much. Im just wondering, i know the item before us is the Real Property agreement, but we have been in conversation with public works how to irrigate sunset boulevard, while not using Drinking Water. One of the issues, no way to obtain recycled water. Just wondering, would this help with that, sunset boulevard issue at all or do we need to create a whole separate pipeline for that . Well, again, im not the project manager so probably not the best person to answer the question, but this project is again i think to facilitate Golden Gate Park and other areas, we also have a San FranciscoGround Water Program where we are putting some well sites in Golden Gate Park. There must be some way to facilitate, i think, the request that you are making here. Ok. Hi, it would require a separate pipeline. What we can do, ask the project manager to see what it would take to run a pipeline up to sunset. I can send your office that info. That would be great, thank you. Okay. Any Public Comments on this item . Seek none, Public Comments are closed. I feel like this is one of the more exciting projects that i could really get behind, puc, and its all the water that we are going to save in the long run is going to be a really bonus for our system that is giving us our freshwater to drink and i like your suggestion, supervisor tang, that we expand it to even other areas, and it was fortunate to be out there in the Ground Breaking last week, was it last week, yeah, it was pretty exciting. I mean most exciting part of it was everybody and not sort of joking but not joking that this particular project is trying to hit some of the bigger areas where it would be the simplest to actually utilize the recycled water. Maybe in the future, hopefully not too far future, that we start considering whether or not, and along the line of supervisor tangs thinking, can we actually expand it in such a way that even homeowners at some point will be will have access to this, so that because i realize that when i stop watering outside, i actually reduced my intake by 60 . So, most of the water i was using in the home was to water outside and that made me realize how much i was actually wasting on the outside plants. Ok. Did i ask for Public Comments already . Yes, you have. Could i have a motion . Ill make a motion to send forth item three to the full board with positive recommendation. Motion passes. Chair cohen will take over. All right, good morning. Madam clerk, call item four, please. Resolution authorizing and approving amendment to lease with bgca management for bill graham Civic Auditorium increasing base rent to 25,000. Sponsor of this particular legislation is supervisor kim but today claudia goreham from the department of real estate will be walking us through a power point presentation and making the presentation on behalf of supervisor kim. Thank you. The floor is yours. Thank you, good morning, chair cohen and supervisors yee and tang. The resolution regards an amendment of the existing 20year lease of the bill graham Civic Auditorium to bgca management llc, approved in july 2010. About three years ago the tenant approved city staff with a proposal of creating a smaller venue space for music and events in a side of the building, approximately 900 seats. The new small venue would be two stories and include a new stage for music and other performances, and a ushaped balcony which takes it to the second floor of the building. Staff was encouraged, it would increase activity in the civic center and allowed negotiations to amend the lease. Neither city nor the tenant wanted to renegotiate a new lease, but just certain conditions in the lease, especially city staff, so terms that were more favorable to the city in certain aspects. With this with the assistance of the mayors office, the controllers office, city administrator and others, reached the deal which is before you. Majority of the lease terms and conditions remain the same. I could not list all of them, its a very big lease. Length of the lease, the number and length of options, the annual adjustment percentage, they all remain the same. Revisions to the existing lease include base rent, in 2010, 100,000, we have increased that to 300,000. In addition, tenant improvements. Under the original existing lease, there was an exhibit that had a very large list of tenant improvements that were specific to the building, that were negotiated before anyone got into the building, and it was to be 10 million. Under the lease amendment, that list goes away, and the tenant has agreed to make up to at least 10,250,000 in improvements that are more specific, such as modernization of the passenger and freight elevators, and modernization and upgrades to the actual electrical system in the main hall. In addition, under the existing lease, city has to pay 50 of the overage of the shred hole mark of 200,000, so utilities go over 200,000, the city pays 50 of whatever that number is. Under the amendment, tenant pays all the utilities. In addition, participation rent has changed under the old lease, you had to make a threshold mark of certain number of tickets sold. Under the new amendment, we are guaranteed a number for each nonticketed event, and that is 3,500 per main auditorium event, and 2,500 per smaller space, including any nonticket events in the new hall when its up and running. Additionally, city days were decreased from 50 to 25 because the city has never used 50 days and we never used more than 24. And finally, room 202, the city had use of but never actually fully occupied, is going to be incorporated into the polk hall. Other newer conditions are that the tenant wanted to install a new marquee on the back side, hay street side of the building. May i interrupt for a second . Who is the tenant . Bcga management, llc. Management company, thank you. I think there is a building manager inside the building, but they are not in the building. I understand. The marquee on the back side, they would like to improve that and as landlord, we are in agreement with that. They have to go through the different reviews and regulatory approvals, and if they do install one, the city will get 50 of that income. And finally, the lease amendments updates the lease to include all the newer and mandatory items that must be in the Real Property agreements, including prevailing wages, local hiring, wages and working conditions in workers and so on. If you have any questions, here to answer them. Supervisor yee has questions. And we have a b. L. A. Report to hear as well. Just for clarification, the rent, base rent of 300,000 is annual and that is for the whole building . Correct. Ok. And of, during the year then, whats available to the city is 25 days. Correct. And is there any fine print that states which days or is limited to . A lot of times i have seen these leases where the leasee, the person that leases the building, in this case the city, sometimes is at a disadvantage because you get the most lousy days. Like 25 days will fall on monday. Right. The only thing that the lease amendment does is change the number of days. The original lease has a very detailed description of how and when the city can use the days. Theres no restrictions on any of the days it can or cant have. It just has to give notice, it has to work with the tenant to make sure it does not already have an event or a Music Performance or calendared for those days, and only up to four days in a row. So, thursday, friday, saturday, sunday, saturday, sunday, monday, tuesday, Something Like that. But does not say you only get monday, tuesday, wednesday, thursday, doesnt say that. I realize in the spring, quite a few high schools use it for graduation. How does that impact them . Again, i dont think it will have any impact. We have never used our 50 days since 2010. Only gone up to 24 days. And that was one year. Usually its much less than that, so we ask for 25 days so we would be over the threshold mark we have used in the last seven years. And so when the high schools use it, is that considered a city use . Yes, it is. So youll protect the high schools. Correct, yes. And then what if you use more than 25 days. Possible, will you have like sublease it back . No, i mean we are in a very Good Relationship with the tenants, and if we need it, we can use it if we want, those are set aside for us. If we had to use it with other days, we would work with them on calendaring them on that. Any fiscal impact for more than 25 days . Each entity or department has their own fiscal impact. They have to plan on if they are going to use it for a particular event or performance, they the question is really between the city and the leasor, the Management Company. Now its 25 days. And all of a sudden the city says you know, we need ten more days. Are they going to give those ten days for free . Its not ever technically free. We have to pay for utilities and security and things like that. So, it allows them to set it aside and not you are right, not pay a stipend over and above what the costs are for using it. But i believe we have a good enough relationship with the tenant, that if we had to, we need it for