Submit documents to the clerk. Items today will appear on the march 17th agenda unless otherwise stated due to the deck rarcoronavirus we are asking yoo wash hands and avoid touching high volume surfaces as much as possible. Please call item one and two. Resolution authorizing the department of Public Health to accept 3 million from the Tipping Point community for creation of new Psychiatric Center for two year period beginning january 162020 through january 15, 2020. Two. Resolution authorizing the director of property to lease Real Property located at 11567 valencia street for 404,000 per year for three years with an estimated commencement date of mar1, 2020 to expire on februar. Thank you very much. Supervisor mandelman. Thank you. Colleagues. These two items will allow the department of Public Health to open a 30 bed shelter at 1156 valencia street. It is to extend a 3 million grant to help Fund Creation of the 30 bed Community Hummingbird facility. Two is to enter a lease with Salvation Army for use of 1156 valencia for a term of three years. Soon after i took office in the summer of 2018, i visited the citys first and still only hummingbird place located on the General Hospital campus. It is a 24 hour Behavioral Center with 29 beds serving Homeless People with Mental Illness. With an estimated 4,000 unhoused in San Francisco meeting these suffering from Mental Illness and Substance Abuse it is clear our current 29 hummingbird beds dont come close to meeting the need. We can see every day what happens when we dont have enough places to take unsheltered people. Too many end up in Psychiatric Services or Emergency Rooms or jail. More than half all patients are homeless and between october and december 2019, pes was on diverse upwards of 40 of the time. We also know that far too many people leaving pes are released back to the street to return to the hospital in weeks or hours later. I have been working with the department of Public Health to identify potential sites for one or more hummingbirds in district 8 since my first days in office. I will continue to beat the drum for hummingbird citywide. I live three blocks away on valencia street. I am eager to welcome the first hummingbird to my neighborhood. I want to thank the dent of department of Public Health and mayor breed and prc baker place for helping bring this online. Over the past month, they have worked to hold two Community Meetings providing venue for hundreds of neighbors and Community Members to raise concerns, have questions answered and engage in conversation how the city and neighborhood can Work Together to make it a success for clients abneighbors. I want to thank Community Members who attended and those who emailed or visited my office with feedback and i want to thank Tipping Point for the 3 million grant, Salvation Army for welcoming hummingbird and for all they do to address homelessness and addiction. While this facility will more than double the current hummingbirds capacity, as i said, these beds barely scratch the surface of need. In my ideal universe everyone released from emergency rumor jail would have a hummingbirds and would avail themselves of that opportunity. We must work to open many more hummingbirds throughout the city. This is a good step and i hope you will join me in that effort by forwarding both resolution goes to the full board with positive recommendation. Thank you, supervisor. Today we center kelly from the department of Public Health and the director of real estate. Is mr. Pennick here . I will be representing the information for real estate and claudia is here for questions. Thank you. I am kelly. I am the special project manager for the department of Public Health here to give you a quick overview of proposed program and location at 1156 valencia. We have a clear need in the district during the january 2019 point in time count there were 317 Homeless People on that day. In district 8in district 9. Three know we need to support them locally. We want to create a safe place for them to rest afternoon consider options. The proposed project will operate a 24 7, 365 day a year program with 30 beds overnight for 25 days participants. For clients the experience would be low barrier, meaning we are always open. You dont need appointment. You can drop in or stay overnight. Bring partner,ment and belongings. You dont have to change between that and care. Inside are compassionate staff and access to services such as counseling, individual and group, laundry facilities, snacks and meals. Connections to Mental Healthcare, links to social services, help signing up to Social Security and ssi an and reuniting with families. We are planning to partner with baker places. Prc is providing Services Since 1964. The continuing care and wraparound legal and Health Services include the Behavioral Health navigation at 887. In patient detox center with 29 beds. They do many substance Mental Health treatment programs and transitional and permanent support of housing. Thethey are a qualified partnero do this expansion. The lease deal is the premise is the entire building. The term three years. Two one year options to extend. The rent is 33,667 monthly, 404,000 annually. Improvements Tipping Point provided 300,000 reimbursed by the city to Salvation Army. Working with them on the design model and right now the renovation is anticipated to be very minor to adding two showers and making sure that the bathrooms have ada upgrades. Thank you very much. Can you please tell me if annual operating cost of the humming bird place . Right now it is 3. 8 million. Thank you very much. Could we have a report on item two. Good morning. Budget analyst office. I will be repeating what she had to say. This is improving a 3 year lease we between city analvation army for finance sal wa 40 pee foot rent. There is discrepancy. It is below the required appraisal for the property considered within market rate. The rent increases 3 per year over the first three years for 1. 2 million over three year term. Improvements 300,000. There is a Tipping Point grant for cost of improvements. On page 6 of the report is the annual cost 3. 9 million per year. There is a 2 year option to extend this property is slated for Affordable Housing development. The city might have the option to extend. The way the lease is written now, it doesnt specify the increase in rent on the option. We are recommending amending the resolution to say the option can be exercised up to 3 increase per year in the option term consistent with the base term of the lease. Otherwise we recommend approval as amended. My members of the public to comment on items one or two . Seeing none, Public Comment is. Supervisor walton. Thank you, chair fewer. One quick question. I see Tipping Point is providing 300,000 grant for renovations for the Salvation Army to add more. The city is going to give that back in. Tipping point designated 300,000 to be used towards renovation costs. Because Salvation Army is doing orin novation in the building, the plan is to make that our contributing to cost to renovate. Thank you. I want to add the real estate accepted the amendments proposed by the bla. I would make a motion to accept amendments proposed. Also, i would like to move items one and two. Supervisor mandelman, please. I move we forward items one and two with positive recommendation. Thank you very much. We can take that. Madam clerk please call item 3. Resolution authorizing Police Department to accept expand grant 65,000 from state of California Department of parks and Recreation Division of boating to procure equipment and gear following board approval through november 30, 2020. We have mr. Young here from the San FranciscoPolice Department. Good morning. I am patrick. I am the chief Financial Officer for the San FranciscoPolice Department. The department is requesting the committees recommendation for our grant. This will help to replace two motors from the marine three vessel. It ha gone under a refurbishment paid with another grant. With this grant award and replacement of two motors, we will be extending the useful life of the vessel and will be minimizing the future maintenance costs because the two new motors will be under warranty. With this grant we will extend the useful life of the vessel and increasing its operational capacity. If anyone has any questions, i would be more than happy to answer them. There is no report on this. Colleagues, i think this is replacing the motors in an existing boat, and this unit actually comments what the jurisdiction of the coast guard is. We have our own jurisdiction within the city and county of San Francisco. This is why we have this marine unit that actually does that function for us around our coastal waters we have jurisdiction of and that the coast guard did not, that is correct . Thats correct. Okay. Open up for Public Comment. Any members of the public to comment . Seeing none, Public Comment is. No comments or questions. I move with a positive recommendation. We can take that without objection. Thank you, madam clerk. Thank you, sergeant. Can you please call item 4. 4 and 5 together. Authorizing the issuance and deliverrance of multifamily bond not to exceed 37. 1 Million Financing for acquisition and rehabilitation of 108 unit Family Rental project three structures located at south park street. 5. Resolution authorizing authorization of loan with mhdc south park property in an amount not to exceed 30. 5 million for 55 years for a portion of the loan amount and minimum term of 40 years or another portion of the loan based on requirements of the Funding Sources to finance acquisition of 108 unit affordable multiFamily RentalHousing Project for low income households consisting of three structures located at south park street. We have Caroline Mccormick here. Did you want b la to report . Normally we get a brief presentation from you and hear from the bla. It is recommending amendment, is that correct . Yes, they are. Good morning. I am Caroline Mccormick, project manager at the Mayors Office of housing and Community Development on the acquisition and preservation team. It is three Single Room Occupancy Hotels 22, 102, 106 south park street in selma within the same block. The total is comprised of 108 units. All except one will be affordable to household ifs 25 to 60 a. M. I. The buildings currently serve primarily formerly homeless adults. Per most typical restrictive declarations residents pay no more than 30 of income toward rent. The project will receive make or rehabilitation of all three buildings including seismic upgrades, upgrading Building Systems and other key life safety improvements. In particular, one of the buildings the Filipino Hotel about half of the buildings dont have proper access to light and air. That will involve the completed reconfiguration of the interior to provide access to light and air for all residents. No residents will be displaced. Temporary offsite relocation will be required to facilitate rehabilitate. Two requests. First approve issuance and delivery of Revenue Bonds and other action necessary to make the bond issuance possible. The proposed bond issuance will beacon do wit and will not require city funds to retainment of bonds. Second is to approve and authorize execution of a Loan Agreement with the sponsors lp entity not to exceed 30,000,000. 500000. Within that total request we have three different pieces. The first is request to approve the recasting and reconsolidation of existing debt on the project. We have been providing loans to the project since 1984. Mission housing owned two buildings since then. What we would be doing is bringing all of those loans into conformance with current standards. Low Interest Rate on that portion of the loan. We will be providing 3. 3 million in gap financing. The proposerred source is proposed source is housing trust. We are going to provide 13. 2 million in preservation and seismic safety loan products as opposed to a conventional First Mortgage this will be utilizing cd program. It is hard paying senior financing they will make Monthly Payments on that loan. These three will be into one Loan Agreement and in terms of the schedule the financing is anticipating to close next month. The construction will started right after. Regarding the bla recommendation, our position is we would like to keep the higher amount and the reason for that is due to the fact this project has existing debt on it, that existing debt is accruing interest every day. In the project timeline gets pushed out for some reason the bond closing gets delayed interest will continue to accrue. We our preference is to have the flexibility to not have to come back to you in the event the existing debt interest keeps accrues and goes above and beyond the 20. 8 million amount. I can answer questions about that. Lets hear from the bla first. Could we please hear the bla report on item 5 . The board of supervisors is being asked to approve an amended restated Loan Agreement between the Mayors Office of housing and Community Development and Mission Corporation for the three hotels in south park. The loan itself is twoparts. 11. 8 million in consolidating prior loans approved, 16. 5 million in new loans for rehabilitation. The loan amounts and the loan documents is 28. 3 million. There is a difference between the loan documents and the budget we were provided. We showed the budget on table four page 12 of our report. The actual budget is 24. 7 million. The major difference between the budget and loan documents is the budget provides for 9. 2 million in preservation seismic safety bonds to be used for this project. The loan documents provide for a liar amount of 13 higher amount of 13. 5. Our recommendation is to amends the legislation to reduce the amount in the legislation of 13. 5 million to the actual amount of the loan documents which are 28. 3 million. Basically we recommend to the legislation reflect the actual loan documents we were provided. In terms of the risk, there is the department is asking for 5. 1 million buffer in case there is project uncertainty. We are recommending a buffer of 3. 6 million between the budget and loan amount. We recommend approval of the resolution as amended. Open up for Public Comment. Any members of the public like to comment on item 4 or 5 . Seeing none, Public Comment is. I would like to make a motion to approve amendments as brought forth by the bla without objection. Thank you very much. I would move with positive recommendation as amended. Please call item 6. Resolution approving in accordance with section 147f of the Internal Revenue code of 1986 as amended execution of taxexempt loan by California Municipal Finance Authority pursuant to financing in an amount not to exceed 23 million. We have rachel here from the Controllers Office. Good morning. I am from the contro Controllers Office. I have anthony stubs here and clair to speak in more detail if you have questions. As reminder, tax equity allows exemption of interest on certain debt. In this case the proposed financing is through California Municipal Finance Authority. City and count