supervisor mar. supervisor olague. supervisor wiener. mr. president, you have a quorum. president chiu: could we have a motion to excuse supervisor farrell? without objection, he is excused. ladies and gentlemen, could you please join me in the pledge of allegiance? [inaudible] we have a board meeting minutes from june 18 and june 19. those meeting minutes are approved.

are there any communications? >> i have the communications. we are in the receipt of the referendum petition. against ordinance number 10412. the department of elections must notify the board by august 30. if it is not entirely repealed, the board shall submit the ordinance to the voters at the next statewide special municipal election. president chiu: could you read the consent agenda? >> items 129 comprise the consent agenda. if a member would like to discuss a matter, it shall be removed and considered separately. president chiu: would anyone like to sever any of these items?

aye. supervisor kim: aye. supervisor mar: aye. supervisor wiener: aye. supervisor avalos: aye. supervisor campos: aye. president chiu: aye. supervisor chu: aye. president chiu: those ordinances are passed and resolutions are adopted. could you call item 10 and 11. >> item 10 is the proposed budget an annual appropriation ordinance. item 11 is the annual salary ordinance in the trading positions in the annual budget. -- enumerated positions in the animannual budget.

president chiu: these ordinances are passed. >> item 12 is an ordinance amending the building code to reduce the square footage requirement for efficiency dwelling units in new structures or buildings. supervisor wiener: i move to continue one week to july 31. president chiu: if we could do that without objection, that should be the case. item 13? >> item 13, a charter amendment to create the san francisco housing trust fund and housing production incentives act. supervisor wiener: thank you, mr. president. i am proud to be a co-sponsor of the housing trust fund. i have been involved in a very broad based collaborative

process led by the mayor's office. i know you know that we have a housing crisis in san francisco. housing affordability crisis. this charter amendment will move us in the direction of addressing that crisis we are at risk of losing a primary source of affordable housing funding. the housing trust fund will recapture that funding and make sure we are dedicating it to affordable housing. this trust fund does more than establish a sustainable stream of funding for several decades. it also recognizes in addition to a government investment, we also have to make sure that we are providing the private sector with the proper incentives to create enough housing to meet our population's

demand. public investment and private investment are two pieces of the puzzle. this recognizes the balance. this resulted from a terrific collaborative process. i strongly support it and i encourage you to do so as well. i want to thank the mayor's office who played a key role in moving this forward. president chiu: supervisor kenneth. -- kim. supervisor kim: it will hopefully be moving forward to the november ballot this fall. many of us campaigned on pushing and supporting a ballot measure that would support a permanent string for -- stream for

affordable housing in san francisco. we have not been able to pass one sense than. we attempted in 2002 and 2006 to create more funding for affordable housing in san francisco. because of that, the city has been put in a position to try to figure out a measure that would gain a wider already of support in san francisco. i am really appreciative that the mayor, since the day he walked into office, made a commitment to finding a pathway to us putting a ballot measure to the voters that we create permit date funding stream for affordable housing -- permanent funding stream for affordable housing. a lot of work have been the last

six months. among star developers, affordable housing advocates, the mayor's office of housing, the mayor's office, in order to make this happen. i really want to appreciate the discussion and dialogue that happened. there are things in a measure that make many -- all sides feel uncomfortable. overall, but we are putting out to the voters today will accomplish many of the things that we all agree on. one, of course, is more funding and a stable source of funding for affordable housing. second is also a source of funding for home ownership loans for those who make 120% of ami and below. first responders will also be included in that category. it is important as we talk about

how we want to have our fire fighters and our police officers live here in the city and be able to have the means to do so. i am proud to support this today and colleagues, i ask for your support as well. president chiu: thank you, colleagues. i also want to at though the thanks to all the stakeholders that have worked on this. city staff, the affordable housing community, the developer community. this is an incredibly important topic and the solutions that a been provided are worthy for us to support to move forward to the ballot. one question i had was about the time that this charter amendment will go into effect. we are locking and benefits and commitments for the next 30 years. for some of us who have concerns about whether circumstances might change in the affordable housing world, i want to thank

the mayor's office, the affordable housing advocates, and the developers for discussions with my office to move forward in short order separate from the charter amendment, all legislation that would require every five years, there to be a comprehensive report on the implementation of this charter amendment, assuming that it is successful. evaluation and recommendations of -- if any changes need to happen. i do hope and believe that we have thought through every detail that needs to be dealt with. just in case, i think it is appropriate every five years for the next 30 years, for there to be a look back and analysis, and if necessary, for their seats -- for their policy action. i want to thank the various parties for their support. out of great respect for the work that has been done, the

spirit of collaboration and compromised and the incredible importance of figuring out how to plug this hole that has been created by the elimination of redevelopment, i am happy to support this. i am happy to add my name as a co-sponsor. the city attorney's office and others have spent an awful lot of time and figuring this out. we look forward to working together to make sure voters understand the importance. supervisor avalos: i would like to thank all of the parties that were involved in crafting this charter amendment. i think it is a great move forward for the city and county of san francisco. i want to thank the mayor's office of housing. developers from the private side and the non-profit side.

this charter amendment is decades in the making. we had many attempts to put more of our public dollars into building housing at affordable housing in san francisco. in 1999 and 2004, we attempted to pass housing bonds in the city. they needed a two-thirds threshold and it did not pass. in 2008, we had -- i worked on proposition b, which was not the best direction to go, looking at our budget difficulties, but that did not pass either. that was a big part of our effort to address housing needs in san francisco. i lived in a district that probably has not been as supportive of these housing

bonds as other districts have then. i think that part of that is we have a certain housing stock in district 11 bad is not -- that is not similar to where places in neighborhoods in the northern part of san francisco. a high level of homeownership, a high level of renters would then a single-family households. i do not see the same kind of needs around affordable housing as we have another parts of san francisco. if i'd been out in my neighborhood meeting with residents, spent some time door knocking recently, have seen house after house that are apartments that are forcing the families. multiple families doubled up in these units. that is something we have to figure out how to alleviate. we do have a high level of homeownership. we have to make sure that our

policies are relevant for all homeowners. we need to make sure our housing policies will address the needs of distressed homeowners. i am excited that we have language in this charter amendment that addresses the needs in the southern part of san francisco and the southeast part of san francisco. we have a housing stabilization program that is in the charter amendment. it will bring $15 million of funding that will support households who are in need of revitalization for seismic safety or for energy efficiency, supporting households to do not easily are able to access loans to renovate their homes. we also have support for distressed household against foreclosures that could be provided by this charter amendment. that is going to be important to families and households living

in district 11. i am happy to be a co-sponsor of this legislation. for that reason, that is what i will focus on today. i want to thank the city for coming together. i look forward to its passage in november. supervisor cohen: i wanted to go on record saying that i am also in support of this piece of legislation. i want to acknowledge first responders also been able to participate in home ownership. teachers, too, will be able to participate. president chiu: supervisor olague. supervisor olague: there is not a lot to ask other than i am also happy to be cosponsoring this legislation.

affordable housing in this city takes on a different by mention because middle-class housing is a lot different from what it means in the central valley. we're talking about half a million dollars for most single- family homes in this city. i am allowed we're able to reach some agreement and provide housing trust fund that would address the needs of middle class families, first responders, and very low in, folks who have a great need. i think this covers those in need in san francisco and i'm happy to be sponsoring it. i hope it sees passage in november. supervisor campos: thank you very much, mr. president.

i do not want to repeat some of the points that have been made, but i wanted to this opportunity to thank the mayor's staff as well as members of the affordable housing community you have been working on this for quite some time. give issue of affordable housing is very complicated and there is no easy solution. i've always been supportive of the concept behind this proposal. the questions i have had have to do more with details in the execution. i wholeheartedly agree would supervisor wiener that we do have a housing crisis, a crisis of affordability of housing in san francisco. i will be supporting this proposal today, i do not know that the proposal before us necessarily is aggressive enough in terms of dealing with a

crisis. i think this is a modest proposal that gets us -- that points us in the right direction, but i do not know if it is a proposal designed to address the crisis before us. the reality is if you look at this proposal in the year wore on, you were talking about $12 million going to affordable housing. $3 million going to a downpayment assistance loan program. perhaps $3 million going to a home ownership stabilization program. those are positive things, but in terms of addressing the need that is out there, i do not think this goes far enough. i also believe that we have to put this in context. there was an article today in the san francisco examiner that pointed out that we are facing some good times here in san francisco, but with good times, some problems become even

bigger. the average monthly rent in san francisco and out is $2,734. that is close to 13% higher than it was last year. the average home in san francisco is $725,000. i have for people in my district who are having a tough time staying in neighborhoods like the mission, and it is not something that only a few people are facing. it is many people facing that challenge. the biggest fear i had with this approach is that i really believe that when you have an opportunity to bring everyone together, and i think the achievement on that front is exemplary, you really try to do as much as you can because, in many respects, you do not have an opportunity to address them to many times. we will have an opportunity to

do this once for quite awhile. i do have a concern that this does not go far enough. that said, i am not going to lead the perfect be the enemy of the good. this proposal is good. on that basis, i will be supporting it. i do want to a knowledge the collaborative work that went into this. i have had a number of questions about the aspects of this proposal, including the grandfathering end of certain projects that have already been titled. i am not convinced those products -- projects have not gone forward because of the fee is the city charges. i think there are larger macroeconomic forces at play. i will respect the totality of the process and the negotiations. i do not have to agree with every piece to recognize that this is a good thing.

i do think it is important for us to recognize that as good as this is, we are facing a crisis. a crisis requires a level of response that i do not think we are providing at this point, though it is moving in the right direction. supervisor mar: i also wish this went further and create more funding for critical affordable housing, but i will say that i am very strongly supportive of this. i applaud the mayor's office and housing organizations for putting some much work into this. we were in the beginning process of this. in the land use committee, we heard a number of committees highlighting -- we heard a number of hearings highlighting the need for affordable housing in the city. even the association of bay

area the government protections, the need for 100,000 households and the need to build 90,000 units of housing, the affordability gap, and even our approach to building the 60% of those 90,000 units as below market rate suggest it is critical importance. otherwise we face more working families leaving the city. i am strongly supportive of this. this measure is a big step forward. i am very pleased that the city family, many of us are united with many forces in the city to pass this in november. supervisor wiener: thank you. i wanted knowledge and thank supervisor campos for his remarks that perfect is not the enemy of the good.

it is never as much as any of us would ideally like. as we start recapturing more of the redevelopment money, this will be a very sizable investment. there is something in this for anyone to love or not love some much, but that is the mark of a terrific collaborative compromise. we can all agree there is a problem and work to find the common ground and agreement, even if not everyone is enthusiastic and in love with every aspect of it. there is a lot of good in here and it will start moving ness and the right direction. -- moving us in the right direction. supervisor avalos: one thing i

forgot to mention, with the housing stabilization program, my office would like to collaborate with the mayor's office of housing on furthering how we put this program together and how we make it relevant to our community. supervisor campos: i forgot to mention an important point. i apologize for that. one of the big questions i had throughout this process was how the funding -- where we define the funding for affordable housing. -- where we find the funding for affordable housing. one of the things i it supported earlier was having a property transfer tax to properly find affordable housing. i believe from a policy standpoint, that is the right approach. i understand the way in which the proposal before us is going

to unfold is that funding for affordable housing will be tied to the gross receipts measure that will be discussed later on today. i understand and respect the perspective that it is important to not confuse the voters. that said, i do believe that the issues of affordable housing and the issues of gross receipts are two separate issues and each one of those serbs a great -- deserves a great deal of attention. i do worry about whenever you are trying to address two problems with one solution, the solution they water down the result with respect to each problem. that is one concern i have had. i think that an important response to that concern is to make sure that if we are going to have a single measure, the single measure has the appropriate level of funding.

if it is the case that gross receipts will be paying for affordable housing, in the process of doing that, we are not sure changing the level that everything that needs to be brought into the city -- short changing the level that everything that needs to be brought into the city. >> [roll-call vote] 8 ayes, 2 nos. president chiu: the charter amendment is submitted. item 14. >> item 14 is a motion approving or rejecting the mayor's nomination of michael antonini

to the planning commission. colleagues, i understand there is a desire to continue this item for a week. is there a second? this item will be continued to the 31st of july item 15. >> item 15, ordinance appropriating $155 million of certificates of participation funds for the veteran's building seismic upgrade and improvement project. [roll-call vote] 10 ayes.

president chiu: this ordinance is passed on the first grade. >> item 16 as a resolution approving the various airport concession leases. president chiu: this resolution is adopted. >> item 17 is a resolution authorizing the amendment -- amendment of an existing lease at 3120 mission street. president chiu: this resolution is adopted. >> item 18 is a resolution establishing a monthly contribution amount to help service trust fund. president chiu: this resolution is adopted. >> item 19 is from the budget and finance subcommittee, an ordinance amending the administrative code. supervisor chu: colleagues, this

is an item that came out of the budget and finance committee without recommendation. not because there was not recommendation, but to suggest -- to send a signal to pay attention to this item. it is a departure from what we have done before. we have done a self funded plan in the past. i want to walk you through it so that you are aware that this is a decision that we are making and to let you know what the risks are associated with it. this is a piece of legislation that venues the help service programs that we have four employees -- renews the health service programs that we have four employees. we are making slight adjustments to the annual deductible and out of pocket costs. we have also allowed for the state to participate in a

federal employment group waiver plan that helps bring an additional $2.3 million to the city. we are simply renewing the existing plan with no changes to the plan design. for dental, it is a very much the same plan except the we are making a few design changes to incentivize our employees to use in the network dental service providers. vision is the same and we have a new winner in terms of a rfp process. where we have a significant change is the blue shield program. it has been a fully insured program or the city pays for a certain premium for each member. no matter what the cost of the benefits of people going to the hospital or to see a doctor, blue shield covers that because it is fully insured. when we first started the