the first cocktail week. it was a great success. it was definitely -- it definitely generated more business and foot traffic across the noted bars in the city. anytime we have a meeting that attracts hundreds of people, it does have an impact -- a direct and significant economic impact on the businesses that get this foot traffic. i want to thank you as a member of the industry for that, and also for upgrading -- raising the profile of cocktails. i am also very interested as a member of the industry in responsible sales and service, and always keeping irresponsible sales and service model. when the adult come out to drink, it is a lot more fun than the rioting. i would just ask you to make

sure that in the city, were responsible sales and services is a tremendous issue -- where are responsible sales and services is a tremendous -- where responsible sales and services is a tremendous issue, that is part of your training when it comes to interacting with other businesses in the district, being assured that we have responsible operators. >> these are things we talk about a lot, but we are not teaching anything like that. we are a public-facing nonprofit 501c3. we are not a trade organization. i am a national embassador of the united states bartender's killed. i was former vice president of the san francisco chapter. through them, we definitely approach those things because that is a trade organization. we talk about sales, storage

chip, and service. but the barbary coast conservancy is more about bringing the industry people to the table to voluntarily educate the public about things like responsible drinking more so than responsible service. we already tried to practice that on that side. the conservancy is more about getting everybody together and teaching them what the difference between rye whiskey and vodka is and how you would mix that, more of the culinary and cultural appreciation of beverages. i think on that level, our message is very much on immature and developed -- on a mature and develop stage. we do not develop shot in beer specials and street parties. i guess we do develop parties, but it is about more of immature message about appreciation and responsibility -- more of a

mature message about appreciation and responsibility. >> i appreciate that level of awareness and education. the young learn by following -- >> exactly. that is the kind of message. the state of today's cocktail culture is at the same level as our food. i do work just like the top shops in the country. i get flown around the country to speak and perform and present, to teach about cocktails', beverages, and spirits, very much the same wish of stew. so do my colleagues. among those levels, we want people to understand that the cocktail holds this place on the same stage as wine, coffee, and beer, and tea and other non- alcohol drinks, as food, as farmers, as the other players in our culinary culture around the

bay area. i guess the ultimate goal of making you aware of what we do here is so we can engage each other in the processes involved -- the business processes involved in our industry. we want to be able to help as a conduit for the better, more successful supply of entrepreneurs in the bar and restaurant business around the city in order to grow that. our whole thing was not so elixir could get better. it was so san francisco could get better, so simple siskins could support what we were passionate about on the broader level. that is what i wanted to get word out to the city government about who we are and that we exist. we now have a home and are going to be working diligently towards

our fifth anniversary this coming september as the biggest san francisco cocktail week yet. we hope the city will embrace that and help make it bigger. we plan to work with the city and the golden gate restaurant association. the golden gate ships will focus on the food. the craft brewers association will focus on beer week. the vintners and everybody else -- we are trying to tie it all together to make more business happen. commissioner o'brien: maybe this is off the beaten track a little bit, but just from the point of view of us being a small business commission and constantly trying to make the city an easier place to do business in, what do you think is the situation with trying to set up a new bar or saloon type

of business in san francisco as far as the process of pyramiding and stuff like that? i am curious to get an answer from somebody i have never met before who might be able to give it to me from the trenches. i was just curious to know. >> i was excited to hear the city was working with the mayor's office to try to bring all of those offices together to make the permiting and that entire step-by-step process easier. when i did it seven years ago, it certainly was not easy. i had multiple points to look to to try to figure everything out. one office did not know what the other office needed, or that other offices existed. that was difficult and i had an m.b.a. commissioner o'brien: that probably made it harder for you. you were looking for rational

logic and common sense. [laughter] >> probably. i also have to say when i started my bar i had been in the business over 20 years, on and off. then i went out and did my mba and came back thinking -- very much bucking my mba mentality to say i was going to start a bar, a small business. it is not what i thought i would do during the prior years. i also arrogantly thought i could do it quicker and easier than anybody because i had the money and the education and more experienced outside of the industry, and had worked in silicon valley and around the world. it still took me the average 3.5 years to turn a profit. i still struggled with every bit of difficult pump in the road

that the city and the economy through my way. i still feel this is a very difficult city to do business in, a very difficult city to make money in. as i look to my next venture, i have to say i am looking at oakland. i am considering some stuff in san francisco, but i am looking in oakland where things are cheaper. i am looking at san diego. i am looking at reno. those are mostly driven by the fact that it is too expensive to do business in the city and try to make a profit, and i am in year seven. thankfully, i am alive and in year seven. i have turned this into one of the top bars in northern california. but if i did not, i know plenty of people are just kicking along. commissioner o'brien: would that be -- i am sure one of the reasons you make that statement would be because rent is so expensive in san francisco. >> my rent is not bad because of

fortunately took advantage of the sba 504 program and on my property. that is a rare and random situation to be able to fund a bar where the property was for sale as well. commissioner o'brien: it is great and interesting to hear that. what would be the things that we have control over that we could do to make it cheaper to do business in san francisco? >> well, i think the tipping exception on wage expenses, comparatively speaking across the industry, is a big blow to the industry here. the non-tip exemption on minimum wage on tipped employees, the health-care expenses. i would say since i opened, workers' comp has gotten better. workers' comp was a bare seven

years ago. it has definitely gotten better. those are some of the things, again -- i am about to go back into this process. there is a chance that i will open again in san francisco. when i do, i will have to go through this process again. that would be a better time for me to engage you on that level. commissioner o'brien: i would really like to hear that -- hear how that goes. >> after seven years, i look back and i say that i pay my taxes and try to avoid the government as much as possible. and things roll along in my business pretty good. i have learned other lessons that are obstacles to making money, too. >> i just wanted to say we had a great meeting, a great conversation. we met shortly after the veto for the alcohol recovery fee.

i think. i wanted to make sure the commission was aware that when we went through the alcohol recovery fee, we talked a lot about, in our comments, the impact to our arsenal -- parties and all -- artisanal breweries. this again raises a profile to a culture, an element that really assist our economy. these are a lot of small businesses who are engaged in the artisanal spirits. i definitely want for our office to be able to provide support in ways that we can, and for the commission not to know about it. >> i just want to add that in

the coming year one of the things we will be focusing on as a commission is the differential between the cost of operating in san francisco versus the surrounding jurisdictions. it is of great concern, the cost -- the cpi increases to all of the labor costs. at what point -- how far will that differential go, and at what point should tips be considered as part of wages? you know just the west coast states are the only states in the nation that do not have an allowance, a tip credit of any kind in the minimum wage ordinances. we will be as a commission examining that. >> those are things i definitely would keep an eye on. health care -- i have 12 employees. if i want to open another bar, i am going to have to create an

entire new company just to avoid the expense that is crushing so many restaurants in having to pay for that health care. >> and that is not the intent of the legislation. >> but it is the effect. >> it is. >> or the driving of people out of the city, good people in the city. i have been approached by colleagues in the industry asking me not to leave the city and start a business in another city because the city needs people like me, and those of us who have built san francisco cocktail. >> as to professionalize the industry, this is professionalizing what used to be in a profession that was for people who did not do other things. it was not a professionalized industry. it is now. i believe that bars, to attract good talent, have to offer competitive wages and benefits,

working conditions. we have to do that. fortunately, with the new health care law and the small business tax credit for health insurance, that will help us going forward, offering good benefits, and respect the intent of the law, which is to provide health care for all working americans. >> i agree with brian's comment -- with commissioner o'brien's comment. but i think one of the things that would really be beneficial to the industry is engaging the owners and general managers in a conversation that make them aware of those kinds of credits and those kinds of programs. because people -- now i am stepping out and in trying to do things. but if i were not, i would not know about some of these things. i still do not know about a lot of them. the general feeling for most owners and general managers is

do not touch the government at all costs. the further away you can keep from dead, the better off you are going to be. if you can take an approach of reaching out and saying, "here are the programs meant to help you, and in a very simple format, here are the qualifications, and even if this works for you or it doesn't" -- programs like that would be beneficial. people would think there were some programs costing them money, but others that how. i do not think most people know that. president riley: thank you. >> whatever you don't understand, we have a small business assistance number. >> maybe it's a communication thing. it is easy to say this, but to leave your office and go there -- i do not know the answer. i do not know the solution.

i am just throwing that out. i am trying to think of ways to make that work. >> you can call. >> we can use the boothby center as a place where we can invite bar and restaurant entrepreneurs to come and have a cocktail and meet the commissioners, meet the heads of these offices that are doing these things, and have brief presentations our conversations about how they can improve their business by being aware of what is going on. president riley: and we would love to do that. we will work with you on that. >> thank you. [laughter] >> , and we will have a conversation over a cocktail. >> thank you. and thank you for waiting to provide your presentation. >> no problem. thanks for having me. i will stay in touch and see where else we can do stuff. that was really the point it was so you know who i am. my contact info is on that

sheet. i can be reached by e-mail. let me know if you have any thoughts or plans, or how we can do anything. >> will do. >> thank you very much. >> happy holidays. [laughter] president riley: we don't need public comment on this. >> seeing none, a public common discussion is closed. next item: please. -- seeing none, a public common discussion is closed. next item, please. >> item 9, the discussion and possible action to make recommendations to the board of supervisors amending the public

works code to establish regulatory controls for the discharge of fats, oils, and grease into sewers. it provides prohibitions, limitations, and requirements for the discharge into the city's sewer system by food- service establishments. you have an explanatory document in your packet. it says draft on it, but that is a glitch in the wake it printed. this is what was introduced at the board of supervisors. last month, we had a presentation from the puc, at which time the commission made a recommendation to approve. that ordinance was introduced by supervisor mar. no changes were made. the reason this is on the agenda is that now that it is at the board of supervisors, the commission has been referred this to make a recommendation to the board. >> we heard this last month, so do we?

>> this is just a matter of formality since there are not any changes. we just wanted to make sure, as a matter of formality, we dealt with it appropriately. the commission just revises its recommendation to the board of supervisors so we can draft that recommendation. >> i support this. >> are there any questions? >> it is my understanding that the restaurant association had no objection. >> right. commissioner kasselman: i will second. >> i think what we may need to do is take a moment to wait for commissioner o'brien to return to the dais. >> he is still here. >> show we tete-a-tete go to

minute break? -- shall we take a -- >> two-minute break? >> commissioner o'brien? we are waiting for you. >> a quick recap on this item is that what we have before the commission is the fact, oil, and greece legislation -- grease legislation. there have been a change is since the presentation you had last month. last month, the commission made a recommendation to the department for approval on this. the legislation has been officially introduced. so as a matter of formality, it is before you to make a recommendation to the board of supervisors. >> we have a motion from commissioner riley to take the

recommendation made to the puc and forward it to the board. we have a second by commissioner kasselman. >> those in favor? >> the motion carries. >> item 10, stuff report, discussion, and possible action to make recommendations to the board of supervisors on our see zoning district use changes -- on rc and zoning district these changes to amend rc-3 and rc-4. there is a document in your packet entitled "street frontage s ii." i also included a map. the director asked me to do a step report and i have something for the monitors, so i will --

the director asked me to do a staff report and i have something for the monitors, so i will step up to the podium. commissioners, currently, and i will refer to this map briefly -- >> there we go. >> ok. rc zoning districts are a zoning classification primarily in the northeast sector of the city. there is a lot of concentration in the tenderloin, lower nob hill, into knob hill, along venice's avenue -- venice avenue. there are other isolated pockets in the rest of the city, but

they are limited. commercial uses and rc-zoning districts are currently subject to regulations in the nearest nc district, such as the polka neighborhood commercial district, -- polk neighborhood commercial district, noe valley, and others. there are pockets that police south of market. the blue ones refer to the polk ncd. what you have is a splattering of zoning controls that are hard to interpret. there are also technical issues with the code. for instance, the van essess ave and a lot of the tenderloin

currently refer to the polk neighborhood commercial district, and for unique reasons, all restaurants, self- service and full-service, are banned. you have a large part of the city were currently you cannot do preferred uses, or uses that would normally be compatible. the planning department has been studying methods to streamline and regularize the controls in the rc district and has been looking at a couple of different options. one of the reasons that i am here is because the other day we did not really know how -- there are three different proposals to address this issue. there are two different ordinances' sponsored by supervisors, and cleanup legislation the planning department has been working on. i will try to explain it so it makes some sense. one proposal was to use c2

commercial zoning controls and all the areas reference. that would permit a large number of uses that may not necessarily be compatible with some of the neighborhoods in their -- there. in sutter and parts of polk street, it was one size fits all that did not really work. another proposal was for nc3 districts. i just wanted to refer to you what those would be. if you look at the3 -- the nc3,

movie theaters would be permitted by right. conditional uses such as adult entertainment, large fast-food restaurants -- as would all be conditional. i apologize for trying to make sense of something that cannot really be done in three minutes. one of the things that we found out, working with staff, was that conditional use for formula retail did not currently apply to these areas. one thing we have been consistent on is encouraging staff to use formerly-use retail controls. staff worked directly with the

planning department legislative sponsors and really insisted upon conditional use requirements that should be in effect throughout the rc district. the staff worked with stakeholders such as livable city, the supervisor's office, and the planning department has determined -- in your memo, you noticed they would like to apply those nc3 district controls and ad formula did -- formula conditional use requirements. we are not sure which ordinance will move this proposal forward, but we did want to let the commission know that staff had worked on this issue and that the current proposal from the planning commission that was approved would be to apply the nc3 controls with a few exceptions. liquor stores would be permitted use. drive up facilities would not be

permitted. there would not be any drive ups or automobile garages walkup facilities such as service windows would be permitted by right or by a conditional use. what's the colors have determined is that these are appropriate controls. if you have questions or comments, i may be able to answer them for you and will step through your desk. step to your desk. >> do we know which ordinance that is going to move this forward? >> not at this time. there was a rush of activity in this last week, and working to get our input in the offices and

knowing what the commission's general direction has been in these matters, to get that hard -- to get that heard, we have worked hard. chris has been following this much more intimately than i have. supervisor mirkarimi's legislation may have dressed -- addressed some of this. >> the street front legislation would have referred to the nearest nc3 controls. changes, largely technical, were necessary to do that. we also find out that the controls applied currently -- the zoning administrator interpreted those especial controls rather than use controls. -- as special controls rather than use controls. there is also a separate ordinance that was going t