percentage of gross revenues. but that everyone was more comfortable they could get close to the mag and we wouldn't have to come back and say we need to re-evaluate this in the future. commissioner avalos: thank you. supervisor elsbernd. commissioner elsbernd not so much a question as it is a complement. if you read or anybody read the articles from the "l.a. times" over the weekend about all the horrendous bidding process that is happening down in l.a.x. for the concessions down there and how it goes on and on and on and on, i just say to any airline watching, anybody considering do we want s.f.o. or l.a.x., watch the process here, see how it works and your answer will come to you quite quickly. >> thank you, supervisor. commissioner avalos: supervisor mirkarimi. commissioner mirkarimi: thank you. earlier this year we had a conversation with director martin and the question came up

and wasn't answered at the time and said he would get back to us is this is considered san francisco property, correct? so that when businesses are contracting with the city, the question was is, what level of compliance was there our work force for source agreements for these contracts extended on airport property? so in this particular case, how would that play itself out in terms of their requirements and compliance in hiring people as it sees fit with our local first source hiring requirements? >> if memory serves, i know that we looked at the extensively during the budget process. i do think something was produced. i will make sure that whatever it was we gathered i get to you. my recollection is that the first source hiring requirements are part -- will be part of these new leases as they would be with any contract. we would use the language that

the city requires us to use with any new contract. so the first source requirement language would be a part of these -- is a part of these new contracts. commissioner mirkarimi: can you just confirm that this is exactly the automatic sort of part of your system as well, too? there had been some confusion in the conversation if that was really the case or not. >> i will confirm it. my memory was that we -- the language, first source language is required to be included but there were some questions about the reporting that happened after the fact. i will confirm that for you. commissioner mirkarimi: thank you. appreciate that. go to public comment. commissioner avalos: we can open this up for public comment. these two items. item number and 9. two 8 an 9. we'll do two minutes.

>> budget and finance pauler paulsen. i see they'll be leaving on a bart train, ♪ and i hope that it's a good prize oh, i know you like to ride the bart train there's so many stations you can be found and the price is great all around i know it will be good all the time you're leaving on a bart train and i know the price is going to stay the same oh i know you like to ride the train and you can be found in every station along the way and i know you're going to make it good today and come fly a good concession

price come fly come fly away it's going to be great you're going to fix it the price because that's going to be done today come fly with me let's fly with me let's make pack it up and let's pack the price up and fly away in city land it's going to be a good concession price today and we're going to fix it up and fix it up the way the city way come fly with me come fly a good price for this concession item nine and eight today ♪ commissioner avalos: thank you. if there are no other members of the public who would like to comment on these two items we'll

close public comment. and colleagues,. >> motion to advance with recommendation. commissioner avalos: ok. we'll take that without objection. those two items will go to the full board with recommendations. mr. young, if you can call our last item, number 10, please. >> item number 10, resolution authorizing the lease of 1,426 square feet of space, a license of 2,400 square feet and the shared use space of 1,360 square feet to the elias m. nasra and family partnership, california general partnership, and city hall low created at 1 dr. carlton b. goodlett place. commissioner avalos: welcome. >> welcome back. members of the committee. assistant director of real estate. so i want to give you a little bit of background as to how we arrived at what's before you today. back in early 2007, mccall, who

is operating a mobile cafe operation in the north light court terminated their lease. following that termination we decided to pursue a social enterprise and cafe operation in the north light court. and this board approved a recommendation to have juma ventures operate that which lasted from spring of 2008 until, unfortunately, spring of 2009 when their financials were just not performing at all. so they elected to affect and early termination. there was a penalty associated with that early termination in terms of forfeiture of their security deposit. which actually made the city financially whole until currently. now it's in agreement that results from a competitive solicitation process an offering

of one operator for both the north light court and the ground floor cafe. we are not recommending the current operator, chaun su park and i'm personally handling discussion was her counsel to ensure that our transition to a new operator should what's being presented is approved is smooth and any funds potentially owed for unadvertised value of improvements or other things associated with her initial lease are fairly lined out and she's compensated accordingly. those discussions will go on a separate track add mrltively in accordance with her current lease. the item before you today is simply the new lease. what i'd like to do is introduce your new building manager who we promoted back in december of 2009, rob ryder, don't know if you had a chance to meet him. he will provide you with the details of the current lease

under consideration. commissioner avalos: thank you. mr. ryder, welcome. >> thank you very much. the lease before you is a five-year term lease at $1,500 a month or $18,000 a year. the -- it also has a c.p.i. index in terms of increases. the operation of the north light court lease and ground floor lease will be as john updike mentioned, a unified operator. the cafe on the north light court will be offering other amenities, sundries, a wifi service, paper magazine, period cals -- periodicals, a small flourist as well. under this lease the operator will be using sustainable foods and healthy food choices, compoastable utensils, etc. if you have any questions, i can answer those now. >> thank you.

>> mr. chairman, members of the committee. as has been stated this was an r.f.p. process. the winning recommended bidder is elias m. nasra and family partnership. you can see on page 3 of our report in table one their rental bid amount of $1,500 or $18,000 a year. we recommend that you approve this legislation. i would point out that if you look over the past several years, actually this $18,000 represents an increase of about $9,000, $9,796 more than what we had been receiving in prior years from the nonprofit. that's simply a fact based on the r.f.p. process just by

itself we would recommend approval. commissioner avalos: thank you, mr. rhodes. supervisor? commissioner elsbernd a couple questions. should this get approved in the normal legislative process, the new operator would take their place on what date? when would people be purchasing from somebody new downstairs? >> approximately end of october, first of november is likely our transition date. commissioner elsbernd then the budget analysis report did not have this. not that they should. are there any existing facilities that the winning -- the proposed contractor currently operates that would be examples that we would know? >> yes, good question. currently the family operates the facility at the courthouse. also recently awarded the operation in the lower level cafe at the main library. which is -- has been a

successful venture there as well. commissioner avalos: if we approve that, was that early this year or last year? >> i believe it was early this year. commissioner avalos: just a question i have. i know the current leasee downstairs has been concerned about -- you referenced them, mr. updike, in your presentation that there's still some contention about capital improvements that have been made there and whether there's going to be -- you are working that out with your counsel you said. could you say more about that? is it something you can talk more about? >> the issue is simply the initial cost to acquire furniture, fixtures, and equipment upon her assumption of the prior agreement between l. and l partnership who received

the first award for operation of that ground floor, and then she was assigned that particular right. and acquired some restaurant equipment at that time. so we are simply negotiating whether consistent with the lease there might be funds owed as a result of an inability to amortize that value of those improvements. we believe that sum will be relatively nominal because the lease has run out for its current term. and any extensions available is currently on a month to month situation. we are going to do our utmost to be as fair as we can for her. commissioner avalos: thank you. commissioner mirkarimi: one question was answered regarding other businesses f. there were others the nasra family has facilitated. it's a good answer. thank you. have we ever required there to be a uniform vendor between the

north light court and downstairs as well? or is this the first time? >> since the remodel, yes, this will be the unified operation and it will solve the logistical and competition issues we have had in the building. we are looking forward to having unified operations. commissioner mirkarimi: it sounds cleaner and more fluid. what is the savings in that regard in us being able to link up the ground floor and the basement? >> i think the budget analyst hit the nail on the head in terms of the revenue we are expecting. i think it's reflected in the response when one operator has the ability to capture the entire marketplace for food service in city hall. it's a pump in our revenue. there's some, i think, efficiencies that are gained by sharing the furniture and fixtures that drive both operations. so there's some efficiencies by

the operator. that's reflected in the revenue paid to the city. commissioner mirkarimi: there was also an attempt a few years ago after the remodel to restale san francisco-only frod -- products in also north light court s there any discussion about resurrecting that as well, too? >> i would simply say informal, we have tossed that idea around over the last couple years since city store ceased to exist on that area of the north light court. this begins to bring that concept back in terms of having a little bit of retail beyond the existing cafe operations. i think this gives us perhaps a chance to test some things out. commissioner mirkarimi: the current operator in the basement, were they not able to provide, i think, what would be the hopeful sort of answers to running both ground floor and

basement operation? >> i think the ratings included in the package would speak for themselves. we did have a robust group who assisted rob in vetting the proposals and scoring them. so we felt comfortable with the committee's recommendation and their scoring. it really wasn't -- quite a large spread from first to final place. a commissioner mirkarimi: thank you. commissioner avalos: just a question, mr. updike, i know one issue with the north light site is that it will be intermittantly used. how is that going to be accommodated for in terms of any capital improvements? if there's not going to be a kitchen in place, how will that function with the downstairs kitchen? >> the north light court operation is to retain its mobility so we don't get in the way of special event revenue which is so crucial to the operations of city hall. we worked closely with the

special events group to assure we got a process that's solid for any early close up of the operation so that the event staff can move in and mobilize. that's not unlike what we have done before when both mccalls was operating and jumo was operating. we had a smooth process. commissioner avalos: storage as well for the vendor? >> yes. there is storage. that's part of the premises description in the package. commissioner avalos: food prep? >> will happen downstairs. >> we believe so, yes. commissioner elsbernd one more question. in the past, i'm not sure if it was executive orders or what the press release or what the mayor has talked about, mandates about, no soda machines, things like that. are there going to be restrictions on what this vendor is able to sell and what they are not able to sell?

>> yes. consistent with the executive director directive relative to healthy foods initiative, actually the existing vendor has working with the current vending machine operator, has changed the product in the lower level. if you take a look there are new healthy food options. that are in conformance with the directive. and our incoming operator has indicated a willingness and openness encouraging -- commissioner elsbernd will super ayesor campos and i still be able to get the diet coax downstairs? >> yes. commissioner mirkarimi: that's so much healthier. commissioner avalos: i like the sound of diet coke opening in the board chamber, actually. ok, we can open this up for public comment. any member of the public who would like to comment, please come forward.

>> ♪ north to the north light court we're going to fix it up north to the city hall north light court we're north we're going to fix it up north to alaska we're going to north we're going north to fix it up you're a smooth operator smooth operator north in light court north fix it up now fix all the sale you're a smooth operator smooth north court light operator fix it up and north end sales fix it up today crazy crazy for wanting better mental health crazy crazy to want to fix it up

crazy to think that this building could hold you i'm crazy for crying and crazy for trying and i'm crazy for loving and wanting to fix it up for you this court this place was always on my mental health mind it was always on my mental health mind tell me tell me you're going to make it better all the time please fix it up fix it up make it real great fine today ♪ commissioner avalos: thank you very much. we can close public comment. did mr. rhodes talk about this? you did.

so colleagues, can we move this forward with recommendation? without objection. very good. i believe that is our last item. so we are adjourned.

>> that is right. exactly right. or twice a week. hi, everyone. i'm executive director of the human services agency, the agency that administers the jobs now program, which we are here to talk about today. a month from now, the lesson a month from now, if congress does not enact -- does not act, this jobs program is going to go away. it will go way across the country as well. we jumped early into this program on the heels of the federal stimulus act in february. the act allowed for 100% federal reimbursement of wages to

employers who hire individuals through this program. the idea in san francisco was threefold. first would be to get people back to work, which this program has done with a wild success. the second is to help businesses small and large to either maintain or grow during this time of economic recession, and last is to stimulate the local economy, which we have done through the wages. $55 million in wages are projected to be reimbursed through the end of september of this year, and that is money going right back into the local economy. arguably one of the biggest successes of the federal stimulus act is this program nationally. today, what we want to announce, and the mayor will take the lead on this, is a new campaign or a final push to get the federal government to act to extend this program. $2.5 million will extend it for another year. we will keep the 3000 people who have been employed in san

francisco through this program on the job. the last day of august, we had to suspend our program. we are no longer enrolling new employees. we are no longer enrolling new employers. for us, we are at the status quo. we have a month left. we're working hard to get our folks ready for the transition. we hope to not have to do that, but we are preparing for pretty bad news. today, final push. the mayor will talk a little bit about the program as well. >> thanks, and thank you all very much for taking the time to be here. i actually just left senator feinstein, who has been a champion of this program. the reference that not to impress but to impress upon you that we need all the friends we can get all the champions we can get to extend this program. 3820 families are being served by this program. these are families, many of

which -- close to, in fact, 1000 of these families were on welfare, and now pulled out of welfare and have the dignity of a paycheck and the dignity that comes with a paycheck. when they come back home to feed their family. that is not a rhetorical line. that is not a line just to place some politics. that is quite literal. this program, arguably, is the most successful stimulus program in the united states of america, and i can back that up. this is a program that hires from the private sector does proportionally and benefits if the private sector does proportionally. this is a program that helps small businesses. for all of the rhetoric coming from washington, d.c., and sacramento and up and down the local municipal calls up and down this state and around the nation, here is a program that works. this is an interesting fact that underscores it -- congress,

wisely and appropriately extended unemployment insurance. what is unemployment insurance to a family in california? it means you receive $450 a week. not to work. you are looking for work, but you receive a $450 check a week to work. congress, wisely, extended that. a lot of republicans opposed it because they said we needed to find a way to fund it, but in principle, they understand the importance of unemployment benefits. here's a program where people in the trenches receive $447 a week to work. let me repeat that -- we can hand out $450 a week not to work, or 470 -- $447 a week to work. we can hand out $447 a week to work for those that needed the most -- people with kids -- that

benefit those that need those employees the most -- small business -- to go out and create wealth and opportunity and stimulate our economy. it does not get much better than that. it is beyond mesmerizing, and it goes to my frustration with the extraordinary lack of leadership in this country right now on this issue of jobs, the rhetoric aside, the lack of leadership that the fundamental fact has been ignored by elected officials. this should, more than anything else, drive people through the roof. you could pay people to work, or you could pay people not to work. if you pay people to work, and by the way, none of the folks you see right here want unemployment benefits. they all spoke eloquently when they were here, and that is just a small sampling of thousand- plus families represented right there are people who want to keep their jobs that do not want an unemployment check.

they want to go home and feel good about themselves because they worked and have the dignity of a day where they feel like their life is moving in the right direction, not stuck in neutral. but congress is not acting. the house has twice passed this. nancy pelosi hast was processed this. twice it has passed. the president and his staff -- and trust me when i say we have talked to all of them directly -- say they will sign this absolutely. only thing that is stopping small businesses from getting the benefit, families from getting the benefit, and individuals the benefit of the dignity of work is the citizens -- is the senators and politics in washington. you should jump up and now when you find out about a program like this that creates a direct

jobs, that directly helps not just governments, but the private sector. 800 employers are part of this program in san francisco alone. 20-thousand-foot -- 20,000-plus people are about to lose their jobs in the next few weeks if we do not act. this is a big deal. look at the faces. who is represented there? 70% minority. african-american community, the latino community, and the asian community where unemployment rate is exponentially higher than the state and federal average and even our local average. again, if it is all about rhetoric and politics and positioning, then support the status quo. if you believe in jobs and the private sector and the dignity of work than you want to create real opportunity and real wealth and real economic outlook that stimulates the community, then extend this job program.

i hate to be so aggressive. that said, here is a study that came out that basically said exactly what i have just said and what we have been saying. it is from the center of budget and policy priorities. it's a walking away from a win- win-win -- it says walking away from a win-win-win. reduce the cost of government, increases economic growth, and private sector development, and creates opportunity by reducing the burden on the federal government with unemployment benefits. nothing is, to me, more obvious than this, but obvious does not always make the best case for progress in a political environment where there is elections at stake. i want to thank everyone you see behind me for their leadership. millie activating the small business community because this