coming before us to allow this building -- to go through but to cap the production of these microunits to 375 units. for that reason i will be voting to support this today. but i still wanted to reiterate the concerns that i had shared several months ago on terms of what this policy may mean. first of all i really do hope that if these units do go forward that they're tried out in other naikdz neighborhoods. soma is already experiencing incredible density and is really struggling to meet that density with infrastructure, whether it is transit and open space. and i think that it'sá ás÷ realy important that as we experiment or pilot this program, that we really study what the impact to those neighborhoods are, and are we adequately meeting those needs based on this policy. these smaller units would increase population -- could increase population in my district by as much as 32%.

and i think that as we do this, it's important that we carefully study this. so i prosecute esh that we are going -- appreciate that we are going to move forward with this in this direction. >> president chiu: supervisor avalos. >> supervisor avalos: thank you. this one is kind of troubling to me. i don't think i read the same memo in everyone else. i thought i lived in a efficiency unit. a family of four, 950 square feet and every inch of space is used. and we're just totally crammed in. i live in a district that is 6500 more people more dense than it was 10 years ago, and we have a number of houses that has efficiency units for the number of people who are crammed into them. and a great demand i see for housing is not something that i believe is really the kind of units that we're waiving the way here today. i do see that there are benefits

for that and in certain parts of san francisco but i think over all this does not make a lot of sense to the san francisco that i know. i also know there are a lot of people who live in this city who are desperately trying to remain san franciscans representatives of this city, and are finding it difficult to be here because of the rising cost o of rent. i don't believe this is any kind of units being created that will actually be able to help that group of people. so i just cannot stomach, you know, supporting this idea, though there might be some folks who see benefit. i just will be voting against it. >> president chiu: colleagues, any further discussion? let's take a roll call vote on these two items. madam clerk. >> clerk calvillo: on item 15 and 39 as amended, supervisor avalos, no. supervisor campos, aye. president chiu, aye. supervisor chu, aye.

supervisor cohen, aye. supervisor elsbernd, aye. supervisor farrell, aye. supervisor kim, aye. supervisor mar, aye. supervisor olague, aye. supervisor wiener, aye. there are 10 ayes and one no. >> president chiu: these ordinances are passed on the first reading. supervisor wiener, item 16. >> clerk calvillo: item 16 is an ordinance amending the administrative code to monitor san francisco's housing preservation and production policies and goals and making the requisite findings. >> president chiu: supervisor olague. >> supervisor olague: if i could be called afterwards. i'm not prepared at this moment. >> president chiu: if we could pass over item 16 aened go to item 17. >> clerk calvillo: item 17, an ordinance amending the planning code to -- development fee

rates, revise exemptions and credits and clarify implementation and collection. >> supervisor chiu: supervisor wiener 12k3w4r58 thank you. we are continuing to have dialogue around transit impact development fee update. so we've continued it three times before. i anticipate that this will be the final continuance so i move to continue this item two weeks to december 4. >> president chiu: supervisor wiener has made a motion to continue this item to the 4th of december. seconded by supervisor cohen. without objection this item will be continued to december 4. item 18. >> the clerk: ordinance appropriating approximately 2.7 million of state reserves for san francisco unified school district for fiscal year 2012-2013. >> president chiu: supervisor kim. >> supervisor kim: thank you. first i want to take time to appreciate the incredibly high level engagement of discussion, dialogue, there has been around the supplemental which i introduced last month for

san francisco unified school district. this is a supplemental that is asking us to give 2.7 million out of our state reserve fund to assist the school district. both in the recent cuts that have been made for the 21st century for their after school funding and also to assist in helping our first two classes of graduates that have to graduate a through g to graduate. as many of you have read in the press we are finding a large number of students are not on track to graduate and our first class to graduate a through g is set in the next few semesters. we have a short timeframe to do that in. we have made this commitment to grow and encourage jobs in the city. we new he had to make sure that our students that are growing up in the city are able to access those jobs because they're graduating college-ready. i want to be clear when we talk

about a through g i hear the debate not all kids have to go to college and i agree but all of our kids have to graduate ready for college because you graduate ready for college you're able to access living wage jobs and if you don't have math and science classes that are required a through g you're not going to be able to go into apprenticeship for building and trade programs. so this is an important policy for the city. unfortunately with our first two classes the level of cuts that they've been experienced has not allowed our school district to fully support the program that is needed to do that. i think, also, with our city passing really the highest budget that we have seen in our city's history i think it's more important than ever that we really step our support for your families and our kids. that being said i think that there are a lot of conversations in kind of moving targets as we're finding different moneys coming in from the last fiscal year so i wanted to allow greater time for a conversation to happen about both sources of

funding and also specifically how this investment that the city is making, in our class of 2014-15 are going to be met over the next two weeks. so i would like to make a motion to continue this item as well to december 4. and i do want to thank my cosponsors, supervisors campos,ñ mar, avalos and olague. >> president chiu: seconded by supervisor mar. further discussion, supervisor campos. >> supervisor campos: thank you very much. i want to begin by thanking supervisor kim for bringing this item forward. and let me begin by saying that i have been supportive of this effort to provide additional resources to the san francisco unified school district from the very beginning. that's why i signed on as a cosponsor. but i am not, at the present time, continue to be a cosponsor of this item, in its current

form. and let me say why. you know, we saw the headlines in the chronicle today about of 2014, we have about 1900 high school students in the city and county of san francisco that may not be able to graduate, and meet the graduation requirements that were established by the san francisco board of education. we, in san francisco, have seen tremendous economic growth coming out of the most severe recession since the great depression, and having served on regional bodies that include other jurisdictions, i can tell you that we are very lucky in san francisco, that we are lucky that we have the resources that we have had, and that we hopefully will continue to have. but, yetd yet, in a city as wealthy as san francisco we have a school district that is facing a crisis. we have about half of our students in this class of 2014

that may not be able to graduate and meet the requirements. san francisco has to do better than that. and even though money is not everything, the ability for us to commit resources as a city is really important. and what i understand of this item is that there is a discussion about whether or not to tie the funding that's underlying this item to the rainy day fund. and to the extent that happens, to the extent that there is a connection between this appropriation and the rainy day fund, i will not support it. the rainy day fund was created for the very purpose of this city making public education a priority. the rainy day fund, as was enacted by the board of supervisors, as was crafted by

then supervisor ammiano has to stand on its own terms, it has its own triggers, its own mechanisms for deciding what exactly the school district gets. and to the extent that we are trying to use this supplemental appropriation as a09( #ta way of minimizing the amount given to the school district through the rainy day fund i have a problem with that. so to the extent that this item comes back to us in the form where it is tied to the rainy day fund, i will not be supporting it, and i would encourage parents and folks in the public school community to make sure that they get involved in terms of what happens with this item, because to the extent that we set a precedent here at this board of supervisors, that going forward we're going to tie future funding of the scriblth to the rainy day fund i think we are setting a very dangerous principle, a dangerous principle

that ultimately would undermine and could undermine the rainy day fund and its purpose. so i look forward to having an ongoing discussion about this item, but if it is, as i have heard, that there is going to be a connection made to the rainy day fund, i will not support that. and i think that there are many people in the education community, in the public school system here, who should have reasons to be concerned about that connection. we need to make public education a priority. and even though we're a separate government entity from the school district, we have an obligation to our kids to make sure that there is proper funding of education at the local level, and that ensures -- that requires that we protect what the rainy day fund has done for our public schools, what it can do going forward, and to tie it to this supplemental i think is simply a mistake and is something that could have long-term negative consequences that i hope we don't get to. >> president chiu: supervisor

olague. >> supervisor olague: i want to thank supervisor kim and her staff for working so diligently on this with the school district. this supplemental funding will help counseling and staff assistance for students who have stumbled and need help to get back on track to graduate. this is the example of the safety net that we as supervisors have ability to utie to help those in need. we had an achievement gap for african-american students and we heard data about the achievement gaps, english language learners, latino students and our api students. the number of students that are at risk of not completing the a through g requirements and therefore at risk of not graduating is unacceptable. by adopting this legislation, we have the chance to put our money where our mouth is and support children and families in san francisco. by voting for this i hope to

elevate equal access to education to the forefront of all of our minds. it is critically important for the city to step up where it can to fill the gaps and help students on their paths toward achievement. this legislation truly represents a solution based agenda that will serve our agenda that will serve our children and ensure that we asew to success, particularly for students of color and low income students. i am happy to support this item as it demonstrates our committed partnership with the school district to include outcome for students in san francisco. >> president chiu: supervisor mar. >> supervisor mar: thank you. i wanted to also thank supervisor kim and coleman advocates and the board of education commissioners, i know with vice president rachel norton, sandy -- stepped with us on the steps today for the cities to step up and support the most vulnerable high school students that are in danger of

not graduating, i think about 1900 students as the chronicle stmed two days ago. but i am sensitive to supervisor campos' comments about the potential threats to the rainy day fund and imhoping with the week's continuance that we try to work on this issue. i know -- lee, one of the -- and sf usd has developed an action plan to make sure students have potential to meet a through g, csu requirements that we support as many people as we can with not only after school programs but on line and other types of supplemental support so that we maximize our support so we make sure students don't fall through the cracks and they could earn their diplomas for high school. i agree with supervisor olague that this is a issue about equity. it's about supporting not only african-american and latino high

learner high school students as well and i think it's an important effort that we make a statement as a city that we support our school district especially the most vulnerable in our communities. i also wanted to lastly thank the many parents and youth advocates, the youth commission and many others for raising this issue as an important justice issue for all of us and i will be proudly support the issue measure but i look forward to dialogue about not threatening the rainy day fund and also making sure that we advocate to reauthorize so-called prop h now called public education enrichment fund so that in 2013 we build a broad coalition to reauthorize that important support for our school district. thank you. >> president chiu: supervisor chu. >> supervisor chu: thank you. one of the -- that did come before the budget and finance committee and we had a very healthy discussion as well as presentation by the school district on this topic. so since that time i also have met with the school district to discuss more of the budgetary

issues that is facing san francisco unified school district and have a better understanding of course of what they face in the coming years. i wanted to just explain the reason why i did vote against this item when it came before us at the budget and finance committee. i will be supporting the continuance and hope that we will have conversations and further information. but primarily when we think about a through g and having our kids be prepared to be able to enter into higher education, i don't think anybody in this room disagrees with that. supported having the san francisco unified school district have an a through g requirement. i think that if you ask most people in this room people also would agree that we wanted to make sure that kids have opportunity to catch on up credits so they can graduate. so i don't think that that is the question. i think for me, really the biggest question really is on the specifics and here the details do matter. we have a supplemental appropriation that is 2.7 million. in terms of the 21st century

funding that was lost that was only 1.6 million. so thi there is a program extenn in the program level that we have to consider. so i think we would benefit from further understanding what the school district's plans are in terms of this expansion. it's not simply to backfill lost funding. it is higher than that level. in addition i think there are fundmental questions about how it is the school district plans to continue to pay for this in the long-term. as you know, we've heard from the school district that their intention is to come to the city on a one-time basis but this is only funding source for half a year. and so hypothetically in the year -- the school district would have to pay for an annualized expense ongoing, year after year. so i think that we don't have an answer from the school district about what their intentions are. nor do we have really the answer from the san francisco unified school district about how they prioritize this in light of some of the other budget priorities that they may have. so i think we would benefit from having a continuance, but i do

think these are very important questions to ask before we make this decision. so again i want to thank supervisor kim for the continuance. i do think that the cause is a worthy one. i think having credits that kids can catch up on is a good thing to have kids be able to graduate from our school district. but i think it matters about how the school district intends to prioritize this in their own budget. i think it matters about how they intend to continue supporting this in the long run. thank you. >> president chiu: supervisor elsbernd. >> supervisor elsbernd: thank you, mr. president. this is likely my last clans to chime in on something supervisor mar talked about because this is a bit of a precursor to the prop h discussion that you will have over the next 12 months. and hearing supervisor campos talk to some extent i felt if i closed my eyes i thought -- former supervisor now assemblyman ammiano saying the same things he would have said if he were here.

on the prop h extension one thing i hope is discussed, as you move forward on that, is frankly a little bit more of truth in advertising on a very particular point that has frustrated me throughout the years prop h has been implemented and that's the in-kind services. when supervisor ammiano put that forward, particularly when he campaigned frankly in my district throughout the west side what we heard a great deal about was in-kind services. it won't be a significant hit on the city a general fund because we will begin to account for all the things the city already pays for whether it be puc paying for frankly later in this meeting, muni, the dollars that are going to go to youth fast passes. those are in-kind services. but school district, i mean has given us this much in in-kind services. there's been nothing of significance in in-kind services. and there is a win/win. i've tried for years to make that happen. the city could save a little money on its general fund

especially if we looked at in-kind from the departments but that was consistently ignored. i hope as you develop extensions of prop h, if you're going to do it, do it. if not, fine. let's be honest about it. don't tell the voters that there will be in-kind when there isn't as has been the case for the last 10 years. >> president chiu: supervisor cohen. >> supervisor cohen: thank you. thank you for agreeing to continue this item. this is an important policy discussion we need to continue. and i -- where i am uncomfortable lies more with the school district. i just would like to get a better understanding about their expansion plans and how they plan to support these expansion plans. i do particularly have a positive experience for the last two summers, working with providing supplemental summer school instruction particularly for our high school students inside district 10, ycd -- did

an excellent job in providing summer enrichment as well as helping kids make that diploma. so in the future i'm sure we have representatives from the school district here. i'd love to talk more about the understanding that you have a 1.6 federal dollars missed out of your budget and if i can get a better understanding of how you get to 2.7 million in your total request for money. thank you. >> president chiu: supervisor avalos. >> supervisor avalos: thank you, president chiu. i wasn't planning to speak on this. i was going to wait until it came back to us in a couple of weeks. but i couldn't help but react to the discussion about in-kind services. i think there's a lot of things that we can say the school district provides to us that can't be counted. my wife is a school teacher.

she works about 10, 11, sometimes 12 hours a day. and multiply that by thousands of teachers who are doing that kind of work, this 5,000 -- maybe they don't all work 10, 11, 12 hour days but a lot do and we are one of the lowest per capita funding for students as a state and san francisco, within the state of california, and we're hard-pressed to make sure our schools are well funded. i believe whatever we can give to the school district is going to be utilized to help improve educational experiences. we have a good plan for how this is going to be used. i think it's a worthy plan, worthy services for youth that desperately need greater opportunity in life. i will be supporting this when it comes forward but there are so many intangibles that the school district provides us as a city that cannot be counted in any way. >> president chiu: supervisor kim. >> supervisor kim: i'll try to keep my comments brief. i want to say i find this conversation incredibly exciting

and i'm glad we as a board are talking about what it needs to have a true city-school partnership. i think it's important for us as a city to have a discussion about what it costs to run schools. i had the opportunity to sit on the first citizens advisory committee when prop h was created in march of 2004. you know, we fully funded prop h as the voters had asked us in its first three years that we've released funds to the school district. unfortunately in the last five years we have pulled the trigger which allows us to cut what we give to the district by 25%. over the last five years that means the city has reduced what the voters have asked us to give to the schools by 74 million. you know, when the city economy is weak, that is what the trigger was put in for. there's clearly a reason as to why the city had to reduce this -- for the school district. but i think the emphasis behind

where the supplemental came from as we ask the school district how are you going to fund these programs going into the future i hope we have a real conversation next year, as our city economy looks better and our city economy grows as to whether we're going to pull the trigger again on prop h. i think that in last year, when we pulled the prop h trigger to me it had made sense because we didn't have a good budgetary forecast of what revenues were coming in. as the month of june was closing it looked more and more optimistic. as we look at the budget picture now i think many of us asked why did we pull the trigger last year and that was the reason why i introduced what i thought was a modest fundamental in the school district. overall regardless of your position i'm excited that we're engaging in a robust discussion of what it means to partner and support with our school district going forward. >> president chiu: supervisor chu. >> supervisor chu: one other last point that did come up

during the committee that i think is relevant and important. during the conversation, we also heard from the school district. they expect to end this current year with a 25, 26 million dollar fund balance. they are required to have $15 million in the bank for a fund balance. this tells me that they actually have some funding that they can utilize to deal with this issue. and so the question for me then if this is the school district's priority, what is their intention in terms of the use of their own reserves to deal with a priority that they had set forward. so that's also a question i hope will be answered in the next week or so, so we can also understand and have further clarity from the school district on it. again they have a $25 million, 26 million reserve that is currently sitting that they expect to end the year with. so this is something i think that is a relevant and important point in this discussion. they do have anticipated shortfalls in the future as we do so i know there will be many conversations around that.

>> president chiu: colleagues, unless there's additional conversation, supervisor kim has made a motion to continue this item to the 4th of december. i think that was seconded by supervisor mar. if we can do that without objection this item is continued to that date. item 19. >> clerk calvillo: an ordinance amending the business and tax regulations code to provide for a district term of up to 40 years when assessments are pledged or applied to pay any bonds, financing leases or other similar obligations of the city and authorize the board of supervisors to require a waited two-thirds vote of business owners to be assessed based on ballots cast as an alternative or additional procedure for establishing a business improvement district and levying assessments and clarifying existing positions and update references to state law. >> president chiu: colleagues, roll call vote. >> clerk calvillo: on item 19, supervisor avalos, aye. supervisor campos, aye. president chiu, aye. supervisor chu, aye. supervisor cohen, aye.

supervisor elsbernd, aye. supervisor farrell, aye. supervisor kim, aye. supervisor mar, aye. supervisor olague, aye. supervisor wiener, aye. there are 11 ayes. >> president chiu: the ordinance is passed on the first reading. item 20. >> clerk calvillo: a resolution declaring the intention of the board of supervisors to establish a business based improvement district to be known as the moscone expansion district and to levy a multi-year assessment on defined hotel businesses in the district. >> president chiu: colleagues, can we take this same house, same call? this resolution is adopted. next item. >> clerk calvillo: item 21, resolution approving the fourth amendment to the treasure island firefighting training center master lease between the treasure island development authority and the united states navy and extending the term. >> president chiu: same house, same call. this resolution is adopted. >> clerk calvillo: item 22 is a resolution approving the agreement with sfo shuttle bus company to provide shuttle bus

services at san francisco international airport in an amount not to exceed $105 million for a term december 1, 2012 through june 30, 2016 and approving three two year options. >> president chiu: same house same call this resolution is adopted. >> clerk calvillo: item 23 is a resolution authorizing the municipal transportation agency and department of human resources to retroactively an agreement with intercare holding ensures for workers compensation third party services for an amount not to exceed 23.6 million and for a term of three years with option to extend the term for up to an additional two years. >> president chiu: same house same call, this resolution is adopted. >> clerk calvillo: item 24 resolution authorizing the department of public health to retroactively accept and expend a grant in the amount of 10,000 from california wellness foundation for adolescent health education collaborative for the period of october 1, 2012 through september 30, 2014.

>> president chiu: same house same call, this resolution is adopted. project proposed by gsw arena an affiliate of the golden gate state warriors to rehabilitate port property at piers 30 through 32 diesel on the piers multi-purpose venue usable for public assembly uses and other events and develop a seawall lot 330 residential hotel and/or restate uses and accessory parking is fiscally feasible and responsible under administrative code chapter 29 urging city and port officials to make evaluating the proposed project among its highest priorities and taking appropriate steps for further environmental review of the proposed project. >> president chiu: supervisor kim. >> supervisor kim: colleagues, thank you. this is a resolution before us that is just beginning a process of approvals for the golden state warriors in their proposed project to rehabilitate pier 30-32 a