speedup. >> no other comments, except to thank you for the hard work you have done and staff has done to get to this point. commissioner on this. commissioner antonini: thank you for your comments. i will not end to it -- i will not get into what we have in writing at this point, but i assume it is the framework for what you're negotiating for the final agreement. >> yes. commissioner antonini: one would assume there are a couple of things to be worked out. that is fine. commissioner borden: i do not want you to go into any detail, but this discuss specifically about the capping of the rates or are there other general issues? like what are the health

services systems interests? >> the health services the system's overall interest is to make sure that health care -- that our health care premiums are affordable to provide employee and retiring benefits, and to do that across the spectrum of all of our providers. it deals with the rates charged to our health care providers is what we're still working on. commissioner borden: the complete scope of your work. ok. commissioner moore: is it correct to say that unless you find an acceptable level of agreement that this will be an integral part of the deal, but if there is no agreement, there is no deal? >> i cannot answer that question. commissioner moore: since we're obviously acting in support and on behalf of the city of san francisco, i would assume that

this commission would strongly stand to support that you find a mutually agreeable way of resolving the issue. because it would be difficult for us not to take the well- being of all city employees and the city family into consideration. >> thank you very much for that support. commissioner fong: any further questions? ok, thank you. >> good morning. rhonda simmons, director of workforce development for oewd. i am here to present on the work force portion of the dba. i have been before you in the past to talk about both construction opportunities as well as use opportunities in this project. first i want to address the

construction portion and the opportunities available there. we are anticipating that roughly 1500 construction jobs will be created on this project. we have worked in partnership with cpmc to work out a workforce plan that allows a 30% local hire, first stores are good faith program, for san francisco residence by trade, which is unique in the grand scheme of things. we have also negotiated and worked with them to work out an entry level construction admin intern program that calls for 50% of san francisco residents local hire. that coincides with a two-year- old program we run, the construction administrative program.

that is a little different than people getting trained for pre- apprenticeship. it gets them trained on the professional service side, which gives us more opportunities for young folks to get into the industry. in addition, half of all the apprenticeship positions on this project will be filled from graduates from our city build pre-apprenticeship program. the other 50% will work in partnership to maximize to the best of our abilities to fill those positions with the san francisco residence. in addition, we are working in partnership to create a retention program to ensure that the apprentice we bring on this project is able to journey out into the trades, which in the field of construction is really sort of the golden goose, if you will, of the trade, that folks actually complete and journey out and in essence get their four-year degree, if you will, or five-year degree in that industry.

in addition, we have worked with them to create a -- we are working with them in partnership to create an in-use program that coincides with our health care academy. cpmc has agreed to hire no less than 40 per mid entry level san francisco residents annually over five years. if we do not meet that 40 residents in one year, we're able to roll them over. the criteria for entry level is folks that have less than two years of college experience. you can see the examples of the types of jobs that fall in that category. of the 1500 jobs that are created on that, approximately about 220 or about 22 jobs a year will be entry level.

cpmc will fill up about 100 entry-level jobs annually through the natural attrition process, promotions, and retirements. the partnership coincides with our health care academy, and we will focus specifically on residents from western addition, it tenderloin commission, so much, excelsior, and chinatown, as well as the southeast neighborhoods. those will be some of our target neighborhoods in which we already have cbo's that help us record entering students into our health care academy. in addition, we will receive approximately $2 million in financial support for both our construction and our health care services to provide to the cbo's to continue the work we have already started in our city build academy at our health

care academy. we have identified a key cbo partners to provide specific neighborhood outreach and direct placement opportunities. the health care academy is suu kyi on a the permitted entry level -- is key on the permitted entry level side. we have been working for the last two years in partnership with cpmc on both these projects and have already started some of the places on the entry level side and have been working in partnership with the contractor to get folks ready on the pre- apprenticeship construction site, and they have been a key partner in our training. i feel like when the time comes, as we escalate this project, both on the construction and one's it is completed, we will be able to have a number of folks prepared and ready to engage in these opportunities. thank you.

>> good morning. my name is olson lee, director of the mayor's office of housing. i will walk through the affordable housing section of the development agreement. the affordable housing section is broken out into basically two sections. one, the replacement housing obligation, since the development will be removing from the inventory units and also the question of the new affordable housing obligations. based upon the city's codes, cpmc will be providing funds per the city's ordinances, as well as through negotiations with the

department of planning and the mayor's office of housing, to provide funds for the replacement of both 20 residential hotel units that will be demolished, as well as five grand-controlled apartments that will also be demolished. these will be paid no later than the effective date of the development agreement. the calculation for the residential hotel units was done by the department of real- estate. as i said earlier, the calculation for the rent- controlled units were done by the department of planning and the mayor's office of housing. in addition to the future demolition of those units, many of those units were occupied. so cpmc was obligated to enter into a settlement agreement with all the households related to their relocation.

if this was a typical development funded with federal funds, they would have followed sort of the federal uniform relocation act and would have provided relocation payments, both moving expenses, move-in expenses, as well as up to 42 months of rental subsidy. the relocation benefits that were negotiated are the equivalent of 120 months of rental subsidy. and during that time of negotiations, they had up to six months of free rent. all of the occupied units, the households have been successfully revolt -- relocated at this point. in terms of the new affordable housing obligations, we looked at the affordable housing obligations in two ways. one, through the jobs-housing links program, and also through the van ness sud residential

requirement. in looking at the jobs-housing links program, one of the things was clear, that we were looking at this on a hypothetical basis. since medical institutions are currently exempted from the jobs-housing linkage program. we wanted to get a sense of what the fee would be if we applied this particular calculation. the hypothetical jobs-housing linkage fee for this project would have been nearly $13 million. what we did move to was to look at the residential requirements from the van ness sud. in this case, we wanted to look at what new residential would be required based upon the van ness sud zoning, and then calculate

it based upon that new residential requirement, and inclusion dairy unit requirement and an inclusionary feet requirement as the basis of our negotiations. out of the negotiations can this agreement. $25 million to m.o.e. f. funding to the 100% affordable housing developments. this would be approximately 145 units based upon an average subsidy of $200,000 per unit. this is units that typically serve people at the 50% the medium and the low, and often

serving people at much lower incomes if possible given alternative sources like rental assistance. or the city's local operating subsidy program, which we manage in conjunction with the department of health and human services agency. there would be an additional $29 million provided to moh for a new down payment loan assistance program for cpmc employees, earning up to the median income. based upon a maximum of $200,000 per loan, this would provide up to 145 loans. unique aspect of this agreement is that the proceeds from the $29 million that is being used for the down payment assistance will rotate in come back to the mayor's office of housing, which we will reinvest, not in a new

second mortgages, but into permanently affordable housing, that first category of individuals. we're basically using the money more than once. and that $35 million, as it is returned overtime, because it is based on a share of appreciation and repayments in the future, we're estimating will produce an additional 175 units, again serving that 50% median income and below area. the timing of the payments are based upon the affected data -- effective date of the agreement, and those are related to the two replacement housing fees. there is an additional payment made at the beginning of the construction, and then there are payments made thereafter until the full $29 million is paid to moh for the 100% rental housing.

there is an interest rate charged based on the cost of construction so that as the 7.5 payment in the per-share, it will be as large a larger payment in subsequent years. again, the goal of this particular fund is approximately 145 permanently affordable rental units. the $29 million provided to moh for this new downpayment assistance program will be targeted, again, to cpmc employees earning up to 100% of the area median income. this is based upon our current downpayment assistance program that the mayor's office has managed for several years, based upon a prior general obligation bonds. it will be seeded with $5.8

million per year at the beginning of the construction. again, the delayed payments will be charged a construction inflation interest rate. and if the funds are not utilized by cpmc employees by the end of the eighth year, any remaining funds from the $29 million will be swept into moh's account for the purpose, again, of building permanently affordable rental housing. as i described earlier, this is based upon our current downpayment assistance loan program. one of the exceptions is the size of the second is slightly larger. 2 it is 00,000 versus our current limit of 100,000. as typical of our downpayment assistance programs, there is no debt service required during the time the owner owns the home.

again, this is not unique to this particular downpayment assistance program. it is something we do for both -- all of our downpayment assistance programs, because it increases the level of affordability. what happens is upon sale, the owners pay -- repay the loan plus a share of their appreciation. in this case, the funds would return it to moh for the purposes of subsidizing affordable rental housing. based upon a $200,000 maximum, we would be able to provide 145 loans, and this would increase, of is the, the level of homes affordable to individuals earning 100% to median income. based upon our experience at moh, many households, even

households below 100% of median income, are able to find and purchase housing at less than at the maximum loan amount. so the 145 loans is actually a very conservative number, and it is nice to be able to report that in our current program, even though the maximum income is also 100% to medium -- median income, on average from our home buyers are around 80% to median income. so we are actually seven people not at the theoretical max but throughout the income -- actually serving people who were not at the theoretical max but throughout the end come stre -- income stream. this shows the timing of the money going to moh. the red line shows the funding for the rental assistance program for our 100% of

affordable, targeted at 15 -- a 50% to median income. the blue section shows the downpayment assistance loan initiation. so we are assuming that we will receive both funds, the initial amount, both for the 100% rental and for the down payment assistance, before year 6 on this graph. it is anticipated that the construction of the center will occur after we will have received all of this money. in addition, it shows the additional $35 million that will come back to moh starting in year eight. that is, again, theoretical. we assume that on your age, because that was the average holding period under our

current downpayment assistance loan program, the people on average kept their home for eight years before they either refinance or are moved. it could be earlier or later, but that number, $35 million, reflects the original $29 million plus the city's share of the appreciation. again, we will put that into the 100% affordable housing, serving people primarily at 50% of median income and below. >> hello again. we're very close to the end. moving to transportation in the da. it most of the issues involved around the cathedral hill campus. the location in the center of the city, a location well-served by transit is generally a very good thing. however, not surprisingly, an additional investment in muni service will be required to carry additional passengers

going to and from the cathedral hill campus. this is reflected in the first of the two funding obligations you see on the sly. these are $5 million toward the van ness and geary butts rapid transit projects, which intersect at the cathedral hill location. a $10.5 million paid by cpmc to mta in lieu of the transit impact development fee, which is normally paid by development projects, cpmc has a non project -- nonprofit would not ordinarily have this fee, but they are paying it in to mta. in addition, cpmc will pay a parking surcharge of 50 cents off-peak and 75 cents peak on all entries and exits to the cathedral hill garages. your doubling those numbers burkhart a $1 or $1.50 per car. this will go to the hospital and

medical office building. it will also serve to raise an additional estimated $500,000 per year, or $5 million over 10 years, to help mta service. last but not least, cpmc will provide a one-time payment of4 of00,000 to mta to support planning of improved bicycle access around cpmc campuses. turning to pedestrian safety and streetscape improvements, let's start with the cathedral hill campus in the tenderloin area. cpmc will provide 9.3 $5 million total in this area. about $8 million will go to the first three items on this list. pedestrian street lighting in the tenderloin as well as increased safety for sidewalks. the project to change the some streets from 1-way to a two-way for traffic and pedestrian safety issues.

in the tenderloin, cpmc will provide a $200,000 grant for a safe passage pilot program. this is characterized in your paperwork. it is a designated pathway, not through the tenderloin into bart, but between the various schools and after-school programs in the tenderloin. that is what it is 4. in the lower polk never met, cpmc will provide a $100,000 grant to help provide a cbd, and a $1 million seed grant to the cbd if it is formed to help make improvements in the area. moving to the davies campus area. cpmc will be obligated to build a list of improvements around the campus. this list is over and above the improvements that are directly connected to building the new building. that already has some street

trees and sidewalks. these are over and above that. the estimated value of these is about $475,000. it is a similar concept at st. luke's campus. the total here is $3.3 million. you see the major components on the slide. again, this is over and above the improvements that are directly associated with building the new buildings at st. luke's. and then, lastly, it just to sum up before we move on, the development agreement, we think, does a lot for the city. i want to go over some of the major points. it built two new seismic -- seismically safe hospitals. it prepares the city for federal health care reform. it secures the future of the st. luke's. it provides for a strong local hire on construction and use jobs. in addition to the more than $1 billion in ongoing health-care

services over the term of the agreement, the agreement also provides for a commitment of $117 million in community benefits, including, as you heard, $62 million for affordable housing. with that, i end the presentation. with the president's permission, we have a member from cpmc to make a project presentation. after he has done, we are available for questions. or if you go to public comment, we can take questions afterwards. thank you. >> good morning. i am the ceo of cpmc, and i am joined by a member of our medical staff from st. luke's hospital. thank you for your time and for our opportunity to talk to you about our plans to rebuild cpmc.

we want to thank and commend the staff for their leadership and partnership and helping craft this agreement that meets the needs of the city and will allow us to move forward with the $2.5 million project to rebuild two state-of-the-art hospitals in san francisco. after years of visualizing this project, months of outreach meetings, never discussions, and some very difficult negotiation sessions, we're happy to be at this phase of the process. this project really represents an unprecedented commitment by any health care provider in the entire country, and it reflects our mutual shared interest in rebuilding cpmc and creating a partnership with the city that will move our health-care system into the future and enhance the care for anyone who works here. as we all know, health care in this country is undergoing significant changes in health care delivery must become more efficient. we must be ready to respond with a system that will improve

access, outcomes, and affordability. we are proud that we have been providing health care in this city for more than 150 years. while most of our hospital facilities do not actually dates back to the 1800's, it is clear they need to be rebuilt to meet the challenges of 21st century health care. in addition, state law requires that all hospitals seismically agreed facilities by 2015, which is why we have been working so closely with the city of san francisco. we're close to last for close to 10 years to get our hospital rebuild project to the point we are finally at today. the new hospital is not like a commercial or residential building. hospitals are incredibly complex facilities that take years to plan and years to build. we're fortunate to be part of the sutter health network which has been investing in communities throughout northern california to build new hospitals. in addition to these two

hospitals in san francisco, sutter has already built or is rebuilding new hospital in oakland, peninsula, santa rosa, and sacramento. their commitments to investing in the communities it serves and to the overall fiscal health of the network enables us to make this a $2.5 billion investment without any public subsidy. i cannot emphasize enough that rebuilding cpmc will have tremendous benefits for the overall health care delivery system here in our city. the project will actually double the number of earthquake-safe beds here in the city, inject $2.5 billion into the local economy, create a 1500 construction jobs, guarantee more than $1 billion in community benefits, to begin the increase our ability to work with the city to care for low- income and underserved san franciscans, including as you heard, 10,000 new medi-cal

beneficiaries, which will be roughly a third of all the new recipients under health care reform. we will provide a $20 million endowment to support community care renovation fund, to support and approve these services of community clinics, and other social-service organizations. we will invest $62 million in affordable housing, $20 million to support transit improvements, and $30 million to improve pedestrian and never the safety. i also want to emphasize our dedication and commitment to the success of our st. luke's campus, where we will be investing $275 million, which you have not heard about, to build a new hospital, a larger emergency room, and we made a commitment to operate the hospital for 20 years after it opens. this plan will ensure continued and improve health care access in the mission district in the southern sections of the city. at davies, we will continue our pioneering se