supervisor chu: welcome to the budget and finance subcommittee. i'm joined by a chain kim and we will be joined by a supervisor avalos shortly. do you have any announcements today? >> please silent also phones and electronic devices. completed at speaker cards should be submitted to the clerk. items acted upon today will be on the supervisors agenda unless otherwise indicated. supervisor chu: would you please call item no. 1? >> international terminal

equipment maintenance and operating agreement -- resolution approving the international terminal equipment maintenance and operating agreement between the san francisco terminal equipment company and the city and county of san francisco. >> i am with the san francisco airport. at that airport is seeking your approval of a new nine-year international terminal equipment, maintenance and operating agreement with san francisco terminal equipment company. the agreement carries a one- you're -- one-share offer to extend. this is the third agreement of this type that has been brought to you. previous agreements were approved in 2000 when we opened our new international terminal and again in 2005. because the airport does operate in this common use space in our international terminal, the airlines formed a consortium made up of the 30 airlines that have operations in the

international terminal. this was created by the airlines that operate in the international terminal and represents the airlines as they pump filter maintenance and operating obligations under their individual leases with the airport. the new agreement before you today continues the practice we have had in the past of maintaining, offering, and scheduling the use of city-owned equipment and operating systems as well as scheduling the use of joint i.t. functions like ticket counters and gates and allocates the associated costs related to city-owned equipment and operating systems for the users of the equipment in that international terminal. due to the integrated nature of this system and the services used to provide customer service to airport passengers in the international terminal, this represents the most efficient and cost-effective way for the airport to share in their use.

they are responsible for the custodial, electrical fees, water and sewer charges as well as their own portion of the telecom charges for internet and access. based on fiscal year 11-12, they paid $12.8 million for the services and in turn, the airport cost portion of the agreement in fiscal year 11-12 was approximately $1.6 million. the budget analysts recommend approval but makes the suggestion for two amendments in the resolution the airport concurs with -- one to provide retroactivity for a start date of july 1, 2012 as well as including a not to exceed amount for the entire contract term of $18 million. i would be happy to answer any questions and i'm also joined by airport associate deputy director for aviation management. he could answer specific

questions. supervisor chu: thank you. why we go to the budget analyst report? >> thank you. on page 6 of our report, we report the estimated net payment to the airport over the 10-year agreement, that would include the one-year option, the amount they would pay to the airport is estimated at $1,500,000 and we recommend you provide retroactive approval through july 1, 2012 and in the resolution to reflect the not to exceed amount of $80 million to be paid and the -- and approve the resolution as amended.

supervisor chu: are there members of the public who wish to speak on this item? seeing none, public comment is closed. we have and and and and it to forward the item as amended. we will do that without objection. item number two, please. >> resolution authorizing the department of environment retroactively except and expand an american recovery and reinvestment act of 2009 funded grant in the month of $1 million from the california energy commission state energy program through the local government commission for green finance assets. -- green finance sf. >> i'm with the department of the environment. this authorizes the department of the environment to accept and

expand a grant in the amount of $1 million from the california state energy commission. essentially to assist the development of san francisco's development finance program. the funds will be used as a service reserve fund which would make financing more attractive, hopefully with a lower interest- rate, and more widely available to property owners to have deep retrofit opportunities. the funds will cover payment delinquencies for investors. the last time i appeared before this committee, i indicated we were trying to advance the projects and i'm pleased to report a first project is now underway. it's a $1.4 million energy upgrade in a multi-tenant commercial building in san francisco which includes lighting retrofit and a new solar photovoltaic systems.

i hope this project will lead to other additional products -- and other additional projects and this will make it more attractive for property owners. i'm happy to answer any questions. supervisor chu: i believe for this item we do not have a budget analyst report. are there any members of the public who wish to speak on item number two? >> i have graphics. this is what they need. $1 million. ♪ budget lean, budget lean, but to lean ♪ please keep your budget green. your budget is like a breath of spring ♪ i know that your budget will take wing. ♪ budget lean, budget lean,

budget lane, i'm begging you please keep it green. ♪ and your budget is going to make a good budget dream and i knew you would keep it green ♪ budget weaned. supervisor chu: thank you. are there other members of the public who wish to speak on item number two? we will send out four without objection. item #3. >> of rising the san francisco arts commission to accept an expanded ground -- accept and expand a grant in the amount of $300,000. supervisor chu: do we have a representative from the arts commission? >> i'm with the public arts commission. to give a brief introduction to

the item, the arts commission was approached by arch stone and the planning department with a gift of $300,000 to commission a new public artwork for a new park located on the right of way running through a planned mixed use development in the showplace square neighborhood. this would be located between sixth street, 17th street and hubbell street in district 10. this will allow the arts commission to accept and expand three fund transfers from arched down in three phases coinciding with the budget start up. i'm happy to answer any questions. supervisor chu: on the funding component -- it looks like the amount is $300,000 an amount expected for contractual services is $200,000. what is the rest for customer >> that is less the of the ministry of cost which allows the audit commission -- they allow the arts commission to implement a competitive selection process and manage the artists' contracts through the duration

of the project. supervisor chu: there is no budget analyst report on this item. a question for the arts commission when you come back -- it doesn't have to be an answer for today but it sounds like a fairly high administrative cost to the actual grant going on, so i would like to understand that better. perhaps between when it goes to the full board of supervisors you could answer that question. it seems high when one-third of the cost is for administrative. >> we are happy to have proper clarification. supervisor chu: are there members of the public who wish to speak on item number three? >> ♪ got a pay our dues when using the budget blues and you know money doesn't come easy ♪ you don't have to shout, just to bring the money about and make the rtc ♪ please remember art is how we

made it. ♪ bring the budget there and it will make it all the better ♪ i'm not asking for much, i am just asking for art trust ♪ we will be part about and you know it's going to be really breezy ♪ please remember love and art is going to be better and we're going to make it a great and we are going to bring it to every city place supervisor chu: are there any other members of the public who wish to speak on item number three? seeing none, public comment is closed. i'm going to motion to move this forward with no recommendation. we have a motion and we can do that without objection. item #4. >> item #4, resolution

authorizing the san francisco department of public health to retroactively accept and expand a grant in the amount of five under $45,759 from the public health foundation enterprises inc. to participate in a program entitled "implementing new directions in hiv prevention in san francisco -- a comprehensive." supervisor chu: we have a representative from dph. >> i'm with the hiv prevention section and this is part of a in incentive to implement a national aids strategy established by president obama in 2010. san francisco is one of falsities to be fortunate to be awarded this grant and this is the second year of the grant. san francisco is considered a leader in the nation on hiv and this is to help us implement a national strategy locally. the funds will help us implement

some high impact, innovative strategies and -- including expanding hiv testing to populations at risk for hiv in san francisco, particularly at the san francisco municipal st the clinic and to make sure folks have access to knowing their hiv status. this would provide linkage to care for those provided -- for those with hiv in the city. as a side note, i'm here on behalf of the acting director who is currently at the international aids conference in washington d.c. i am happy to answer any questions. supervisor chu: i believe there is no budget analysts report on this item. are there members of the public to wish to speak on item number four? seeing none, public comment is closed. do we have a motion to send the item forward with recommendations?

we can do that without objection. item #5. >> resolution authorizing the san francisco department of public health to retroactively accept andxpd a grant in the amount of $298,144 from the public health foundation to participate in a program called addressing system act through program collaboration service integration. >> hello. this is a grant from the center for disease control and prevention to promote innovative screening services for hiv, hepatitis, sexually transmitted diseases and tuberculosis. this is a grant to help us work toward better outcome for the communities affected by these multiple diseases. this is the second year of a

three-year grant and it will support activities including disease registry matching to determine where these disease overlap so that we can appropriately target services, include the development of innovative guidelines to support sharing of information among department public health staff when appropriate and the development of clinical guidelines for screening and treatment for various populations, for example, how often should hiv positive people be screened for tuberculosis and hepatitis and including our laboratory to purchase rapid hepatitis c testing equipment. supervisor chu: there is also not a budget analyst report on this item. are the members of the public who wish to speak on item number five? seeing none, public comment is closed. we have a motion to send the item forward with recommendations and we will do that without objection. item number six, please.

>> resolution approving the contract modification between the city and county of san francisco and the tenderloin housing clinic to provide mass release housing for formerly homeless single adults at the mayfair hotel for a time of august 1, 2011 through june 30, 2015 in the amount of $93,070,856. >> good afternoon. the resolution in front of you, we are seeking retroactive approval to modify the contract with tenderloin housing clinic to both the extent that term at the mayfair hotel, a hotel we added in late 2010 and 2011 to find a home for displaced homeless families. the tenderloin housing clinic stepped up and put the house on a master lease and accepted compass community services as the tenant to run 24 rooms

specifically designed for homeless families. those families were formerly in hotels which lost the release and we were able to move them into this one. they received a grant from tipping point to do the modifications to the hotel to accommodate the families and we incorporated this as the 16th hotel in that tenderloin housing clinics portfolio of hotels. i would like to take this opportunity to think the budget analyst office for the expediency of the report on this and the accuracy -- helped us go back and unravel a hotel contract and the report is accurate and we are in complete concurrence with it. supervisor chu: the department is in agreement with the recommendation? >> yes. we concur. supervisor kim: i was hoping you could go into the detail of the retroactivity on this contract. we've just seen a couple that were retroactive as well, but

not quite to the length of retroactivity here. >> this was the second hotel we looked at as a site for the homeless families. we began looking at this when they lost their lease in i want to say late spring of 2010. when we finally identified the one hotel, the deal fell through. we went to the mayfair hotel and the mayfair hotel is currently not under contract with any city clients. that hotel was undergoing renovations by the owners, so we had to wait until those renovations were completed and wait until renovations to specifically accommodate the families were done. those construction's took a little over a year before we move the families and. the hotel was actually under lease but not occupied for that time. that's why we had this lag before we brought it to you to modify the contract. supervisor kim: the second amendment which took place on

july 2010 -- the hotel at that time was not ready yet because the owners were doing rehabilitation work? >> correct. supervisor kim: when was the hotel opened? >> the hotel actually opened in august of 2011. >> -- supervisor kim: why is this coming to us in july of 2012 as opposed to last year? >> when we brought this before you, it was 45-year set of hotels that $82 million that expired june 15, -- june 30, 2015. when we first contemplated this, we were within the overall authority of the prior modification and we wanted to make sure we have all of the details of what was going on with the hotel before we brought back to clean up the resolution. we were still within that term and dollar -- not to exceed dollar amount of the prior

resolution. that is when we went through and decided we needed to clean up all the avenues. as you can imagine, managing a contract with 16 different hotels, 16 different budgets, many shifts around in the hotel budget. at the end of the year, we have some hotels that run over budget and some run under budget and we are shifting things around. we were mindful to stay within the overall for the board had granted as and it was only when we got this hotel up and running and started filling the residual rooms with a single adults that we thought we would bring it back at this time. supervisor kim: i understand that within the parameters of having to come back to the board of supervisors, because you are staying under the actual dollar amount that there was not necessarily an need, is that you are saying? >> correct. supervisor kim: i would still ask you come to us sooner