Everyone. Welcome to the San Francisco budget and finance Committee Meeting for april 27, 2016. Supervisor mark farrell i will be chairing this meeting. Im joined by supervisor katie tang. And supervisor norman yee . Madam clerk, any announcements . Yes. Please silence all cell phones and any speaker cards should be submitted to the clerk. Items acted on today will be listed on the agenda unless otherwise stated. Supervisor mark farrell madam clerk. Well skip item 1 until we hear from the board of supervisors office. Lets go to item two. 2. Clerk [hearing budget update Human Services agency fys 20162017 and 20172018] sponsor farrell hearing to receive a budget update from the Human Services agency for fys clerk [hearing budget update Human Services agency fys 20162017 and 20172018] sponsor farrell hearing to receive a budget update from the Human Services agency for fys 20162017 clerk [hearing budget update Human Services agency fys 20162017 and 20172018] sponsor farrell hearing to receive a budget update from the Human Services agency for fys 20162017 and 20172018. Good morning, chairperson farrell and members of the budget finance committee. Im with the program bureau. The San Francisco lbe Program Stands for local Business Enterprise to provide small construction firms located in the sf puc to hetch hetchy for the Monitoring Division on a Regional Water system improvement program. There are 140 certified sf puc local Business Enterprises, firms. This will correct a mistake amaze in the legislation returning a provision back to the original language with some clarifications. The proposed ordinance states that sf puc lbes are eligible under certain situations. Noncost shared programs monitored by San Francisco. They would apply if its submitted by an lbe. When i say lbe in that situation. Its a local Business Enterprise located in San Francisco. Project examples are mostly projects related to our power transmission. The second is the shared cost project which are projects where twothirds of the project is funding by the bay Area Conservation and 1 3 paid by San Francisco ratepayers. Basska is served by the hetch hetchy regional systems. This will be applied through San FranciscoUtility Commission lbes on the Regional Water system improvement program. Repair and replace projects and other regional Capital Improvement programs. So in other words, the lbes and the citys lbes will be playing on a level field. Since the program went into effect with the San FranciscoPublic Utilities commission. In 2013 they went into to expand the sf puc program to include r and r, repair and repraes projects as well as other Capital Improvement projects located outside of the city. And in july 2015, the sf puc lbesque program expanded to include other programs outside of the city. We ask the commit to please recommend this item for the full board and im available for any questions. Thank you very much for your presentation. Colleagues, any questions . Okay. Thank you very much. We dont have an annual budget report on item 2. Is there any additional Public Comment . Seeing none, Public Comment is closed. Supervisor katy tang i would like to make a motion to send this item to the full board with a positive recommendation. All in favor say, aye. Aye. Any opposed . Item no. 3. [hearing budget update department of children, youth, and their families and First Five Commission fys 20162017 and 20172018] sponsor farrell hearing to receive a budget update from the department of children, youth, and their families and First Five Commission for fys 20162017 and 201720 [hearing budget update department of children, youth, and their families and First Five Commission fys 20162017 and 20172018] sponsor farrell hearing to receive a budget update from the department of children, youth, and their families and First Five Commission for fys 20162017 [hearing budget update department of children, youth, and their families and First Five Commission fys 20162017 and 20172018] sponsor farrell hearing to receive a budget update from the department of children, youth, and their families and First Five Commission for fys 20162017 and 201720 mr. Speaker 1234 ms. Fong is here to speak on this item. Thank you. This is a mix of sodium by the city for wastewater and for pipelines and reservoirs, the city issued a contract proposal on november 4, 2015. We received three bids. This is really just to show you the value in the city the city will save 1. 5 million based on the price from the low bid to the second low bidder. So we are glad to report that on the proposing term the contract is 3 years with 21year options to extend. Estimated spending is approximately 4 million per year. We are requesting approval of a contract cap of 24 million which includes a 20 contingency as requested by the department. Again, this is a contract cap. Actual expenditures will be approved by the board during the budget process. This is an essential component of our Water Treatment process and lca is recommending approval of the contract. Thank you. Supervisor mark farrell thank you very much. Colleagues, any questions right now . Can we get your report for item 3 . Yes, mr. Chairman and members of the committee. On page 3 of the report including the request to the amount to be total stilted cost is 436,401 and as stated is 14,500,000. We recommend you approve. Any comments . Is there any additional Public Comment . Seeing none, Public Comment is closed. Colleagues, any motion . Supervisor norman yee i will move to move this to the full board with a positive recommendation. Without objection. Item 4. Clerk [certificates of participation interim financing for phase 1 of the Transbay Transit Center project not to exceed 260,000,000] sponsors mayor; kim, wiener and campo presenter good morning, supervisors. Im with the office of community and development and infrastructure. Before you today are two resolutions regarding site control and financing for units with Affordable Rentals known as transbay block 7. The first resolution authorizes the office of the community and investment structure to execute a 75year ground lease for the development and operation of Affordable Housing on transbay block 7. The second issue in an amount not to exceed 35 million. To give you a sense of the development, i will provide a very brief overview of the transbay project before running the items before you today. As you can see on the map provided, its extension of the south to the east. When completed transbay 7 will be a 120unit comprised of 53 bedrooms, 43 bedrooms and one managers units. This is target Household Incomes of 40 . To just under 54,000. The transit project created by Assembly Bill 812 thatten insures that 35 are occupied by very low and moderate income households. The project timeline, construction will start in june 2016 with an anticipated construction completion date of 2018. The approval has a term of p 5 years with one option to extend to 24 years. The approval by the boards is requesting pursuant to the redevelopment plan can which provides the board shall release any property pursuant to the agreement with the procedures that govern the agencies disposition of properties of that appears in the california redevelopment law. It was not acquired with tax increment monies with the Plan Requirement the board of supervisors approval is requested. The tax exempt bond issue also requested for your approval today is necessary for this project. As you know the bond issue is a conduit financing which does not require payment of the bonds. The tax bond allocation was the Allocation Committee in june of 2015. The bond allocation was awarded in 2015. To ensure the Development Team has enough time to begin construction shortly thereafter. This concludes Staff Support and available for any questions you may have. Also with me is the manager and we appreciate your support and hope you will join us at the grand opening. Supervisor mark farrell thump. Colleagues, any questions for staff . All right. Can we go to your report for item 4. On page 8 of our report, the base annual rent to be paid by mercy to the city of up to 1,860,000. The combined annual base of residual rent equals 10 percent of the appraised value for unrestrict use of 18,750,000. We recommend you approve this resolution. Thank you. Any comments . Okay. Is there any additional Public Comment . Seeing none, Public Comment is closed. Colleagues, any questions or motion. We have two items. I would like to motion to send both items to the board with a positive recommendation. Okay, a motion by supervisor yang and yee, we will take those without objection. No. 1. Thank you. Colleagues. Im going to keep my comments brief. As part of the process of this legislation, im introducing amendment from complying with the vending requirement the second. Im requiring the department of Public Health come back with that full report. The Affordable Care act would require this information. This package for the legislation is part of the meet and confer process that we went through here and i ask for your support for these amendments. First, if there is no other discussion, i would like to open up item 1 for Public Comment. Is there any additional Public Comment . Seeing none, Public Comment is closed. A wondering why there is an exempt for vending machines located on property operated exclusive by we need to go through that with the union members. That was the result. Thats why we have introduced it today. All right. With that colleagues, can we accept a motion to continue these items for 1 week. Moved by supervisor yee and tang. Well take that without objection. All right. Would you continue with item 69. Would you like to continue that item to the call of the chair . To the next meeting. Clerk item no. 6. Apply for accept and spend congratulate Community DevelopmentBlock Grant Program. 19,163,346; item no. 1. Apply for, accept, spend grant housing opportunities and persons with aids 9,213,192. Item 8. Apply for accept and spend grant home program 4,236,238. Item no. 9 apply for accept and spend grant Emergency Solutions grants program 1,484,425. Supervisor mark farrell okay, thank you very much. Brian chiu, director of housing development. You see before you four resolutions taken as a whole that will allow us to submit the whole action plan by may 2016 to hud requesting relief of those four formula grants that San Francisco receives. As you are aware the Block Grant Program funds a variety of social Services Programs as well as capital facilities for organizations that primarily serve low and moderate income here in San Francisco. The program, housing opportunities for persons with aids, for rental subsidies and operational subsidies for San Francisco residents with hiv or aids. The home Program Offers funding for new construction for Affordable Housing and the Emergency Solutions grants Program Provides funding for Homeless Services and from homeless prevention services. As we are moving into the second year, 1617 is the second year of a multiyear funding cycle. We were fortunate in that we were able to maintain the current funding levels for all of our grantees, the cdbg Program Grant last year, it was less than 25,000. We are glad that congress kept that flat. Our home program which has suffered some significant cuts received a small increase. The one program that did receive a fairly significant cut was the hopra program was reduced this year. We share those funds with the formula based on how many people are living with hiv and aids. We needed to dip into one time reserves for hopra. That does raise an issue of concern because all of our formula allocation is going into rental subsidies for People Living with hiv and aids. It seems very likely that hud and congress will be approving a formula change to the hopra program. This has incorporated the cumulative number of People Living with hiv and aids since this began when San Francisco was struck with the crisis. Since early on that formula has provided a base amount of funding and proposed to switch to a formula looking at those living with the number of those with hiv. That new formula would decrease hopa funds. Natural formula predictions that within 5 years would reduce San Franciscos hopa allocation closer to 5 million which would require either the elimination of longterm rental subsidies which helps People Living and would require the operation in the subsidies for the chronically ill. If this trend continues, we are going to need to either make those Service Reductions or identify other Funding Sources for that. I wanted to flag that for you for a significant cause for concern moving on. Other than that, i think we were happy that we were able to main taken all of the Funding Sources, all of our grantees will remain stable moving into next year. Excuse me, one other item, due to the right increase of the new department that will be focusing on homeless issues, the Grant Administration of our Emergency SolutionsGrant Program because that is a dedicated homeless funding stream, we have been working with the Mayors Office and the Controllers Office so that grant can be integrated to allow for better coordination and integration of homeless service. While our department will remain the point for the hud funding and well bring that forward to present that, the added fund will be moved to the department for more efficient ways of administering our homeless funds. I will be available for any questions you may have. Supervisor mark farrell colleagues, any questions . Is there any additional Public Comment . Seeing none, Public Comment is closed. Supervisor katy tang i would like to make a motion to send items 69 to the full board. Without objection. Item 10. Clerk item 10. Business and tax regulations code parking Tax Exemption for certainty parking events on School District property. Colleagues, during big events from harvey to bluegrass to other events in the marina area allow many Parent Teacher organizations to hold School Fundraisers to help the school raise funds for the woefully inadequate state funding for schools. This helps to pay for computers and for art teachers to also keep fit programs at the school at the art level. The ptas and ptos have been doing this for a number of years for raising money for their schools. 2 years ago, the city and business and tax regulation code require these events be taxed like any parking tax. It created an unfair burden on the volunteer and organizers. Parents like me that have to be in the parking lot because people took them in and out for the sole benefit. Schools. I wanted to thank Jose Cisneros and mayor ed lee and his staff and the City Attorney. We worked for several months with the president at the time, michelle parker. I want to thank her for her work in the