and to allow our students in our first two classes not to graduate at these alarming numbers. and particularly in the african-american and latino community would be a travesty. and i am certain that the district here on out would be committed to reallocate that the classes after 14 and 15 would have a different structure and set up of the budget. that decreases every year unfortunately. so i am going to make a motion to move this forward with recommendation. >> thank you, a motion to move forward with recommendation. supervisor oblos. >> thank you, i will second this motion and speaking as someone who has worked in the school district as a counselor and has parents in the school district. has children in the school district and is a partner as a

teacher in the school district. i know first hand what it's like to work and send your kids to school. and second hand what it's like to go to school in the school district. we are facing tremendous challenges financially. i am really glad that we have the opportunity to provide funding and support to bring flexibility to the budget for the school district. i am glad we have a plan in place to target the funds to provide. hopefully we will. targeting students at risk not graduating from school. to me it's critical. and matches a lot of policies we put forward as a city. at how we make the investments and be sure that we do the prevention work for young people to find success in our local job market. there is a discussion about reserves and other funding and choices we make as a city.

supervisor kim mentioned the revolving loan fund, and we made a decision to provide loans for small businesses. that was a decision that we made with our funding as a city. actually very interesting today and later on the next item is about the hotels in san francisco. to be able to tax themselves, to create a funding stream to support the building, the renovation, not the renovation but the new center they will build close to the existing. that's our city money and that's the hotels deciding how to spend their own money. the money that we decide to be spent on supporting our kids is our money as well. and to make that decision is worthy of us today to move forward and make sure that we support this in next week at the full board. i will be supporting this

legislation. and i look forward to our vote at the board. i hope we have the mayor's support as well. >> thank you, supervisor. know there a motion and a second. today i am not prepared to vote for that. but i want to explain why. did you want to add something? >> there was a recommendation on this item. >> okay, let me get to that in a second. in the coming week i would like to commit to speaking with the school district to really understand your budgetary issues. i have a very strong feeling that when we -- how it is different from how we prioritize for small business loans, and we made that decisions in context of the budget, and knowing that we put aside a certain amount of money for state and federal reserves and cuts down the pipeline. i know we have serious sequestration issues from the government.

and we have unfunded items from the state that we have to deal with. and not unusual for a school district to ask funding for cuts like you are at this moment. but what is rubbing me the wrong way, i don't see a reflection of the school district putting in some of your own funding to deal with the issue. while you are asking for the city to take from reserves. i don't see a commitment to tap into the reserve to do that. and the last speaker spoke and it's not good to spend down to the last of the reserve. i agree but the fact is that the school district has the entire amount. and that's the question i have, that it's a big priority that you would use some reserves to pay for dealing with this one-time problem and emergency that i heard comments made. and that's what i want to get to

with the school district from the week that follows to the board of supervisors. and that's something that we want to see, and last time there was a request for $6 million in addition to other things that may be coming down this city's and board's committee job to analyze. and so i don't think that it's a bad purpose. i think it's a worthy and good purpose to make sure that our high school students graduate and that our kids graduate. and they are able to succeed and move forward with the requirements that they can go to a post-high school education opportunity. but i am not sure that i see the same commitment from the school district. i am aware that the city has better news and we may be required to put additional funding into the rainy day fund. which the school district has access to. and i would like to explore whether this is a priority for

the school district and use that funding to play for the s-- pay for the supplemental. it won't get all the way there but those are the questions for this week. >> if you call the roll. >> budget analyst. >> we did recommend if the board of supervisors were to approve this they amend the proposed ordinance to require the school district to prepare written reports on expenditures and including course descriptions and materials for the program and detailed program budgets and expenditures to the budget. and the number of students participating in the program and the evaluation of participating students to see the results of the programs. >> thank you. so colleagues we have a recommendation from the budget analyst, take those without

objection? >> i want to commit that they are committed to make the written reports to the board of supervisors. >> we have that motion and take that without objection. >> was there also a motion to reduce the dollar amount from $3 million to $2.7? >> i would like to make a motion from the original amount from $3 million to $2.75. >> okay, we can do that without objection. and to the underlying item, roll call please. >> on that motion. >> avalos. >> aye. >> kim. >> aye. >> chu. >> no. >> motion passes. >> thank you very much. item passes and goes to the full board.

>> >>

>> push >> it worked in the renovation

and we believe that it will work for the expansion. we believe that there is tremendous public benefit, but job creation, and city, general fund creation. this process today is just the beginning of a long process. we will be loved with a great amount of community out reach and public communication, because we believe that not only will this be a great benefit for the community, but also for the neighborhood. i leave two blocks from the center and i do care about the neighborhood that i live in and i believe that this enhancement will not only make the center bigger but a bigger player and a better piece of our neighborhood. >> i just want to point out some of the economic facts. two billion dollars in direct spending in san francisco economy has already been lost. between 2010 and 2019 because the center was not big enough. these were groups that would have come to san francisco but decided not to because there was not enough space.

the increase and average daily rate will be immediate and a long term, each time that we expanded and build one of the two buildings in the past, mascony, south, north and west, the revenue has grown and sustained itself and we believe that it will continue to happen with this next expansion, the revenue per room is the way that you value the hotel revenue is expected toin crease, 6.7 to 5.5 percent. that converts into hotel tax into the city's general fund. the occupantcy will grow to 86 percent when the expansion grows. >> the projected occupantcy of the rooms?

>> since the rooms is where it comes from, we have to say that the hotel will benefit from the assessment. >> where is it at? >> 1.5 percent. >> what is the occupantcy? >> it is about 80 percent this year. >> 79, 80 percent, thank you. >> excuse me, office of economic and workforce development. i wanted to go over the approval process, this is for the district which is proposed to fund, you know, over two-thirds of the projects, regarding the moscone expansion, but in addition, the district wants to fund a few other things which i will go into in a minute.

a few junctions where there will be a few processes for the approved project. today, we have submitted petitions, actually, they have gone up to 53.97 percent weighted in support of forming the proposed mascone expansion and today is the resolution of intention that you are considering. and after if this was approved, at the full board, then, the department of elections will mail the ballots to all of the hotels proposed to be assessed in city and county of san francisco. and after that, there will be a public information meeting in january on the 23rd, which is included in the date of this proposed resolution of intention. and then, after that, the full board, as community as a whole would consider the resolution to establish following a ballot

tabulation and public testimony. in addition, there was a validation action process to validate not only the proposed financing portion of the district but also the assessment district. so other approval processes related to the bonds, this is proposed that the city would issue bonds that would be repaid in large part by the assessments by also by the city contributions. and we will get more into this in a minute with the presentation. but the capitol planning committee would have to you know, approve the resolution to issue bonds, and the board of supervisors again will have to after that, approve the resolution to issue bonds, following that process, there would be a validation action in the court for the issue ans of the bonds. and so this dates on here, unfortunately, i tried to correct this morning but all of the computers were down.

it is actually the district information started in september of 2012 in the sense that that is when the petitions were first submitted to the board supervisors. but, that that process we are anticipating ending around june 2013, that is when we are anticipating the validation action would be concluded. the bond financing process, the resolution bonds would have to be introduced at the board and would go in front of the budget and finance committee in january and then to the full board on the fifth of february at the same time the resolution to establish the district would go to the full board. and then, in addition to the financing, portion of this project, there is a long process for entitlements and design. that is just going to begin. and so there will be a review

process, design and development, the zoning or the proposal will stay in the zoning so there will not be any proposed zoning changes. but we will need to get approval and permits from the building department. and it is anticipated that process will take two years starting december up to 2012 to december of 2014. and, anticipating start of construction in december of 2014. so i am just going to go over a little bit about the proposed assessment district. it has two zones. similar to the current tourism improvement district. the current tourism improvement district has been a very successful portion of those funded mascone renovations. and that portion of the assessment of the current and will be sunseting at the end of december, 2013.

so, in zone one, which is on or east of venas on or east of 16th street, the rate proposed in the new district is 0.5 percent from july to december of 2013, because that is a period that it will overlap with the existing moscone renovation district. and when that sunsets at the end of december, the assessment under the moscone will go up to 1.25 percent, for the duration of the district which is a proposed 32 years, ending in 2045. zone two has a different assessment rate, and that is for hotels residing west of vanness, and south, and south of 16th street, and that proposed is 0.3125 percent. and this is room revenues for tourist rentals. so for room and hotels, that generate revenue from tourists.

this percent will be charged on the revenue earned from those rooms. >> could you just remind me what the current rates in zone one and two are? >> under the tourism improvement district, zone one is one percent, and zone two is 1.5 percent. but the moscone renovation portion of tho will sunset at the end of 2013. so it will go down to 1 percent in zone one, and 0.75 percent in zone two, and those funds will fund the san francisco travel related marketing of the city for tourism industry, hotel bookings, and services of that nature. it won't go towards a capital improvement any more for moscone, the portion would sunset. >> just a clarification, you had indicated that the petition vote already came through, i think that is what we see before us. >> today we submitted

additional four petitions that brought us. we originally submitted them to the board in september, but they have gone up to more of a trickled in so now it is at 53.97 percent and support. >> is there a period when you stop counting? >> yes, now. >> now, okay. >> right, because if this resolution is approved by the full board, then the ballots will be made out and the hotels will have a second chance to weigh in, a second time through the formal ballot process. >> and then i guess the question for you in terms of the 54 percent of the total weight of the beginning of the process, there is only two percent roughly that was in opposition. so there is a 40 plus that did not participate. >> correct. >> i wonder if those are hotels, and what kind of out reach to them and i know