see all of you back sailing your boats on our shores. thank you very much and congratulations to the u.s. travel agency and thank you for coming to our city. thank you. >> thank you very much, mayor lee. now it's time for our incredible texas program. supervisor avalos: good morning.

welcome to the city operations and neighborhood services committee. i am joined to my right by supervisor mar. supervisor elsbernd is in negotiations right now, so we will excuse him without objection. the clerk of the committee is ms. gale johnson. could you share with us your announcements? >> persons attending this meeting are requested to town of cell phones and pagers. if you wish to submit copies of materials to members of the committee, please submit an extra copy for the file. if you wish to submit speaker cards, please put them in the container at the rail in front of you to your left. items recommended out of committee today will be considered by the full board of supervisors tuesday june 7 unless another date is indicated. supervisor avalos: thank you. if you could please call item 1. >> hearing to consider the transfer of a type 20 off-sale

beer and wine license from 953 harrison street to 320 fell street, will serve the convenience of the people of the city and county of san francisco. supervisor avalos: very good. we have a presentation. specter, welcome. >> good morning. -- in spector, welcome. >> good morning. before us today is an application for a tight 20 license. it will allow the applicant to sell off sale beer and wine. -- a type 20 license. their business plan as they will be doing a lot of actual creating of organic pates, sausages, and cured meats. part of their business plan includes craft beers and specialty wines. i would point out is located in an area of high crime and also

under concentration. we are recommending this application for approval with the following conditions -- sale of alcoholic beverages shall be permitted to 20 hours of 9:00 a.m. and 9:00 p.m. daily. no more than 10% of square footage of the premises will be used for display of alcoholic beverages. again, the primary business is delicatessen. the sale of beer and malt beverages in quantities of 60 knots, 20 jobs, 30 tons, or 40 pounds or similar sized containers is prohibited except for microbreweries, crap breweries, organic and specialty mall products sold under the designation of stout porter ipa -- kraft breweries -- craft breweries, organic and specialty malt products. no noise shall be allowed on the area under the control of the controlled licensee. no person under the age of 21 shall sell, furnish, or deliver

alcoholic beverages. condition is our loitering condition, which is defined as standing idly about, lingering aimlessly without lawful business, is prohibited on a sidewalk or property adjacent to the premises under the control licensee. our next condition -- there shall be no cuts, glasses, or similar receptacles commonly used for drinking beverages sold, furnish, or given away at the premises in quantities of less than 24 in their original package -- there shall be no cops -- there shall be no cops -- there shall be no cups, glasses, or similar receptacles. with these conditions, we are recommending the application for approval. supervisor avalos: ok, very good. thank you for your presentation. we can open the item up for public comment. we will go up to 3 minutes. seeing no one come forward, we will close public comment.

can we move this forward with recommendation with the conditions? ok, very good. so done. if you could call item two. >> item two, hearing to consider that the transfer of a type 21 off-sale general license from 511 crescent street to 2801 jones street for walgreen's will serve the convenience of the people of the city and county of san francisco. >> we would like to request a continuance on this item. i have talked to the applicant, and they concur. there are some details we're trying to work out. we will have it ready probably for our next meeting. supervisor avalos: ok, let's open this up for public comment on the continuance. any member of the public who would like to comment on this item? ok, we will close public comment.

we can agree to continue to next month. we will skip a meeting. >> correct, maybe the july meeting. supervisor avalos: great. i would like to be involved in some of the discussion on this as well. ok, if you could call item 3. >> item 3, hearing to consider that the issuance of a type 42 on-sale beer and wine public premises license to shawn higgings located at 2323 market street will serve the convenience of the people of the city and county of san francisco -- to shawn higgins. supervisor avalos: inspector? >> san francisco police department. before us is an application for a type 42 license. if approved in simple terms, it

is basically a beer/wine bar. that means you have to be 21 years old to enter. the application is a little bit unique. this is actually a story store, but they are going to license a small, specific area of the premises, so it will allow people of any age to come into the store, but the area to access alcohol would be restricted to those 21 and older. we are recommending this application for approval. i would point out is not in an area of high crime. is located in an area of undue concentration. we are recommending approval with the following conditions. sales, service, and consumption of beverage shall be permitted between the hours of 11:00 a.m. and 10:00 p.m. each day of the week. next, no noise shall be allowed beyond the area under the control of the licensee. next, loitering. ordering defined as standing idly about, lingering aimlessly without lawful business is prohibited on a property adjacent to licensed premises under the control of the licensee. interior lighting maintained

there shall be sufficient to make easily discernible the appearance and conduct of all persons. and patrons in the portion of the premises where alcoholic beverages are sold, served, delivered, or consume. a person under the age of 21 shall sell or deliver alcoholic beverages. next addition, no more than 5% of the square footage of the premises will be used for the on sales service or display of the alcoholic beverages. petitioner's shall not make structural changes in the premises and interior without prior written approval from the apartment here the sale of alcoholic beverages for of sale is strictly prohibited, and our last condition -- the sale and service shall be incidental to the premises primary business -- the sale of jewelry. with these conditions, we are recommending approval. i would point out that the applicants are here in the audience if you have any questions of them. supervisor avalos: very good. thank you. supervisor mar. supervisor mar: i just want to

give my gut reaction that this is an unusual application because it is a sustainable jewelry store that wants to sell alcohol. i worry that it might set a precedent where we will start to see more stores that are not traditionally selling beer and wine and alcohol trying to do this in the future, so i am wondering -- are there other examples of this? i have some concerns about this, especially as it impacts other small businesses that have been selling alcohol traditionally, and restaurants and other clearly connected businesses, but this is a jewelry store, so could you explain a little bit about -- is this a pattern? >> like you, i had similar concerns. what i can tell you it is we restricted the of sale component, so they will not compete with any of sale businesses in the area -- off- sale business is in the area appeared second, it is a very

small part of the premises where wine can be served. it is not their primary business, and that was the purpose of the last condition. first and foremost, they are a jewelry store. talking with the applicants, their primary goal is to really highlight local wineries. it does sound kind of unique, but just like people are pairing wine with food, i think these people will be pairing it with jewelry. i think it is new, and i think it is something we need to move cautiously on. in this case, this location, our recommendation was it could work. i do not see it presenting a community problem for a police problem, and i really do not see it impacting competition because it is so unique and specific to them, and is more of an intimate relationship with the customer and them. i do not see people coming in there just to spend time in their wine bar.

i think it is more of an invitation relationship. supervisor avalos: i guess -- we kind of joke about a moment ago when you were in office, but it is a little bit like a car dealership opening up a wine bar to help the make a decision about buying a car, or with a shoe store want to do that? and can expand to other retail outlets in the city. those are some of my thoughts as well. i actually was inclined to support, and i am kind of questioning that a little but right now. i do appreciate your work on this issue. perhaps we could open up for public comment and we could hear from the owners as well. we will open this up for public comment.

we will do three minutes. and additional questions necessary. >> good morning. shawn higgins. i understand the concerns you are having as you are voicing them, but i want you to maybe look at it from my perspective here first of all, in my business, which i have been in the jewelry business for 21 years, this is a common thing. to serve wine in the store for your clients. what we're doing is coming before the committee to try to make it legal because we also understand that our high-end clientele is very much involved in the other high-end parts of the world, including buying fine wine, so we find that that is actually a marriage that works really well for our clientele. it is not going to be an open bar. we do not want people in our store -- we do not want them intoxicated in our store, to be

frank with you, because i have over $1 million in liability, and that is on me because of the inventory we carry. that is not the idea of it. i would also point out to you back i do not know if any of you have never been into our money here in the city -- then into armani. he did this years ago. this is not far outside of what we have seen in luxury retailing. again, we look at bringing in small sustainable winery's to pair with our sustainable jewelry. we are currently the only business of sustainable jewelry like this in the united states of america. we will not be the last one. it happens really fast. the sustainable wine part is really to allow us again to have some clientele abilities and not

really use it as a bar. we have already shown great success in our business. we continue to pare the wine bar part of it so that we continue to grow the business. am i making sense at all? supervisor avalos: it makes sense. i guess, again, i get the position where i want to consider what is the city's overall policy of around pudding wine bars in retail outlets? i know we do it in our galleries because we just approve one recently for an art gallery. i would say they your jewelry store is more on the art side. >> it is not a zales. it is not like a mass-produce store. [inaudible] supervisor avalos: i see it as

distinct in that way from other places. but is that why it makes sense to put a wine bar there, compared to zales jewelry store or something like that? and will there be a zales jewelry store saying they want a wine bar now because it is happening somewhere else and is competitive that way? i understand your point of view, but the other point of view that i think allows the idea of we will have more wine and liquor licenses in our retail outlets is one that concerns me. what is our city's overall policy about that? we do not really have one. i do think we need to consider what -- where do we draw the line in this?

>> i am coming to you today with a unique idea. let's be honest -- is a different type of economy, and it will be some unique ideas out there, so i totally appreciate where you're coming from as far as setting the policy for the city. from our perspective, we think we are doing a pretty cool thing, and we are doing it with every intention of accepting all the conditions from the police department and not making this a bar scene. this is not the idea. supervisor avalos: right. ok. thank you. like your have -- hat. what you see the likelihood of how licenses were transferred to or be made in the out like this here today? how often do you see these things coming up? have you seen a trend of these happening more and more? do you see that this is the distinct establishment? obviously you do, but what else are you seeing -- is close to

something like this, that you would not consider. >> absolutely a lot of this is economy driven. there's no question out there. a contemporary example perhaps where we have seen it not work out so well, where we have seen restaurants morphing into bars in an opportunity to generate more revenue and impact on the community has actually gone up. police resourced the man has gone up. there is no question that every retailer looking for revenue opportunities -- that is kind of the nature of what we deal with. we get the calls every day. a lot of times, it is not just having viewed the plan. it is having the right location. that is where we felt in this case, with the conditions we were imposing, we thought we had some balance. like the applicant stated, we do have retailers. some very large, that have bars and restaurants inside their

establishments. and some that are small. a few years ago, we had a barbershop. it was specifically designed for men. it was a high-end business plan where it was kind of like a man's kind of gentlemen's club where you could go in, have a glass of wine, getting a shave, a hair cut, and that never created any problems. it has since changed hands, and they have slightly changed the business plan, but it is similar to -- i'm trying to avoid using names, but since he did it, similar to the armani model where it is a high-end men's accessories store, and constantly, serves wine. i think the industry is morphing into so many segments of other products. i do agree with the applicant. that the card industry really

values wine, and when you are into this type of jewelry, we really are talking to a great extent, especially in the sustainability component. this is part -- this is art to a great extent. there's a lot of demand still for the art gallery/liquor license concept. that was created actually before the recession hit, and it went into a lull for a while, and it is kind of sticking its head up again. like you said, we licensed one recently, and even those, we move cautiously because we want to make sure that the art is incidental to the sale of alcohol. that is all we're trying to do, get a relationship here if somebody wants to open a bar, we need to understand that that is what they want so we can prepare for the impact of it. supervisor avalos: do you see, looking at overall city guidelines that you probably operate under, where would you draw the line? >> by statute, we have valid

consideration voids -- proximity to schools, proximity to libraries, proximity to public parks, proximity to boys and girls scouts centers, and clubs, so those are all things that would be -. -- negative. government-supported housing. we could go on and on. in this case, this is a pretty vibrant -- pedestrian commercial area. many times i have come before the committee and said we have a nice business plan, but it does not fit the location. we have a great operator, good business plan, but we're struggling with the location the strip -- they chose. in this case, it is the opposite. this is not a concept i would like to see all of the city, but if someone comes in with the right business plan for the right location, we are going to

look at it. supervisor avalos: ok, thank you. this item is still open for public comment. with any other members of the public like to comment? seeing none come forward, we will close public comment. >> -- supervisor mar: i just wanted to, that the nine conditions makes sense to me. i did want to say that i just scanned what is online for mr. higgins' business, so i could see the physical layout of the restaurant. looks like the wine bar could be created easily. i also understand it's not a high crime area and the

concentration of other businesses that serves beer and wine is a concern as the letter protest races, but i think the condition laid out address my concerns. i also am understanding that it is sustainable jewelry kind of art store connection with wine and little bit better now. i think i will be supportive of this with the conditions, but i also agree with supervisor avalos that broader citywide perspective on the number of hall licenses and in which parts of the city would be helpful for me as we proceed instead of looking at these case by case like we are now. thank you for the work, and i will be supportive. supervisor avalos: with that, we can forward to the full board with recommendation and acceptance of the conditions. we will take that without objection. ok. great. >> thank you. supervisor avalos: ok.

if you could please call item four. that item four, resolution authorizing the municipal transportation agency to accept and expend a grant from the state transportation development act article 3 funds totaling $696,000 including $341,000 for the department of public works and $355,000 for various pedestrian and bicycle projects in san francisco in fiscal year 2011-2012. >> thank you. i am the manager of finance, budget, and performance at the department of public works. before you is our annual tda article 3 application. each year, it is a joint application between the mta and

dpw for bicycle and pedestrian projects. it is a relatively small amount of money, as you can see, that comes to us. the department of public works portion is used for sidewalk repairs around dpw responsibility sidewalks, and for design and planning activities in our curve ramp program. both of these programs have quite a few other funding sources as well. mta is using this for bicycle projects. for a number of years, they were not able to apply for the funds because of the court injunction. their bicycle program is up and running. and representatives from the mta are here to answer questions as well as project managers from dpw. i'm happy to answer any

questions that i can. supervisor avalos: ok, maybe briefly, if you could just talk about the general scope of the work specific to these moneys and where they will be. i'm sure is general all over the city, but if you could describe that. >> it is. with the curb ramp program, we have an americans with disabilities act transition plan that lays out the order and priorities for curve brands throughout the city -- curb ramps throughout the city. the plan has been in effect for a number of years. we have been constructing -- i think this year, we are constructing around 2000 throughout the city. largely with general fund money. this money we used to do design for ramps then constructed with

prop k sales tax money. then, the other thing we use it for is maintenance of our database. that is what is helping us track to make -- to set priorities, figure out where they still need to be constructed, where we have curve revs not in compliance with the latest code, essentially. the sidewalk money is used to respond to particular places where there are trip and fall plans. if somebody has an accident on a street on a sidewalk, it is the responsibility of dpw, we tried to get out there and repair the lifting or the cracking that caused the accident as soon as possible. obviously, a second accident at the same place that we have not taken care of can be much more

costly in terms of plans. i think oliver probably can best describe how mta is using the bicycle funds. he is on his way up now. supervisor avalos: sure. thank you for your presentation. >> good morning. regarding the portion going to the transportation development act, he comes every year. and she was not eligible for several years due to the bike in junction. one of the requirements is to have an improved environmental review. we do have approved environmental review for the right plan. the project identified with the pipeline would be eligible for these funds. the specific projects -- there are several projects coming down the line right now. some of the projects that have not been installed yet that these funds could potentially go to, and i say potentially

because we're moving quite quickly, and the landscape for bicycle projects is changing quite rapidly as conjunctions are lifted. some of the outstanding projects are projects like second, fifth, van ness -- those are some of the projects that have not been installed yet. some of the other emerging work we're doing in bicycle parking in relationship to bicycle sharing, so one of the key things is the environmental clearance act to be in place. would have to be something identified with any bicycle plan. we are setting this projects, and the second thing would be that the project that are caltrans approved for the design manual. those of the stipulations, to ensure this project are eligible because of the two restrictions to the fund. supervisor avalos: ok, anything in district 11 that is being planned with these funds?

that at this time, i cannot say specifically because of the pot of money we're using. i cannot say specifically. for the facility money, however, the safety money is used again throughout the whole city, so there would probably be saved the money occurring in your district. 10% of the overall ask -- 5% of the overall ask, 10% of the bicycle fortune can go on to bicycle safety projects. supervisor avalos: ok, that is great. just as we look at implementing our by plan -- i know we are looking at city-wide, but i offered to see that a great deal of the resources go in the center part of the city, and a few would go out towards excelsior and son said, and to