with that, i will >> are there questions from the committee? why don't we go to public comment? i had a number of speaker cards, so i will call the names. what i request for the speaker is to indicate your name when you are about to speak and to indicate whether if you are in support or against the proposal. come on upp. if i can ask you to move to the center aisle so that we can get through public comment. >> good afternoon, supervisors. i am currently the treasurer of the corporation. we submitted a number of cards

but all the speakers might not necessarily need to speak. i just want to give an introduction and then offer to have two community members speak and then two members of our board and if there are any closing questions or comments, i am also available. i would like to thank supervisors chu for the kind words. this has been operated by the noncorporate -- non-profit corporation for the past 50 years without the benefit of a professional for rosh operator -- bagara dage operator. this is operated under an zone management with any. -- without any fee or cost to the city.

these are direct employees of the organization, not the city. the other thing i would like to emphasize is that the carotid -- garage has broad support from almost every community organization and every business and community because the board tries to find the needs between deep visitors and business people and one that cothat come. we provide a gardener and we also monitor the restrooms in the park. this is not part of our normal these requirements. i would like to introduce two

other board members and then we have two committee members. >> thank you. >> good morning. i am one of the directors on the board of directors for the parking corp. and i am also the secretary of the corporation. you have heard a little bit of the history of portsmouth square. i want to talk about some of the things that we do. as you have heard, as directors we serve on the port without pay but we do spend substantial amounts of time working on various aspects and we had our community protest patience fund. this year we will have 50,000. we have a system where the

nonprofits can request sponsorship of programs or events that take place in chinatown for will been business and visitors to chinatown. -- or will bring the businesses and visitors to chinatown. to keep that, we have sponsors that included youth programs at the chinatown ymca, senior programs, and programs for chinese newcomers, self-help for the elderly, cameron house, there is help their, needless to say in the chinese new year festivities. also programs for hepatitis b awareness which is prevalent in the asian community. we have also sponsored women's

resource programs. we are looking forward to another 40 years of participating and making chinatown a vibrant community and continuing to bring in revenues for the city and county of san francisco. thank you. >> thank you >> i am the president of the portsmouth garage. on behalf of the court of directors, i'm here to urge you to agree to the terms and conditions that were accepted by the recreation and parks commission on december 21st of last year. the natomas success this is an indication that this is a good deal for the citizens and city of san francisco. -- and the unanimous success is an indication that this is a

good deal. this is a good deal for the city. this rochester tied town house and the -- this garage has served the chinatown and business communities. the money would have been used for the capital improvement. if you except that this lease, we will turn this money over to the recreation and park commission result that they can use it to give us some -- reduce its deficit. we will continue on been using public financing to do the renovations that are necessary. we're the only garage that is managed and operated without a

professional operator. we saved the city millions of dollars. as far as the corporations looking for private financing, this will also saved the city from going bond measure that would cost a lot more money. >> we are not able to extend any individuals during public comment. next speaker. >> i am with the asian weak foundation and i am here in the support of the ports myths -- portsmouth garage foundation. we are renewing the community partnership which is a win-win

for the city and county of san francisco, for the community. portsmouth square is where the great as the san francisco against. the first american flag was posted in portsmouth square. the first city hall was near as portsmouth's square. the first cable car squint through the area. on -- went through the area. ironically, when they moved out of the area, the chinese started to move in. the chinese want to redevelop it. in the 50's, as was talked about, that community got together and said that we will help this community come together and provide our own funding. over that time, the portsmouth

square grosz has been is support not only to chinatown but for local businesses, community groups, and a great supporter of the city with revenues going to the city over decades. i'm struck by the fact of the people of asian heritage on this panel. the pride is not just that patients are receiving the kind of representation that we have sought for so long, this is the fact that the asian community is able to contribute to the city just as this lease is contributing. >> thank you. are there any other matters -- members of the public that wish to speak on this item? item number9. >> i am the executive director of the chinese newcomers'

center. i want to think you for all the members who support this as an active member in the community. this is really a win when proposal for the city and for the community. chinese newcomer is a 40-year- old nonprofit. we have to then and longtime partner in serving the community. besides an active partner, they are also one of the best and they run an efficient and effective nonprofit that ic see. what i would like to look for is the next four years, there would be a lot more vibrant partnership between the community and serving the community in a platform that is across the city.

thank you. >> thank you. are there other members of the public that wish to speak on this item? seeing none, public comment is closed. the understanding is that it would extend the contract for 40 years. 100% of the net profit goes out to the city. that would be broken next to 85% going back into the general fund and 15% going towards the capital improvement fund, correct? >> that is correct, this is a new lease. >> with regards to the comparison on management fees, there are non-profit-run city garages, how does this compare with some of your for-profit run organizations? >> very favorably.

>> there is a $42,000 annual management fee -- annual management fee. and on top of that, there is some incentive fee. up to 15% can go to the operator as an incentive. that is capped at 100,000. at st. mary's, we have fees of almost 150,000. at the civic center, which is our for-profit mirage, there is no management fee but an incentive fee. -- for-profit garage. >> those that are for profit,

they tend to have management fees and also incentive fees? >> exactly. >> they can look like anywhere from 42,000 to 242,000. >> how many garages does the city operate? >> park and recreation has four subterranean and one parking lot. >> you mentioned earlier, there are three nonprofit at parks and recreation. >> there are two that we operate, union square and fulsome square. in addition, fifth and mission is operated by a nonprofit. >> do all of them contribute

back to the city or the neighborhood? >> this is actually the only one where there is a contribution made back to the city. >> a that is determined by the board? >> yes. the city does have the approval of discretion. >> i use that a lot. i was not aware it was a nonprofit but i think that this is a great model and a way to generate revenue directly back to the community. it is nice to know that has been going on for the past few years. >> thank you. >> regarding the one in japan town, do you assign one to the mta? >> yes come -- yes. >> you have some rights? >> yes, but we don't have any ownership.

this is a complicated situation but this was later after the garage was built in giving their rights to the plaza. originally, this was similar to -- public private open space. then it plazthe plaza was givene recreation and parks department to manage. >> appreciate it. i will tell you why i like this proposal. and i think the solution is community-driven. a number of public speakers have spoken to the valium and it sounds like a consensus within the community that is excited to see what has been going on for 50 years or so to come to a fruition. it is nice to see that

memorialized by the city government. second, there is a trend in city government right now to reflex when we are looking for money and this is to privatize. that is not the outcome of this particular story and that is a good thing, in my opinion. instead of that reflex or reaction, such as parks and recreation. this did not come as a community -- stricklin solution -- a community-driven solution as a first right of refusal. that is a very good point. that is why i hope to see more of these kinds of solutions when you are able to put some of the profit sharing, management, and control in a shared contract between the community and city government. i can hope and distributed in the other garages and public

services that that is more of a template and not that which i think is leading which is to privatize that. >> thank you. just one final question with regard to the comparison to your current existing non-profit, which i believe is union square. can you explain whether this contract is similar to your union square contract? >> this is very similar in many ways. we enacted the lease in 1999. this is our most modern least. in terms of the financial, the union square does not make a contribution back to the kennedy. they operate it at no cost to the city. there is a similar reserve fund and no contribution back to the

community. >> that was renewed in 1999 for the lease? why 40 years? why not a different amount of time? >> we look at a doing a short release once we came to the conclusion that we would continue to partner with the portsmouth square corporation. we would like to see capital improvements out there and there is a need to do that. we are not in a situation where we can dedicate the next four or five years of rent payments to the capital improvements and need to do that over a longer amount of time. that gave us a significant amount of time to do the prepared to rework and to complete the capital improvements and also to give us 30 years on the back end to amortize. >> thank you. >> ok, any closing remarks?

>> i would like to thank all of the members of the committee for your support over the decades and i hope that we will be able to move from this into the 21st century and continued to serve both the community is in and around the garage as well as san francisco. >> thank you. >> no closing remark but i'm prepared to make a motion, a motion to except with recommendation. >> we have a motion to move this forward with recommendation and we also have a second. >> what compelled me was the comparison in terms of the financials. how well that the costs are under control comparison even some of the for-profit management contracts.

i appreciate the department for bringing something forward that not only checks out financially but also has community support behind it. we can do that without objection. >> why don't we take a five- minute recess and we'll come right back?