requirement is met, so in other words, with in the first year, only 30 hires are achieved, the other 10 would roll over to the next year, so the number rolls until we reach the 200 goal we set. the specific targets of residents are in the western addition, tenderloin, mission, and outer mission, excelsior, and chinatown neighborhoods. in addition, the job training dollar amount is $2 million. we will use those funds to provide support services, a case management services, and additional training needed to while pinscher folks are able to achieve the goals that we have laid out. i think that concludes my portion of it. thank you. i am turning it over now.

>> good evening, supervisors. thank you for giving us an opportunity to provide an update on the work. i am here to present on the housing package as is included in the development agreement which ken alluded to earlier. i am sorry i did not introduce myself. i am old and from the mayor's office. in proximity, working closely with staff from the mayor's office on housing, particularly the executive director, who could not be here tonight because he was called off on jury duty. excuse me. there we go. the house in public benefits package consists of three major components that will fund the city and replace the 25 units that will be demolished as part of the construction of a medical

office building kitty corner to the it the broyhill campus. number two, substantially fulfill the exclusion, and number three, providing housing benefits for cpmc work force income category. cpmc is demolishing 25 units to construct their medical office building across from cathedral hill, and more specifically, that site is located on, i believe, the east side of geary and van ness. 20 are single-room occupancy residential hotels, and the other are rent-controlled units. under the conversion ordinance, prior to demolition, cpmc must either rebuilding units or pay a fee equivalent of 80% of the cost of replacing them. they have decided to make the

payment in lieu of construction. while not legally required under existing planning code, cpmc will also make a payment to the mayor's office on housing affordable housing fund to offset the demolition of the five units. roughly one-third of these demolished units were occupied by residents at the time they were acquired, and these residents were low or very low income households. i am very happy that they have entered into a generous move out package, and it includes roughly 10 years of rent subsidy, relocation assistance, and up to six months of time to locate a new unit. this has been memorialized in an agreement between them, and most households have already relocated, and these agreements will not be part of the

development agreement, because they are designed to be privately enforced by the parties. cpmc will make a payment to the mayor's office on housing that will assist ed least 325 low and moderate-income san francisco households. the spending that is designed to address two impacts. this is a specific slide here. the housing panel will lead to the construction of at least 190 permanently affordable rental units. this was offset the vast majority of inclusionary units that would of been required under the van ness special use district, as i mentioned earlier, and these units will target low and very low-income households in san francisco and will become part of the permanently affordable san francisco housing stock. the second component of the housing payment to the mayor's office on housing will provide at least 135 down payment loans,

such as cpmc households seeking to buy a home in san francisco. this will be limited to people in the work force income category. employees cannot buy homes that and subject to an alice act in the last 10 years, -- subject to an ellis act in the last 10 years. there is also a share in appreciation, based on the split formula used by the mayor's office on housing and the current downpayment assistance loan program. these recaptured funds will then be diverted back to the mayor's office affordable housing funds and will help complete destruction of the 190 units i mentioned previously. finally, while cpmc will make payments, they will be subject to a payment escalation factor. thank you.

>> so we are in the home stretch now. we are almost done. president chiu: supervisor wiener, i know you have a question for him. >> in terms of the breakdown in terms of the housing fund, the work force housing, what does that mean as you define it? >> the income category that we would be referring to is a moderate income housing, which is roughly 80 to 120%, and just to be very clear about that, that is a category broadly. because we are still in negotiations, we have not reached a final agreement with cpmc as to what the breakdown would be, but it would help the cpmc household in that range.

>> so the moderate-income work force housing, would that be limited to downpayment assistance, or would that also be rental? >> that program would specifically target downpayment assistance for home ownership. supervisor wiener: ok, so are you envisioning the rental aspect of it would be limited to lower-income >> the rental aspect of it would be limited to lower and very low-income households, as i laid out before, and that peace will be taken care of by another portion of the payment that cpmc makes to the mayor's office on housing. supervisor wiener: if you look at this number, it is not exactly rolling in it by san francisco standards. buying a home is still

challenging in the city. i am wondering what the rationale is. >> well, so, the basis for the affordable rental program or the goal is to fill the exclusionary requirements substantially that the city has on the books. the rental piece of the inclusionary program currently target households in roughly the 55% income category, which is actually lower income. traditionally, the mayor's office on housing will use inclusionary fees that are paid to it to provide housing for low and very low income, so we are trying to mimic as closely as possible the existing program as it is implemented, at least on the mayor's side. supervisor wiener: ok, i appreciate that. i think downpayment assistance is important. i am not in any way against that, but we see a substantial amount rents and are not able to

buy, so i would love for us to give some thought to the possibility of helping moderate- income renters who are in a position to buy but still need help, so i just wanted to sort of put that out there, and i appreciate it. this is all very encouraging, so i appreciate the work. >> thank you, supervisor wiener. president chiu: supervisor mar? supervisor mar: could i ask you to quantify how much is from the community coalition numbers? which i believe initially, they were urging $186 million to the affordable trust fund based on the van ness special use district, so that is $160 million for affordable housing, and it seems like the 20 sr road -- sro's, could you just tell us a little bit about the numbers of little bit more and

how far apart the proposals will be from what the community coalition is requesting? >> because we are in negotiation with cpmc it is difficult with me, in fact, i am not in a position to disclose in a huge amount of detail the precise numbers and modernization. i will say however that the underlying premise for the unit goal was based upon a square foot calculation. actually, let me backup a little bit and give a little more background. number one, the van ness special use district requires a roughly 3 to 1 residential sort of production versus commercial production. based on a sort of detailed process that the community advocates engaged them with the mayor's office and the mayor's office on housing and the planning department, we landed

on roughly a 1.37 $6 million square foot residential obligation. if you essentially take 20% of the square footage not for circulation, which is roughly stated in the area, that brings it down to about 1.1 million square feet. if you averaged two units per 1000 square feet, that is about 1100 units, and the inclusionary obligation would go between 165 to 220 units, so our target, unit production goal, was based upon that peace. and that is what we are negotiating for. >> so just to try to conclude quickly, and we will then be available for all of your

general questions, referring to transportation in the development agreement, the development of the new cathedral hill hospital is expected to impact munis service because of increased traffic as well as additional passengers riding near me. we are working on a four-point program to address that issue. the first is that cpmc will make a payment to the city to cover capital costs for a portion of both the van ness and geary, so they would be helping to build the platforms and other things that occur at that corner. second, cpmc would charge a parking surcharge at the cathedral hill surcharges for every exit, and that will bring in additional money for the muni and discouraged it for those that have other options. number three, as you know, there is the transit impact

development aid to help offset the impact of new development. nonprofit hospitals, the development agreement would have cpmc making a payment in lieu of the fee, which would essentially be the same kind of money if they were legally subject, if the project were legally subject to the fee, and finally, cpmc will fund mta for improved bicycle access to and between its campuses. very quickly also, the development agreement would have cpmc paying for -- president chiu: could i ask about the van ness and the geary, has gone on to anticipate the transportation needs, given the construction that will come up? that seems like a pretty significant construction? >> are you referring to the actual construction prove

president chiu: -- construction? caught -- president chiu: the construction. >> i can have samali been to that. did you want to prove -- did you want to? >> they are working with the staff to make sure that they can minimize the construction costs. we are aware of that issue, so we are working on that. president chiu: so you do not

have the answers? >> no, we do not have a clear answer, but i can get back to you. there could potentially. >> suggest moving onto street scape and pedestrian improvements, starting with the cathedral hill-tenderloin area, as you can see on this line, we are working with cpmc to have them pay for a large amount of pedestrian street lighting and approximately 25 blocks in the tenderloin. the conversion of ellis and edy streets to two way, which is a safety improvements from the tender and moist. there are some particularly dangerous intersections. -- which is a safety improvement for the tenderloin. there are some particularly dangerous intersections.

it would have to go through the whole process, but the idea is about cpmc would help the startup costs if it were established. moving on to the davis campus area, just a quick list of some basic improvements that cpmc is being asked to make their. there is some pedestrian and landscape improvements which tree islands, additional trees, it improved fencing in lighting around the campus perimeter. and then lastly, at st. louis, a similar type of improvement. an upgrade of the park, which is a temporary park that has been established, upgraded lighting and fencing. potential lighting on portions of several streets run around st. luke's, and pedestrian safety and streetscape improvements around several of the streets right around st. luke's.

getting to the health services system, there has been concern raised about premiums from the city. these may be going up due to the cost of the public benefits package been requested by the city. we are aware of this concern and are currently discussing with cpmc ways to assure that this does not occur. and then lastly, just our next steps procedurally, once we reach a full agreement on the development agreement with cpmc, a draft development agreement will be circulated to the public for a period of a couple of weeks, and then there is the process of the planning commission, the certification of the eir and roger approval at the planning commission and the hearings for possible action at the land use committee of the board, and then finally, the first and second reading here at the full board. that concludes our presentation.

mr. president, with your permission, i would propose that we take questions from the staffs of the we are all able to answer. president chiu: ok, colleagues, any questions to city staff? supervisor mirkarimi? supervisor mirkarimi: just to the recent presenter, i have questions about the street scape and safety improvements in the surrounding area. does this preclude that on the cathedral hill-tenderloin area, based on what is identified here, is there nothing moving westward towards japan town? -- japantown? >> this is bounded by franklin, van ness, but to date, we have received most of the requests for pedestrian and safety improvements from neighborhoods to the east of van ness, so we

have focused on that. >> -- supervisor mirkarimi: ok, i have let it be known that as this relates to it, with japan town, there is a large and growing number of seniors, a number of senior complexes in the area, and it is hard to negotiate the streets, including at franklin, in the surrounding areas, and i am surprised that that would actually be missing in this area, and with you and your experience with japan town, you know that. >> thank you. we will take a note of that and see what we can do. president chiu: supervisor avalos? supervisor avalos: thank you, president chiu. my questions are going to be around work force to the moment, and one of the things i heard was that we would have something

that resembled the first source program, which gave me some concern, because the first source program traditionally has been one that is based on good faith efforts, and actual mandates to hire locally, so i just wanted some clarity on that to make sure that we are talking about a requirement about hiring locally or to reach these percentages that were in the presentation. and i guess that before ms. simmons. >> so this is a private project, and as i did said it -- as i did say, it does not have the language in that legislation, but it does have pieces to it.

the residency requirement, and the liquidated damages are actually included in this, so there are liquidated damages. bubbles are a little different. it is by trade and not by overall project. that is a similarity, but it is not purely local. our local mandatory higher law. it is kind of a bit of a hybrid, you know, it has goals for journeymen in this, a 30% threshold for journeymen and apprentices, so it is a bit of a hybrid model. supervisor avalos: it is not a good fit because there are actual requirements, you say? >> the pla is an agreement between the unions and the cpmc. this is our m.o. you.

it is between it really the contractor's, you know, and cp mc, so the burden is on the contractors, so you still have that dynamic. supervisor avalos: right, which is similar to our local hire ordinance, but the requirement on the contractors if they do not reach this, then they have liquidated damages. >> then they have the liquidated damages, and that is called out in our document. >> and what are the main trades that we expect? do we have those numbers broken out in terms of how much it will be? >> by trade? i do not have that. it is a hospital project, generally, you are going to start out with your neighbors in europe -- with your laborers and your carpenters, and then you

move into the trades, so you will see a spectrum of trades. i do not have the exact numbers by trades, but i can get those to you. supervisor avalos: that is on the construction side. in terms of work force development and training, especially what we're talking about, percentages from the get- go, 30% apprentices, 30% journeymen, and also the apprenticeships to journeyman level, what do we have on the city side providing support? are there additional resources that are being provided for city billed to help with that? >> yes. so i referenced at the end, and there will be a $2 million pot connected to this project that will do just that, that will add additional services. supervisor avalos: is this a

one-time? >> yes. it is a one-time item. this will ensure there is greater retention if folks can journey out. that would be the goal on the construction side. i think the other thing is with this project, we have been able to leverage, i mentioned the engineering and the intern, the professional services side, we worked a lot with the developer and the contractor to beef up our construction management program and ensure that by the time we hit this, we have enough folks who are not necessarily going to the trade side, but we have actually started a construction management, and some of the contractors have really got involved already on both the and the use and that construction management to ensure that we had internships set up for those folks. supervisor avalos: 7 $2 million, or i am concerned if that is enough, and that being divided

up, is that just going to city built, or is that going to other community-based organizations? >> it is up to us. there is electability. it has not been designated. it is for the work force system as a whole. it is not dedicated all two city built. it is sort of at our discretion with how we want to use that. i think what i want to look at is where we have in the work force, sometimes training has dollars that are available, maybe in health care and not in construction or vice versa, so we needed the dollars to support this service is the most is probably how we would look at it, but we are not at that level, so there is plenty of time for a room for input on that. >> -- supervisor avalos: yes, i think the local work force, and bringing on a certain number of apprentices, i wonder if that will be sufficient, that kind of

allocation, $2 million. in my mind, whether that is sufficient or not. the other question, on permanent, on and use jobs, -- end-use jobs, for the first five years, how is that being done? i imagine there are service jobs, some entry-level help desk your jobs. it seems we have a great deal of resources in san francisco, especially when you look at city college and the academy. that seems really low, especially with the great need we have for work force debarment in the adjacent neighborhood. is there a way to boost those numbers? >> the way we did find entry- level, i started out with, was with a two-year degree or less, you know, so if you look at the

hiring practices of cpmc over time, they had 700 new employees by that definition that i gave, only around 65 to 70 matt that definition, so if you took it just from that hard sort of number ratio, and we were to be in that time frame, and we got 40 of those 65, you know, then we would be over 60%. it is the definition and how we defined it. i think for the training programs that are run through oewd and our shop, most of the folks that come through, we actually have a graduation this thursday. most of the training that i am karate is much more short-term. it is not necessarily a ba degree.

it is folks trying to get in the system. that is how we got to that. that is the way we worked into that. of those 700 jobs, that number, the 65 to 70 meant that definition of entry level. we did not go through like a hard analysis to look at the remaining, because typically in the hospital, those are different kinds of credentials and degrees. that is another conversation. supervisor avalos: do you feel a need to have a requirement on the remainder? the proportion of the other jobs outside of that that would benefit? >> you know, i think we would probably need to go back. i do not have that with me in terms of of those numbers how many are san francisco residence or how many are of that pool that the pilot -- hired for that fall into that category.

-- hired for that who fall into that category. cpmc, the other hospitals that we work, including kaiser, you know, even our own hospitals, for entry level, which is what my focus has tended to be on, that is a realistic number, because a lot of the other kinds of jobs, you know, that might fall into the entry-level category, a lot of that work sometimes my precontracted out if it is not health care related. supervisor avalos: and do we have any leverage on those service contracts to apply the local hire requirements? >> um -- supervisor avalos: it seems that that would be a large area to grow our work force in san francisco. >> it