the network enables us to make this a $2.5 billion investment without any public subsidy. i cannot emphasize enough that rebuilding cpmc will have tremendous benefits for the overall health care delivery system here in our city. the project will actually double the number of earthquake-safe beds here in the city, inject $2.5 billion into the local economy, create a 1500 construction jobs, guarantee more than $1 billion in community benefits, to begin the increase our ability to work with the city to care for low- income and underserved san franciscans, including as you heard, 10,000 new medi-cal beneficiaries, which will be roughly a third of all the new recipients under health care reform. we will provide a $20 million endowment to support community care renovation fund, to support and approve these services of community clinics, and other

social-service organizations. we will invest $62 million in affordable housing, $20 million to support transit improvements, and $30 million to improve pedestrian and never the safety. i also want to emphasize our dedication and commitment to the success of our st. luke's campus, where we will be investing $275 million, which you have not heard about, to build a new hospital, a larger emergency room, and we made a commitment to operate the hospital for 20 years after it opens. this plan will ensure continued and improve health care access in the mission district in the southern sections of the city. at davies, we will continue our pioneering research in the new medical building. at the site at the former cathedral hill hotel, we will build a new hospital that will provide in-patient medical and surgical care, women's and children's services, and

specialized programs such as cardiology and newborn intensive care. it will provide an emergency room centrally located on major transit routes in the city and located right at the edge of the tenderloin and western addition. it will be located to serve all the people of san francisco. in closing, let me remind the rebuilding our hospitals not only allows us to meet the state's stringent earthquake safety laws, but will ensure that all of us in san francisco have continued access to the highest quality doctors, nurses, staff, and health care facilities in this state. in short, rebuilding in cpmc is in the best interest of the city and all of us who are proud to live and work here. thank you again for your time this morning. i look forward to your comments and to moving this important project forward. now i would like to introduce an obstetrician at our st. luke's campus. >> good morning. thank you for having us.

i want to thank everybody for coming. we have been too many hearings and meetings over time, and we were reminded that director -- from director garcia that the blue ribbon panel was actually in 2008. that is when we made the span from closure threat at st. luke's to the plan to build a new hospital, 80-bed hospital on ñzs while we're operating, which is important so we can maintain a medical home for our patients and keep our providers and networks in tact -- intact. we hear that st. luke's is a safety net hospitals. while that is true, we take care of underinsured, low-income, needy patients in our neighborhood. we also provide care to private insurance patients with a wide variety of services, including obstetrics, orthopedics, pain management, cardiology, and more. we look forward to continuing to develop those prior to the rebuild and enhancing them after

the rebuild with our folks on community health and senior health that you have heard about. the truth is, san francisco needs st. luke's hospital. that is why we have gotten to this point in the hospital. and st. luke's needs cpmc. cpmc has committed to building as a new hospital. we need the institutional master plan to progress. right now, we're seeing tangible light at the end of the tunnel for our survival in the mission and our continued success. so we look forward to further in this process and hoping that this process continues expediently. thank you. >> thank you. >> mr. president, if that concludes the presentation, we should take a 15-minute block of time at this point. there is no standing in this

room during this hearing. we have overflow on at the first floor. if you cannot find a seat at this time, please go to the first floor. thank you. the 15-minute block of time -- >> good morning, commissioners. my name is rachel. i am here with my colleagues at the san franciscans for health care, housing, jobs, and justice, a coalition of over 50 community and labor organizations, community members, and health care advocates across the city working to ensure that whatever course is set by the free will of this enormous project

proposed by cpmc serves the city's best interest. today our coalition will present some highlights around major concerns that we have as you deliberate on initiating the process for the approval of this project and urged that you take the time and careful consideration and scrutiny of what is being proposed here, because of what we believe can have some long-term negative impacts for our city. we wanted to make sure that what at first glance appears to be a blessing does not turn into a curse for san francisco. we are interested in cpmc being rebuilt. we just want to make sure it is rebuild the right way. colleagues? >> good morning. my name is catherine -- >> speak into the map for a double-microphone. >> my name is catherine,

students in the you see hastings community economic development clinic that has been serving the san franciscans for health, housing, jobs, and justice coalition. in december 2011, the clinic released a report with profits and patience, the financial strength and charitable contributions to san francisco hospitals. i have brought eight copies of this report, one for each commissioner and one to be submitted for the record. thank you. this report shows that in 2010, excluding medi-cal expenditures, cpmc spent less than 1.5% of their net patient revenue on a charity care, ignoring a 2004 board of supervisors resolution which set a 3% of net patient revenue minimum level for charity care expenditures. at the same time, cpmc's four camps is brought in net income of over $180 million, approximately 12 times as much as any other san francisco

private nonprofit hospital. furthermore, in 2010, cpmc reports to have spent over $101 million on all health care services to the poor and underserved. three-quarters of which was spent solely on unreimbursed medi-cal costs. now cpmc is pledging to only spend $86 million per year, $14 million less than what they are currently spending, to fund health care for this baseline group. with a substantial portion is still being used for un reimburse met -- unreimbursed medi-cal costs. they have limited their commitment of care to an additional capped amount of $9.5 million. this cap on spending substantially impairs their ability to provide preventive care to these 10,000 new patients and will force additional costs to shift on to other city health care providers.

furthermore, by decreasing st. luke' 229-bed facility to an 80-bed facility, cpmc ships a greater burden to other hospitals and to the city. it authorizes cpmc to raise prices to insurance plans offered by the city's health services system, widening the price gap between cpmc and other providers, ultimately costing the city millions of dollars in premium increases for its employees and retirees. cpmc currently jordis the highest prices of many san francisco hospital yet is insisting on the right to increase greater than those being requested by other reap -- providers. more importantly, cpmc is refusing any limits on the price of the charges to insurers, other than the networks to which it belongs. given cpmc's the market share and large volume of out of network services, this capacity to price gouge patients in other

networks in shift costs away from its own network will blow up the competitive model on the council care organization, which is the cornerstone of the health service system cost and payment strategy. despite being the most profitable hospital in the city, cpmc gives back to the community substantially less than any of the other hospitals. this development agreement only further allows cpmc to gain more while doing less. thank you. >> hello. my name is jeff petraeus are also with the coalition and will be speaking about jobs. the proposal highlights the jobs will be created, and the coalition is excited for thousands of new temporary and permanent jobs that might soon be added to the city. the work force of all the agreement currently in place, however, is woefully insufficient for a project this size, guaranteeing less than 5% of local hires, relying on good

faith rather than objectively enforceable standards. four key points i would like to point out with orders to workforce issues. first, insufficient local hire for permanent jobs. we are excited commitments are being made for construction jobs, but we hope the same level will be extended to the permanent jobs associated with this project. the local hire commitment represents less than 5% of the projected number of total new employment opportunities cpmc opportunities facilities 32030. according to the draft eir, between 2006 and 2015, cpmc plans to add 1800 full-time positions. the standard for future projects in san francisco and the development agreement must reflect the city's commitment to local hire principles. they should exceed the local hire goal of 50% for both construction as well as long- term positions associate with

the project. second of the definition of san francisco resident is used in the da opens the door for abuse, defining it as someone who has spent seven days before the start date in the city. it defeats the spirit of local hire and opens the door to abuse. some are transplanted in moved purely to work for cpmc. additionally, it relies on good faith efforts are releases -- reduces the likelihood that local hire her goals will be met in the first place. and the 40-year history of local hire in san francisco, not a single contractor has been held accountable for failing to meet local hire goals. instead of relying on ambiguous and difficult to enforce language, the deval agreement should include mandatory hire provisions of real penalties for nonperformance. third, there is inadequate workforce development funding for product this size.

although we are excited to have $2 million being committed to the work force system, in relation to the size, additional resources must be dedicated. finally, we urge the city to encourage cpmc to adopt card check and transfer rights for employees. a majority of workers will be transferred. we want to insure their workers retain the rights they have earned. the city has made great progress in workforce development and labor standards. we hope you will continue to achieve these high standards with regards to the cpmc project. thank you. >> good morning. my name is ben. i will be discussing housing in the da. first, the community supports the dollar sign4.1 million contribution to the city as required by ordinance for the demolition is part of the project. second is the money for affordable housing.

last year, as was discussed earlier, the mayor asked for $73 million affordable housing contribution from cpmc. this number did not come out of the blue. it was a calculation by city staff that the $73 million was the apartment in a fee for affordable housing under the van ness special use districts. the community that the $73 million number was a good start, but the one of the mayor to take into account the impact of the new work force at the site and the impact it would have on city's housing. today, it asks for only $29 million in affordable housing, which is $40 million less than they originally asked for. it would result in only 145 new units. third is the $29 million for down payment loan assistance, specifically for cpmc employees. the program is available to those making 60% to monitor peace and median income. for three-person household in san francisco, that is about

$92,000. in san francisco, it is more than $600,000. it is unlikely that too many people who were too far below 100% of median would be about qualify for a loan at those prices. additionally, there's no language in the down payment loan assistance program pertaining to family housing. it is unlikely that housing for families, two bedrooms are larger, would be affordable under the program. most importantly, the program adds no new units to san francisco's housing stock. the subsidy which is specifically for cpmc employees will likely only increase the price of the limited supply of affordable housing available. thank you so much. >> good morning. my name -- i am with the hastings community economic development clinic. i will be discussing the traffic issues with the development agreement. the proposed campus at cathedral hill will create gridlock and cause hazardous conditions for pedestrians for three major reasons.

first, the development agreement as a major issue with traffic speeding through the tenderloin to get to van ness. to calm traffic, the da only looked towards mason to establish a two-way streets. cursor during to find a fast way to get to van ness. astoundingly, although the eir identifies regardless of these the public transit, cathedral hill will result in to a dozen more cars traveling to the site. the supplemental traffic study that was just released as part of the final eir says there will only be one car, maybe three cars, at the outside added that the seventh and market intersection, despite the fact that seventh street is the main arterial to leavenworth that extends to heavily trafficked highway 80 freeway exit, leading directly to the foreclosed site. providing for additional street lighting in the tenderloin as

the development agreement currently does is a good thing for deterring crime, but it would be several years before those payments are made. it does not address the problem of increased traffic through the tenderloin in an attempt to avoid congestion on and van ness. second, while the development agreement provides for cpmc to provide funds for bus rapid transit on and van ness and geary, it ignores the impact of the much needed service on vehicle travis on those busy arterial streets. -- to vehicle traffic on this busy arterial streets. this is a half measure that is not mindful on additional measures that might be needed to account for the already over congested conditions. third, though there are serious concerns raised about what kind of parking will be provided on site at the cathedral hill campus, nothing sufficiently address is how to minimize parking impact on the neighborhood. as proposed, there will be a lot of the garage spaces for

visitors and hospital doctors, but none for other employees. employees will have to park in offsite lives. having these lots will not reduce the number of single of gibbons the vehicles in the area and need to be properly accounted for because they will cause additional traffic in the area. taken together, these three factors call for not only a more thorough analysis of the data but also for the development of proper mitigation measures to minimize the impact to traffic and pedestrian safety. thank you. >> calvin, member of the coalition. in conclusion, we would strongly urge the commission to hold a special workshop on it simply the development agreement to this is an extraordinarily complex, and as we have learned today, incomplete, and partly incomplete development agreement. this is not about a development that will impact the city immediately or over five years or over 10 years.

we're talking about a fundamental change in the health delivery system of the city that will be with us for the next half decade -- excuse me, the next half century. just to give you some ideas of the gnarlyness of the agreement, there is now mandatory start date. you saw all of the payments depend on various things happening to this development agreement does not require cpmc to start any time. there is no role for the committee to oversee the effectiveness of either the traffic mitigation or the health delivery system. the community is absolutely absent from any role in oversight. finally and most significantly, the development agreement is signed by your departments, not the city and county of san francisco. your department did not negotiate the overwhelming majority of this. you cannot be informed by your

department staff on the ins and outs, most especially the economic impacts. look at your deir. it assumes economic analysis. it says it does not have to do it. yet, the incredible numbers of medications and payments assume some sort of economic impact. there has been no analysis placed before you. we need a workshop on the development agreement. thank you. >> does that conclude the block of time? thank you. mr. president, we can call up those who have special requests. commissioner fong: i have three cards requesting special accommodations. i will call three in a row. first one is esther. joseph. and jerry adams.

i remind you that because we have over 90 speaker cards, we're going to keep public comment -- we would like to give everyone an opportunity to speak. we will keep commons to two minutes today. -- comments to two minutes today. >> my name is joseph flanagan, and i am a former employee of cpmc and also a patient as well. i want to say two things about cpmc. one is the doctors that i have are very supportive towards my disability.

they help me and support me and help me with all things that i need within the hospital. the second thing is i get transportation from the hospital. the hospital people in transportation are the best people and they support the patience and help the patients at cpmc. and the other thing is that the quality of care of cpmc is excellent. i have no complaints. and i have friends that go to the hospital as well, and they have no complaints. thank you very much. commissioner fong: thank you, sir. jerry adams. esther mccarty.

go straight to public comment? i will call names here in batches. if you want to line up on this side in preparation to speak. tony rodriguez, rebecca rolp he, natalie logan, and jim lazarus. >> good morning, commissioners. my name is tony rodriguez. a business agent for local 483. i am a native san franciscan, lived here all my life. mine family lived in excelsior. we now live by and vernal heights. as a kid, we would go to ucsf. now my family, my girls, my wife, we go to cpmc, general, and davis hospital did you know,

hospitals are a necessity in any city, even in the country. my wife currently goes to cpmc. my dad goes to cpmc. almost all hospitals in the bay area are being rebuilt. in a perfect world, they would build a hospital and everybody would be happy with everything. this is not a perfect world. i think the mayor's office has done what it had to do to work out with cpmc so that the commitment to the city was one that the city could live with. also, you know, there is such a need for jobs. some of our members have not worked in two years. of four daughters. one is a nurse. two are in school for the medical field. a project of this nature will not only provide construction jobs, it would also provide jobs in other fields. i urge you to initiate this project so we can go forward. thank you. commissioner fong: thank you. if i have called your name and you are ready to speak, come on

up. there may be some folks in the other room, and i will keep calling names. maybe you can give us an update its seats become available of here. corey marshall. rubin santana. paul chin. indeed brown. -- angie brown. ok. how about teresa timson? robert lopez? all right. >> good afternoon. i am robert lopez. i work for mission hiring hall,

south of market employment center. i just want to talk a little bit about what we do admission hiring hall. we have the city build program, and we have the construction admin training program. we also work with the homeless there. basically, we get jobs for our san francisco at residents to come there. we have been there for 40 years doing this work. and how we affiliated with the cpmc project? we are affiliated through the general contractor, and the contractor has come in to help revamp our curriculum at the construction admin program. in addition to that, they have hired out of our program and gave paid internships to the students out of there. in addition to that, i just want to speak about the program which i work with mostly, the homeless program. some of those in the homeless

program, as many barriers to employment. some of them have criminal histories. some of them have other things, substance abuse, but they come still would hope looking for work. they go into the city build program. they graduate from the program and get placed in jobs in construction with a new look at their life. one thing is that this program is going to be beneficial to a lot of those people, which i know was spoken about with people getting jobs in work force. [bell rings] but the homeless part is the part that we can do a lot of good with this program moving forward with cpmc. so i urge you to rebuild cpmc and helping get people back to work as soon as possible. thank you. commissioner fong: thank you. if i have called your name -- >> thank you. my name is rebecca, executive director of the san francisco

lgbt community center. i am here to speak on behalf of cpmc and the plan to rebuild. the center is a nonprofit organization serving about 9000 people a month. really looking at connecting individuals, resources, and opportunities to build a stronger and healthier lgbt community. we have active partnerships with over seven tiverton on profits in the city, looking at developing an extended -- extensive program to reach the committee. cpmc is an integral partner to us. the not only provide us with funding, but they look at a deep partnership to help serve the lgbt committee, including supporting a program that serves about 6000 people a year, connecting them to safety net services, and critical services necessary for individuals for survival. they are a key partner and have been a longtime partner. they also partner with many of our collaborative organizations. they have a deep commitment to the community-based organizations and looking at

how to support health and wellness across a broad spectrum of community needs. when you get their support for nonprofit organizations and for indigent care, there is clearly a deep, deep and the two organizations like the center that serves a variety of needs. these are needs for folks were homeless, dealing with chronic, serious, significant health and mental the issues, for folks who really have no other place to adjourn. it is a critical resource and a critical opportunity to connect those people to services and programs. [bell rings] thank you very much. thank you for your time. thank you for your attention. i urge you to support the agreement with cpmc. commissioner fong: thank you. next. after this, teresa, mike terio, mike lucie, stella. >> good morning, president and members of the planning commission. my name is puaul