Transcripts For SFGTV BOS Budget And Finance Committee 12716 20161215

Okay, good morning, everybody welcome to the final 2016, meeting of the San Francisco board of supervisors budget and finance committee meeting. My name is mark farrell and i will be chairing this committee and i am joined by supervisor norman yee and joined momentarily with tang and i want to thank, lindy wong and sfgtv for covering the meeting. Do you have any announcements . Silence all cell phones and devices completed cards and documented to be included as part of the file should subm submitted to td clerk. Call item one. Hearing on the recent updates regarding the citys financial position, including the mayors budget instructions to departments for the physical year, 17, 18, and 18, to 19. And requesting the mayors budget director and the controller to report. Thank you very much, supervisor tang has joined us, and this is an item that we called and i want to thank the budget dreker for being here and i thought that it was the end of the year here and the mayors instructions that came out last week and it would be a good idea to get the up date as a board and a city hall and thank you for being here and i know that you have a presentation to go through. Great. Thank you chair farle and so im melissa the director and i am joined by the controller, and we will be going through this presentation for about the next 20 minutes. Feel free to stop me if you have any questions. Talk about three things today, the first thing is the post election rebalancing plan, the citys five year plan that will be publicly released later today. And budget instructions for Department Heads which we actually delivered last thursday. So this first slide is just telling you we want to make sure that we said to people right away, what are the few things that we want you to leave the room understanding. At the very highest level with this presentation covers is the fact that the mayor felt it was really important after the election to rebalance the budget. And i am going to talk about that in more detail. We look at the up coming two years that were charter mandated to balance by june first, we are seeing a 400 million deficit, over those two years. This is not significantly worse than about a year ago today when that two year deficit was 350 million, but i will say that today compared to a year ago we feel a lot more unserpt, especially as a result of the federal election and on our timing of our Economic Cycle where we are at. We are mindful of these numbers and paying a lot of attention to them. Another thing that i will talk about is that the deficits were on the rise. Why this was happening and why it is happening you will see is employee is largely around the employee cost are the largest drivers are both the deficit projection and why our deficits are increasing and really another thing is just on revenue which the controller will talk about and we have seen in the past few years that revenue is the thing that has allowed us to balance the budget every i couldnter for the last few years, and add a lot of new service to the public that the public was demanding and they were good things to the mayor and the board partnered on many of them. And we are not anticipating that we are going to see the high Revenue Growth in the up coming years. What does all of this mean . What this means that we are not in a recession, the mayors instructions are not to cut or do layoffs or not for people to panic. Just for people to be mindful that we need to be disciplined and make trade offs if we are going to add new programs, we need to be figuring out what in our budget is not as important as the new things and try to fund things in our existing budget. So we need to grow at a lower rate. The targets that we issued were 3 percent in each year and we have a very strong, in fte growth which i will talk about later. Could i ask a question . Please. As we talk about the federal impact and the new president elect coming on board, in terms of our exposure, what i understood to be generally about north of 400 million in direct federal funding to our city and about a billion state pass throughs. I just want to make sure that we are all thinking along the same lines. Supervisor that is correct. We received just about 400 million from the federal government as a city and county. We received billion from the state of that billion that we received from the state, a significant portion is also federal pass throughs for predominantly Public Health and entitlement programs. So we have been estimating at a high level approximately a billion dollars in money that originally comes from the State Government here locally. We are doing a lot of work with the mayors Budget Office and departments to kind of tease those numbers apart and put them in different buckets to understand the Revenue Streams. Okay, thanks very much. Great. So really quickly i am not going to spend a very long time on this because i know i believe that the supervisors are some what familiar with this plan but feel free to ask me any questions. The budget included 37. 5 in 16, 17, the current year and 155 in 17, 18, related to propositions jand k on the ballot. And the mayor terminated proposition j, in early november, after k did not pass, and this is just showing you the category that the funding was planned and which was largely transportation of 100 million and homeless around 50 million and other things that the mayor was paying attention to was part of the rebalancing plan was the college street trees and it was not on the november ballot, but as a result of the federal election, the mayor was really concerned about legal representation for our immigrant community and so that was something that he asked me very early on after the election to also pay a lot of attention to and to make sure that was if the additional funding whats need to fund that as part of this plan, on slide five, you will see a high level of the rebalancing plan and what this says is that in the current year and the up coming two budget years that we are going to have to balance by june first, that we rebalance between our expenditures and our revenues and so you can see the expenditures here are homelessness, street trees and, Free City College and Legal Services and the revenues are transfer tax and whole person care, and our Department Head from the new department of homelessness in support of housing is here today right after this item to ask for this 6. 5 million in this balancing plan, related to homelessness to be removed from the reserve, and consistent with this plan. So i am going to move on from this unless you have additional questions. Colleagues . No, we are good. Thanks. Office our works with the Controllers Office and the burg team and the budget and analyst. And our three offices come together to really do a look at our base Case Projection of the up coming five years, when we say base case, what we mean is if we take all existing policies to date, and we just move them into the future and do nothing, what would our revenue and expenditures be . And so, obviously that cant be the world that we live in because it shows a deficit and so we need to take action to close those deficits. But that is with the base Case Projection means, it also assumes that the budget is rebalanced after the election and it is how we rebalance that since this is a report being put out by all three office and it just assumes that revenues and expenditures are equal. It is not saying what it is spent on. As far as revenue and the controller will talk about this but the revenue projection and the report is that it is still strong but that we are seeing the signs of slowing growth and constraints on our growth and so we talk about that in the report. Also some assumptions that we make so we fund all benefit Cost Increases on health and pension for employees, and also, there is an assumption for planning purposes in the report that we fund consumer priced index increases on all of the personnel and nonpersonnel costs and it is an average of the moody and the California Department of finance. And that is just a planning assumption and then later on, i am going to talk about why i actually think that we need to not grow as quickly and we cant afford those Cost Increases but i think that it is a reasonable thing to assume and a financial projection moving forward. We assume the full funding of the capitol it plans in the out years of this plan. Very briefly, a high level of interview of the Revenue Growth assumptions that sit under the 5 year projections and many more details specific to specific Revenue Streams, it will be included in the five year Financial Plan base case, when we release it in the incoming days, but generally speaking what our office is seeing at the moment indicates continued but slowing growth. Here in San Francisco for revenue and just Economic Activity and that is the assumption that sits under the revenue proejections include thanksgiving plan. We have included a couple of key take aways on this chart regarding the economy. Again we are continuing to see growth here in the city and private sector employ employment but that is slowing in most recent august, to august, data, year over year you see that 15. 4, growth rate in the Technology Sector in the city, slowed to under, 5 percent for the first time during this recovery. And similar we see a slowing grow rate in the employment here in the city from 5. 3 percent to under 2. 4. During this most recent period. This month, does not a trend make. But we have seen kind of this downward trending in terms of growth over the last several months. And generally, speaking we are projecting it to continue into the future. And this is likely, frankly due to the fact that we are nearing capacity here in the city and county of San Francisco, in terms of capacity to house jobs and Available Office spags and to houseworkers and available housing, and that we are reaching the limits for our capacity for transportation infrastructure to bring the people to and out of the city and that is given to how fully we are and we will expect those constraints to lead to more normalized growth rates that we have seen for the majority of this recovery. Translating that at a high level, into general Fund Projections this is a summary of all revenues and what we have seen in the recent past and what we are projecting in this document looking ahead into the five year period, and you see really the tremendous growth rates we have had during this recent period. With growth rates above, 7 percent during this recovery, topping over 12 percent a couple of years ago. But again, in what we just released regarding our physical results for 15, 16, you can see the growth rate slowing. And so still very hel yth and strong growth in over all general revenues of 5 percent for the most recent audited period but that is the lowest growth rate of any year during this recovery, and we are expecting that moderation to continue into the future. And settling in to a Going Forward growth rate of really between 3 and 4, 4 and a half percent, in a given physical year, and so these are fundamentally the growth rate assumptions that sit under what we are talking about today. So if you will look at this Revenue Growth in the last two recessions, it looks like there is basically two years of declining revenue, is it generally twoyear, slumps when you look at it from a percentage basis . Yeah, each of the last two recessions felt a little bit different. The dot com bust was more acute here in San Francisco, likewise the bounce back was sharp, kind of what we called a vshaped recession, and the most recent one was a little bit more of a u, but again, a very sharp snap back after really a couple of downed years and the different recessions are going to feel different in how they impact our revenue and these are probably relatively quick recoveries but on average, i think that we generally say two to three year recovery. During a given recession. Okay. And i guess, as i think about it, it is obviously revenue but it is also smoothing out a pension and what that does from our general fund perspective. And one of the things that we started doing in the Financial Plan and we did this in the last document as a city is including a recession, scenario. And so we are not projecting a recession to occur during this period in these assumptions. But if one does occur, how it will effect revenue and we will touch on that later in the presentation, to give you a sense as policy makers of what that case might look like and how it effect revenue. But you are right, it effects both revenue and pension contributions. Okay. So slide nine, this is telling you the high level of what the five year Financial Plan is showing and so i will spend a minute on this slide, and so it is the source as it changes from the current year, so what this is saying is that by the fifth year of this plan, we are projecting additional 560 million in revenue that will be available for the mayor and the board to appropriate ate and if you look at the uses line, this is saying, that if we do nothing, the expenditures are expected to grow by 1. 4 billion, and this is the issue, growth of 29 percent and eleven percent and you can see on the expenditure side, 50 percent of that, is driven by increases in salaries and benefit and i will get into that with more detail, 32 percent on city wide operating costs and, and then three percent on departmental costs. And by the end of this time period, it is around, 440 million of that 700 Million Dollar projected increase thank you, so speaking of salaries and benefits, and again, just to reiterate that you project that 85 percent of the projected growth is wage increases and heling benefits. So how are we addressing that and i know that in light of the various actually many of the labor contracts that will be negotiated how are we going to deal with this . I know that we put this information out there, but i dont know how we are getting a handle on this. They were such a big driver of the deficit and then of the increasing deficits that we spent a lot of time thinking about that and making sure that we can explain it to people and we met with labor yesterday, and presented all of this information to them, you are correct, that we are going into negotiations this spring, with all of our labor unions except for the police and fire, that we will be negotiating with next year and it is a big driver and it is something that we have to pay a lot of tension to and later in the presentation, the mayor is required to put out strategy to balance these deficits in the report. And so we will talk about that later on. Designs each year with each of the three Major Health Plan providers and in the recent years, the Service System has done a good job of developing new and lower cost alternative to benefit plans and they have been able to hold those rates down but we have seen the cost pressure in the recent past, but it is for the heling benefits it is a mix of collective bargaining, and the work that influences and contains some of those costs. Pension costs are a function of the charter and have restrictions on those but to change those involves the voter action and then of course, the employee wage cost is strictly a function of the collective bargaining. We are also asking for know ftes this year. When looking at the salaries that will go up as the natural factors that is one way to look at the how to control that. But i guess, when supervisor tang was asking questions, partly, the other piece would be to look at, the number of staff members. Yes. And we will be looking at that through the budget process as well. So another way to think about this cost growth, if it is helpful is that this top blank line is showing our Revenue Growth over the five years, the dark blue section here is showing the voter adopted base lines and set asides and the light blue is showing our employee cost and the health and pension only, and does not assume any cpi, and nothing else, and 84 percent of the revenue that we projecting is taken up by those two things alone, that leaves, 16 percent to fund all of the other things, so i just think that this is a helpful way to think about this. That is something that i have been talking about it is an important thing to keep in mind. The voters, you meant . Yes. Well, yes. You are correct. Okay. And so another thing that we think is important to Pay Attention to and that i talked a lot about with the mayor, is the historical deficit projections so when i started in the city in 1011, our project was over 800 million and we made a lot of progress in the years since then, i remember being freaked out about that large number and we brought it down to half when we put down the plan two years ago and now here we are putting it up and we are back above 800 and we did not come out of a recession and i think that this is a big deal, we spent a lot of time thinking about why. In regards to when you look at the projections for the deficits, and you are you need to compare it with what was a budget at the time. Because the budget has grown so much that you are comparing 800 million, over the period. But it is a smaller percentage of the budget. You are correct. Yeah, that is definitely true and we can get that for you. That is a good question. So, why are these deficits on the rise again though . Because we see that they are on the rise from two years ago. And so there is three main things and so the first thing is rising employee cost and the controller will talk about that and that are is largery related to pension, and new base lines and set asides for the last few years and then an increase in services of the positions and the ongoing point to your point. And as we add employees the benefits are growing faster and so we are adding to the long term liability and we added a lot of employees which i will have a slide on. So briefly to touch on the tensions as one of the contributing challenges here, and we have talked about this a lot, actually at this committee over the last couple of years at this moment, and this is showing you at the bottom, the bottom line is the projects of employer pension costs two years ago, when this plan was prepared and adopted. And where we are today. The top line is the current projection looking ahead to the future. And two years ago, the expectation was that as investment losses through the system were smooth through the actual math, and the provisions of proposition c, and the pension reform measure that was adopted by the voters in 2011, began to take shape and we would see the gradual decreases over time in the employer pension contributions and we talked last year about the factors that are reversing that and this is playing through now the projections looking ahead, rather than seeing the declines, we are seeing the increases looking ahead into the future, and by the fifth year of the plan, and the difference between where we expected to be two yoerz ago, and where we expect to be today, is approximately, 171 million. And so a significant change in the forecast for pension. And that is really fund men shall as we talked about before it is driven by three factors and it is driven by the retirement system is updated mortality tables which we do about a year ago at this time and the good news in those table our retireees are leaving for longer than they were the last time that they were updated that means financially that we paid for pensions for longer. That pushes the liability up, and secondly one of the key provisions in proposition c was a restriction that said, supply mental colas will be paid out when it was funded, the city was challenged on that provision, and the court struck down a portion of the prop c, screen on supply mental and so that is now assumed here and, then lastly, we have seen two years in a row, where investment returns in this system have been lower than the actual assumption of 7 and a half percent, 4 and a half percent, two years ago and 1 and a half percent during the most recent years, when we fall short, those losses end up or that revenue that was expected that does not come in is then smoothed into the future, so these are the three drivers of that change. And they are roughly equal in terms of the impact, each one of them accounts for a third of the impact that we are looking at her. Quick questions for you. On the mortality tables, is it system tick every year that we review it, just when they feel like it . The society that the u. S. Society until recently updated these tables for the u. S. Pension, calculations everywhere. Only about every five or more years as i understand it. Okay. And our retirement system had not updated these assumptions that sit under their projections in more years than that. So it had been a number of i couldnters and so there is a catch up happening here in terms of the most recent up date. And i believe that the society of actualaries that the u. S. Want to do this annually. And so they are going to begin doing these mortality up dates annual annually, and how our retirement system will account for that. I dont know. We are just going to follow the table that gets published by the National Group. No, they take the National Group as the starting point and then it is adjusted for dem graphic and mortality, and our local populations but the starting point is this National Study that occurs. Where, sorry just, i think that you are asking, where are we right now . What is the mortality of the age . It is actually very nuance and very specific to specific job classes, specific union types of the mortality table is not a simple number that says on average we expect the city retireees to leave to x, it is nuanced based upon what an employee was doing when they worked for the city and what age it retired and so it is a complicated table. It is safe to say that the supervisors have a much lower or higher mortality rate at an earlier age than other job classifications. I have not reviewed that. Yeah. Thank you. And then again, just without getting into the details and opinions about it, the rate of return of our pension can you just explain again, lets just say, that it falls short of 7 and a half. How does that roll through and maybe you can explain one against how it rolls through our system and why we feel the effects of not just that year but Going Forward. Sure, so the employee contribution, what drives the city contribution to pensions is largely a function of what is the gap . What is the expected gap between resources they have on hand, contributions that are employees, and putting in, and then the city is on the hook for the difference effectively. And so they make assumptions about for the 16 billion dollar, plus, crust they have, what is the return on that going to be that can offset the employer contribution and so they make an assumption Going Forward about what that return is expected to be 7 and a half percent is that assumption, but when that falls short, it leaves the actual mass short and then the city and the employer contribution makes up the difference. Okay, thanks. Do you have something . So next on our earlier conversation, we just have a couple of points on lever we talked about the cpi in the report, and if you look at our report two year ago, it was projected under 3 percent and in this report it is projected to be over 3 percent in every year, that is driving up our deficits that we want to point that out, one percent chance in employee wages is 20 million in the general fund and if you look over the past three years, we obviously have had a three Year Contract with most employees for raises of 3. 25, with the different start dates and we are seeing that the cpi was around 2. 7 and so looking at our last contract was higher than cpi ended up being. And so this is our health cost assumptions as i said, much faster than inflation, health is projected to grow, 7 percent and retirees, 9 percent and that is what the areport assumes in every year. And miss house, what report are we in this from hss . Say, and yes, from hss, yes. And we actually in the last report, the assumption on actives was 5 percent, and so we just revised it based on more current information, but that is another reason why the deficits are going up because we are projecting that into the future the health costs will be more than they were the last time. And i would, and i mean, being the hss board member from the board of supervisors i should be talking to the director about this, but i imagine with the president elect and comments around the Affordable Care act, the fluctuation could be wide. This assumes no changes to the affordable changes and none of that right now, because we as a controller mentioned dont feel like we have enough information to make assumption today or in any of those things. This is a slide that kind of underlies what i was talking about earlier on being adopted on the base lines and set aside, so this is just ones that have been added since 2011. And i should say, you know these are all wonderful. I was not trying to say that they are not. It is just that we are making commitments to that bind us in the future, it gives us less flexibility and you can see that the mta population growth and the Childrens Fund increase are by far the largest here on this list. Because there is the last column and the bottom are cumulative. So this slide this slide is talking about kind of what supervisor yee was talking about earlier. So if you look over the past 20 years, we have a pattern and it is add 1500 employees, cut 1500, and here we are today and we have added 5,000 employees. This is a very large number of employees but i will say that we are not upset about this, we think that this is a good thing and we have done so many good things with the board on this and you can see that this chart shows you where the position vz been added and a lot of them are Nongeneral Fund as well. And so at mta, ten percent sfrgs increase, the airport and the puc and the port are really this blue section and that makes up the largest portion, and our department of public works and the capitol programs, Public Health and Human Service agency about hundreds of positions for Affordable Care act, and the Public Health opened a new hospital and we have added new social services and we have added the street cleaners and the people in the parks and library hours, and so all really good things that we want to continue, and what we said to our Department Heads today, is not that we want to roll any of this back but that we need to stop growing, no more growth, do not add more ftes because we want to be sustain able over the long term and we just feel that this is the time is now with all of the uncertainty, it is important to be a little bit more disciplined and making sure that we are making conscious choices as we add new things. Now to tangs question before, there is another the Mayors Office is mandated to also come up with fiscal strategies to propose how we will balance these deficits over the coming five years, and i am going to slide 21 shows you the numbers but i am going to talk off slide 22. Just real quick. Of course. On the ftes. Yeah. It wasnt broken down this way, what would you guess it is right hand 5,000 ftes since 2011. The break down between enterprise and general fund. Yeah, if you look at this chart, so the blue section is largely enterprise, and the orange section is part general fund but also part state and federal and the same thing with the gray section. The yellow section is almost all general funds so in that, the police and hiring are public safety, and actually it was a six year hiring plan which we are nearing the six year of, which is great. And probably the other green is probably the mostly general fund and i think that is the three positions at 311 and more administrative positions. Okay, thanks. Yes. And so with this slide is showing you is what our office is proposing a balanced approach to tackle hez deficits over the coming five years, this is the same graphic that i showed you before, where the bottom is revenue and the top line is expenditure, what this is saying is that we are hoping to increase revenues and to decrease, to bring these two things in line, instead of the 11 percent revenue, and the 29 percent, growth that i mentioned before, wither hoping for a 14 for a 14 percent growth over this period, we are hoping that the economic policies and we will keep the economy strong and we will pursue more revenue, than we have currently projected. And on the department mental side, we are telling the departments we need 3 percent cut targets in each of the coming years and we need them to be part of the solution, with the revenue and efficient proposals to the request he, supervisor yee to balance the budget on city wide expenditures looking at our certificates of Participation Program and to please not grow fte and the enterprise, and the selfsupporting need to absorb all of the known Cost Increases. One thing that i think is great and you might be interested in it, the mayor over a year ago, asked all departments for a Strategic Plan and we have been spending a lot of time reviewing those and we had a city wide planning retreat with the Department Heads in september and the mayor in this plan is going for put forward the city wide values and vision that he sees working with all of the Department Heads that he want to publicly come out and state and really the point of this is also to kind of to make sure that our culture is really around, thinking forward think and long range plan and what do we want to accomplish . And so when we put out the five year plan, there is a city wide plan of that report, the mayor hopes that two years from now, we will put it out again, and it will be sophisticated because the departments will be cycling their plans with ours and talk to each and the Controllers Office will help to the departments and many are sophisticated in the long range plan and some are brand new and it is the first time that they did this past year, and we are hoping that this is really a process that will set the city up to make it part of the culture along with the five year Financial Planning and the ten year capitol planning. I am going to turn it over to the controller. This reflects the projects and reflects a projection into the future, by our office and the mayors Budget Office and the boards budget analyst and of course, it is budget to change and it is a forecast after all. And so what could significantly change these projections . And we have highlighted some of tho s key risks on this slide. Sxh i will say just generally speaking from my perspective while the shortfall for the coming two year period is only modestly higher than at this time last year, the number of risks seems to be growing and it seems verses the moment that we were here last year before this committee, there are more dark clouds looking ahead then there were at this time last year, as we talked about the single largest being possible actions from the federal government. Reductions are coming in particular for the county functions and here in california and around the country. We will keep you updated as we roll into the calendar year as we know about it, and no assumption here. Changes in the economy are important to what ch and we dont feel like the Recession Risk is low at this point, given twha is going on with the u. S. Over all economy. Which seems to be increasingly stable frankly. But, some time and during this period, it is likely that the u. S. Will enter a recession it will significantly five year period this u. S. Recession and it will effect these revenues. And then lastly, this time last year, when we were presenting presentations, basically all employee contracts were closed for the coming fiscal year, that is not the case this year, police and fire, contracts are closed for the coming year but all other major unions are open and so we are making forecasts here about the cpi, but the ultimate negotiation, of the negotiations will change these forecasts. So those are three key risks that sit out in the future, of course, as always, any new budgetary or supply mental appropriations that are put forward by the mayor or the board of supervisors will create new costs that will change these forecasts as well. Our always cheerful ending to these presentation a discussion of what a recession looks like and how it might effect our forecast. So you have seen this chart from us before. This is showing you, 23 periods since 1900, and that is the niem in between recessions in the country. And you can see at the top bar, where we are today. So we are now 89 months into this recovery. Approaching two times the average since 1900. Of 47 months. We are not projecting a recession during this period for forecasting purposes but it is worth noting if we do get through this five year period without a recession occurring in the u. S. It will be by far the longest period of economic expansion in the u. S. Modern history. So it is unlikely to occur. But, given that it is impossible for us to estimate when that might occur, we are not baking that into your revenue projections. You asked what the recession would look like, and it will contain more information, but if we model a recession, equally weighted of the last two that we felt here in San Francisco, the dot com bust and how it impacted different Revenue Streams and this is what that loss would look like. And Revenue Growth becomes revenue declines for a period of two years before you start to see the recovery. Sxh the difference between base case and that scenario is in the forgone revenue, you asked earlier about how it effect the moyerer contribution rates and that is something that we have modelled and that will impact the rates and would lag this. But would likely be in the order of magnitude of approximately shths 75 million and increased ongoing cost. So, significant. The plan does also curtail kind of we would also base lines would share in this loss of revenue, available reserves would be depleted and the net impact would be approximately 200 to 250 Million Dollar upward revision of the shortfalls that we talked about earlier. Sorry, could you, that is annex youal basis . Correct. So, shortfalls, would grow, when we net out the base lines, and the revenue, available reserves shortfalls would grow in this view and they would grow by 130 million, and 243 million in 1920, and 223 million in 2021, and then about 50 Million Dollars ongoing after that. So, all told between those years, about 600 million in cumulative change to the forecast. So, to the prior conversation and forgive me in im not thinking about it right. There is a revenue impact but is there a cost impact as well likely . Is that just pure pension return, and we have modelled the impact on the returns and of course, other things happen for the demand of the Public Services in a recession, and so we have not accounted for those in this simple recession, scenario forecasting, but it is likely that in a recession, you will see the higher demand for the key Safety Net Services that the city and county provides. Oh, so this on this slide, and this is just showing us revenue. The plan itself, though, will have shortly, for summary, revenue, but the plan itself, includes much more information on reserves and pension. And so, if it included pension, i imagine that 960 grows. The 960 grows and by the cost of the tension increases and then it reduced by the draw down reserves that have been put in place, and it is reduced by some of this revenue loss shared by those voter adopted set asides that we talked about earlier. Thanks. Great, so that is really the end of our presentation. High level we rebalance the budget, deficit over the next two years is 400 million, projected deficits on the rise and we are paying attention to it. But you know we are not in a terrible period. We are not doing layoffs, we are not cutting service, we just feel that we need the mayor believes that now is the time to be disciplined and make trade offs as we go into the labor negotiations and the budget deficit and uncertainty with the federal government and we are happy to answer any additional questions that you have. Colleagues, any further questions. Comments . Thanks for the presentation, and i mean that is good to know what we are facing. And its not great, but its not outside of the federal unknown, essentially not that bad. Okay. Supervisor tang . Thank you. I really appreciate this overview. I guess it is not reallys question but more of a comment that i know that you do a really great job, i mean the mayors Budget Office and the Controllers Office in laying out what our challenges are. And what we need to do. To be disciplined in the up coming budget season. But of course, once we get there, whether its eleven of us, having different issue priorities, whether its Community Stake holders or the city departments, we just never can seem to you know, really be disciplined. And so, i think that i mean, that we are not going to solve this in this hearing, but it warrants i think, more conversations around how it is that we deal with this, whether its the ongoing conversations regarding salary. And benefits, and healthcare costs and pension and all of that, so to be continued i guess, but, i just want to thank you for this great overview. Okay. Likewise. Thank you, both for this overview, and certainly, as we head into next year, i think that it is important that we set the stage early. And so thank you for the time and effort that you p ut into this. And look forward to continuing to Work Together on it. With that we will open up item one to Public Comment, anybody wish to comment on this item . Okay. Seeing none, Public Comment is closed. Colleagues, double check. Could we continue this item to call of the chair . I will make a motion to continue the hearing to the call of the chair. Motioned by tang and seconded by yee and we can take it without objection. Madam clerk, will you call two, please . Hearing to consider the release of reserved funds to the department of homelessness and supportive housing, placed on the budget and finance committee reserve by the fy20162017 annual appropriation ordinance file no. 160628 , in the amount of 6,500,000 to continue funding critical Homeless Services frment okay, thank you very much, so colleagues, related to the budget process last year and certainly as we talk about the rebalancing plan right now, for the current fiscal year, part of what we did was put a significant amount of money on Budget Committee reserve. And related to the Homeless Department and so she is here to ask us for the to describe to us the potential release of funds for his department. Good morning, supervisors, jeff director of the department of Homeless Housing and joined by the star marissa and geegee, who have been working hard with melissa and her staff and i want to thank them for the efforts on the ongoing work on the budget. We are here to request the release of 6. 5 Million Dollars off of the budget and finance reserve in the current fiscal year, as recommended by the bla. While we were disappointed that proposition k did not pass, the department originally included 12. 1 Million Dollars in expenditures associated with the sales tax, we have worked wr closely with the Mayors Office to identify 6. 5 million in Critical Services and needed funding to continue those services. These are just to support the services that are already in existence as well as services that were well along in the development process. We have provided you with the hand outs that shows, how that 6. 5 Million Dollars will be spent. I would be happy to answer any questions or walk through this with you. Colleagues, any questions or comments . On item two . All right, mr. Rose, back from vacation, welcome. Could we get a report for item two . Yes. Mr. Chairman, and members of the committee. On page 3 of our report, we report that as a result of the increased Real Property transfer tax and waiver revenue and that total of 6 million, 486. 766 the department of homelessness will allocate, 3 million, 391,694 to fund the existing shelter and centers and the opening of a new Navigation Center in 2017 and then, also, 3 million, 95,000 to fund new permanent Housing Units and so those two numbers, total the 6 million. In the fiscal year, 16, 17 and that is shown in the details are shown in table two. On page 3 of our report. I would also note as we state on page 4 that expenditures for the Homeless Services for 17, 18, will be subject to future board of supervisors approval. We do recommend that you other prove the requested release of the 6 million on budget and finance committee reserve. These expenditures are consistent with the budget. Okay fshgs thank you very much. There rose. Any questions or comments . Welcome back. All right, we will move on to Public Comment, anybody wish to comment on two . Seeing none, Public Comment is closed. Colleagues, right now we have a hearing, i think that probably the motion if we are in agreement would be to motion to release the reserves from our Budget Committee reserves probudget Analyst Recommendations and file the hearing request. The one thing that i would just add is i made some comments as related to the free balancing plan i want to thank them for their great work and i hope that as we go forward, we continue and prioritize, the homeless. And especially exits off the streets, and for me, i think that it is one of our most critical and pressing issues as a city but i thank you for your effort and look forward to our continuing discussions in the next budget year. Go ahead and make that motion. Okay. Motion by supervisor yee. And to release the reserves off the Budget Committee and to file item number two seconded by tang and we can take that without objection. Will you call three . Hearing on the status of the activation of three publicly owned buildings in district 11, 35 and 45 onondaga street, and the geneva car barn and powerhouse, including activation and construction timeline, budget and sources of revenue, potential partners, and Development Options and contingencies; and requesting the office of economic and Workforce Development, real estate division, and the recreation and Park Department to report. Thank you, madam clerk, so colleagues, this item was sponsored by and requested by supervisor avalos, and actually president breed submitted paperwork and so supervisor avalos is replacing me in the Budget Committee, and so i will turn it over to him. And thanks for bring tg home. Is there a vice chair . So now i am a Budget Committee member . So thank you colleagues for scheduling this item. The title sounds really really complicated because there has been a lot of complicated work that has been done by multiple departments. And my office to get to where we are on activating to three buildings. And that is what this hearing is about, first off i want to thank beth from my office, for her work in moving these projects and getting the katz herded together in the same room to talk and Work Together. And in the katz have been really great to work with as well, amy, and nicole, and john, and his staff and their staff, and phil, and the others. And i want to thank you all. So today is just basically to get an up date on the activation of two buildings of onondaga and the hel and this home side and the former emergency hospital, and the hel and this home site is a building that actually has two incredible murales in it or frescos by sachime and richard is here and he has been helping to preserve those, and so there is a lot of complicated work just about how we were able to restore our historical legacy. And that we have inherited from the years past and the other building is the gene va car barn office building. And these have been long term projects that we have been trying to work at to activate and i think that we have made a huge amount of progress, step by step over the years and now we are at a time where we actually are very close to having negotiated arrangements and financing to have these projects, you know, have us uncertainty about these projects being made active in the years to come. And so, first off, i want to invite, amy cohen from office of economic and Workforce Development who can give a broader overview about the effort to activate the public spaces. Thank you. Thank you. I will be brief because the office of economic and Workforce Development through the Neighborhoods Program came in in 2015, with some support from the mayor to look at a number of seemingly intrackable commercial and sort of funky buildings in the outer neighborhoods. And so we started kind of a qui quiet effort to look at public and private buildings that have been long desired by the Community Members to become activated but they were either under utilized or remained vacant, and so the gene va car barn and the buildings were two of them and we also looked at the lray theater and we have worked on other spaces like the jerry garcia ampitheater and the goal of this he have port which we were calling the Neighborhood Program was to work with the Community Groups to see if we could catalyst activation and come in as a Technical Team and figure out is there something that maybe could be done differently . Or quicker . Or you know, some creative approach that no one had thought of before. So we brought in the Northern California, Community Loan fund. We then did assessments of a handful of buildings, including these. Way to qualify is for meeting the new tax credit par get criteria, one of which is that 70 percent of your employees at the time of hire make 80 percent or less of the San Francisco Median Income level, we want to and we can meet this goal. Which brings us to the key piece of the puzzle that is the nonprofit that will provide the arts related programming in this space, and to all ages but specifically to under served youth in the district. And there are a number of organizations who are interested in providing us this programming. They will submit the proposals demonstrating the capacity as well as the ability to meet the targeted population requirements for the new tax credits unfortunately, although, lucky for us, most teaching artists who work for these nonprofits fulfill the criteria, requirement, and for the historic preservation, the first is a small return on the tax credit equity, as they were meant to spur, the Economic Development and in the second is the interest tax, taken together, these amounts over a year, will provide a deserving nonprofit a spectacular space for very affordable monthly, rental rates. The good news is that San Franciscos Community Development entity, the San Francisco Community Interest or in investment fund, recently received a 45 Million Dollars, allocation, and the project is in the pipeline, they have expressed strong interest in investing in the project, and so the goal is to select a user inn and to present a financial package to the Community Investment fund by the end of january, if we receive annual indication, and the letter of intent from investors in february, i will come back to you in march and describe to you the legal structure in which had the city can use the Funding Source as a power house, and i will ask for the board of super approval. And if the legal structure is proved, we expect to be able to put the project out to bid in march. And complete financing over the summer, and break ground in the fall, and have the building ready for occupancy in september of 2018. And in time for the beginning of the school year. Thanks so much for your time and your continued support of the project. Thank you for your great work on all of the places that we are trying to activate around the city as well. Next up, a presentation from mr. Updike . Thank you, supervisor avalos, john updike, director of real estate, and first i want to thank you and your staff for the passionate and the sustained interest in the two as selects and onoddaga, and when we first started the conversation a few years ago, it was all about our office wanting to move forward straight forward sale of an asset. That we deemed surplus to the citys needs. And through a very creative approach, to future uses, and more refined and analysis of restoration costs, we are in a really good place at this point to offer this property up for reuse, retain it in the citys inventory and have a sustain able project Going Forward. So, really two aspects of the property, at 35 and 45, and one is simply restoration of the building to make it ha bitable, and so the core and the shell improvements that the city would need to provide. Through an analysis done by ventura partners we have a fairly good handle on those costs for each of the buildings. And then, on top of that, args analysis has allowed us to pinpoint the mural restoration, costs in the building. And also, a range so when you put those two together, we are looking at a city participation in a project ranging from about, 294,000 to up towards of 370,000, and that is the range. And that will require further refinement once we see a proposal Going Forward. And so with that knowledge, we then worked off a successful request for proposals that we executed recently, for space on jessy street and building on that, and with your staff, comments, to that, we have an rfp that we would like to issue by the end of this week, that will put the property out to market to nonprofit organizations, and with the additional points awarded for those who have gone through a certain rigorous process to qualify under the nonprofit antidisplacement process or received assistance from ncclf. And as well as additional points for providing service directly to District Eleven, and so with that. And nclf is the Northern California loan fund, thank you. Thank you. Very much. Yes. With that proposal going out, we will ask for the responses back in february from the nonprofit communities and interested in pursuing this asset. And they would need to show a sustainable funding plan for tenant improvements and on top of any core and shell improvements the city will bring to the project. And we in real estate, would seek in our budget application, to our fine budget director, funds in next fiscal yearss budget, and to mary. And that is project together. So that we can execute together both the tenant improvements and the base improvements to allow the occupancy, probably in about, 9 months there, after, and assuming some costs from time for the design, in improvements and getting the funding together. So we would see an award most likely before the board of supervisors of a lease for either one building or the other or combined, we would like to keep it open and see what we get from the market place, of nonprofit whose might be interested. It is about 8,000 skwaur feet and refly, 50 50, and there is someone that could put to use the entire building or a master lease with multiple nonprofits and so keeping that open. And so for the final hope for. And for the lease term to be determined, and most likely, no less than 5 years. But i think that we are going to be very open. And with with respect to the lease term. The city offers the space, athe a very reduced rate and i think that that is the benefit here that we can find a way, to help with the structure of the building and to do so at a cost that is really quite attractive in terms of a base lease rate of around, 12 dollars a square foot. Per year. So i think that we have an attractive opportunity for the nonprofit to pursue, and happy to answer your questions that you might have. Most of all i just want to say thank you, it is great to work with you over the past couple of years to get the buildings to where they are today and to have, you know, this structure in place for an rfp to go out, and this week, and it, you know, over the original, plan was to sell these buildings off and we will look at that and it was too much money actually at the time, but our office is now working with you, a couple of times to get, you know, estimates that this is the best way possible and you have shown, the great flexibility to work with us and i just want to say thank you for your great work, and the news that the rfp is going out on friday is very, very significant. And so thank you. I dont have any other questions. I want to thank you, even before coming to rec and park you were working on the car barn as the director of that project and i just want to thank you for all of your work and so what i am hoping is that we will have an understanding actually before i leave office, which is a couple of weeks from now. To see if we actually have a real structure in place for moving forward on the plan that you described and so if we could just stay in touch over the next three, and i think that it is 25 days that i have left in office and so it is a little bit of time and i just want to make sure that, you know, as successive supervisor comes in, that you will be supervisor and like, and can pick up where we left off, and work towards activating these spaces with your partnership. Absolutely. That is our goal. Thank you. We will go into the Public Comment. Good morning, my name is richard roth man, who is City Resident and interested in wpa mural and this is a really great what is happening, its important that this Building Stay in the city ownership, so that the Art Commission can super vice the restoration of the murales in and be responsible for it. Bernard could you put on the overhead. He pointed one and the second one was at the Uc Medical Center and, if you have not seen those, those are really beautiful and in between them, he painted this mural, which was really forgotten about. And there was a reference in the 50s about it. But, i found out about it, about the same thing that the department of real estate went in the building and told the Art Commission that i found out from bernard daughter about it. And these are the murales inside there. Community spirit, and growth. And the bottom one was painted over and then this is the top one here. Growth. And i think that it is really important that this building will be opened to the public and be able to enjoy and see these beautiful murales. And so thank you supervisor for your help in getting this project through. Thank you. And thank you for all of your work on helping the city to restore these murals. Good morning. I a lot of you guys know me here. I have been in a nonprofit in the day in the tender loin, and joe called San Francisco horizons in the tender loin. We used to and that is why we have the mondejnonprofits they tap into other resources that the city budget does not have to spend so much money, that is a good thing. What i wanted to tell you about, i was kind of excited whenever i was in the Mission District living there, and there is a california savings and loan just around the corner, 16th and mission. And i looked inside and there was this mural behind some sheetrock. And i said, oh, my god, look at that, it is beautiful mural, and i dont know if you have seen it, it is the california savings and loan. And they were about to just tear it down. And this is a pretty good mural, maybe you should not tear it down, and so when the contractor showed up, they didnt tear it down, it was in the california loan at 16th street and that is just one thing that i although of that i did. And that was davids district, now, one thing that i love about nonprofits, is you can tap into Unlimited Money if you do it right. But i wanted to say, have a merry christmas, because especially to the budget guy. And i like him the best. Because he is the one that has to carry all of the big budget around and i think that he is doing a better job this year, because it is not quite as big. He is not going to get an hernia right, you guys have a great christmas. Have a good one. Happy holidays. Have a good one. Good morning, members, and supervisor avalos, i want to speak in terms of activating the buildings with the District Eleven Community Serving programs. My name is marco and i am the director of the works which is an Employment Support Services nonprofit in the District Eleven. And i wanted to just encourage you through by sharing with you some of the work that we have done. Most recently with the gentleman by the name of car loss hernandez to give you the sense of what the work that we do. This is a gentleman that came to the works and he just moved here from hills boro oregon. And 48 years old and had been laid off. And so came to us asking for help seeking employment. But then, also asked us if we could help him fill out his unemployment paperwork. So, he was part of his story as well he was living with his sister and husband who rent their space. And the landlord had told them that they had to ask him to leave because he was not on the lease. So he came to us with no employment and really the potential of becoming homeless. So, one of the things about him is that he had 16 Years Experience as a baker. So one of the first places that we looked was safeway, so we helped him to apply for a position at safeway. And just yesterday, they let us no he that he was hired for the position as a baker. So again, i want to share ta story with you to give you a sense of the people that come through the nonprofits that are serving. And so, you know the issue of homelessness, was on your agenda. And you know, looking at our work, and with mr. Hernandez as work which is preventing people from actually reaching or becoming homeless by helping them with employment. So i hope that when the issue comes to you again, when the supervisor, when the board con veenz, that you will support us, thank you. Marco just a request for you. So, you have this new work space. Yes. You are in. And i am trying to get the feathered serpent in my office that is hanging there to come to your site. My brother made it and it is a gift. So just to want to arrange that. Over the next couple of weeks. Okay. It might be stored at my place before i can get it to your place, it would be good to work on that together. We would love to have that together. We can talk about that. Thank you. Hi, my name is reid and this is burks and i am the executive director of Youth Art Exchange and we are and i wanted to speak to the importance of activating these buildings and the hope that they can go to some of the many amazing nonprofits and i donyouth and Community Members that work and exist in the exelcier and these buildings and the activation of these buildings would be incredible to bring artists and youth in and it is something that we have dreams about, being able to have these amazing resources within the community. And i encourage the board of supervisors to really look forward thinking and to see, what impact that could happen for it with the building being activity and affordable which as we know in the city is incredibly important, so thank you so much. Thank you very much. Thanks for come and for kwour work. The next time that you come to the podium with your child, the child will be grabbing the microphone. Any other members of the public that would like to comment . Okay, we can close Public Comment. All right. Public comment is closed. That is pretty much it, i wanted to make sure that we got before i left office, a status report on the project, and these projects and also have a chance to acknowledge all of the work that our city staff have been putting to activate these spaces and i appreciate all of your work. And i am really actually proud that we got to this place before i left office. So that has been really significant to a lot of people in the district. So thank you. Very much. With that, would you like us to file or continue the hearing . This you can continue and maybe we can get new status up date later on, and the new supervisor can decide. All right. So maybe we will entertain a motion to continue the hearing to the call of the chair. Go ahead and continue this hearing. All right. We will do that. Without objection. All right, so madam clerk, are there any other items before us today. Before you adjourn, before we adjourn, i didnt get a chance to say thank you to the people who are on that side of the rail, they were not here at 9 00 last night when we were ending our board of supervisors meeting. But i did give it a good bye, some what to harvey, and to sevlon and i want to thank you both and harvey for all of the i couldnters that we have worked together and i really valued our relationship and i value your work. And you made me a better supervisor. And i read your reports. And you know, even as a legislative aid right off of the ba the we worked well together, and i was actually came into the board of supervisors with a grade understanding of how our budgets worked and i got to chair the Budget Committee my first year and our partnership on that was great and i will never pour get that experience and thank you for all of i dont you are great work over the years and it has been a pleasure and i am going to keep in touch with you. And then, ben i want to thank you as well. We have the same kind of partnership over the years. And you have been very, very helpful for me to do my work as supervisor. And i will, you know, i will always value your work and our relationship. And your staff as well. And it has been tremendous. And i knew you before you were even controller of course, and before i was even working at city hall, and i always felt that you were very accessible and someone who was good to work with. And so, hopefully you will continue with the city, and passed to the next another decade and we will see. That is up to you. Melissa great to work with you as well. It was actually really, enjoyed our Work Together this year. And i really liked your forth rightness and i liked how you really took seriously the responsibility and the tremendous you know, responsibility of balancing the budget. And but also, really trying to ballet lot of the interests that were coming i dont you are way. And that has not been very easy thing to do for someone in your position. And i think that you did a really well, and even as the interim budget director, and you were actually the budget director, and so, congratulations and it has been really great to work with you, and you used to be a district level, resident and i guess that the District Line moved and i thought that you were, but, i will probably run into you on ocean avenue. Okay. Thank you. Thank you, supervisor avalos. And we look forward to working on your deappropriation and reappropriation ordinances as you leave us with that. Thank you for that gift. And madam clerk, are there any other items before us today. . Eno further business. This meeting is adjourned. Thank you. I have 2 job titles. Im manager of the tour program as well as i am the historyian of city hall. This building is multifaceted to say the very least its a Municipal Building that operates the city and county of San Francisco. This building was a dream that became a reality of a man by the name of james junior elected mayor of San Francisco in 1912. He didnt have a city hall because it was destroyed in the earth wake of 1906. Construction began in april of 1913. In december 1915, the building was complete. It opened its doors in january 1916. Its a wonderful experience to come to a building built like this. The building is built as a palace. Not for a king or queen. Its built for all people. This building is beautiful art. Those are architecture at the time when city hall was built, San Francisco had an enormous french population. Therefore building a palace in the art tradition is not unusual. Jimmie was an incredible individual he knew that San Francisco had to regain its place in the world. He decided to have the tallest dome built in the United States. Its now stands 307 feet 6 inches from the ground 40 feet taller than the United States capital. You could spend days going around the building and finding something new. The embellishment, the carvings, it represents commerce, navigation, all of the things that San Francisco is famous for. The wood you see in the board of supervisors chambers is oak and all hand carved on site. Interesting thing about the oak is there isnt anymore in the entire world. The floors in china was cleard and never replanted. If you look up at the seceiling you would believe thats hand kof carved out of wood and it is a cast plaster sealing and the only spanish design in an arts building. There are no records about how many people worked on this building. The workman who worked on this building did not all speak the same language. And what happened was the person working next to the other person respected a skill a skill that was so wonderful that we have this masterpiece to show the world today. It looks at good and tastes good and it is good in my mouth pretty amazing. I am the executive chef ive been here as a chef at la concina since 2005 reason we do the festival and the reason we started to celebrate the spirit and talent and trivia and the hard work of the women in the la concina program if you walk up to my one on the block an owner operated routine i recipient its a theyre going to be doing the cooking from scratch where in the world can you find that im one of the owners we do rolls that are like suburbia that is crisp on the outside and this is rolled you up we dont this it has chinese sisterinlaw and a little bit of entertain sprouts and we love it here. There are 6 Grilled Cheese grilled to the crisp on the outside outstanding salsa and a lot of things to dip it knocks you out and its spicecy and delicious i was the first person that came here and we were not prepared for this every year were prepared everybody thinks what theyre doing and we can cookout of our home and so the festivals were part of the group we shove what we do and we w we tried to capture the spirit of xrifs. And there from there to sales and the hard part of the sales is 250 assess our market and creating a Market Opportunity giving limited risks and sales experience to our guys and good afternoon everyone. I want to welcome you to this meeting that will now come to order this is the regular meeting of the landuse and transportation committee. I am melia cohen chairman of the committee and to my left is erin peskin. I want to recognize our talented technicians at sfgov tv systems with this broadcast. My apologize to everyone that this committee was started at 1 30 pm. I was tied up in the rules committee. This is our last week in session and so we are taking care of lastminute business in details and it ran over and please, xmi appalled that without further ado clerk any announcements this afternoon . Yes. Besides all cell phones and electronic devices. Thank you clerk please call item 1 item 1 sidewalk change portion of the 30th ave. Between clement street and geary boulevard we have mr. Rivera from the public works with us. Hes been a make a presentation on this item. Good afternoon. Public works. This legislation is for the reduction of a small portion of 30th ave. On the east side. Its part of the Presidio Middle School modernization project. What it will do is allow San Francisco Unified School District to create ada compliant ramps in the pickup dropoff zone. The maximum reduction will be 5 feet for this area and it will be 10 feet remaining as sidewalk. If theres any questions ill be happy to respond. Otherwise thats premuch all i have mr. Rivierethank you for that correctioni have a couple comments and then we will go to supervisor peskin. Mr. Peskin thank you chairman cohen should of just going to raise one issue relative to the noticing. I think if youre a member of the public and you see this notice in so far as it doesnt tell the public that the sidewalk length is going to be reduced. I think these type of notices would be much more constructive to the public if instead of just saying, changing dope width it actually says reducing the width from 15 feet10 feet or reducing it by 5 phuket that way, you might bring somebodys of a comment that otherwise might not really understand what this about did i just kind of really maybe less of a comment for you and may need a common for the deputy City Attorney who drafted the legislation in the short title. Absolutely. Thats really something we could change in our legislation. To be honest, the majority of these are widening so they no longer come to the board but we could certainly add that to anything coming over here. Maybe even we forwarded today depend what the chairman once knew we could actually change the short title to reflect that. Sure. I think its perfectly acceptable. Well just changing from 15 feet, 210 that is that correct . Yes a dropoff pickup zone with ada compliant grounds lets take Public Comment. Ladies and gentlemen, please come up for the public on item 1. You up to minutes to spea seeingk Public Comment is closed. [gavel] do we have a motion . I would suggest that we amend the title to say amend the short title to say sidewalk width reductionportion of. Save with change, with the reduction. Send it forward with recommendations to the full board. Without objection that motion passes [gavel] clerk next item that was a motion to end either motion to recommend it . I would remake it recommended as amended. Without objection that motion passes [gavel] next on the agenda item 2 medical cannabis dispensaries in the Irving Judah Noriega and neighborhood commercial district and opposing conditional use authorization i just because supervisor tang is still in the rules committee which should be ending very shortly. Shes as we continue this item to later in the agenda. All right with you . We have a motion to continue this for later in the agenda please. May i have a motion . So moved [gavel] without objection. Clerk next item would you like me to read item 3 and four together . Yes. Item 3 to order additional vacation of certain San Francisco Utilities Commission service used in that exists within subways 1 am one be a part areas approximately 162 acre site located in lake merced district and bonded by by geldof pinto avenue and serrano tried to the n. 19th ave. [inaudible] brother away to the south and late merced two w. In favor of the sf puc authority to the director of real estate to ask you certain quitclaim deeds. Item number 4 the vacation of San Francisco Public Utility Commission Public Service is examined exist in some phase 1a and 1b of the park Merced Bowman area approximately 152 acre site located in the lake merced district. Thank you. Supervisor yee is the author of these items. I believe we have a member of of the quirks to present on this item . Item 3 is simple its an easement vacation. Item 4 corresponds to item 3. Correct. Public works. Yes, this is various locations with easement throughout the 152 acre acre park merced yet what others easement we always follow the same protocol as we do for streets because it provides more notice to the public. As far as letting people know when and where there will be vacated. Again, this is pretty standard for the Development Needed for the development and puc will have some easements remaining until there are replacements for those lines and those lines either have been approved or theres a public Improvement Agreement in place. Again if you have questions, i am here and also the project sponsor is here as well if you have any questions. I dont think we havent quite yet but go to Public Comment. Any Public Comment for items three and four . Seeing none, Public Comment is closed. [gavel] peskin id like to make a motion to send item 3 to the full board as a Committee Report with recommendations and send item 3 to the full board is a Committee Report with recommendations and send item number four for our next Board Meeting on january 20 ja 10th, excuse me re item number four i believe you would want to refer that without recognition to the january 10 2017 meeting that is my motion. Without objection that motion passes unanimously [gavel] next item item 5 to create a ordinance on Mission Street and nine street amending the zoning maps street to Great Commission and nine street special use district of moaning zoning map sheet change the height limit item number five is a sponsored by supervisor kim. She is on her way to the meeting now. So we for this item before. It is back before us due to supervisor kims office. There has been some slight changes i think she wants to make. I think mr. Starr may be able to speak to those from our department of city planning. Sure. I believe its been a create a new suv . I am actually on the tangentially aware of it but i believe its revising the ordinance to add the commissions recommendation which is to add another 3 1 2 affordable for moderate income or under 50 area meeting in the supervisor kim is here i think she can speak to it thank you. Supervisor kim, welcome. We are just discussing item 5 the planning code zoning map for mission and ninth street. Suv. So we did hear this i then use Committee Last week i guess or two weeks ago. We realized on tuesday that the commitment that Planning Department had negotiated with the project sponsor at the Commission Hearing wasnt actually enumerated in the language of the ordinance that is before us today. So i can make a motion to amend last tuesday. It did require that we come back to committee and it is simply a slight increase in the Affordable Housing commitments of the project sponsor. Committing to 11 units at 150 of average Median Income. On top of the units that the community had previously negotiated with the project sponsor. So this is now a total of 75 little below market rate units ranging between 55 and 150 of average Median Income. In many ways this is a can to the policy discussion that we had in regards to the dial and ensuring in a single project that we have bmr units that will be marketed at a very diverse range of average Median Income from low income to clearly middleclass income. Some colleagues, as per your support today for this amendment. Take you. Lets go to Public Comment on item number five. Seeing none, Public Comment is closed. [gavel] thank you supervisor kim can any last remarks . Again 01 organize the project sponsor for doing a acute herculean job making sure came for to the fun commission and the board of supervisors with the deal that this entire community is supporting including subtle Market Committee action on united players, sf at Central Market cbd and San Francisco building and Construction Trades Council did not often we get it of him and project like this neatly tied with a bow tie. Thank you for saving our office the work of the negotiating and im very excited about this budget moving forward did i ask for your support one more time thank you get a motion for this item . Yes i think the other time is a charm. I would like to send this matter to the full board with a recommendation as a Committee Report for consideration tomorrow date. Without objection [gavel] any additional amendment today . No. My apologies know the ones and the ones i introduce tuesday believe their embedded into the ordinance. This matter is recommended as a Committee Report. He was thank you. These item 2 item 2 extending interim zoning controls for medical cannabis dispensaries imposing additional conditional use authorization criteria. Supervisor tang is the author of this measure spews thank you very much. Committee members for entertaining this item. I do feel that a little bit of background is seen as are Committee Members arent paying attentioni feel the background is actually important for this item. Back in 2012 former supervisor carmen chu had passed legislation to impact just the district for ncd get lb irving, judith terry open door ea got acquiring conditional use it the ground floor use was not in active use. The intent actually stemmed from Committee Input about wanting conditional use process when consumed in cities. What to clarify that this is not to prohibit but just to include a neighborhood notification process and appeal process and so forth. So however later on in time the Planning Department had proposed that planning code cleanup as you know its a massive document with 1000 pages or Something Like that. It contains a code change that inadvertently impacted the zoning change for the ncds and the district for neighborhood commercial district. So then when i was supervisor we had to introduce interim zoning controls to fix that problem. We had intended for another planning code change legislation by forth by the Planning Department to properly fix it but since that is longdelayed we want to prevent any confusion over the law in district for so that is why we are extending the interim zoning control for ncds requiring acu in the district for corridor. With that i am happy to answer any questions or have Planning Department staff come up before us today. Thank the idle couple questions. I want to get your philosophy. I understandi could understand in initially the desire to introduce the interim controls but now that we are excuse me postpartum 64, i want to get your take. Do you believe we should be legislating the piecemeal type of fashion . I think that like we do for even restaurants or businesses that are generally speaking very favorable to the committee we sue piracy is good all the neighbors are asking for some neighborhood notification. The ability to the Planning Commission and department to look at and cds with the necessary and desirable criteria. Again this is not a probation. On and cds in district 4 so the issue is in notification for the neighborhood . Its not only notification but also benefit and desirable criteria that the Planning Department and commission be looking at have you spoken to the advocates are trying to come to some kind of an agreement clique are you talking oh cannabis advocates are Community Residents . I imagine you talk to committee habits oh yes, cannabis note no. We have not. This a neighborhood issue in our district that comes back even before 2012 in the initial legislation was put into place could really predating my time as supervisor that it is something that was only because of an inadvertent code change to the Planning Department the weve had to go into interim zoning controls in the first place. Otherwise i would not have done that. Lets go to Public Comment. Public comment is open at this time. Good afternoon supervisors. Thank you supervisor tang for bring this for. My name is terrance alan. Im a patient in advocate, founding board member of the First Medical Cannabis dispensary in San Francisco known as champ. Arrested in the early 90s for growing 24 plants in my closet for nine a letter lost a battle with aids, i used cannabis for appetite increasing during the time when the aids drugs were not only very difficult on your system but really did not work. I moved on to help pass prop 215 and founded as the founding president , the San Francisco Entertainment Commission and currently a citizen whos involved as the chair of the San Francisco state Legalization Task force. Which was created by unanimous vote, thank you very muchof the supervisors and signed by the mayor. I am speaking on behalf of myself among not on behalf of any group with the task force. My introduction is for informational purposes only. I begani begin by access my Great Respect for the neighborhood process and the need for a diverse forum where all voices affected by city policy are heard. Im disturbed that the Cannabis Community was not involved as in all voices heard in this process. In my appearance here today is to make the request that that be done. I know how inclusive the existing mandatory discretionary review process is currently required for all and cds and asked that creating a higher barrier by creating a conditional use authorization simply trumps out any of those socially disadvantaged, those leaving the incarcerated state, those were social justice and equity are the primary reason for them to move into cannabis industry. They are locked out by the addition of more cost and more expense and i urge, while i would not stop this from Going Forward, urge that we consider those folks and those patients in any legislation going for. Thank you. Thank you. Is there any other speaker like to speak on this item . Seeing none, Public Comment is closed. [gavel] i would like to recognize first supervisor kim than supervisor peskin. Thank you i was not intending to [inaudible] but i didnt see it before in the forward counter and supervisor tang im so sorry you did not include this in your opening remarks but seeing that this is the second time that we are now continuing the interim controls, is there permanent legislation that you are working on for the neighborhood in regards to this . To the chair to supervisor kim, as i alluded to it, i would not have even brought forth the first interim control had it nothad this zoning control change been in overtly changed by one of those massive planning code cleanups. So honestly, this is not my preference to be here so it was originally supposed to be permanent. Is there legislation in place to make this permanent . Yes. Is currently making its way to the Planning Commission did i think now its been pushed back to february. We want urban confusion over what the laws are in district 4 could hence the Second Interim control been extended. I think the one concern ive the same one supervisor cohen had shared about the outreach that we done to all the impacted stakeholders can understand this is done on behalf of the neighborhood so that light initially the work is under but its impacting the group of Small Businesses here in San Francisco and i think it would be helpful to hear from them even if the time to make sure that theres much notification as possible. By the way im a big believer notification on the one a push for that. In our ceqa reforms we did several years ago. I think we should provide as much public notification is possible for new businesses coming into i just have concern about legislation moving forward we dont at least hear from group of stakeholders 13 impacted even if at the end of the day we move for the same piece of legislation. Supervisor peskin spews i think supervisor kim bardsley said what i was going to say. Im fine with this. Its a result of one of these well intended code changes that then as an subscribed of all kinds of things. Butits an existing one thats been extended for six months. I just want to concur with the thought that in the wake of the past prop 64 we need to this comprehensively citywide and not piecemeal but this is a continuation of existing interim control that hopefully will be rolled into some of the way of comedy when we do citywide controls. Right. If i may bring upi dont know if youre still here mr. Townsend get supervisor peskin brings an interesting point. This is existing conditional already out there looking to extend for another six months. In the extension of six months does itdisrupt the Legalization Task force process . In any way can be, mentoring an extension . Can they coexist . I think of done correctly and if theres an invitation by the supervisor to include the task force then it can be. Theres not yet been six months in normal life means very little bit six months in the cannabis world is a complete change. 12 months ago we did not have a task force. We do not have recommendations now until this week on wednesday. 18 months ago the state had not moved at all on medical cannabis legalization recommendations and they have not done that since 429 six months is a long time in this world and with the state requiring vocal authority before an application can be brought to the state, this six month could be a fatal blow. What is the task force goal in the next six months . The passports in its first report will demonstrate the entirety of what cannabis touches as we look at our present citywide cannabis reform and then in the second year in executive legislative committee will be put together that will come to on a regular basis with specific regulations and legislative reform that we would like to see. So this, making permanent of these controls should be a part of that process in the task force would then be a stakeholder in the process. So it would be neighbors and the supervisors and other groups involved and the task force should be recognized because it was created by you and it should be recognized as a major stakeholder in that discussion. Thank you get supervisor tang with all due respect, again, as ive stated before i would not be here the first time around or the Second Time Around with interim controls had it not been for an error that occurred in overtly a mistake. So that is why i cannot do it was necessary to reopen this conversation a new way because im actually just try to fix which is been in place since 2012. I see parents are from planning to bomb. I want to recognize from supervisor tang was in the code but in a roundabout way we did advise against putting it in a roundabout way just for reasons like this could its not as clear. We like things to be clear so we can implement. Also with regards to prop 64, medical cannabis dispensaries theres project that. Medical cannabis which is legal in california since 1990s. What happened in the past november was adult use cannabis, there two separate things. They do overlap but with the task force is charged to do is focus specifically on adult use cannabis and how we will regulate that in the future. So the changes that supervisor tang is 19 are independent whats happening with the task force and what was approved under prop 64. Thank you for the clarification. Sure, supervisor kim mr. Starr, what you mean in a roundabout way . Was put in the code as anything that is not an active ground floor use required for conditional use authorization. Rather than putting under the line item medical cannabis dispensary in conditional use, and thats the way they did that to the attention was to make cannabis dispensaries conditional use. So in the previous to the cleanup in the planning code, there was a cu required for non active ground floor use and was applied that ncds were included in that although not explicitly expressed. In the cleanup you took that out no. In the clinically added cannabis dispensaries to the list based on the 2014 report we did for medical cannabis dispensaries, which sought to normalize use with the neighborhood commercial districts by opening them up to the public, making transparency and making them a little more friendly to the environment or to the pedestrian experience are ncds active ground floor use . Yes. Okay. In the previous planning code you have defined them as in active ground floor use menu changed that category categorization . Correct. Its not defined. Its a list of uses considered active ground floor uses and we added that to the list. I see. The concept of the cu was really to prevent nonactive ground floor use, not specifically to create additional notification for ncds . Supervisor denied that was actually former supervisor choose intent. Additional notification and the thinning criteria of necessary and desirable. Okay. Thank you. Supervisor peskin further thoughts . No. Thank you very much for your presentation. Supervisor tang before i take the motion i want to make sure im clear in all the record that this is an extension of an already existing exception and this is only for six months and it is until the cleanup languages reflected into the code. Is that correct . Yes. That is correct thank you peskin to a motion for this item . Yes. Why dont we move this to the full board with a recommendation as, i believe a Committee Report. Thank you without objection, was four. Thank you. [gavel] clerk where do we leave off . Item number six is next supervisor kim i think this is your may i read the title please item six onsite supervisor didnt get your also the author of this item. We can proceed until the supervisor campos can correct. Could you go get him . Thanks. [pause] thank you. Supervisor kim thank you chairman cohen and supervisor peskin back in 2014 the project sponsor of the Intercontinental Hotel first approached our office about requiring they had to build on their site officially known as private owned public spaces that require our downtown buildings. After several years of opening actually close a decade, to the usage even with additional signage they found that this fourth floor terrace bobo, was not well utilized by the members of the public. They came to our office to see if there was a way that they could quote unquote this offsite this obligation through av or through a acquiring more open space in the neighborhood. So we could have actively used open space that members of our community would enjoy and the hotel could then utilize this existingfor private use. We worked with them over the course of a year and a half to identify an alleyway that we could prove hot im sorryimprove acquire and turned into an actively utilized open space. In the reexam at a lot of different alternatives but could not find one that both the community could agree on but also that we could acquire through the city. So we can instead worked through a fee out for the first time here in the eastern neighborhood open space plan and we originally proposed seven a dollar per square foot fee out at the time. With the fee going to the Stabilization Fund for future approval good afternoon additional views the committee conversation and negotiations with members of the south market community, the Planning Department, we now have the introduced after two years, legislation which has negotiated a new fee based on real costs. We also in the end decided to invest these fees into existing open space but one that would allow us to use it for greater expense of time,. Therefore, i making this open space much more actively use. The community had said that improved lighting and are only multiuse park [inaudible] on fulsome street was one way that we could activate increased use of the existing open space by having lights that would allow the part to stay open until later and have basketball games, basket baseball games as well as dog walking richer people feel safe using the park at night especially in the winter when we know that the day off and go start by 5 pm. We work closely with the office of economic and Workforce Development to help calculate a fee not just based onnot based on the transbay sorry Transit Center discipline but one that was actually based on what it would cost to acquire or improve open space here in the south of market. They calculate the fee based on recent deposit any alley and eagle plaza improvements in the south of market. This legislation specifies the amount of the fee and also how this fee will be used. We also to ensure that this improvement actually occurs requires that the muchneeded improvement be delivered bet within two years park and rec receiving the fee. If this improvement is not made this fund will then be default into the soma civilization from for the community to determine how best to improve open space in the south of market area with these funds. Because the intercan owns Intercontinental Hotel is in a project to begin with with its own suv we want to make it clear this not a precedent being set for future fiats of other downtown buildings that may also determine that there privately owned public spaces are not well utilized and therefore want to convert its private use and fiat to the city in a way that improves our open space. We know thata key feature of the central soma requirement plan. We want to make sure that futurearts much as possible activated accessible in on the ground floor. In this case, this requirement was not in place. The fee that is before us today is approximately 290 a square foot. This was based on the cost of improvement i didnt deposit equal alley in any alley that took place in the south of market area that is the legislation before us today. So colleagues, no inis here from the Mayors Office economic and Workforce Development is here and i believe that Sarah Matalin from park and rec is here as well. If they need to answer any questionsmr. Starr from the Planning Department as well. If theres any questions from members or the committee. I have a couple questions mr. Starr to have a presentation or should i jump into my question i have my presentation. I will wait good afternoon. And start the proposed ordinance would amend the [inaudible] special used to do one authorize the monitory contribution for the private owned public space also known as a. Exclude certain features from floor area ratios and growth for area ratio calculations and would dedicate the money generated from this fee for lighting and Safety Improvement to thepark. On behalf of the Commission Department think supervisor kim for incorporating the recommended modifications get these modifications will accomplish two goals in the first change ensures that any impact that these fees would be due to the city for enclosing thewithout will be paid. The second change tightens up the findings in the ordinance to avoid setting future precedent for other requirements. The commission reinforces the strong preference to not allow the project sponsor to opt out of providing onsite usable open space by paying an in lieu fee. The commission noted that the intercontinental elevatedwere noted by the commission to be subpart e tells original 2002 approval hearing. To be sure the internet condo hotels complicate the matter by closingto a private events from time to time. The Planning Department has an active enforcement complaints dating back to march 13, 2008 for failure to abide by conditions of approval. Nonetheless, the commission of greece with thatpark agrees that the Victoria Park provides the community with accessible and active and passive recreation. If the commission concluded that as the park is open from 5 ammidnight lighting and Safety Improvements at this part could offer the community a more usable resource than the maintenance of the elevated terraces as open space. We do think supervisor kim for all her adverts over the two years to find a solution in the commissions recommendations approval as amended. Supervisor kim im can ask mr. Starr a couple questions and if you know the answer supervisor kim just jump on. So really how do we come up with the 290 per square foot in the cost calculation . I think it was just conversation between the Supervisors Office looking at what when cost around the area and supervisor kim, my question you may be the process and windsor i did you come with a two under 90. 70 cost per square foot . As i mentioned my opening remarks we do not come up with that Square Footage fee. It was the Mayors Office of the economic and they came up with that the based on the cost per square foot to improve open space in the south of market area. In the neighborhood surrounding[inaudible] and we used the cost at me plaza, you alley and any alley as a Reference Point to come up with the two under 90 square foot proposal. Just so you know, we did consider two other open space these calculations. One was eastern neighborhoods of which Intercontinental Hotel is close to. That was only 96 a square foot was actually the original proposal it the planning to him and said that was not enough funding per square foot and so our office agreed with their assessment and we went back to the table to figure out another fee that we could utilize the would more accurately reflect what cost to acquire or improve the open space in the stock market. A followup. Could be a comfort much revenue the Current Spaces generating or has generated in the past . The Current Space being the global at the Intercontinental Hotel yes. With a generated by using a for private rentals versus not being able to, no, we did not calculate the revenue or profit they make that they can make. Using the about for private use. The project sponsor is here if you would like to ask that question. Love to. Do you so Stephen Queen yes. Project sponsor is a good with the project sponsor please come up. I the couple questions. Is the project sponsor your . There are. A representative of the Intercontinental Hotel could come up and speak . Thank you. My question is, we are talked about the calculation and want to know specifically if we took into account how much revenue the Current Spaces generating or how much it generated in the past . Larry back there about their urban plan representing Intercontinental Hotel. No, dont we we took that into account. The question is how much revenue will you be able to generate if youre able to convert this bubble into private use among not much will generate but how much do you asked me to generate. Thats the question from the chairman i actually dont have that figured i do know what it will do in general terms is allow greater occupancy by the union hotel, union operated hotel allow greater meetings also which will benefit both the city for tax base and the art fund and also improve plumbing in the hotel. But i do not have i do know the hotel has discussed calculate because you would not come to our office to ask for the out if you had to figure out the potential revenue by converting this public space into private use. So huge and i have the answer, then i would like a member of the project sponsor to come up with a number at committee today could i know that number existed we would like to have it her. Okay. Thank you supervisor and kim advanced important to get to the bottom whats happening. I suppose this question is for the project sponsor it is not planning where you supervisors and bit my questions from the terrace on the fourth and six laura they did howard, they Still Available for rental today . Wraps the project sponsor could sit a little closer to the microphones we get these questions answered quickly . Lets all make this difficult. I apologize with consult with the client can i do not hear yourhe was the question is if the terrace on the fourth and 64, of 80 howard, is it Still Available for rental today . Some of the terrace on the fourth floor is available for rental. How much . Half, quarter squeak i was a about three quarters. Okay. In defiance of the planning enforcement before you are legally renting out this public space . That was not minor stamina introduced the ordinance. We have, for the past four years than looking for an open space to substitute for that its been a ongoing prospect but during this time publiclyis by lyons public space. Lastly cannot be renting this out. You are told me that three quarters of the space is currently being rented out . Three quarters of one of the terraces. Thats not acceptable. I cannot move forward with expedience karen johnson, the intercontinental tried to get peterthe general manager here in the chambers to answer the question about projected revenue. Just to be clear, the fourth and sixth force a Public Open Spaces. Theyre not exclusive Public Open Space. So the code does allow for private use. Butbut this is not a part of a Business Plan being generating every revenue right now. On occasion, that had events below spillover to the fourth floor terrace but its not dedicated revenue at the hotel in choice right now. Im sorry im i dont know what is going on here. Supervisor put kim but with awful website today, this is the form that you would use. Its advertising being able to be rented. The spaces. So thats on the website. Intercontinental. Could we possibly get the general manager to answer these questions. Hes the one thats on the ground that actually manages the hotel. We will get amir heres another question it was the status of the violations issued for the fourth and 64 terrace . Use that, larry can answer because i believe that there was some discussion about the class of the intergovernmental adult widget been corrected to the violation costs. Then as related to the fourth and sixth floors, the meter for that over to larry. Larry guide targeted during the variance because over the last four years we been searching for an open space. The planning apartment has asked for updates. We been working with them. So they have not proceeded to go to the next step in enforcement but because it was an understanding we were looking for an alternative open space or 4 feet so the violations have not been paid . There are no dues pay. There is no fee. There is no fine. There is a notice of alleged violation and i think a notice of violation. Its never proceeded to another further step because the department i believe has been sent by weaving trying to figure out a way to address the issue. Mr. Starr . Please, utah get a question . The question is whats the status of the violations issued on the fourth and 64 terrace . I believe mr. Has a group weve been working with him over the last several years to try to find a solution to this problem. This theoretically wouldbe a solution to this problem theoretically, what . Theoretically a solution to the bowman of violation be taken care. He was supervisor peskin to have any information whether not the violation was abated this regard out to different stories from representatives of the hotel good one that the violation continues unabated and the other that it does not. Do you know which is true . I dont. I know the enforcement action is still open so it hasnt been the issue has not been resolved. It seems like they still are renting it out. If supervisor cohen founded on the website. Yes. All right. Thank you. Supervisormr. Shawsupervisor kim questions for mr. Starr. I am supportive of a fee out in this particular site. Because it is clear that this project owned open spaces publicly a Public Open Spaces not well utilized and even with the additional signage. It makes much more sense for us to use funding for this to improve open space which will require more open space in the south of market area. But im curious as to why if we pass the ordinance that would take care of of violation this already occurred. Thats the first question is the second question is, what is the penalty or Fee Associated with that violation of this law . To the first question, if we try everything we can to make the violator abated so we dont go to that step of charging a fee. So we have been working with them over the past few years to try to get them to abate. As for the fee, im sorry im not sure i can try to check with my colleagues to see if they can let me know we do have a set fee, though yes. I believe why would we believe that if we pass this legislation because it violation did occur but they were not opposed to rented out previously. So moving forward, they can use for private open space but in thethat doesnt mean just because youre looking for a solution you can go out there and start renting it out. Correct. You are correct. I dont see the passage of the ordinance would abate the fees i dont agree started assessing the fees. If you like i can double check. Was an information i was given for this but i can do you know how many times the space was used for rental . No. I do not, no over the last four years . No. The impression it was not on the market . We were under the impression that it had been used for private events but we didnt have it i dont think we knew it was a continual thing. Supervisor peskin mr. Starr, this is bit of recalling to need the academy of art issue where we are being asked to potentially settle the matter where in we would wrap up the entire case. We would grant them certain entitlements and we would get certain fees and penalties and wrap it up in one case. It seems to me that if theres an ongoing enforcement action that has some amount of penalties that need to be assessed or settled, that should be part and parcel of our granting this approval or entitlements or get out of jail free card that should all be wrapped up together. Does that sound right to you . Im not sure penalty fees have been associated either with a multistep enforcement process. We dont start assessing penalties until a certain point. Im not clear on where we are at that point way. If artie said its been years. I mean at some pointthat doesnt seem to make any sense. I think they were trying to get intercontinental into compliance. We have been working with them over these last two years on this particular solution. Mr. Starr if i make for the project sponsor comes up, how long is the process before planning to carmen actually enforces their actions . I feel like two years is too long. Certainly. How many other downtown buildings are violating their obligation to the city and are relating them just get away with it . No. No i would not say that. , a notice of violations the Planning Department issued on couple here in the downtown area . I dont have that information. I just dont understand. I just have to agree with supervisor peskin i wasnt aware that the project sponsor was openly listing rentals of the pope pio to the ordinance getting past here at the board of supervisors is inappropriate. It is in bad faith. Im actually surprised to learn that not only would have these violations been going on with the last four years but we havent even assessed a penalty or fine for that illegal use of the. Please, tell me if im wrong. Can they rent out either the owned open space for private rentals at any time . No. I dont believe they can. I am happy to get more information from you be like to have the project sponsor group i can clear up the violation issue. Supervisor peskin with supervisor kim and i and another incarnation served as supervisor kim is a memorandum of the alternate on the bay Conservation Development commission. And we had a case this year where the individual was in violation of their existing permit could they came in and settled that case they came back several months later and asked for some other approvals. We were not going toit seems to me that cart is before the horse about what planning should say is, the unauthorized behavior has stopped. He finds have been levied and paid or otherwise settled. And this is the way we are going to bring it into compliance with this piece of legislated it seems that thats the proper series of steps. I have to concur with supervisor kim. Exist troubling particularly given the decade that its taken to getting serious about the academy of art that this seems to be a little bit of a pattern of failure to really enforce. For what its worth. Thank you. Looks like the project sponsor has a few remarks . Good afternoon my name is johnrepresenting the Intercontinental Hotel. I was originally the Development Manager during construction. Like to clarify the space is not rented out good it is an integral part of the Hotel Operation and is used when we have insufficient space for example, we have 42,000 ft. 2 of meeting space. Two ballrooms and 21 meeting rooms. There are functions which cannot be handled in all that. There will be a supplementary lunch in their on the terrace occasionally and breakfast occasionally but it is not rented out to the public its an integral part of the Hotel Operation of the publicof the public spaces. It has been very successful and to emphasize, we spent more than four years looking for alternatives to the supervisor kim has said. We have tried to do a joint venture to create additional public space and we feel that this solution, which takes a very unsatisfactory, i think everybody has agreed that the fourth floor and 64 terraces are not satisfactory as pope oh. The solution that we have arrived at and we are greatly encouraged by gifts, increases bite manyfold the number of usable hours of open space. But please be assured, the space is part of the hotel. That is the only way its been run. If this additional revenue is sales tax will go directly to the other appropriate people. It does create additional jobs, girl union jobs,. Theres nothing illegal other than the fact that we are not doing it with a permanent [inaudible] i just cannot hope ask a couple questions by your statement because this is actually news to me that you are openly using thefor private use. When user first over breakfast and dinner spaces to you charge an entity for that or do you let him use it for free . I dont know the answer. The digital but its an integral part of the revenue that would come for the use of the ballroom. If youre catering in a ballroom or conference room, theres a charge for it but it is not an additional rental to some outside party. Is not an additional two so you do notyou rented out for free then . So when you have a breakfast for dinner, spillover on this, you let the entity that is sponsoring the dinner or progress use it free of charge . Supervisor am not an operator and mr. Clarify for you but the fact is the use of the ballroom if you dont have the answer to the question that youre have to provide an answer its the crossing [crosstalking] [off mic] [crosstalking] [off mic] can even though that is a clear breach of the law what youre required to do under the current mandate of the poco. Spears i dont think its a clear breach. Why do you think its not a clear breach . What is a bridge we dont have a accessible to the public between 955 days a week. Occasionally, its occupied by the tenant spears about it question the Planning Department in terms of the hours because it could be the case that the Planning Department is clearly articulated the opel only needs the open from 9 to 5 which case i would understand if you used rented out the poco outside of those hours. Im not sure breakfast always and by 9 am etc. But am very troubled by the fact that the project sponsor has repeatedly violated the law. Ive been working in good faith with the project sponsor over the last four years to find the solutions that you can see out so that we can better usage of funds for open space in the south of market area. I agree instilling committed to the intent of the legislation but im troubled that during this time i been working in good faith with the project sponsor, the project sponsor has been openly and blatantly violating what i believe is the law in terms of privately rented out this Public Open Space that its doing it on its own website. Which i was not aware of. Supervisor melia cohens office has bought this to my attention at Committee Hearing today. So i think we have a little bit of work to do before i feel comfortable with this moving out of the committee. Thank you supervisor kim just so im clear you want to continue this to the call of the chair . Yes. Supervisor peskin can make a motion i like to note this matter has been noticed in the newspaper that we do continue to the culture will need to reissue the notice. We also will take Public Comment on this item. Lets go ahead and think about what motion will entertain. Lets open up for Public Comment did anyone the public like to speak on this item . Any public . Good afternoon commissioners. This is the glamour stuff. I appreciate a lot of the questions you raise today and of course i fully support those questions get answered but im here today really to speak about the Community Need for lights. Like i said its a glamorous sexy stuff weve been talking about for 10 years. I went back to my emails this morning to see exactly how long as a community we been asking for this. Went back to 2010. So i personally am not a fan of any poco and i definitely hear the concern and worry about any kind of precedent this would set but i feel like supervisor kim captured it very well and i was at a presentation about central soma a couple weeks ago and they were very clear about how much they learned in the last two years about cocoa and what makes a good one woman makes a not good one and i feel like the city is kind of learning how to work that a little better to where it will actually benefit the neighborhood and residence around. So i really want to the size that this part needs lights for a long time. The Community Stands in full support of that, not just to extend the use of the part ring today by extending the hours and making it more accessible, but even the folks who live around the park having increased lighting will reduce vacant. It will just increase the level of safety. When you walk down a dark street you feel a lot less faith than when there are lights and you can see was going on around you. I also just really want to emphasize well park pd delivers the lights is transparently as possible. Thank you. Public comment Public Comment is closed. Timma mr. Peskin thank you i do have a highlevel comment just as a member of the board who i cant remember what year it was but over a decade 14 years ago, was one of the votes in favor of creating a su d to entitle all 20 to entitle this hotel. One of the things i noticed was one of the findings from planning was the fact that these open spaces were hard to utilize by the public it is you were not good propose. This a larger policy issue really mr. Sark or mr. Battered from the day which is to the extent that we create su d and entitle these projects we should actually in approving a design to them in ways that are actually useful. I think ultimately, except for the enforcement issue and whether or not these are being rented out in violation of the requirements, there is i think more fundamental underlying issue which is that as a matter of urban design, when we do these projects we should say actually you are forced forth and six workers are not using private public cannot openly work creating private open space which may be a fine design for the hotel but also we not beneficial to the public. We should take heed as we entitle these kinds of projects so that we actually have open space of use. One of these San Franciscos 30 dirty Little Secrets we have all of this Public Open Space on all of these downtown buildings that not a soul knows about except for every couple years john king races same story about they exist and we need to have signs and that people should know that there are these amenities that the public can use and then everyone once in a while planning gets around to remind those people to put their signs back that theyve taken down because they dont want unwashed masses coming on top of their building or what have you could this is really a part of a larger policy issue that goes beyond the fourth and 64 terraces on the Intercontinental Hotel i just want to put that on the record. In approving this years ago the in suv is pressure we give some special entitlements allow this project to go forward. This was not an as of right project. Adherence to these laws because we made a special law to allow a hotel where otherwise was not going to go. Thats why we changed the law and created special use district. I think you have to be held wider standard when you come to the city and asked for su d and, you better really taught your is and cross your ts okay. Supervisor kim spews so i can make clear the ass between now and when this is brought back to the Land Use Committee of couple things i like to understand. Can an individual project sponsor actually utilizerent out for private use, privately owned public space queen if there are hours attached to poco then can they rent them out outside of those hours . If you can get that clarified that would be helpful. The second is committed like to understand what the penalties and fees associated with violating this planning code is and i would like to have that resolves before we pass this at the board of supervisors. I do still continue to support this the out. I do thinki want to concur with the words of supervisor peskin that moving forward we should be very careful about the types of propose we support and put into place especially if theyre very difficult to enforce. And we know that we dont have a robust enforcement arm in the Planning Department around many types of requirements that we ask of developers and Property Owners making it really cumbersome for the city to actually enforce our own laws. I understand that. I think as we move forward the central soma plant with other developers i hope that and i know we are think a lot about this obligation in particular good one, how to make it more accessible. More on the ground floor more accessible to the public. But second, that we really think about what the city has the capacity to enforce. I just want to some more assurances from the project sponsor that what i am just seeing before me on your website today about renting out the hope hope is your thinking around that, why that is been done before this legislation was passed took place. I would like to work out what the cost of that is to the city before we pass this. So can Committee Member squid thank you again for your questions and concerns and look forward to when this comes back to the Land Use Committee supervisor kim do you have any preference on when . No. Lets get a motion on this. I would move that we continue item number six to the call of the Church Without objection the motion passes [gavel] next item seven a night adam eight seven and a together item seven, when 80 john st. Of formal housing and excepting two milliondollar gift. Ugly supervisor kim has remarks about this. Just to get item number eight that is a resolution approving authorizing an agreement the convenience of a parcel of real estate located at 180 jones st. For one dollar consisting of approximately 4007 or 40 square feet inland area the Mayors Office of housing and Community Development. Spews through the request of the project sponsor because theyre continuing discussions on these two items from your making a request to continue this to the next man use committee. I believe because of us moving the inauguration today of the new board of supervisors to january 9, and mlk day on january 16, this means this item will not be heard until january 23. Okay. Januarythats acceptable. Clerk we need to take Public Comment on this yes. Ladies and gentlemen if you like to speak on the item 7 and eight these come to the podium. Thank you supervisor. Steveon behalf of [inaudible] i understood january 9 was a possibility theres not the via Land Use Committee on generally not . Our preference would be generally not if thats possible thank you for stating your preference for the record anyone else alleges begun Public Comment. Public comment is closed. Speak [gavel] any Committee Person . Before i make supervisor kims continuation motion, i want to explain to mr. That because the inaugural board of the new inaugural meeting of the new board is generally ninth at noon the one the Land Use Committee. So the next one would be the 23rd. So with that i will move that we continue item 7 and eight to the meeting of generate 2017 without objection [gavel] clerk next item please i want to confirm action and file was written as Committee Report sagan . Item 5 Committee Report, yes thats correct item 9 Terrance Hill info for noncompliant structure is made as is a given building under article 11 located c3 Zoning District supervisor peskin is the sponsor thank you. This is a very narrowly crafted piece of legislation that is specifically aimed at one structure at 495 geary also known as the craft hotel. It is an existing noncompliant structure in our downtown area which is higher than the current height limit at some point when i was told by limits mustve been down zoned years ago. There is this is a different type of terrace situation. There is a terrace there that the project sponsor wishes to fill in. This would require before they even applied to do so, for the board to change the law as to that noncompliant structure and this matter has been reviewed by the used word Preservation Commission and the Planning Commission both of which recommended three changes which are the subject of the amendment im handing you mdm. Chairman and specifically the past that we narrow this to only include the assessors block upon which 495 geary says as well as to strike one finding, which is on page 3 at line 6. They felt it was not necessary and finally, to add a sunset clause which would sunset by expiration of law on january 31 2019. With that i would turn it over to mr. Starr from the Planning Department. Good afternoon supervisors. Aaron start Planning Department staff. Give another hotel with a terrace. This person does not in violation though. The item before you was an independent and its not a poco its not a bubble the item before you would amend the planning code or designate significant under article 11 and in the c3 district noncompliant with regard to height and bulk limits would be allowed to infill in existing tariffs of up to 1500 ft. 2. In the infill require major alteration permits and subject to historic Preservation Commission review and approval. The store is for Preservation Commission has decided on november 16 Planning Commission her this up item on december 8. Both commissions voted to recommend approval with modifications. The modifications the recommended are as follows. One delete finding number two and findings before stargell restrict the proposed change only to the block that contains the hotel and three place it to your time of it on the proposed clinical change and include wang which there would allow the city to direct the publisher to remove the language without having to change the code. Supervisor, on behalf of the both commissions we thank you for adding those perks to the birds amendment to. That concludes my remarks and of course happy to take your questions. Thank you. Lets take some questions. Any member of the public like to speak on the item nine . Anyone . Okay. Public comment is closed. [gavel] mdm. Chair i would like to move the amendment if you have no objection . I dont and lets move them like to send the item as amended to the full board for consideration at her first meeting of the new year on 10generate 2017 without objection will take those amendment. [gavel] passes as amended. Thank you. Anymore on the agenda . That completes the agenda for today could thank you. This meeting is adjourned. [gavel] [adjournment] good afternoon recruits im going to be very short, because i am [laughter ] okay, i should start off with a joke you have to laugh. Anyway, first off, its my pleasure to be with the chief and with our department of Public Health director to welcome you into the finest Police Department in the country and i know that because that is what you have chosen to do and im very gratified i could be here in front of you as you ago through this invaluable academy and training. Really two points i want to raise. One is to thank you for making that choice. You can join any other department in the whole bay area, but you have chosen our city and im grateful for that. Second is that today i especially appear before you to make sure that you understand what we are trying to do as an entire city with our Police Department. Were undergoing one of the biggest Reform Efforts in the history of this department, and our chief is leading that, and one of the reasons today is that you will undoubtedly be involved in many of our confrontations that other Police Officers do probably on a daily basis. And the trend has been that there are more people that are victims of alcohol and drug abuse, and will exhibit in many occasions a danger to themselves or others and you will definitely be called upon to intervene in those situations. One of the principles of our Police Reform that is going on today, one that i greatly value is the principle of the sanctity of life. You probably already have been receiving training on that. But you also will be trained in the practice called receiving time and distance. That is when you are called upon, i think well ask you to do your best to create that time and distance for the purpose of preserving life. In that, i want you to know that the rest of the city is not simply asking you to carry the entire burden of that. ; that were going to be partners with you the best that we can and one of those strong partnerships that i am and this administration is funding with the full cooperation of the police commission, your chief , all the management staff is to say that when you are asked to intervene and if you can create that time and distance with everybodys safety in mind, well then have Mental Health and Public Health experts to be at your side. So that they can do the specialty crisis intervention that you create the time and distance in order to have. We have got to work as a team. If were going save more lives out there, we have to make sure that we have the ability to get some professionals to work alongside with you, so we can intervene in the sometimes very tragic circumstances and if we can get the Mental Health expertise with the people standing behind me, the crisis intervention specialists, they are referred to as our entire team train by our Public Health department to work in these crisis situations, were going save more lives and ultimate ly that is what you seek to do in your profession and we want everybodys lives to be here. You will get crisis intervention training. You will be introduced to the sanctity of life principle, but in the realstreet situations that we have, its your ability to implement that in an effective way with the chief and all of the managers crisis and all of the trainers that are here. That we want to do it with your safety in mind and with the immediate peoples safety in mind so we can gain that valuable, sometimes minutes to be able to introduce a professional. So that we can go on and perhaps save a persons life even more times than we have in the past. Quite frankly, it has worked in no less than probably five situations in the past several months. And i was with the chief on one of those occasions, almost three to four hours in those negotiations and we saved everybodys life and everybody walked away. We need more of those opportunities, because there is drugs, there is drug abuse, there is a tremendous amount of Mental Illness and you cant do it all. We dont want to tell you to do it all, but you have an invaluable part of that process. So those are two messages. Again, thank you for choosing the city and county of San Francisco to work in and well be there to create more classes as more of our officers decide they want to have an even better life and retire and at the same time, we need to get enough officers to meet the challenges of population, and the needs of every one of our neighborhoods. Thanks for being officers in the city and county of San Francisco. Chief. First of all real fast im with the mayor every wednesday and the joke you heard i have to hear those every wednesday when i meet with him [laughter ]so the sympathy should be flowing my way. The incident that the mayor was talking about wasing at market and jones and it was a support armed with a firearm and the officer showed incredible restraint and saves that mans a life. I have since met with the mother and father of the mans life that was saved and they are incredibly grateful to the San Francisco Police Department. They spent about two hours praising our efforts, and giving us kudos for making sure that resolved the way it did. That is what were trying to push forward and we all understand its not always going to work out in our favor and things that happen that are well beyond the control of anybody wearing that uniform and we need to make sure were Crystal Clear on that, but at same time, to approach every situations a lifesaving situation. The department is moving in a different direction and were trying to be at the front of this and not the back of the line. I just sat in an awards ceremony, voting process for Department Members to get silver medals and awards and most of the recipients came up in situations that they tracked about what they did and talked about using time and distancing in deescalation. One an officer was stabbed in throat on the freeway onramp and went for his firearm which he reholstered to baton because he recognized that the situation changed and the individual no longer had the knife and he had presence of mind to think about it as it unfolded. Another situation a gentleman was sharpening a knife and had residents holed because they were too afraid and they formulated the plan of creating time and distance and they subdued him and took him into custody without shooting him. Arguably a yearandahalf, two years ago the officerinvolved shooting scenarios pure and simple. That is what were trying to preach and push today and the Group Standing behind me are meant to give you additional tools in the tool belt when you have those situation and the San Francisco Police Department is proud to partner again with the department of Public Health on Mental Health services to the community and the San Francisco police have worked with department of Public Health for years including mobile crisis teams providing assistance to child Crisis Services which helps youth in crisis. This new team of clinicians standing behind me isa valuable to San Francisco Police Officers to support negotiators in the field and conduct crisis assessments and debrief persons involved and affected by incidents, and consult with victims and provide Crisis Services. They are going to also assist with our ongoing Crisis Intervention Training Program to help our officers improve their ability to recognize people with Behavioral Health problems. This program is part of an ongoing reform system that the department has undertaken over the past year and again, im talking about the San Francisco Police Department being the lead, not following, not picking things up from everybody else. We were using a model that is still effective, but there is say better model. And our people are now researching that model to bring it to San Francisco with dealing with people in crisis. That is part of us taking the lead. Were under a Collaborative Reform Initiative review by the department of justice right now that we invited in. Because again, all of these changes are meant to make us better. So i want us all to make sure we embrace it and look behind me at these white jackets with another tool for the San Francisco Police Department to use to enforce the sanctity of life on the streets and save people, because that is our primary mission to preserve life. I want to introduce director. Thank you you and thank you all of you and i saw you standing at attention to so long and you are so fortunate to be part of a city and part of a police force that are going to be at the head of many Police Forces in this country in terms of really understanding the impact of substanceabuse and Mental Health on many of the individuals that you may meet. Behind me is a team that we have been over the last decade working very closely with the police, and coming to any incidents of violence and providing assessments and support to family members. Were going to be expanding this team with three clinical psychologists and social workers to work deeper with all of you and give you training how to engage and meet the needs of many of these individuals. And also, i have been on the calls and some of these interventions that the police chief talked about, and we believe we can really give you really Important Information about the background of an individual, who you may be negotiating with. And so were very proud. Im very proud of the team that is behind you in the white coats and im very proud of the team in the blue. And together were going to be really providing you, i believe, some essential training and also support. And we believe that doing this together, we can reduce improve the health of many of the individuals who you are going to come in contact and reduce the incidents that we have at times when we have to be more forceful with individuals. So we look forward to this. Were going to be quickly hiring these individuals, and the police will be involved with this in hiring. So we have the right type of individual who will work with us closely and by the new year, well be really working closely and responding. In between now and then, this team behind me will be taking that place until our new staff is expanded. Were 24 7, and were located in the bay view, but we travel throughout the city in order to provide these services. So i want to thank you for your attention today and we look forward to working with you, and proud to see all of you today becoming new Police Officers. [ applause ] were going to conclude this and any questions that the press may have well be outside in the hallway for you. The office of controllers Whistle Blower Program is how City Employees and recipient sound the alarm an fraud address wait in City Government charitable complaints results in investigation that improves the efficiency of City Government that. 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