bsupervisor chu: the afternoon, and welcome to the budget and finance meeting for february 15. i am connie chu.

with me, we have supervisors kim and avalos, and we have people from sfgtv and clerk young. clerk young: -- supervisor chu: please call item number 1. clerk young: do except and expend a grant for the kindergarten to college program participant incentive funds. supervisor chu: we have someone with us. kreskin afternoon. i am with the office of treasurer-tax collector. the i come before you is for a grant in the amount of $190,000

for the students to participate in the kindergarten to college program. there are currently two programs. one is a $100 bonus to the students and their families if they set up a direct deposit into the account and have acted for at least six months. these are privately raised funds that are matched by $50 war all students and an additional $50 for those students who are participating in the free and reduced lunch program, and i am happy to take any questions. supervisor chu: i am wondering if you can share with us at the experience so far. >> there are a lot of exciting results from families the participating in the amount of funds that they have contributed so far. supervisor chu: thank you.

i think that would give is a good idea of how successful the program is. there is no additional funding, correct? >> correct. supervisor chu: there is no budget analyst report on this. supervisor avalos? supervisor avalos: just to go to the question from chair chu -- >> we had 1200 students in the first year of the program. we are currently in the second year of the program with the additional students, and next year, we plan to have a full rollout to all the kindergarten's throughout the city, and it will be approximately 4800 students in kindergarten next year. supervisor chu: thank you very much, and, again, if you could follow up with some of the statistics, that would be helpful. >> thank you very much. supervisor chu: thank you.

why do we not open this up for public comment. are there any members of the public who would like to speak on this item number one? seeing none, public comment is closed. we will send this without objection. thank you. item two, please. clerk young: item two, to accept and expend a grant in the amount of $1,352,141, to participate in an incentive. supervisor chu: thank you very much. we have a dph representative on this item. >> good afternoon, or risers. my name is dr. joanie -- and i am with community programs at the san francisco department of public health. before you today, i am to see

your approval and support for the initiative collaborative grant that we have with partners across community programs in dph. this is an effort that is a very integrated across our health system, and it is an effort to really address the need for health and behavioral health needs of our clients who are at risk for hiv or diagnosed with hiv. this is a unique opportunity to have integrated care in settings that may have been more isolated in terms of the types of services they deliver. this grant provides the opportunity to provide mental health, substance abuse, and preventive services in areas such as primary care and drug treatment and prevention programs and others. these funds allow us to increase the staffing and really integrate some cutting edge evidence-based practices in these studies, so this is an opportunity to really address the population, the

transgendered and reentry populations in general, because there you have a really high prevalence of hiv or those at risk for hiv, and this is an opportunity with the collaboration with the health department, which the city clinic, which is our std clinic, with the southeast health center and with others, like where we have the black women coe's and others. mental health, substance abuse, and prevention, for a very high- risk population. supervisor chu: thank you. can you speak more about how the $1.30 million would be spent? >> sure. these funds would be allocated to increase staffing. here we have the opportunity to provide services on the side, the funds will be before providing licensed mental health clinicians. they already have high primary care as well as some other

services. this is an opportunity to expand on that effort. they will also be a addressing some of a complicated issues that our clients may be addressing, so it is primarily for staffing and all of those sites for the funds for this initiative. supervisor chu: thank you. and this does not require any matching city funds or staff? >> that is correct. supervisor chu: supervisor kim? supervisor kim: for the tenderloin, where are the service locations? >> city clinic, which is the std clinic that we have. supervisor kim: that is the only one? >> yes. supervisor chu: thank you, supervisor kim. this item does not of a budget analyst report with it. why do we not open it up to

members of the public? either any members of the public wish to speak on item number two? please, . >> good morning. good afternoon, supervisors. my name is -- i have lived in san francisco's 60 years. i would like to speak in support of this resolution, but, as usual, i have a cautionary note. since we're dealing with the department of public health and mental health services, given to clients, i am kinda wondering out why they have not been suspicious of a system that is being put up by the mental services unit. it was covered in three articles in "the bases and," and "the examiner" and another decided to not mention anything about it.

-- it was covered in articles in "the bay citizen" and others. thank you. supervisor chu: thank you. are there any other members of the public wish to speak on item number two? seeing none, it is closed. colleagues, been in motion? we have a motion to send it fourth and second, and we will do that without objection. item three. clerk young: and number three,

to extend and expand a grand in the amount of $256,846 from the university of san francisco to participate in a program entitled center for disease control and prevention kenya monitoring and evaluation. supervisor chu: thank you. we also have a representative from the department of public health. >> good afternoon, i am dr. sandy schwartz. this is for their surveillance section. the money that we receive from the university of california is used to support some of our staff, myself included, to provide technical assistance, for the capacity of the canyon ministry of health to conduct the sorts of activities that we here in san francisco have been doing so well for so many years, things like case reporting, conducting -- we are in the

process of helping the ministry of helped develop -- help develop and conduct a door-to- door sort -- survey, starting at age 18 months and above regarding risk factors for hiv, hiv prevalence, canceling those who are affected, and looking at recent infections. we are also in the process of assisting them through conducting surveys, including commercial sex workers. the population's beyond the general population in that country that have a higher burden of disease and carry risk factors for that. is there anything else i can answer for you? supervisor chu: just to confirm, this does not require any new positions?

>> that is correct. >> ok, just another question. i think as people would take a look like this, the grant would allow us to provide technical assistance for training for the partners. when we think about our department, where we think the primary objective is to really take a look at this in san francisco and the neighboring areas, could you just explain why it is important. >> absolutely. i have been doing surveillance for over 20 years, so i am both knowledgeable and biased and that san francisco conducts surveillance on all of the activities pertaining to the epidemic, better than anyplace, i would say, in the world, and it is why, in fact, the university of california provides so much of the

technical assistance to kenya turns to us specifically for assistance in this arena, because in order to really understand, people with infectious diseases, that process, understanding the epidemic in that way is to relieve the function of a local public health department, and that is why the university does not have that expertise, but we do. we really know how to do it, the hands on, ins and outs of it. it does not impact our ability to conduct our work here in the city. i think we do a really good job here in the city, and i personally, and i know the rest of us that work on this field is beneficial to help others understand how we do things, and also, it lets the world know what a great job we do here in san francisco.

supervisor chu: thank you. this item does not have a budget analyst report, so why do we not open it up to members of the public? is there any member of the public to wishes to speak on item number three? >> good afternoon, supervisors. my name is -- i would like to speak out in favor of this. during college, i took courses in african history, and even though there are black politicians running south africa and zimbabwe, i want to point out for the record that they do have a noticeable aids program there, and we should not limit our consideration just to kenya, and we should look at the current situation in south africa and zimbabwe, and then, unfortunately, it is not getting too much better, and i will not bother to say the rest of my comments that i have already said earlier today.

thank you. supervisor chu: thank you. are there any other members of the comet -- public to wish to speak on item 3? seeing none, public comment is closed. we have a motion to send the item forward with a recommendation and a second, and we will do that without objection. item four. clerk young: item four, to accept from the mayor's office of housing to enter into a standard agreement with the state department of housing and community development to accept and expand $4.70 million of transit-oriented development infrastructure funds, associated with 1180-4th street. supervisor chu: thank you. this was brought by the mayor and supervisor kim. supervisor kim, would you like to make any comments? supervisor kim: thank you, chair chu.

supervisor kim: the infrastructure grant program, a very long and, in association with the affordable housing project in mission bay as part of the regal and the plant there. the infrastructure costs include design and utility improvements, and the projects include 150 residential units for very low and low-income families, of which 25 units will be reserved for formerly homeless households. given the increasing needs, this grant is coming to us at an opportune time to help us complete this project. it will include one, two, and three-room bedrooms, and a common area, and i know that john mcnamara is year from the office on housing to answer any questions. -- is here from the office on housing. supervisor chu: thank you, supervisor jim. is there a representative from

moh for the presentation? >> good afternoon. i do not have anything additional to act. supervisor kim, you did a wonderful job of summarizing it, so if you have any questions, i am available, and we also have mercy housing here, the sponsor of the housing, and we also have the sponsor for the infrastructure grant. supervisor chu: great. it sounds like there is a matching fund that is required but that it is funded. can you speak to that? can you speak to the matching funds and the sources we are using to me to that? >> -- jimmy to that? -- to meet that? >> i can ask jennifer to come up, but we have previously funded the project with tax increment, and a number of other former of redevelopment

agency funding sources, so -- supervisor chu: it looks like this is being paid for primarily through funds as well as transit oriented development. >> that is correct. supervisor chu: and is there any new staffing that will be hired through this grant? >> i am not certain of that at this time. with respect to the mayor's office on housing, i am not certain. supervisor chu: it looks like it is not, given that it is a resolution. there is no budget analysts report with this item. if there are no questions from the committee, why do we not go to public comment on other members of the public to wish to speak on this item? seeing none, public comment is closed. supervisor avalos: motion to approve with a recommendation.

supervisor chu: we have a motion to approve with a recommendation, and we will do that. please call items number five and six together. clerk young: item number five, approving a lease of approximately 9000 square feet with a rent of $25,597 per month, and sublease of 575 polk street, with the judice to counsel of california, and an agreement and authorizing other actions with this resolution. item number 6, approving the exercise of the mes expansion of approximately 9000 square feet at 555 polk street with the mattison family trust at a base rent of $16,100, for use by the

charm of public health and community justice center. supervisor chu: thank you. we have john updike. >> thank you, chair chu. i am mr. r updike. -- mr. updike. the highlighted area is the location of the city, city hall located here, so we are just a couple of blocks away from city hall. so in 1990, the board approved the initial 10-year lease for courtroom, a minister in offices for superior court, and that was extended for an additional 10 years in 2001, with the current landlord, the mattison family trust.

there are offices and one conference room that make up the 9000 square foot space. the month has been on hold overs since july 2011, while negotiations with both the landlord and be administrative office of the courts have progressed to a point that have produced what is before you today. in 2008, to give the background on what you have what you have in front of you and the way you have it, the board approved the state mandated court to transfer agreement between the city and they -- the aoc, subject to things that may impact the property, like this lease. under the legislation, the city was obligated to pay a county facility payment, but that cfp

could be reduced. this 10-year lease is fixed at $25,597 per month or about $34.80 per square foot. until its determination in july 21. it includes 15-year renewal option, and that is at 95% of fair market rent at that time. to give you a sense of comparables, what we found in the area, this is both rental transactions and listings or rent, the range from a low of $24.60 per square foot on an annualized basis to a high of $49 per square foot, so we believe this amount for the first floor, considering the pretty robust courtroom-related improvements to the city are in

the range. did we get that on the overhead? were you able to see that? great. i will leave that up there for a moment. the lease includes an expansion option, so this is that we begin to migrate into the other item on the agenda to include the 9000 square feet on the second floor, and that would occur upon the termination of the lease between the landlord and the california culinary academy in march 2013, which would then terminate all of their lease holding interests on july 31 of 2021. so along with this lease of 575 polk, it would also approve a sublease back to the aoc, under the same provisions that allows the city access to two holding cells in conjunction with our upstairs activities of the community justice center.

the courthouse construction funds can be a source of the base rent additional charges except for janitorial and security, because those were specifically excluded in the state legislation regarding transfer of court facilities. finally, the resolution allows the minor amendment to the transfer agreement itself that i started with done back in 2008 to allow the use of ccf funds to pay the rent to allow the city to offset the payment owed, and i think what others, they will explain that further for you. items six, this was originally a sublease of the california culinary academy done in 2008 to open the community justice center, so this address is slightly different, but it is essentially the same building. it is in 9000 square feet above what i was just talking about and expires in march 2013 with

no renewal options. the current rent is $21.50 per square foot, or $9,100 per month, so if you recall that list of comparable ones, it is below from what we could find. the rate would remain the same through july 31, 2021. there are no insulators -- in fleet -- inflators. this would allow the director property to affect an expansion option to the 575 polk lease that i spoke of earlier to include the upper floor space upon the expiration of the sublease. my apologies for this being one of the most complex lease- assemblies once brought to you, but this is the easiest way to do this. there is the facility at the building for the next nine years at an extremely

attractive fixed base rental price. so they should be considered as a package. to negotiate the agreement before you, we were forced by the landlord to consider this a package. that drove the deal turns in front of you, the favorable nature of the rates, and if we had broken apart these two 9000 square foot basis would have been significantly higher. so in that light, we certainly have been much more favorable agreement here, securing occupancy to 18,000 square feet at a combined rental rate of 2313 per square foot per year. -- $23.13 per square foot here. it also compares with our own internal space costs.

this is delivered in a price cheaper than we are able to deliver space to our own occupants in our own buildings, and, again, it is fixed for the next nine years. the budget analysts as outlined the statistics to date regarding operations, and there is a very thorough report, and we of representatives here today to address the details if you want to get into that, and we have members of the community to talk about the impact on the adjacent communities, as well, so there has been some discussions about perhaps a repackaging this for a short- term lease for the 9000 square feet on the second floor. to do that would result in a far higher rental rate on a per month basis. it would involve renegotiations of both the lease and the expansion option concept in the least for the underlying 575 polk, so we lose many of the

largest that we have with packaging this together as one agreement. should for any reason the board determined that the space is not needed any longer for that purpose, then we have several other potential uses, particularly the department of public health has identified specific program uses, and, frankly, we are out right now securing visas which may be becoming before your body very soon for expansions, many of which are either grant funded, revenue-based, where we just havewithin the city family of buildings to accommodate those programs. we're executing the show does -- shortest term leases possible, so if they become available, we can relocate those uses. this, because of its proximity to city hall, is an ideal candidate. the quality