Good morning, everyone this happen this is the regular meeting of the budget and finance committee. I am the chair of the budget and finance committee. Our clerk is ms. Linda wong. I would like to thank sfgov tv for broadcasting. Clerk please silence all electronic devices. Any documents to be included as part of the file should be submitted to the clerk. Thank you, ms. Wong. Could you please call item number 1. Clerk resolution authorizing the director of property to sell up to 550,000 gross square feet of remaining Transferable Development rights tdr previously authorized from the war memorial complex, located at 301 and 401 van ness avenue, at fair market value; we have the director of department of real estate here. Colleagues, you might remember that we continued this item. So we havent heard a staff presentation or the b. L. A. Report. Good morning, president fewer, supervisors. If we can go to the slides. Thank you for letting me speak this morning. I am here asking for our reauthorization to sell the second tranche or part of Transferable Development rights from the war memorial. In january of 2014, by resolution 1614, the board of supervisors authorized the director of real estate to sell 1. 1 Million Units of t. D. R. , or Transferable Development rights, divided into two tranches or parts of 550,000 units each. As you know, t. D. R. Is unused Development Rights from historic or architecturally Historic Building that can be transferred to a developer to increase that developers allowable gross square foot area for their property. T. D. R. Can come from c3 zones or p zone sincere associated adjacent to c3, but t. D. R. Can only be used in c3. We have sold the First Tranche of t. D. R. Pursuant to the resolution and are before you seeking authorization for the issue and the sale of the second tranche. When we first started this process back in 2014, the t. D. R. Market was very soft. It took until 2017 for the market to reach the price point set by the board of supervisors as the floor, which was 25 per square foot. As you can see on this slide, since 2017, the market for t. D. R. Has grown and is very robust. This is a list of all of the transactions that have been sold and closed to date. You can see both the city as the seller, the buyers, the projects that those t. D. R. S were ultimately assigned to, the units that were acquired, the price per square foot, and the closing dates. You might notice the unit count is slightly below the 550,000. Thats because we have one last pending transaction. You can also see that the revenue generated is 13. 7 million. That is a gross number, not net or transaction cost. In order to maintain the strong and consistent pricing schedule and to encourage buyers to commit to t. D. R. Purchases early, we have developed a discipline pricing schedule. Under this pricing schedule, the units for t. D. R. Increased 2. 60 every six months. You can see here the pricing schedule, starting from the floor of 25, going up to 45, which would be in june of 2022, subject to market conditions. The idea is that we announce to any potential buyers what this schedule is. We keep strict discipline to the schedule. That encourages about buyers to commit early in order to avoid the price increases. Some of the benefits is it incentivizes the buyers to lock in early. It also guarantees the availability of t. D. R. As they lock in their commitments early. It allows potential buyers to calculate with certainty the cost of their t. D. R. Purchase when theyre calculating their financing for the overall projects. The advantage to the city is it gets us early commitments and it also allows us to demonstrate to other potential buyers that t. D. R. Is, in fact, selling at our current price. The use of t. D. R. Proceeds under the resolution, the net sales which are Gross Proceeds, less taxes, escrow, commissions, other costs, are used exclusively for the rehabilitation and restoration of the war memorial complex. It also can be used to pay down the debt service that was issued for that purpose. We anticipate that the Gross Proceeds from the sale of the second tranche of t. D. R. To be approximately 6. 5 million. That concludes my presentation. I would like to thank mayor breed and supervisor brown for their leadership and sponsorship of this legislation. I would like to thank the b. L. A. For their hard work on this item. I concur with the b. L. A. s recommendation, and i am available to answer any questions you may have. Supervisor fewer thank you very much. Yes, in 2014, the board approved legislation allowing the sale of Transferable Development rights from the war memorial complex of 1. 1 million square feet. At that time, they required the city to come back and get approval for the second half of that amount of 550,000 square feet. In terms of the actually what has happened in the past, the city has if the city were to sell the 550,000 square feet, the estimated price at this point in time is 30 per square foot, so the proceeds would be 16. 5 million of Gross Proceeds. This amount would be used to pay down existing debt on the war memorial complex. We do recommend the legislation be amended to set a minimum price for the t. D. R. Sales of no less than 25 per square foot. Thats the amount that was being sold through 2018 of existing t. D. R. S and to require a written report back annually on the sale of t. D. R. S. Otherwise we recommend approval of the legislation as amended. Thank you very much. Its open to Public Comment. Any members would like to comment . Seeing none, Public Comment is now closed. So id like to make a motion to adopt recommendations of the b. L. A. If we can take that without objection. Thank you very much. And then id like to make a motion to move this to the full board with a positive recommendation, not because you accidentally called me the president , but because you have been so generous with your expertise and time during this week to actually have these indepth conversations with our office. Thank you very much. Id like to move this to the full board with a positive recommendation, if we can take that without objection. Thank you very much. Thank you. Thank you. Madam clerk, can you please call item number 2. Clerk item number 2 resolution approving the 2019 Grant Application for the United States department of housing and urban Development Continuum of care program with an amount not to exceed 51,175,386; and fulfilling the board of supervisors review and approval process for all annual or otherwise recurring grants of 5,000,000 or more. Thank you very much. This is gigi whitley. Yes. I am the Deputy Director for administration and finance for the department of homeland Supportive Housing. Joining me is our colleague who is our legislative affairs manager. Im here today to present this resolution asking your support so that the department can apply for the 2019 continuum of care grant to h. U. D. In the amount not to exceed 51 million. The next slide shows you h. U. D. s general guidelines. It was to propose a communitywide commitment. The majority of funds go to our nonprofit competitors that is heard and vetted through our local homeless vetting board. Its promoting access and affecting the utilization of mainstream programs by Homeless Individuals and families and optimizing selfsufficiency. Slide 3 goes into what were asking annually through this competitive process. Its released annually by h. U. D. The note came out in july and its due at the end of this month or beginning of october. San francisco receives the fourthlargest award in the country, behind new york, los angeles, and chicago. As i said, the majority of the funds go to our nonprofit partners, many of those agencies who also receive local funds through the board of supervisors that provide permanent Supportive Housing, rapid rehousing, supportive services, and other critical interventions. This allocation actually went through this committee as part of the budget process. So youve already appropriated these funds, should we be successful in getting this award amount. Were now of course required to come before you and ask for your authority to apply for the funds and give you a little more detail about what the local board has recommended. In slide 4, youll see that there are two tiers of funding. 44. 8 million and c. O. C. Funds, those are grants to partners. There are also new bonus projects. We work closely with our partners at the Mayors Office of housing and community development, as well as our nonprofit Housing Partners to identify those housing affordable housing, permanent Supportive Housing projects in the pipeline, which would be eligible and competitive for c. O. C. Funds. Theres 2. 2 million requested for those projects. This year there was also a request for projects that prioritize people who are homeless but also escaping Domestic Violence. So weve partnered there to propose a project for about 1. 3 million. Finally, the department receives c. O. C. Planning allocation which we use to coordinate with our nonprofit partners on anything from Technical Assistance to things like our coordinated entry system. We get those funds annually. It does require a 25 local match. Most of those matching funds are appropriated by the general fund in our budget. Some of that match is also provided directly by the nonprofit provider who is sponsoring the project. This year in coming before you, weve also provided a bit of a cushion. If h. U. D. Were to increase the Fair Market Rent rate by approximately 3 , so the application will be for 4. 9685 and 35. The Fair Market Rent increases that cushion so that if h. U. D. Comes back with a local fair market increase, we have your authority to spend those funds on those projects that would receive the s. M. R. Finally, as i mentioned earlier, this is a process overseen by our local homeless coordinating board that we work closely with. Projects selected must go through a rigorous communityled process. We work with a nonprofit Technical Assistance program to lead that process. Applicants are asked to apply and ranked through that community process. The lhcb this year posted two funding committees in the spring of 2019 with providers, both and after the nofa was released. There were a variety of hearings at the local board. We received 69 total applications, 59 renewal projects, four youth demonsation projects were submitted. This was a 2. 9 million competitive grant that we received a few years ago. Now its incorporated into our annual funding request which is exciting. Six new bonus projects, including the new Domestic Violence program that i mentioned. Then on the next slide you can see the tiering that i mentioned, 64 projects reflected on the tier 1. Tier 2, although not guaranteed funding, weve been very successful in recent years getting most, if not all of your tier 2 funds approved by h. U. D. And then the domestic bonus ranking that wont affect it here. If its funded, it will be funded separately. That really concludes my remarks. Im happy to answer any other specific questions. I want to thank the b. L. A. For their hard work on this and quick turn around. We are in agreement with the b. L. A. Including their suggestion to correct a typographical error. Thank you very much. This resolution approves the Grant Application for h. U. D. Funds for the continuing of care. Table 1 on page 3 of our report summarizes the Grant Application. It was also summarized by ms. Whitley and her presentation. The total application amount is 51. 2 million. There are matching funds of 12. 8 million from the city. These are general fund moneys. They were appropriated in the budget for the homeless in Supportive Housing. We do recommend an amendment to the legislation to correct a clerical error and recommend approval as amended. Thank you very much. Colleagues, any questions or comments . Lets open this for Public Comment. Any members of the public would like to comment on item 2 . Seeing none, Public Comment is now closed. I have one question about the Domestic Violence project funds. Will those be directly dispersed to nonprofits . So the yes. Yes, its the asian womens shelter nonprofit that applied for rapid rehousing program. Were really excited about this project and hoping that we get the funding to get it off the ground because this will be permanent housing rather than predominantly shelter. And they do good work. So i would like to make a motion to approve the technical amendment by the b. L. A. I make a motion to move this to the board with a positive recommendation. We can take that without objection. Clerk item number 3 resolution approving the fifth amendment to the contract between the city and county of San Francisco and Heluna Health to provide comprehensive outreach and Case Management programming to meet the needs of people experiencing homelessness in San Francisco known as the San FranciscoHomeless Outreach team, to extend the contract Agreement Term for an and to increase the contract amount by 15,367,886 for a total contract amount of 39,133,942. Good morning. Good morning, supervisors. Jeff kasitski with the department of homeless and Supportive Housing. Our team was established in 2004 under the department of Public Health. Their goal is to provide outreach and Case Management for hardtoserve individuals who are experiencing homeless. Services are currently provided under a contract with a nonprofit organization, Heluna Health. Theyre operating under an r. F. P. That was issued in 2014, which is valid for ten years. They provide outreach and Case Management services seven days a week on two shifts. The outreach staff work in small skill teams of two, supported by supervisors that are designed to work in specific neighborhoods that are actually based on police districts. Outreach teams have a goal of engaging with five to 10 clients a week or 20 to 40 a month. The Case Management team has a case load of 15 to 20 highneeds clients each, who are oftentimes staying in a stabilization unit or a specific shelter bed to better serve those individuals and get them connected to Behavioural Health or other medical services they need, as well as to housing. I should also point out that theres really two other parts of the h. U. D. Team. One is we have a number of special contracts with bart and muni as well as with rec and Park Department and the library, in which we are providing specific services under contract to those entities. Again, all of this is provided by Heluna Health under the same structure, but we have that group as well as First Responders. They are responding to concerns and complaints that come through our dispatch. They are also available two shifts, seven days a week, but its a relatively small team. Its really four different programs built into one. A big part of what the team does and whats really important about their work is theyre developing relationships with people that theyre getting to know. This sometimes takes time. To have somebody you dont know come up to you on the street and offer you assistance isnt necessarily going to be responses are going to be mixed. Thanks to the very skilled Homeless Outreach team, we have about a depending on the month, but roughly a 60 about twothirds of the people that we encounter will accept services. Those numbers are much lower with the First Responders teams, who are going out to respond to people who have asked for the team to go. They have a much lower uptake rate, as oftentimes those clients may not be interested in services at that time. Also oftentimes dont know those team members who are on the First Responders team. We work very closely with the department of Public HealthStreet Medicine Team to address any medical issues that come up. They can call on assistance from the Street Medicine Team run by a doctor and they work with hsh staff and getting access to services that we provide. Currently in this amendment that we are putting forward, the fifth amendment to the contract, we are increasing staffing by 15 positions in order to address the growing number of people who are on our streets. That will bring us up to a total of 86 f. T. E. S in fiscal year 201920. Heluna health has done an outstanding job at filling vacancies. We are roughly now at 86 were staffed at about 86 , so less than 20 vacancies right now. Some of the other issues i think its important to point out, so under the current budget, we will the proposed budget, im sorry, we will have 47 outreach worker